FAR EASTERN UNIVERSITY

Institute of Accounts, Business and Finance

BUSINESS ADMINISTRATION DEPARTMENT

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Table of Contents

Table of Contents ............................................................................................................................. i

List of Tables and Figures .................................................................................................................ii
Executive Summary......................................................................................................................... 1
Overview of the Case ...................................................................................................................... 1
Viewpoint ........................................................................................................................................ 1
Time Context ................................................................................................................................... 2
Case Facts .................................................................................................................................... 2
The Problem ................................................................................................................................ 3
Objectives.................................................................................................................................... 3
Alternative Courses of Action/Criteria............................................................................................ 4
Recommendation............................................................................................................................ 5
Conclusion ....................................................................................................................................... 6
Bibliography .................................................................................................................................... 8
Appendices...................................................................................................................................... 9

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

List of Tables and Figures

Figure 1. Underlying Cause of High Attrition Rate in Artistnetwork PH ……………………………….. 3

Figure 2. . Framework for High Attrition in Artistnetwork PH …………………………………………...... 4

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Executive Summary
This paper analyzed and review the case of Artistnetwork PH an event organizing
company which started on the year of 2017. It is said that the company directors plan this
business during their college years wherein it explained why they had an experimental system
since they are new and still learning in the said industry. In this case it shows that the company
is performing well on their first year of operations until on its second year some of their
excellent employees left their company which gives them a hint that the attrition rate in the
company is continuing to increase and this high turnover rate affected the performance and
quality of their works. Through the interviews conducted the researchers have come up with
their solution in the said case study. This case study also provides an analysis on the different
underlying cause of the high attrition rate in the company; it suggests different alternative
courses of action; it also provides different recommendation for the company to solve and to
prevent the company going under high attrition rate.

Overview of the Case

Artistnetwork PH is an event organizing company wherein it accommodates different
markets and said to provide strategic planning and creative delivering of social events, concerts,
theatre production, meetings and events in corporate and non-profit market sectors.
Artistnetwork was launched in the year 2017, on its second year of operation the company
some of their valuable and excellent employees left the company and they had recognized high
attrition rate in their company wherein it also affected the quality, performance and the
working environment of the employees. Through the case study the researchers had analyzed
and gathered data that shows the different underlying cause of high attrition rate in the
Artistnetwork PH. The underlying cause of the high attrition rate is the job dissatisfaction. The
following attributes of job dissatisfaction such as lack of interactional fairness, low rewards and
compensation, and low career growth and advancement were present in the company.

Viewpoint
Artistnetwork Ph an event organizing company which was launched in the year of 2017
and said to have high attrition rate in the second year or current year of their operation. The
researchers believe that there is an underlying cause or the root of the said attrition rate.
According to the interview that was conducted the company’s system is experimental when it
comes to decision making process and states that they had difficult time working with their
supervisor or with the employees with a higher position, not enough compensation, bias in the
decision making in every meeting. Researchers believe that high turnover of employees were
high mostly because of work-related factors than personal factors. Through this the researchers
had analyzed that the company is facing attrition rate because of the employees’ job
dissatisfaction. The following factor that shows job dissatisfaction in the company are rewards

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

and compensation that does not match their work effort, low career growth and advancement,
and the lack of interactional fairness.

Time Context
The problem was observed and analyzed by the researchers second week of April when
they conducted the interview. The answers and data gathered by the researchers’ shows that
the issue of high attrition rate started on their second year of operating the business wherein
they stated that some of the efficient and excellent employees leave their company with the
following work-related factors such as rewards and compensation, career growth and
advancement, interactional fairness. Furthermore the high attrition rate was said to affect their
quality and performance of their work in the current year of operation

Case Facts
Artistnetwork PH is an events organizing company. It provides strategic planning and
creative delivering of social events, concerts, theatre production, meetings and events in
corporate, financial, academic and non - profit market sectors. The company was firstly planned
during their college years and was launched in the year 2017. Artistnetwork Ph is consists of
five (5) Executive Directors and more than five (5) investors. Under the Artistnetwork Ph, the
company also have a partnership with Filipino - Chinese Theatre Dance Company that serves as
a group of dancers where they can hire in case needed for the event.
Statements of the executive director and investor:

 “It is hard to work with some of the superiors”

 “Lack of sustainability and opportunities compared to other job”
 “I see myself not growing in this company’’
 “The compensation is not big enough to match the work being done”
 “Acknowledgement for the accomplished jobs are seldom given to where the credit is
due”
 “The company should show that each member is important and that the job being done
is worthy and relevant”
The following statement of the interviewees proves that the root of the attrition rate in the
company is the job dissatisfaction of the employees on the different aspect such as rewards and
compensation, career growth and advancement, interactional fairness.

 Rewards and compensation were said to be not appropriate for the work being done.
 The low career growth compared to other work which offers lots of opportunities
 Lack of interactional fairness were seen on how superiors treat employees with lower
position

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

The Problem

Figure 1. Root Cause of High Attrition Rate in Artistnetwork PH

The figure above shows the root cause of high attrition rate in Artistnetwork PH wherein based
from the conducted interviews there are three Job dissatisfaction areas such as rewards and
compensation, career growth and advancement, and interactional fairness.
This case study aims to analyze the problem in Artistnetwork Ph and its underlying causes. The
researchers problems stated in the case study are the following:
1. High attrition rate in the company
a. Job Dissatisfaction of Employees on the following:
 Rewards and Compensation
 Career Growth and Advancement
 Interactional Fairness

Objectives
 To solve the attrition rate and attain employee retention
 To analyze and solve the underlying causes of the high attrition rate
 To provide alternative courses of action on rewards and compensation,
 To increase career growth and advancement of the employees
 To suggest recommendations on increasing interactional fairness

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Alternative Courses of Action/Criteria

Figure 2. Framework for High Attrition in Artistnetwork PH

Based from a case study in Raja Batteries Limited (2015), in order to assess the high
attrition rate the researchers should identify the following factors and come up with a
strategies in order for them to attain employee retention. The figure above shows the following
attrition factors such as rewards and compensation, career growth and advancement, and
interactional fairness. These factors are the reason of high attrition rate and the company
should focus on these areas to be able to attain employee retention.
The following are the alternative courses of action:
1. Focus on increasing employees job satisfaction and employee engagement through the
use of P.R.I.D.E. system wherein:

 Provide a positive working environment

 Reward and recognition
 Involve and increase employee engagement
 Develop the skills and potential of the workforce
 Evaluate and measure job satisfaction

With the use of the P.R.I.D.E system the company would be able to evaluate the
employees’ job satisfaction which includes the rewards and compensation that the
company is giving to the employees and will surely assess the underlying problem of the
company when it comes to high attrition rate.

2. The researchers proposed to the company to hire a professional an external factor or

individual who is professional towards event organizing from the outside to prevent
biased decisions in the company

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

With this alternative course of action the company will obtain a new employee
who is not part of the team and more skilled and professionals in their company whom
can analyze and give comments to the proposed suggestions and ideas before the
decision is made in the company.

3. The company could use the Management by Objectives wherein this theory puts forth
the premise that employees are more motivated by goals and objectives that they had a
hand in setting. Rather than dictating instructions, quotas and goals from above,
managers following an MBO philosophy include employees in strategic decision-making
whenever possible, especially in decisions that directly affect employees' daily routines.

With the use of Management by objectives the company can increase interactional
fairness because the employees would be engage in the decision making process of the
company.

Recommendation
The team recommend to the Artistnetwork PH to use the P.R.I.D.E system in order to
lessen the attrition rate and to solve the underlying job dissatisfaction in areas of rewards and
compensation, career growth and advancement, and interactional fairness.
1. Provide a positive working environment
- Based from the interview some of the employees are stress and having difficulties
dealing with someone who is superior from them. The company must increase
interpersonal fairness wherein the employees are treated with politeness, dignity,
and respect by the authorities.
2. Reward and recognition
- The company should always recognize the efforts and value of their employees like
giving compliments to them when they are done with their parts. They should also
reconsider the compensation and rewards that each of the employees are receiving
because most of the employees said that the compensation they are receiving is
not adequate for their job.

3. Involve and increase employee engagement

- The researchers suggests to allow their employees give suggestions and
recommendations in the decision making process of organizing the event in this
way they would be more diverse when it comes to information and ideas. And the
company must also take note of using operative words in order to avoid
misunderstandings and conflicts.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

4. Develop the skills and potential of the workforce

- Based on the interview conducted the employees wanted to resign because they
are not growing in the company. The company could give each employees a
rotation of task where one could experience different task and with this it could
also increase the cooperation of each team because the expert in that task could
help and guide other employees who’s new in that task.

5. Evaluate and measure job satisfaction

- The researchers believed that evaluating and measuring job satisfaction of
employees at least once or twice year would lessen the attrition rate in the
company. The company should create a survey wherein it will assess the problems
seen by the employees and the area for improvements in the company.

Summary and Conclusion

The Artistnetwork PH is currently experiencing high turnover or attrition rate wherein

some of the employees who are excellent and considered as the asset of the company have

left. The team believes that it has underlying causes such as lack of organizational fairness and

job dissatisfaction which is based from the answers of the interviewee. It is said that the

company fails to satisfy the needs of the employees such as the rewards and compensation

wherein the compensation they were receiving were not adequate for the job they are doing,

low career growth and advancement, and lack of interactional fairness. The team has given

courses of action such as; the P.R.I.D.E system in order to solve the underlying cause of high

attrition rate, other option is hiring an external employee who is also expert in organizing

events and will guide the company's decision making, and another course of action is following

the management by objectives theory wherein employees takes part in the strategic planning

and decision making of the company.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

The research team has decided to take the first course of action which is the P.R.I.D.E

system wherein it will address the underlying cause of high attrition rate such as rewards and

compensation, career growth and advancement, and interactional fairness. The team believes

that this is the best course of action to be taken since it solves the attrition and creates a

system to attain employee retention. Furthermore, this will help in evaluating and analyzing the

satisfaction of employees which could result to increase employees’ engagement and job

satisfaction. Lastly, having the P.R.I.D.E. system in the company would greatly benefit the

company and probably also increase the performance of the employees and the company.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Bibliography
Bhoganadam, Syamala & Dasaraju, Bhoganadam & Dasaraju, Srinivasa. (2015). A Case Study on
Employee Attrition at Amara Raja Batteries Limited, Tirupathi. Retrieved April 10, 2019,
from 10.13140/2.1.2376.9929.
In Business Communication, O. C. (2017, October 30). Management by objectives (Drucker).
Retrieved April 18, 2019, from https://www.communicationtheory.org/management-
by-objectives-drucker/
Ingram, D. (2017, November 21). Motivation Theories & Employee Turnover. Retrieved April 20,
2019, from https://smallbusiness.chron.com/motivation-theories-employee-turnover-
11785.html
Lee, J. D., & Lee, D. M. (2019, April 16). High Attrition Rate in Artistnetwork PH. (J. Siy, & A.
Reyta, Interviewers)
Smith, G. P. (2010). The Pride System. Retrieved from Chartcourse:
https://www.chartcourse.com/the-pride-system/

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Appendices

Far Eastern University

Institute of Accounts, Business, and Finance

April 2, 2019

Dear Mr. David Martin S. Lee

Good Day! As a part of the fulfilment in our requirements of the course,

Organizational Behaviour, please be informed that the representatives of Section
15 namely, Neil A. Camarador, Rayn Nille Ferrer, Ace F. Reyta, Jonhlyn Erika N.
Siy, Erika Georgia P. Torrado and Christian Joseph Tan are conducting a case
study on the HIGH ATTRITION RATE AT ARTISTNETWORK PH. In relation
to this, we are requesting for your approval to allow us to interview you on April
16, 2019. This procedure will contribute to the accomplishments of our objectives
for this endeavour.

We are hoping for your cooperation. Your support will be greatly appreciated.
Thank you very much!

Respectfully yours,
Jonhlyn Erika N. Siy
Leader

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Group: The Legal Marketers Organizational Behavior

Members: Section 15
Neil Camarador, Rayn Nille Ferer, Ace Reyta,
Jonhlyn Siy, Christian Tan, Erika Torrado

High Attrition Rate at Artist Network PH

Questions:

1. How do you see yourself in the company?

2. How is it working in the company?
3. What do you like and dislike in the company? Why?
4. How effective is the sense of accomplishment in the company?
5. Are you satisfied with the company? Why or why not?
6. What’s a sound rewards/compensation? Is the company meeting these?
7. Do you know someone who resigned in the company? What’s the purpose?
8. What’s the common reason why employees resign?
9. Are you planning to stay for long or leave the company? Why or why not?)
10. What do you think the company could do to make these employees stay longer?

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Interview with Artistnetwork executive director Mr. John Darwin Lee and Mr.
David Martin Lee

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