- Title Page

The case considers the discussion of the problem being occured in the ABC Company
along with detailed analysis on the process of how it can be solved in proper and
structured manner.

MOIN ABBAS QURESHI

IQRA RAZA QURESHI
 Table of Contents

- Title page

- Table of Contents

- Executive Summary

- Problem Statement

- Analyzing Case Data

Reasons and Effects of issue

Shareholders of issue
Future Decision Effects
Constraints

- Generating Alternatives

- Key Decision Criteria

- Evaluating the Alternatives

- Recommendation

- Action Plan
- Executive Summary

The case address the issue of employee turnover in ABC Company. The research
explains that non rewarding system towards employees is making them unsatisfied
with the job is the actual underlying problem behind the explicit issue. The case
absorbs complete detail and research in order to get to an alternative that better
address the issue to make it solved in structured manner.
 Case Analysis

- Problem Statement

ABC Company has been facing the problem that their employee turnover rate is quite
high.Almost every year, 20% top performing employees tend to leave the
company.The company is worried due to this issue.But definitely it is the reaction of
some underlying serious issues and problems. What are those issues?Actually those
issues are the real problems being occured in the ABC Company that needs to be
identified by the company for that they may be solved properly for smooth operations
of the company.

The reason behind the problem that company is facing high turnover is:

employees of the company are not being awarded for their work properly i.e. the
employees are not being rewarded for their work and achievements in the company
for their tasks.This is the problem that is making the employees unsatisfied and the
turnover rate of company has reached so high.

Now the considerable thing is:

What should ABC Company do in order to resolve the problem ?

- Analyzing Case Data

The issue that employees are not being rewarded for their work is quite serious one.
The management of the company is held responsible for this issue.Actually,
management of company is accountable and responsible to appraise the employees in
a company. Many people think that this a non serious issue being risen up. But it's as
crucial as doing work in a company.

Reasons and Effects of Issue

The main reason why a company doesn't reward the employees is that the company
doesn't think that it's crucial to be done. The management of company thinks that
employees are here for work and are being paid back in monetary benefits. The
employees can be retained in a company like this. This mindset generally urges the
situation that employees become unsatisfied with the company and tend to leave there
of.

Stakeholders to this issue

Unsatisfied employee never work with full will and try to give the best at level which
is undertaken by a satisfied employee. A task needed to be accomplished absorb a
number of resources there in; material, labor hardwork, cost, equipments, suppliers,
potential buyers, company, monetary suppliers and employees itself as well.
One task that is not accomplished well leave effect of loss at certain points and affect
number of stakeholders.

Future Decisions Effects

The relevant future decisions made in context to this issue will definitely make the
employees happy and satisfied along with all the stakeholders getting affected with
this issue.

Constraint

The most possible constraint that made this issue risen uo is definitely the
management of company not capable to know that employees are need to be
motivated through reward system.

- Generating Alternatives

The suggested alternative solutions in relation to this issue need to be quite practical,
useful, realistic and within the resource limits and constraints of ABC Company.

All the personnel of management involved in this issue need proper training
regarding to subject of handling the employees in better way. It might help them to
get their mind open about how to maintain the employees in the company. Then they
can get the issue reasons and solutions of the issue also.

Need to apply motivational techniques and strategies in order to motivate the

employees in more better way. Not high paid salaries are reward for work of
employees but there are many non cash benefits and techniques that are helpful to get
the employees feel rewarded and motivated. The motivational techniques include:

provide the employee with flexible working hour

arrange an annual dinner with the employees
provide them with appreciation speech on an occasion
arrange an annual tour with employees
honor their work in meetings for recognition and appreciation
provide them with positive and energetic work environment
provide them with growth opportunities in your company

A good leadership style in a manager is quite useful to prevent issues and problems
mostly related to dissatisfaction

Democratic Leadership Style

Democratic leadership style also known as participative leadership style, the most
effective in terms of productivity and morale, represent the style of letting the
employees also particpate in the process of decision making. Every person in the
company is given equal right to particpate and exchange the ideas on the concerned
topic. And leader provides with full support and guidance to the employees.
 Most Suitable among all

The most suitable realistic decision to imply in order to resolve the issue is the
Reward system initiation in the ABC company.

- Key Decision Criteria

In order to select the one of all the suggested alternatives, a criteria is needed to be
impose that will help in deducing the best alternative so far.

The most preferable alternative for the solution of dissatisfied employees leaving the
job is:

Initiation of Reward System in ABC Company

How it has been decided to be implemented for resolving the issue ? Simple is that:

this is the most successful practice being followed in all the companies for years in
order to make the employees feel rewarded for their hardwork and satisfied.

this is the alternative among all that is most complete, concise and works in most
effective way so far to resolve this issue. Although, all the alternatives are having
almost same attributes pointing towards the same destination so far. But all the other
alternatives are not complete in their nature to provide with the most benefits so far.

Leadership style adoption is a good measure but only involvement of employees in

decision making process is not sufficient to get them feel rewarded for their work. It is
good to let them feel motivated and involved but being rewarded expectation is quite
different.

providing training to employees is always required in a company in order to get

them do the operations of company in more smooth way and to be update with the
business world and it's requirements. But still, this phase is not completed yet, it
further needs the step of initiation of some reward in order to be completed.

The initiation of reward system in ABC Company will get the employees feel
rewarded for their work and will thus satisfied with their job.A satisfied employee
along with being loyal with company provide with high performance in
accomplishment of each and every task and goal. And it ultimately increases the sales,
profits, company goodwill, customer satisfaction, market share and return on
investment so far. Human resource is itself enough to provide with all the above
benefits to the company.

- Evaluation of Alternatives

Following is the detail of advantages and disadvantages of each alternative along with
the implication of each alternative to extent of period.
1. Training to Managment

Advantages

will help to get them acknowledged with the idea of maintaining and rewarding tge
employees

will keep the mangement updated with the today's pace of world

Disadvantages

it is a good prospect to approach but still it needs to be more complete in detail

it involves the clear of perception of management but still there exists a lag of
further initiation

Implication Period

Employees need training with little gaps of period in context to everything but this
approach is not considerable to be implemented as it is incomplete

2. Reward System

Advantages

it is the most adopted approach to motivate and reward the employees

it is the most successful approach to follow
it let the employees feel rewarded and motivated

Disadvantages

it can't be termed as disadvantage but it involves little bit cost for this system but
still thats a great rewarding investment

Implication Period

Employees need proper reward system organization in order to make the employees
feel satisfied and accomplished in reference to a task or goal. This approach need to
followed buy a company and has potential to last long in the race of satisfying and
motivating the employees .

3. Leadership style

Advantages

it is a good approach to follow in order to get the employees motivated in most

effective way
along with motivation, it is still needed to make other moves to reward the
employees
Disadvantages

it needs more initiatives in order to get the problem solved completely

Implication Period

Employees need a manager who follows a good leadership style for management but
still this approach is not considerable to be implemented as it is inadequate and
incomplete.

- Recommendation

By making it pass through all the procedures and criterias, the reward system
initiation is the best alternative to be decided as the final decision in order to be
further implemented to resolve the issue of turnover of employees.

The reward process will let the employees feel involved and rewarded for their effort
and hardwork in relation to tasks of the job. Tbis will make them satisfied with the job
and the turnover ratio of employees will tend to decrease.

- Action Plan

Action plan for reward system initiation include organizing a proper function annually
for the purpose of giving the rewards to the employees along with appreciating yhem
with words in a big crowd.