Freda Turner An Effective Employee Suggestion Program Has a Multiplier Effect

Freda turner an effective employee suggestion program

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savings.Freda Turner, “An Effective Employee Suggestion Program Has a Multiplier Effect,” WebPro News, March 4, 2003, - employee-suggestion-program-has-a-multiplier-effect-2003-03 (accessed October 11, 2011). Similarly, in 2001, Edward Jones, a personal investment company, faced a difficult situation during the stock-market downturn. Costs had to be cut, and laying off employees was one option. Instead, however, the company turned to its workforce for solutions. As a group, employees identified cost savings of more than $38 million. At the same time, the company convinced experienced employees to stay with it by assuring them that they’d have a role in managing it.Richard L. Daft and Dorothy Marcic, Understanding Management (Florence, KY: Cengage Learning, 2006), 219, (accessed October 11, 2011). Why People Quit As important as such initiatives can be, one bad boss can spoil everything. The way a person is treated by his or her boss may be the primary factor in determining whether an employee stays or goes. People who have quit their jobs cite the following behavior by superiors: Making unreasonable work demands Refusing to value their opinions Chapter 7 Recruiting, Motivating, and Keeping Quality Employees 7.5 Performance Appraisal 362
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Figure 7.9 Trying to meet unreasonable work demands can be extremely stressful and is a major reason people quit their jobs. © 2010 Jupiterimages Corporation Failing to be clear about what’s expected of subordinates Rejecting work unnecessarily Showing favoritism in compensation, rewards, or promotionsGregory P. Smith, “Top Ten Reasons Why People Quit Their Jobs,” Business Know-How , , (accessed October 11, 2011). Holding managers accountable for excessive turnover can help alleviate the “bad-boss” problem, at least in the long run. In any case, whenever an employee quits, it’s a good idea for someone—someone other than the individual’s immediate supervisor—to conduct an exit interview to find out why. Knowing why people are quitting gives an organization the opportunity to correct problems that are causing high turnover rates. Involuntary Termination Before we leave this section, we should say a word or two about termination —getting fired. Though turnover—voluntary separations—can create problems for employers, they’re not nearly as devastating as the effects of involuntary termination on employees. Losing your job is what psychologists call a “significant life change,” and it’s high on the list of “stressful life events” regardless of the circumstances. Sometimes, employers lay off workers because revenues are down and they must resort to downsizing 39 —to cutting costs by eliminating jobs. Sometimes a particular job is being phased out, and sometimes an employee has simply failed to meet performance requirements.
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