Developing a comprehensive strategy to address key issues in organizational behaviour and human resource management challenges of Zenith Solutions Ltd
MBA CASE STUDY, Research Project: 2, 4 credits (Semester 3rd, MBA)
Submitted by Alvin George, Shoolini University, Solan in July 2024
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Case Study: Zenith Solutions Ltd.
Company Overview: Zenith Solutions Ltd. (ZSL) is a software development company established in 2012. The company has grown rapidly over the years, employing over 500 professionals across various functions, including software development, project management, marketing, and sales. ZSL is known for its innovative solutions and has a diverse clientele ranging from small startups to large multinational corporations.
ZSL’s product portfolio includes custom software development, mobile application development, and cloud computing services. The company prides itself on its agile development methodology, which allows it to deliver high-quality products quickly and efficiently. ZSL has received several industry awards for its innovative solutions and customer service excellence.
The company culture at ZSL is described as dynamic and fast-paced, with a strong emphasis on collaboration and continuous learning. Employees are encouraged to take initiative and contribute ideas to drive the company’s growth and innovation. ZSL offers various training and development programs to help employees enhance their skills and advance their careers.
Despite its success, ZSL is facing significant challenges that threaten its continued growth and stability. The company has experienced a high turnover rate, particularly among its software developers and project managers. Employee morale and job satisfaction are declining, which is affecting productivity and overall company performance.
Current Situation: ZSL is facing significant organizational behavior and human resource management challenges. The company has experienced a high turnover rate, particularly among its software developers and project managers. Employee morale and job satisfaction are declining, which is affecting productivity and overall company performance.
Key Issues:
Decision Point: ZSL’s HR Director, Lisa Thompson, has been tasked with developing a comprehensive strategy to address these issues. She needs to present her recommendations to the executive team, focusing on improving employee retention, engagement, leadership, work-life balance, and diversity and inclusion.
Questions for Discussion:
Additional Considerations:
CASE STUDY REPORT-
What are the primary reasons for the high turnover rate at ZSL, and how can the company identify these reasons through employee feedback and exit interviews?
Ans:
The majority of voluntary turnover is caused by people seeking — in no particular order — more money, better benefits, an improved work/life balance, more opportunities to advance in their careers, time to address personal issues such as health problems or relocations, increased flexibility, or an escape from a toxic or ineffective manager or workplace.
Let me list down the possible reasons for High Turnover rate in organizations.
1. Lack of employee purpose:
“Workism” the belief that work “is not only necessary to economic production, but also the centerpiece of one’s identity and life’s purpose” is a real thing, especially for college-educated professionals.
2. Poor compensation:
When people leave a company, compensation and benefits are a major reason, especially for younger workers.
3. Being overworked:
Burnout happens when employees are asked to perform tasks without being given the resources to succeed, when they feel a lack of control or when they consistently face more daily stress than is manageable. Burnout combines emotional and physical exhaustion with a sense of hopelessness and self-blame and can manifest in behavioral and physical issues.
4. Bad managers:
Plenty has been written about toxic managers — people who take credit for others’ ideas, play favorites, even abuse their reports. And companies definitely need to weed these people out. However, less obvious are managers who are simply bad at their jobs.
5. Little to no feedback or recognition:
Many employees report not getting the right kind of manager feedback.
6. Poor work/life balance:
Work/life balance sits solidly in the top reasons people leave companies, across studies. Besides avoiding the aforementioned issue of overwork, organizations should aim for scheduling flexibility that allows people to be as productive as possible.
7. No opportunity for growth or development:
Another factor solidly in top reasons people leave jobs is that they don’t see a future for themselves in the company.
9. Toxic or negative culture:
Here’s a staggering stat from SHRM: About 25% of U.S. employees actually dread going to work. They don’t feel safe expressing their opinions, and they don’t feel valued for their efforts. That costs companies billions in avoidable turnover.
10. Bad hiring procedures:
When short-term retention rates are low, look for problems in your hiring and onboarding processes.
From Employee Feedbacks on Glassdoor, any other sites about the firm shall give a glimpse into high turnover rate problem. Company must encourage employees in participating employee feedback surveys being anonymous as their identities to make sure privacy is respected. From Employee feedback surveys, we shall identify the major repetitive comments for the high turnover rate. In fact, Identifying the problems is the first step towards creative solutions.
What specific strategies can ZSL implement to reduce turnover, particularly among software developers and project managers?
Ans:
As this is a related to a particular vertical in the organization, company shall do multiple ways to counter the high turnover rate problem by effective strategies.
1. If Lack of employee purpose is the reason,
then we must start giving the team’s a purpose to work passionately. This is something to do with the psychology of the teams. Getting our employees involved through mentorship or team building events can help to combat this. In fact, building a great work culture and pride is the real solution to this problem.
2. If Poor compensation is the reason,
then management must revise the PayScale of the employees, especially the younger engineers and managers. They must feel satisfied with the salaries compared to the hard work they put in. Increasing the base salary as well as introducing quarterly/Annual performance bonus will help in this matter.
3. If Being overworked is the reason,
then company must revisit the working hours and make it more flexible. Overworked employees tend to be less productive, affecting their performance and ability to help the company succeed. So, company must simply the work processes and formalities by developing automated software solutions. Also, revisiting the work schedule, introducing sufficient breaks, reducing work hours and make sure employees don’t burn out themselves.
4. If Bad managers is the reason,
sub departments must conduct an audit to identify which departments/teams have higher turn over rate in the last 1 year. They shall identify the teams and departments, then evaluate the manager performances and take preventive measures. Most of the times, manager may not be well-trained in the managing people as many rises to the position from technical roles. Company shall arrange training programs and train the managers to effectively handle team members and improve the management skills.
5. If Little to no feedback or recognition is the reason,
then company must introduce feedback mechanisms as well as recognition practices into the work culture. Employees must be recognized for their good work; teams must be recognized for their achievements and managers must be recognized for their managing skills. Annual employee awards, team outings, Performance bonus etc. shall help in this as this improve the morale of the workforce.
6. If Poor work/life balance is the reason,
then company must reduce working hours, introduce breaks, mental health programs and fun sessions. Helping employees to joining fitness clubs, Yoga clubs and arranging fun activities shall help reducing their stress and improving team dynamics. Company shall give work-from-home options for some days in week as well.
7. If No opportunity for growth or development is the reason,
then company must look into its organizational structure, and it make it growth oriented. Re-shuffling hierarchical order and slowly implementing changes is most preferred.
8 If Toxic or negative culture is the reason,
then implement policies to encourage employees to express their opinion, conduct creative activities, encourage creative expressions, create clubs and groups for socialization, increase sharing concept and build team exercises.
9. If Bad hiring procedures are the reason,
then redesign the whole hiring process and implement it immediately. Creating onboarding policies, strict monitoring of HR departments, bring best industrial practices etc. shall help in this. Also, implementing effective Application Tracking System (ATS), improving interview tests and simplifying onboarding formalities.
What factors are contributing to the declining levels of employee engagement and job satisfaction at ZSL?
Ans:
Employee engagement is a state of low morale in which employees do not feel emotionally invested or connected to their work. Disengaged employees may believe their work is boring or pointless, making them less productive and more likely to leave the organisation.
Zenith Management must identify the underlying problems by engaging with the employees through different methods. Often, low employee engagement stems from organizational issues, such as:
· No clear understanding of goals or vision
· Micromanaging
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· Lack of reward or meaningful advancement
· No connection to the broader organization
· Excessive workloads or non-stop deadlines
· Limited resources and tools
· Lack of flexibility
· Poor leadership
The biggest factors which contribute to declining levels of employee engagement and job satisfaction are Working environment, Work Culture, Leadership issues and Recognition of Talents in generals.
It has a lot to do with the psychology of people by which how effectively human minds shall be motivated to work in a team and achieve for results. Employees need a purpose; they want to feel values and encourages at their workplace. Also, they want to have a work-life balance, growth opportunities, better life style and of course competitive salary.
Signs of low employee engagement:-
Decreased productivity:
One of the most obvious indicators of low employee engagement is a drop in productivity. Employees who are disengaged are less motivated, which leads to lower efficiency and performance.
High turnover rates:
Employees who are disengaged are more likely to seek alternative employment opportunities. High employee turnover can be extremely costly to businesses, affecting both financial resources and the overall work environment. It also serves as a red flag for prospective employees, who will interpret the turnover as a sign that they will not want to work there either.
Absenteeism:
Disengaged employees may be more likely to call out than engaged employees. While even engaged employees may experience health issues that necessitate time off work, disengaged employees may call out because they are bored, depressed, or simply dread coming to work. Some of the issues that contribute to low employee engagement also cause mental health problems and stress for employees, including burnout.
Poor employee morale:
Low employee engagement frequently leads to low employee morale. Disengaged employees may have negative attitudes and a lack of enthusiasm, which can spread quickly. They may avoid social or team-building activities or only give negative feedback on projects. This drop in morale can lead to decreased productivity and a toxic work environment.
How can ZSL enhance employee engagement and create a more motivating work environment?
Ans:
There are numerous strategies Zenith management can use to increase employee engagement and foster a positive work environment.
1. Improve Communication Channels:
Open and transparent communication is the foundation of employee engagement. Organizations must provide channels for employees to communicate with one another as well as for the organization to communicate its ideas and values to them. Regular communication can make employees feel valued and included, which boosts their sense of belonging and commitment to the organization.
2. Implement Model Behavior from top to bottom:
Employees always look up to their manager and leaders. Leadership of the company must have model behaviors which really encourage and boost the employee morale. Make certain that managers, particularly those on your executive and leadership teams, are not teaching employees that the only way to advance is to burn out.
3. Recognize and Reward employee achievements:
Humans loves to be felt respected and valued. The leadership must recognize and reward the employee achievements to boost their morale. Rewards and feeling valued is a positive psychological effect on employee’s mental health as well as productivity.
4. Train and Develop employees:
Many times, employees need new skills to cope up with ever changing technologies as well as into leading roles. Zenith must invest and bring good trainers for employee skill enhancement as well as knowledge development. This will be improving productivity as well as employee engagement within the organization.
5. Engage in Team building Activities:
Team building activities shall help team members to feel more like family and provide a sense of belonging. Also, it shall help them to be more social and happier for each other. Games, Meetings, Events, partying etc. shall help in this. As the communication and bonding is improved with the team, it becomes easier to work together for objective goals.
6. Introduce Fitness and Mental wellness programs:
This is a very crucial step in order to make employees smart. Company shall offer membership reimbursement scheme for joining fitness clubs, conduct sports events, encourage in sports life, organize yoga, mental health sessions etc can improve the overall mood as well as smartness of employees.
7. Implement employee feedback mechanisms:
These steps will help in understanding time-to-time employee feedbacks about the company, departments, process, performance of management activities etc. In fact, HR Departments shall conduct anonymous surveys to make sure things are running in proper way.
What are the key leadership and management issues affecting ZSL’s workforce, and how can they be addressed?
Ans:
Key leadership and management issues affecting the workforce can be broadly categorized into several areas:
1. Communication:
Poor communication can lead to misunderstandings, low morale, and decreased productivity. Lack of transparency can create distrust between employees and management.
The practical solution is to fix communication issues are to implement regular and clear communication channels. Foster an open-door policy where employees feel comfortable sharing their concerns shall help. ZSL’s system must use various communication tools to ensure information reaches all employees effectively.
2. Employee Engagement and Motivation:
Low employee engagement can lead to high turnover rates and decreased productivity. Also, Lack of recognition and rewards can demotivate employees.
The solution of employee engagement issue is to create a positive work environment that encourages collaboration and recognition. Management must implement employee recognition programs to reward good performance. HR Department must conduct regular surveys to understand employee satisfaction and address concerns.
3. Change Management:
The workforce’s resistance to change can hinder organizational growth and adaptation. We need to have a change management desperately as poorly managed transitions can lead to confusion and disruption.
The solution for change management issues is to develop a clear change management strategy that includes communication, training, and support. Management must involve employees in the change process to gain their buy-in and reduce resistance. Also, provide continuous support and training to help employees adapt to changes.
4. Leadership Development:
Lack of effective leadership can lead to poor decision-making and low employee morale. An inadequate succession planning can create leadership gaps.
The solution for leadership development issue is to invest in leadership development programs to build a strong pipeline of future leaders. ZSL’s board must encourage mentorship and coaching within the organization. They must establish clear criteria for leadership roles and provide opportunities for employees to develop these skills.
5. Diversity and Inclusion:
The major challenges are lack of diversity can stifle creativity and innovation. The result is unconscious bias and discrimination can create a toxic work environment.
The solution is to implement diversity and inclusion training programs. HR Department must create policies that promote equal opportunities for all employees. They shall foster a culture of respect and inclusivity where diverse perspectives are valued.
6. Technological Adaptation:
Rapid technological changes can create skill gaps and resistance among employees. The issue of inadequate training on new technologies can reduce productivity.
The solution is to invest in continuous training and development programs to keep employees updated on new technologies. Departments must involve employees in the selection and implementation of new technologies. Also, provide adequate support and resources during technological transitions.
By addressing these critical issues, organisations can build a more effective and motivated workforce, resulting in increased productivity and success.
What initiatives can ZSL implement to promote better work-life balance and reduce employee stress and burnout?
Ans:
Burnout and work-related stress are common issues in today’s fast-paced and demanding workplace. Individuals can, however, manage and reduce burnout and work-related stress by implementing effective research-supported strategies.
Engaging in self-care activities, such as exercise, reduced the risk of burnout among employees on my research cases. Zenith Management must introduce, self-care activities as a part of employee well-being to reduce burnout rates.
1. Reducing Work timing:
Burnout happens when employees are asked to perform tasks without being given the resources to succeed, when they feel a lack of control or when they consistently face more daily stress than is manageable. Burnout combines emotional and physical exhaustion with a sense of hopelessness and self-blame and can manifest in behavioral and physical issues. Zenith management must revise the working hours to standard working hours for better productivity. Also, increase break time in the working schedule and be flexible about it.
2. Revising Compensation:
When people leave a company, compensation and benefits are a major reason, especially for younger workers. People stick to a firm which really compensate for their hard work and recognize their honest work. It develops a sense of belonging for them and provide purpose to continue. Zenith management must take this seriously, revise salary structure, introduce performance bonus, recognition of contributions and of course, over pay options.
3. Redesign Company structure and leadership:
Plenty has been written about toxic managers — people who take credit for others’ ideas, play favorites, even abuse their reports. And companies definitely need to weed these people out. However, less obvious are managers who are simply bad at their jobs. Zenith management must restructure the departments so that communication becomes smooth, process oriented, systematic and growth oriented. Employees must feel the leadership and system is updated and progressive.
4. Introducing Self-care activities:
Company shall offer membership reimbursement scheme for joining fitness clubs, conduct sports events, encourage in sports life, organize yoga, mental health sessions etc can improve the overall mood as well as smartness of employees.
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References:
(PDF) Turnover rates and organizational performance Review, critique, and research agenda ( researchgate.net )
A Research Study on the Reasons for High Employee Turnover Rates in a Manufacturing Facility ( georgiasouthern.edu )
Factors impacting employee turnover intentions among professionals in Sri Lankan startups — PMC ( nih.gov )