Jeans, Inc. Case Study
Summary of Case
Jeans, Inc., is a textile company located in the mid west, one of several plant location of a large international company. The specific problem this company was experiencing was a 90 percent yearly employee turnover rate. The plant was 35 years old and employed roughly 600 workers, consisting of managers, supervisors, operator trainees, maintenance workers, trainers and sewing machine operators.
The employee population was mixed workforce consisting of 83% of female workers and an ethnically mixed population of 70% Caucasian, 18% Hispanic, 9% Asian-American and 3% African American. The region had a low unemployment rate of 2 to 3 %, and was considered limited skilled to semi-skilled labor force. Employment opportunities in the region were low-wage, low-skilled jobs requiring low-technical, service employment opportunities. It was noted that the recent influx of Hispanic workers created pressure on the “unskilled and semi-skilled labor market.” The high turnover rate was specific to the low-skill, low-wage employment opportunities in the region. |
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Original Case study
Initial Problem Statement
It was estimated that the annual per-person cost of turnover ranged from $1,200 to $20,000, and possibly as high as $40,000 (Mercer, 1998: Taylor, 1998). The annual operator turnover rate of nearly 84 % created a negative impact on the plant’s efficiency. The plant manager noted that many operator trainees failed to complete their training and this turnover cost the plant roughly $100,000 annually in overtime, with an incapacity to provide production and training goals.
Performance Analysis Tools, Analysis, Results
A performance consulting team was created consisting of a faculty member from a local university, with expertise in performance consulting and applied research, an experienced workforce consultant pursuing a doctorate, and five additional doctoral students with a varied of business experience. Most of the team members were knowledgeable in performance analysis, specifically quantitative and qualitative research methods.
Results were a three-phase approach consisting of pre-analysis, post-analysis and intervention, which took three weeks, with the team meeting two times per week for several hours. It is noted that the team met with the plant personnel manager three times, with the team leader meeting with the plant and personnel manager an additional two times. The process of brainstorming and focus groups were used that stretched across a semester which consisted of 15 weeks. The initial phase one and two lasted approximately 6 months, and the faculty team member stayed on for an additional 24 months as sole consultant for the final phase.
Framework of Performance Analysis was to identify interventions, design and develop applications for intervention, implementation and evaluation. Qualitative methods were used to collect documents, conduct formal and informal interviews, observations, and data review. The performance consultants met with HR to examine trends and data and found that turnover rate was the highest after 21 days of employment. It was determined that excessive turnover directly contributed to plant deficiencies. The performance analysis concluded that completion of training programs, job performance of trainers, behaviors of supervisors and training methods were all identified as a factor.
Results were a three-phase approach consisting of pre-analysis, post-analysis and intervention, which took three weeks, with the team meeting two times per week for several hours. It is noted that the team met with the plant personnel manager three times, with the team leader meeting with the plant and personnel manager an additional two times. The process of brainstorming and focus groups were used that stretched across a semester which consisted of 15 weeks. The initial phase one and two lasted approximately 6 months, and the faculty team member stayed on for an additional 24 months as sole consultant for the final phase.
Framework of Performance Analysis was to identify interventions, design and develop applications for intervention, implementation and evaluation. Qualitative methods were used to collect documents, conduct formal and informal interviews, observations, and data review. The performance consultants met with HR to examine trends and data and found that turnover rate was the highest after 21 days of employment. It was determined that excessive turnover directly contributed to plant deficiencies. The performance analysis concluded that completion of training programs, job performance of trainers, behaviors of supervisors and training methods were all identified as a factor.
Cause Analysis Tools, Analysis, Results
Findings of the performance analysis were categorized in three phases of pre-analysis, analysis and post-analysis. Data was collected and coded to clarity and provide traceability. The goal of qualitative data analysis was to identify patterns in the data. Interviews, observations and extant data reviews were documented. All data was reviewed and reduced to identifiable categories.
Qualitative and quantitative data were put into and manipulated by either a qualitative software package or statistics software package. Descriptive and inferential statistics were calculated on the survey items, including demographic data such as gender, age, and ethnicity.
Pre-analysis Phase – Data tools/activities used were used to familiarize the consulting team with the problem under investigation, namely high employee turnover within the plant. These activities included literature review related to turnover, review of the regional employment situation, awareness of the culture and turnover related issues within the plant. Most importantly, the pre-analysis phase helped to develop cohesiveness within the consulting team itself!
Results - Review of literature data– Turnover was a common problem in the textile industry and certain variables such as job satisfaction and work commitment were also related to employee turnover.
Results - Review of regional employment data – Low unemployment, coupled with a recent recruitment of Hispanic workers into the region by a local business, had impacted many employers’ turnover rates in the region in the categories of lower-paying, low-and semiskilled job categories. Interviews with plant managers were also conducted and revealed that the tight labor market in the region also was a contributing factor in the high turnover rate of the company.
Results - Review of employment data – It helped the team better understand employee turnover within the textile industry and also its’ immediate impact on regional employment. Both the review of literature and review of employment data were considered when developing possible interventions during the post-analysis phase.
Additional Cause Analysis Tools. Prior to the actual analysis, the team spent time talking with operators, trainers and other key employees and observing key activities. These informal activities helped the team become familiar with the plant culture and enabled them to assess employee’s attitudes toward the turnover problem and the consulting team’s involvement with this problem.
Analysis Phase – This phase included collecting data from various sources, in-process data analysis, assuring trustworthiness and final analysis of all data. The results of the analysis phase indicated several possible influences of employee turnover. They included operator and trainer training (a lack of skills and knowledge of operator trainees and operator trainers were identified); management and supervisory issues, such as a lack of valid supervisor job descriptions and organizational communications Plant-level communications from the plant manager to the workforce were identified as a possible influence that contributed to employee turnover. There was also a lack of effective orientation training.
Post-Analysis Phase –This phase followed after the team reported the results of the first two phases. This phase included reporting results of phases one and two to key plant personnel, drawing conclusions and making recommendations from phases one and two, analyzing interventions needs from the data, sequencing and implementing interventions, collecting and analyzing data from interventions, drawing conclusions and making recommendations from the implemented interventions and reporting findings to the key plant personnel.
Qualitative and quantitative data were put into and manipulated by either a qualitative software package or statistics software package. Descriptive and inferential statistics were calculated on the survey items, including demographic data such as gender, age, and ethnicity.
Pre-analysis Phase – Data tools/activities used were used to familiarize the consulting team with the problem under investigation, namely high employee turnover within the plant. These activities included literature review related to turnover, review of the regional employment situation, awareness of the culture and turnover related issues within the plant. Most importantly, the pre-analysis phase helped to develop cohesiveness within the consulting team itself!
Results - Review of literature data– Turnover was a common problem in the textile industry and certain variables such as job satisfaction and work commitment were also related to employee turnover.
Results - Review of regional employment data – Low unemployment, coupled with a recent recruitment of Hispanic workers into the region by a local business, had impacted many employers’ turnover rates in the region in the categories of lower-paying, low-and semiskilled job categories. Interviews with plant managers were also conducted and revealed that the tight labor market in the region also was a contributing factor in the high turnover rate of the company.
Results - Review of employment data – It helped the team better understand employee turnover within the textile industry and also its’ immediate impact on regional employment. Both the review of literature and review of employment data were considered when developing possible interventions during the post-analysis phase.
Additional Cause Analysis Tools. Prior to the actual analysis, the team spent time talking with operators, trainers and other key employees and observing key activities. These informal activities helped the team become familiar with the plant culture and enabled them to assess employee’s attitudes toward the turnover problem and the consulting team’s involvement with this problem.
Analysis Phase – This phase included collecting data from various sources, in-process data analysis, assuring trustworthiness and final analysis of all data. The results of the analysis phase indicated several possible influences of employee turnover. They included operator and trainer training (a lack of skills and knowledge of operator trainees and operator trainers were identified); management and supervisory issues, such as a lack of valid supervisor job descriptions and organizational communications Plant-level communications from the plant manager to the workforce were identified as a possible influence that contributed to employee turnover. There was also a lack of effective orientation training.
Post-Analysis Phase –This phase followed after the team reported the results of the first two phases. This phase included reporting results of phases one and two to key plant personnel, drawing conclusions and making recommendations from phases one and two, analyzing interventions needs from the data, sequencing and implementing interventions, collecting and analyzing data from interventions, drawing conclusions and making recommendations from the implemented interventions and reporting findings to the key plant personnel.
Intervention Selection and Development
- Management and Supervisory Issues. Results from employee’s interviews resulted in the supervisory-related intervention. The intervention included identification and review of specific job responsibilities for each supervisor and reallocation of production responsibilities for key supervisors. The job responsibility review now required an examination of the specific of the job by the plant personnel staff, and then reviewed by the line supervisor. This allowed supervisors to be included when defining the responsibilities of their jobs. The modified job responsibilities were then forward to the appropriate plant personnel manager.
Using the revised job responsibilities data, key supervisor responsibilities such as reducing the dependency on trainers for production duties were carried out. It was viewed that this intervention was beneficial and had an effect on turnover.
- Organizational Communication. The revision of the use of the plant’s electronic public address system and increased use of supervisors and trainers as a communication conduit between management and the plant’s workforce were implemented to reduce the paper driven communication in workplace. The results, it was revealed that the communication interventions were considered worthwhile. They perceived the introduction of the electronic bulletin board to be especially valuable because of it had bilingual capabilities and all messages were transmitted in both English and Spanish.
A microcomputer system was installed in the plant office. The system included an intranet, internal and limited external email capabilities; word processing; spreadsheets and access to corporate-related engineering, production and quality data. Observation revealed that the computer was almost used exclusively by plant management and engineering personnel but not used much by supervisors or trainers.
The intervention that focused on supervisors and trainers assuming the role of “communications conduits was discussed and the decision that supervisors needed training in interpersonal and organizational skills in order to step successfully in this role. It was also decided that an outside company will be hired to develop the training that addressed the specific needs of the company. Unfortunately time and other priories prohibited the intervention of this training.
- Operator and Trainer training. The intervention consisted of developing trainer job descriptions and train-the-trainer and skills training for trainers. The rationale for development of trainer job descriptions was the results of the data collected and analyzed indicated that trainers, supervisors and trainees were all unclear of the specific duties of the trainer. The results this implementation did not appear to have an immediate influence on turnover.
- Orientation Training. The intervention was the development and implementation of an RJP (Realistic Job Performant tool). A RJP video was developed and pilot tested as part of a planned overall revision of the orientation process but not as an immediate intervention. Following the pilot and review of the results, a decision to revised, pilot test and implement the orientation process. Unfortunately the plant manager abruptly suspended the RJP process after six weeks of use based upon several external and internal events that forced the plant management to cease all turnover related interventions including the RJP process.
Evaluation
There was no opportunity to evaluate the interventions. The turnover related interventions ceased due to (1) Escalation of an ongoing, large-scale redesign process within the plant. This process was initiated by corporate. (2) Several local and national labor-relations issues. (3) A reinterpretation of immigrant hiring procedures resulting in Hispanic workers quitting. (4) Eventually closing of the plant.
Critique - What Would You Have Done Differently?
Identifying the problems that influenced employee turnover and analyzing the results indicated that there were four problems within the organization to address. The wide-spread interventions to address all four problems did not allow time to evaluate the results and perhaps make changes by readdressing the intervention. I would have identified one cause or influence of the problem with employee turnover and evaluated the results before starting the intervention. Using another model approach to address the performance problem would have been better also in this case.
It seemed that the consultant team needed more management and directions. They indeed collected information but vanished during the project because of other expected responsibilities. This appeared to create a lag time that was needed to introduce the new structure (going from a team to one consultant) and to develop trustworthiness of the efforts of the project.
It seemed that the consultant team needed more management and directions. They indeed collected information but vanished during the project because of other expected responsibilities. This appeared to create a lag time that was needed to introduce the new structure (going from a team to one consultant) and to develop trustworthiness of the efforts of the project.