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Human resource management is a function which helps the organization to increase employee’s performance in order to achieve their strategic objectives. It is basically concerned with managing individuals within business corporate which concentrates on policies and systems. Further, HR activities focuses on training and development, performance appraisal, rewarding employees, maintaining working atmosphere and solving disputes within the business organizations. HRM helps enterprise in attaining goals and objectives efficiently and effectively by recruiting competent and motivated employees. This report is carried out for the purpose of understanding better HR concepts. For this, case study of Leah's bakery is given which deals with breads, pastries, and other types of baked foods. This present report focuses on identifying cause of high turnover which Leah's bakery is facing. Further, it also focuses on various motivational factors which enterprise can provide to their employees in order to retain them. Further, it stresses on concentrating on various HR activities with the help of various models. It also involves techniques to control labor to reduce high turnover rate of organization.
Employee’s turnover is a major drawback as it increases the cost for organization without any mutual benefit to employees and enterprise. This usually happens when human resources are not satisfied with the working condition and also with the environment they are working in. Major cause of labor turnover in Leah's bakery:
Workers in today's generation want to show their talent and caliber and want requisite salary to satisfy their individual’s goals and objectives. They are usually focusing on to expand their skills, abilities and experience. This is the major cause of employee’s high turnover as they do not have much to show their potential and talent and they are usually fed up with the normal routine work with no essence of exposure and development. This dissatisfaction is also results in poor selection procedure which is opted by Leah's bakery. This can be easily avoided by using effective training and development process.
The major reason while employee's leaving business corporate is the salary factor. Leah's bakery pays $6.50/hour to their retail clerk and $9.50/hour to shift supervisor. For instance, if minimum wages in other bakery and beverage industry is high and Leah's bakery is providing them low as compared to that of market price than it will lead to high labor turnover with no motivation.
Lack of recognition is the main reason why 25% of employees leave their jobs. This is generally because employee does not want to remunerate by good salaries and incentives (Deb, 2006). Apart from this, they want to get recognized by the way how they are performing the job and what compliment they are receiving from their customers.
According to a survey, 30% employees leave their job just because of their manager’s behavior. In Leah's bakery, the behavior of superiors might not be good enough with their subordinates and this is the only reason that in 2 years 240 employees have been employed which results in an 800% of turnover. In order to overcome this, managers and employee's in Leah's bakery have to communicate with each other and they have to come up with a productive solution which will increase employee's motivation level.
This is also a major cause for employees leaving the Leah bakery as they feel that, there are not enough development opportunities in the department or bakery in which they are working in. After working for some days or quarter of a year, they feel their duties are redundant and hectic. By getting dissatisfied, they look for some other types of job (Millmore, 2007). This is the only reason for Leah that she has seen that, over 240 employees have left the bakery in this 2 years period. It further indicates that, the labor turnover is quite high as it is almost 800%. This percentage is equivalent to employ a new set of employee's for 6 weeks.
Employee who are working are having no such connection with Leah's bakery as employees have to follow all the major decisions which are imposed by the manager. Therefore, it is clearly understood from the scenario that Leah is opting autocratic style of leadership and where all the prior decisions are taken by her only. This is also a major cause of employee's dissatisfaction as they are not treated as a part of the org
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