For Shelton Students only

OB Case study

How A UPS Manager Cut Turnover

In 1998, Jennifer Shroeger was promoted to district manager for UPS’ operations in Buffalo, NY.  She was responsible for $225 million in revenue, 2,300 workers, and the processing of some 45,000 packages per hour.  When she took over in Buffalo, she faced a serious problem: turnover was out of control.  Part-time workers, who account for half of the Buffalo facility’s workforce, were leaving at the rate of 50 percent a year.  Her highest priority was to reduce this turnover rate.

The entire UPS organization relies heavily on a part-time workforce.  Most of the UPS’s current executives began as part-timers during their college years, and then moved into full-time positions.  UPS has always treated its part-timers well.  High pay, flexible work hours, full benefits, and substantial financial aid for college are some of the benefits provided by the company.  Yet, these benefits didn’t seem to be enough to retain workers at the Buffalo facility.

Shroeger developed a comprehensive plan to reduce turnover.  The focus was on improving hiring, communication, the work place, and supervisory training.

The hiring process was modified to screen out people who essentially wanted full-time jobs.  Given that it typically took new part-timers six years to work up to a full-time job, it made sense to try to identify people who actually preferred part-time work.  

Next, she analyzed the large database of information that UPS had on her district’s employees.  Based on the data, she concluded that there were five distinct groups working for her—differentiated by age and stages in their careers.  These groups had different needs and interests.  Shroeger modified the communication style and motivation techniques she used with each employee to reflect the group to which h/she belonged.  

The huge warehouse in which they had to work intimidated many new UPS employees in Buffalo.  To ease the intimidation, she improved lighting throughout the building and upgraded break rooms.  To further help new employees adjust, she turned some of her best shift-supervisors into trainers who provided specific guidance during the new hires’ first week.

Finally, Shroeger expanded training so that supervisors had the skills to handle increased empowerment.  Recognizing that her supervisors were the ones best equipped to understand the needs of part-time employees, supervisors learned how to assess difficult management situations, how to communicate in different way, and how to identify the different needs of people.  Supervisors learned to demonstrate interest in their workers as individuals.  

By 2002, Shroeger’s program was showing impressive results.  The attrition rate had dropped from 50 percent to 6 percent.  During the first quarter of 2002, not one part-timer left a night shift.  Annual savings attributed to reduced turnover are estimated to be around $1 million.  Additional benefits included a 20 percent reduction in lost workdays due to work-related injuries and a drop from 4 percent to 1 percent in packages delivered on the wrong day or at the wrong time.

Answer the following questions:

1. In dollars-and-cents’ terms, why did Jennifer Shroeger want to reduce turnover?

(20 marks)

2. What are the implications from this case to motivating part-time employees? (20 marks)
3. What are the implications form this case for managing in future years when there may be a severe labor shortage? (25 marks)
4. Is it unethical to teach supervisors “to demonstrate interest in their workers as individuals?  Explain. (25 marks)

     

For Shelton OB students

Study before coming to my class:
the relationship between job satisfaction and
(i) productivity,
(ii) absenteeism,
(iii) turnover.

A Testimonial letter again for Sipmm Economics class

From: Rolando Alonzo Manio
To: Ahhuat Ong ; Felicia Chong ; "'Lau Kwee Hiang, Eileen'" ; 'Lakshmi Kaur' ; 'jackson lim'
Cc: 'Nicole Kong' ; 'Sy Wei Lim' ; "'Ng, Lance'" ; 'Winnie' ; "jaslin@jneintl.com" ; "asan.m8@gmail.com" ; "meng-83@hotmail.com" ; "penny.ng@sg.intbearing.com" ; "meeky@bsh.com.sg" ; "'Chris Goh, (SG)'" ; "royang28@yahoo.com" ; "elainelim1986@gmail.com" ; "naydarhtoo@gmail.com" ; "jackeylai17@gmail.com" ; 'LEE LIMKAI' ; 'saravanamoorthy bagavathi'
Sent: Wednesday, 24 July 2013, 10:54
Subject: RE: ECON EXAM

Thank you so much Mr. Ong.  Honestly we enjoyed your class (relaxed and fun)

ob preparation

An employee can express his/her job dissatisfaction and the impact
on the organizational performances

hello shelton student