Leadership and Organizational Behavior

Published: 2021-06-29 06:29:34
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Leadership and Org Behavior (MGMT591)

August 5, 2012

Personnel Support Activity Department (PSD) North Island provides pay, personnel, administrative, and passenger transportation services to over 112 commands, and 17,000 service members on Naval Base San Diego. PSD aims to ease the financial strains that are imposed on the service members and their families.
In terms of my role with this company I have been asked to assume the role of a consultant. I was asked to offer my expertise in handling the large employee turnover rate. In this industry the turnover rate can be as high as 50% to 85%. I feel that with the right management strategies in place this employee turnover rate can be decreased. It is essentially all about getting the right people for the right jobs by shifting focus and investing in the people of the organization. This new investment in the employees of the organization is the right change in culture that management is looking for to ultimately decrease the unwanted and expensive employee turnover rate.
Problem statement
PSD does not have enough well-trained employees for the company. PSD deals with service members who have to deploy at a moment's notice, and the last thing that they need is to be worried about their families financial, and wellbeing while deployed away from them. PSD does not provide the customer service, or have a well trained staff to take care of the service member's needs. Having untrained employees can cause both emotional and physical implications which could cause the service members to gravely endanger their lives and those of their command. PSD has tried to cut down their costs by asking their current employees to take on more responsibilities without giving them the proper training. The employees that they currently have are not well trained, and many can only handle one task and are unfamiliar with the responsibilities being asked of them.
Literature Review
A company that is driven to reduce employee turnover to decrease the exceptionally large expenses that come with it. It is safe to say assume that as a company reduces its employee reduces its employee turnover rate the more production will be seen. Saving money, reducing costs, and increasing profits are serious motivations that most companies use to reduce employee turnover. What is the cost of employee morale, bell-being, efficiency, quality of work, and productivity? According to Laser (1980), "While these human costs may be less tangible, their expense is equally significant (p. 17)
Being able to determine the driving force behind why people leave a company is essential. A common misconception is that money is the sole reason why people leave an organization. If it were actually that easy to understand then every company could just pay their employees more and be able to keep their people, this sadly is not always the case. Mowday (1984) suggest that, "organizations that understand the reason why their employees leave can take steps to reduce turnover" (p. 366). Money is not always the sole motivator. There are individuals that have certain needs, wants, and desires that money alone can't buy. Being able to understand the needs of the employees who work for an organization is the first step in understanding employee turnover rates for a company. If all of the employees are leaving for the same reasons then management needs to address those reasons in order to decrease the employee turnover.

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