Problem Analysis Project Summary

Problem Analysis Project Summary

JACC is our Management Consulting Firm. We offer tools and training to companies to assist them with solutions to their problems. The work related problem being presented is a high employee turnover ratio within the company. In 2000, the high ratio turnover presented a major problem to the company. We will describe the problem as a comparison between the current and preferred situation. Is a high ratio turnover really the problem, or a symptom of the problem?

The brief background of the problem is a high ratio of employee turnover. The problem is company wide.

Many companies come to us with a variety of issues that are affecting their work environment. The preferred situation for our clientele is employee retention, high morale, minimal absences, highly trained personnel, and minimal turnover. When these preferred situations are present within a company, there is more visible production in the work environment. How many people are affected? A high turnover ratio mainly affects the people below the managerial level because they are taking on an extra workload. Middle management is also being affected due to the limited resources of trained employees available to complete the company projects.

Why does the problem exist in the first place? The triggering event that exposed the problem was when the numbers came in showing how much the company was exceeding the budget. The amount of money the company spent each month was increasing due to the additional training and the salaries being paid for temporary employees, the employment agency, and the increasing overtime hours for the remaining employees. The company suffers the expense of training new employees after the old ones have moved out. The need for hiring temporary employees is necessary in order to keep the workflow in the department updated until they can fill the position. The company is losing money due to reduced production as a result of the most qualified personnel leaving the company and the newer less qualified personnel performing all the work.

The applicable components of critical thinking are perception, assumptions, emotion, language, argument, fallacy, logic and problem solving. The perception of how management viewed the situation versus how the employees saw the same situation. Management assumed that if the employees were still coming into work and making overtime, there was no need to change the system. Some employees were fearful of voicing their complaints so the only way they expressed themselves was by leaving the firm. Personal barriers such as employees wanting to better themselves were not taken into consideration by management. Management did not try to inform, persuade and explain to the remaining employees that there was a problem in place and how they planned to correct the high employee turnover which was a symptom of many other problems. Management's goal should