Reference no: EM131469175

Question: To Heck with Them!

Isabelle Anderson is the North Carolina plant manager for Hall Manufacturing Company, a company that produces a line of relatively inexpensive painted wood furniture. Six months ago, Isabelle became concerned about the turnover rate among workers in the painting department. Manufacturing plant turnover rates in that part of the South generally averaged about 30 percent, which was the case at Hall. The painting department, however, had experienced a turnover of nearly 200 percent in each of the last two years. Because of the limited number of skilled workers in the area, Hall had introduced an extensive training program for new painters, and Isabelle knew that the high turnover rate was costly. Isabelle conducted exit interviews with many of the departing painters.

Many of them said that they were leaving for more money, others mentioned better benefits, and some cited some kind of personal reasons for quitting. But there was nothing to help Isabelle pinpoint the problem. Isabelle had checked and found that Hall's wages and benefits were competitive with, if not better than, those of other manufacturers in the area. She then called in Nelson Able, the painting supervisor, to discuss the problem. Nelson's response was, "To heck with them! They will do it my way or they can hit the road. You know how this younger generation is. They work to get enough money to live on for a few weeks and then quit. I don't worry about it. Our old-timers can take up the slack." After listening to Nelson for a moment, Isabelle thought that she might know what caused the turnover problem.

1. Interpret a turnover rate of 200 percent. What does it mean?

2. Do you believe that the exit interviews were accurate? Explain your answer.

3. What do you believe was the cause of the turnover problem?