Professional Documents
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The first reason for the high employee turnover rate of Outdoor is the lack of
professional and productive employees. Despite having 20 full-time employees in
two branches, Ms. Ngoc was unable to delegate all ongoing activities to her
inexperienced workers, complete all steps by herself instead, and constantly deal with
departing employees and recruiting new people. Therefore, her low-skilled employees
face a scarcity of opportunities to gain real-world experience during working-hour and
learn from the old-hand labourers to enhance their ability, efficiency, and effectiveness,
consequently resulting in the nervousness of an unsustainable workplace. In the
Administrative Management Theory of Henri Fayol, stability of tenure is one of the
key principles (Hussain, Haque & Baloch 2019), which demonstrates that the
management should provide job security among the employees to contribute their
maximum efficiency in the organisation (Indeed Career Guide 2021). Organisations
experiencing a high level of instability and ineffectiveness can have high levels of
employee turnover rate (Alexander & Nuchols, cited in Ahmed et al. 2016). The Outdoor
did not create any opportunities for the employees to enhance and develop their ability
to prove that the organisation could guarantee the workplace's stability and long-term
viability.
Aside from the shortage of effective workers, the neglect of motivation in the
workplace negatively contributed to labour turnover. Motivation is a powerful stimulation
directing employees' behaviour to perform effectively and resulting in job satisfaction
(Varma 2017) which affects the workforce's decision to leave their position. Herzberg
Two-Factor Theory claimed that motivation was the factor of employee satisfaction,
while dissatisfiers were the hygiene factors (Wan, Tan & Idris 2013). Motivation factors
include achievement, recognition, responsibility, the work itself and promotion(Open
Textbook Library 2016). Specifically, employee recognition has been identified as a
powerful motivator that focuses employees' efforts on meeting organizational objectives
and has a significant positive relationship with employee performance (Amoatemaa &
Kyeremeh 2016). In this case study, Ms. Ngoc’s employees lacked the feeling of
recognition, with the evidence that she was unwilling to let employees come up with
ideas on their own and delegate new E-commerce project because of the fear of her
staff making costly mistakes. Not only did this situation fail to inspire, but it also caused
dissatisfaction with the feeling of unrecognised and unvalued. As a result, because of
not following the Herzberg Two-Factor Theory, Ms. Ngoc can not retain employees
and has constantly faced a strong labour turnover rate for two years. Subordinates
believe they have no chance to contribute to the business's operation and success,
resulting in a lack of promotion opportunities, forcing them to leave in search of better
opportunities similar to Mr. Bao's situation.
2. Ineffective management
According to the Administrative Management Theory of Henri Fayol, management is
the combination of planning, organising, leading, and controlling (Huynh 2021a).
Management is the process of controlling a complex organisation to achieve desired
goals, which is responsible for the organisation's survival and development (Kaehler &
Grundei 2018). Accordingly, poor management can have long-term consequences for
the employees and organisation including high staff turnover, tarnished company
reputation, and decreasing productivity and morale (CluerHR 2021).