Employee Turnover Problem in Shwe Tun Co. Ltd

This paper discusses the problem of employee turnover in Shwe Tun Co. Ltd, a family-owned private company in Myanmar. It provides an overview of the organization, the problem faced by the company, the history of the problem, and effective solutions to reduce the turnover rate. The paper also includes a strategic plan to implement these solutions and improve employee satisfaction.

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SHWE TUN CO. LTD
Su Myat Paing
Family Own Private Company – Shwe Tun Co. Ltd
Human Resource Management (MGMT-674-IR39)
University of Redlands

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SHWE TUN CO. LTD
Table of Contents
Introduction...............................................................................................................................................2
Organization background.........................................................................................................................2
Organizational chart.................................................................................................................................2
The problem faced by the organization...................................................................................................3
History of the problem..............................................................................................................................4
Solution to problem...................................................................................................................................5
The rationale for solution..........................................................................................................................7
Action plan for making this change happen............................................................................................9
Strategies plan........................................................................................................................................9
Action plan.............................................................................................................................................9
Conclusion................................................................................................................................................10
References................................................................................................................................................11
Appendix..................................................................................................................................................13

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SHWE TUN CO. LTD
Introduction
Employee turnover in human resource management is one of the biggest problems that is
being faced by all firms in the world. To understand the problem of Employee turnover the
organization Shwe Tun Co. Ltd is being selected. The primary aim of the paper is to provide
detail view on the problem along with the effective solution and strategic plan that need to be
performed to deal with the issues. Detail discussion on the solution and the rationale of a solution
is also provided in the paper with the suitable action plan.
Organization background
Shwe Tun Co. Ltd is the family own private company and it was established in the year
1940. The company is a car and truck dealer along with that import company which is located in
Myanmar. The primary products of the organization are the construction trucks and agriculture
machineries. All the products are imported from Thailand along with China. The organization is
having headquarter in Yangon which is the second capital of Myanmar, and has the total of 671
employees. The company is having almost 27 branches that also in 15 states all over in the
country of Myanmar. The vision statement of the firm is to seek for convenience of farmers and
provide best agricultural trucks and machineries of superior quality. The mission statement of the
firm is to increase the human resource as well as expand the working function to international
level till the year 2030. Being the family-owned company most decisions regarding the business
is taken by the owner of the firm. The organization has the core value to provide best products to
their customers in the market and they give more priority to the needs of the customers in the
market.

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Organizational chart
Organizational chart provides the view on working function and the executives within the
organization. In the Shwe Tun Co. Ltd, the present owner of the firm is Mr. Ohnmar and also he
is the managing director of the firm. The organization is having a sales and marketing, the
customer service, finance and the human resource departments. All their senior executive posts
are run by the family members. There are hundreds of workers under the various department and
they provide a suitable working function to the market. The managers of physical branches in 27
places is being controlled by the non-family members. The organization chart of the firm is
developed to focus on the operational areas that are followed by the firm. The organization
maintains hierarchy organizational structure for their operational function in the market. The
basic organizational structure of the firm is to maintain effective working function within the
market with suitable value and organizational development scope.
The problem faced by the organization
The primary problem that is being faced with the organization is the high employee
turnover problem. The employee turnover problem is one of the basic and the huge problem that
is being faced by the firm in the market (Hom, Lee, Shaw, & Hausknecht, 2017). It is evaluated
that the employee turnover is the natural part of the business in any kind of industry but
excessive turnover rate within the organization faces a huge problem in the production as well as
performance level. The organization is facing huge employee turnover rate due to the facts that
most of the time they must face rude attitudes and behavior of their owner. As this is a family
business, therefore, the owner of the firm took a final decision and for that most of the time he
did not listen or care about the decisions and suggestions of others. Employees feel that their
report of problems to executives are useless since they believed “Any change in the firm will not

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occur no matter how many times we report or suggest.” Another reason for the huge turnover
rate is that the job did not have the ability to meet the expectation of the workers. The salary is
not enough according to the designation and the position and also career growth in this
organization is not visible (Ehrhart, & Kuenzi, 2017). Newly hired employee earn 82.35 US
dollar per month (not include a meal and place to stay), which talented and educated employee
would prefer and work elsewhere. As a typical family business, career growth or development
for the employees in the firm is not provided which is one of the primary reason for turnover
rate.
The employees are not satisfied with the working function of the firm and also they feel
undervalued in the family business (Nica, 2016). Suitable and effective training regarding the job
is also not provided and for that, the employees did not have a suitable idea regarding the
execution of their job. It makes the employees feel worthless in the firm and also they did not
find any kind of attraction within the market to perform their activity. The decision-making
ability of the managers is not effective and also they did not have the power to present their view
regarding the job (Selden, & Sowa, 2015). There are numerous reasons that are creating an issue
within the firm to maintain various activity in the field and to provide a working function for the
development of the organization. Employees getting a better opportunity and working function in
other organization is easily shifting their career. Another reason for this problem is that in this
organization the promotion is frozen (Pohler, & Schmidt, 2016). Since mostly executives’
positions are boss family members, it is really difficult for the employees to get promotion for
their operation and effort within the business. Employees have lack of faith in their upward
mobility within the firm.

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History of the problem
Employee turnover problem is not new in the business but in the recent years, this have
been increased a lot within the family business market. The organization is quite old but as it is
the family business, the entire working function is based on the family members. It can also be
seen that in most of the executive post are held by the family members (Purl, Hall, & Griffeth,
2016). The organization need to develop an effective way to deal with the labor turnover of their
working function. In the family business of agricultural trucks and machinery dealers, they did
not look for the betterment of employee, which is the vital reason that they face huge turnover
problem in the market. In case of Shwe Tun Co. Ltd, undertaking the steps that are supposed to
be effective and suitable for the working function in the market to develop productivity along
with the quality of benefits within the field.
The problem of employee turnover is from the starting of the firm but at that time the
competition level was low (Myanmar international trade was strictly controlled until 2015),
which make the turnover rate minimal issue for the firm (Taylor, 2016). But today, they are
facing dozen of strong competitors in agriculture such as Kutoba (Japan), John Deere (US), New
Holland and dozen other Chinese companies. Most of those international competitor companies
hire talented employees and pay high salary from their rival companies. From the beginning of
the firm till date the primary reason for employee turnover is the frozen promotion of the
organization. The firm is having an effective working function to deal with various activities in
the field and to perform an effective process in the field. The firm is facing problem to maintain
their employee due to the facts that they did not follow effective business rules and regulation.
They were also unable to deal with the various problems that has been faced by their staff

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members regarding compensation, wages, and benefits and so on. These are some of the basic
facts that led to high turnover of the employees.
Solution to problem
Hire right people:
Hiring the right people for the organization is vital to maintaining the turnover rate of the
firm (Mathieu, Fabi, Lacoursière, & Raymond, 2016). Recruitment of the right people in the
organization helps to analyze the need of the staff members. Effective recruitment and selection
procedure need to be performed by the firm. This process can be effectively done with the help
of suitable solution to maintain the activity of the field. Suitable job description along with the
effective interview process needs to be utilized for maintaining the working function of the
employees within the field (Hammond, “Class Discussion” MGMT 674 Lecture #3, 2018). This
is one of the most essential factors for the firm to develop their business within the market and to
avoid prejudice of their relatives in the job position.
Offer competitive pay along with benefits:
The organization needs to provide suitable payment along with the effective benefits so
that the employees feel satisfied for working within the organization (Forbes.com, 2018). The
firm should provide benefits like accommodation facility then pick up and drop facility
especially for women candidates and so on. The organization also need to pay to their employees
according to their designation and their performance level within the firm, which is one of the
best ways to ensure losing the employees from switching job to other rival’s companies
(Hammond, “Class Discussion” MGMT 674 Lecture #5, 2018).
Give praise:

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Praising the employees for their activity is one of the effective ways that allows reducing
employee turnover within the market (Worrell, 2018). Praising helps to motivate the people and
also provide them the view that they are important for the firm and the boss. It is essential to
show the value of an employee in the market for the development of business and the working
process within the organization. This process is quite effective for boosting employee’
confidence and for the business to maintain their employees in the market.
Show the career path:
In the family business career growth is not present but the organization can effectively
make broad of directors to increase their business and provide suitable promotion to the lower
level of workers (Katsikea, Theodosiou, & Morgan, 2015). A promotion, as well as growth in the
business, will help to develop their skill and their working function within the market. The
organization need to develop valuable working function so that they can increase production
level as well as the performance level within the market.
The rationale for solution
Employee turnover is a serious issue which is faced by various organizations, whether
large or small. In order to reduce the rate of employee turnover, Shwe Tun Co. Ltd should hire
employees with the right talent. Employees who will be able to fit within the organizational
culture are more likely to stay in it for a longer time. It is important for the organization to hire
workers who are able to identify themselves within the organizational culture. During interviews,
the management should ask some behavioral questions to decide whether they are best suited for
the company. Implementing this strategy will enable the management to decide whether to hire a
particular candidate based on the answers from the behavioral questions. This strategy will allow

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both management and the candidates to save their valuable time. Providing proper compensation
to the employees will allow the management to reduce their overall employee turnover rate. By
conducting market researches, the management will be able to know what their competitors are
offering to their employees. They can increase the amount of compensation for their employees,
thus preventing them to leave their organization.
Recognizing and appraising the talented employees of the firm will allow them to feel
valued and respected within the workplace. The employees want to stay with a company where
they will be respected and appreciated. They will be encouraged to stay in the workplace thus
reducing the overall turnover of the company. Stagnant career path within firms is one of the
reasons contributing to higher employee turnover rates. Employees want to stay with a firm
where they can advance their professional career, develop new skills and abilities. Valuable
operational function within the firm is highly required to provide effective training for the staff
members within the organization. If the employees can know about the career path of the
organization, they will be able to decide whether or not to stay in a particular firm. A well-
developed career path will be able to provide a sense of direction to them and they will be
motivated to stay within the organization. It will act as a motivation for these employees to stay
within a particular firm and commit to achieving the organizational goals.
Impacts of these solutions
Hiring right employees will create a positive impact, as the employees will be happy to
work for the management of the organization. Satisfied employees will commit themselves
towards achieving organizational goals, thus increasing the overall productivity of the
organization. Higher paychecks and additional benefits will act as a motivating factor for them to
stay within the organization. Recognition and appraisal will have a positive impact on the

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motivation of these employees. As they feel they are desired by their organization, they are more
likely to stay within the organization. Along with these factors, a defined career path is provided
within the organization for their staff members (Hammond, “Class Discussion” MGMT 674
Lecture #3, 2018).
Action plan for making this change happen
Strategies plan
Strategies plan for the employee turnover within the business are as follows:
 Invest in the professional development of employees
 Establish the clear-cut policies as well as the expectation for the employees
 Provide the beneficial package for the staff members within the organization
 Create the culture of open communication within the organization
 The organization need prioritize to provide value for the employees
 The organization needs to provide the employees with the meaningful work
Action plan
Changes within the organization should be implemented to maintain the performance
level of the employees, which need to be performed with the help of effective strategies plan.
The solution to deal with the employee turnover problem can effectively be done with suitable
action plan. The primary step for the business leader is to understand the turnover issue within
the business and at the same time need to communicate with the employees. Maintaining an open
communication with the employees will help to gain knowledge on many other solutions to deal
with employee turnover in the organization. The fact is clear that the organization need to deal
with the various working function and for that they need to perform all the required actions.

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The organization also need to introduce broad of directors to their firm and develop their
business and also gain the suitable view of their workers for any business decision making
process. Empower the employees with effective training process and providing them with the
policy book to deal in the market. The organization need to check the working function of the
employees to provide them effective reward for their performance level. The organization need
to segment the working function equally to all the people so that none of the employees feel
overburden due to their work.
Conclusion
The paper eventually concludes the facts that the business need to change their
operational function to maintain their employees in the market. Being the agriculture truck
machinery dealer as well as importer company it is essential for them to develop a suitable
working function for the employees. The organization need to develop their process for gaining
the trust of the employees and also, the need to improve the working function of the firm.
The paper also concludes the facts that Shwe Tun Co. Ltd can develop their business and
maintain the working function within the market to deal with the turnover rate of the firm. The
organization with their suitable solution for the development of process can effectively maintain
their high employee turnover rate. Providing suitable operational function as well as the career
growth for the employees is the unique and the best step that would be taken by a family
business. Most vital fact in this provides suitable solution to maintain various activity in the
market.

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References
Ehrhart, M. G., & Kuenzi, M. (2017). The Impact of Organizational Climate and Culture on
Employee Turnover. The Wiley Blackwell Handbook of the Psychology of Recruitment,
Selection and Employee Retention, 494-512.
Forbes.com. (2018). Retrieved 16 June 2018, from
https://www.forbes.com/sites/mikekappel/2017/08/09/5-ways-to-reduce-employee-
turnover/#3e600e3d5001
Hammond, J. (2018, May 16). “Class Discussion” MGMT 674 Lecture #3). Redlands, CA, USA.
Hammond, J. (2018, May 30). “Class Discussion” MGMT 674 Lecture #5). Redlands, CA, USA.
Hom, P. W., Lee, T. W., Shaw, J. D., & Hausknecht, J. P. (2017). One hundred years of
employee turnover theory and research. Journal of Applied Psychology, 102(3), 530.
Katsikea, E., Theodosiou, M., & Morgan, R. E. (2015). Why people quit: Explaining employee
turnover intentions among export sales managers. International Business Review, 24(3),
367-379.
Mathieu, C., Fabi, B., Lacoursière, R., & Raymond, L. (2016). The role of supervisory behavior,
job satisfaction and organizational commitment on employee turnover. Journal of
Management & Organization, 22(1), 113-129.
Nica, E. (2016). Employee voluntary turnover as a negative indicator of organizational
effectiveness. Psychosociological Issues in Human Resource Management, 4(2), 220-
226.

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Pohler, D., & Schmidt, J. A. (2016). Does Pay‐for‐Performance Strain the Employment
Relationship? The Effect of Manager Bonus Eligibility on Nonmanagement Employee
Turnover. Personnel Psychology, 69(2), 395-429.
Purl, J., Hall, K. E., & Griffeth, R. W. (2016). A diagnostic methodology for discovering the
reasons for employee turnover using shocks and events. Research handbook on employee
turnover, 34, 213-246.
Selden, S. C., & Sowa, J. E. (2015). Voluntary turnover in nonprofit human service
organizations: The impact of high performance work practices. Human Service
Organizations: Management, Leadership & Governance, 39(3), 182-207.
Taylor, S. (2016). 9 Compensation policy and employee turnover. Research Handbook on
Employee Turnover, 166.
Worrell, S. A. (2018). A study of causes of and solutions to employee turnover at business
products: Massy Technologies Infocom Trinidad Limited (Doctoral dissertation).

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Appendix
Chart: Organizational Chart of Shwe Tun Co. Ltd
Figure: Business card
manging
Director/Owner
Car and truck
sales manager
Finance
manager
sales people
marketing
people
Service manager
customer
service officers
customer
serviuuce center
Human resource
parts manager
employees
general
manager