Impact of Employee Turnover on Performance of the Organization

This report identifies the issue of high turnover rates in Phoenix Power Company, Oman and examines the impact of employee turnover on the performance of the organization. It critically evaluates the reasons for employee turnover and implements strategies to reduce the turnover rates. The research methodology includes secondary data collection and statistical analysis. The report concludes with an action plan for new human resource management policy development and analyzing the effectiveness of the new strategy.

Running head: INTEGRATED MANAGEMENT PROJECT
Integrated Management Project
Name of the student
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1INTEGRATED MANAGEMENT PROJECT
Topic: Impact of employee turnover on performance of the organization-“A case study of
phoenix Power Company”
Introduction
This report has identified an issue faced by Phoenix Power Company in dealing with the
high turnover rates in the organization. The research has examined the issues and will develop
effective human resource management strategies for improving the turnover rate. The turnover
rate in Phoenix Power Company is high when compared to the industry standard. It is essential
for the company to manage their workforce effectively as it affects their productivity. Talent
management is a key issue faced by the company and shortage of skilled workforce affects the
operation. It also affects the internal cost of the organization where the operational cost are
increased due to repetitive need of hiring employees and training them to meet the needs of the
organization (Phoenixpoweroman.com 2018). The analysis of the company’s human resource
has shown that the turnover rate in the organization is quite high and a new project needs to be
developed to mitigate the challenge in hand.
Background of Phoenix Power Company
Phoenix Power Company operates, maintains and owns Sur Independent Power Plant and
the power plant is located in the Sur Industrial Estate between Oman India Fertilizer Company
and Oman LNG plant terminal. The power plant is developed at 175km south-east of Muscat in
Oman. The plant is relatively new and has become fully operational since the past five years.
The installed capacity of the firm is 2000MW and contributes to 27.8% of the total MIS
contracted capacity (Phoenixpoweroman.com 2018). This makes the company and the plant as
one of the key elements of sustainable power infrastructure in Oman.

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Problem statement
The increase in turnover rate of the workforce in Phoenix Power Company has affected
the power generation in the company and effective talent management strategies to retain and
hire skilful workforce.
Project objective
The objective of the study are as follows:
 To critically evaluate the reasons for employee turnover in Phoenix Power Company
 To implement different strategies to reduce the turnover rates in Phoenix Power
Company
Research methodology
In this current study, secondary data has been collected from the company records and
the employee turnover data for the past three years have been analysed to examine the data
collected for the research. The research has collected all the exit interviews of the employees
leaving the organization to identify the major reasons for attrition. The study has used SPSS as
the tool to statistically analyse the factors affecting the turnover rate.
Analysis
The analysis of the data shows that majority of the employees have left the organization
due to low pay and lack of growth opportunities in the organization. The employees wanted to
learn new skills and perform different job roles for their personal growth. Moreover, the opinion
of the employees are not considered due to the poor communication model within the
organization.

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Action Plan
Task Name Duration Start Finish
Action Plan 37 days Mon 12-10-09 Tue 01-12-09
1.0 New human resource management
policy development
15 days Mon 12-10-09 Fri 30-10-09
2.0 Examine the Financial implications 7 days Mon 02-11-09 Tue 10-11-09
3.0 Examine the operational implications 8 days Wed 11-11-09 Fri 20-11-09
4.0 Examine the marketing implications 7 days Mon 23-11-09 Tue 01-12-09
5.0 Analysing the effectiveness of the
new strategy
7 days Mon 12-10-09 Tue 20-10-09

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References
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Phoenixpoweroman.com 2018. Phoenix Power Company. [online] Phoenixpoweroman.com.
Available at: http://phoenixpoweroman.com/ [Accessed 29 Oct. 2018].