Employee Turnover and Management Practices

This assignment delves into the complex relationship between management practices and employee turnover. It examines various leadership theories, such as Hersey's situational leadership, and their influence on employee satisfaction, engagement, and intentions to leave. The assignment also analyzes the role of organizational resources and human resource management in fostering a positive work environment that reduces turnover. Drawing upon academic research and real-world examples, students will critically evaluate best practices for managing staff retention and mitigating the negative impacts of employee attrition.

Leading and Managing Organisational Resources

Table of Contents
Executive Summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................3
ANALYSIS.....................................................................................................................................4
CONCLUSION...............................................................................................................................9
RECOMMENDATIONS..............................................................................................................10
REFERENCES .............................................................................................................................11

Executive Summary
Company A, is an company which is acquired by a large group of organisations, in order
to which structural and cultural changes are taking place within the firm. It has been seen that
some employees are facing difficulties in acquiring sudden changes in the organisation. The
main reason behind acquisition of the company is increasing profit sharing ratio and they tend to
bring new creations and innovation within the organisation. Recommendations include going for
strategic fit by shifting back to transformational leadership style which was in practice before
acquisition.
INTRODUCTION
Leaders and Managers are the foundation of every business organisation, their work is to
control, monitor, coordinate and plan the working of an organisation. Leading and managing
organisation are different but interrelated concepts. They are the basis on which business
practice their functions to earn productivity and profit. All the managerial activities of the
organisation are conducted by its managers and operators. In an organisation, leaders have more
authority than managers as they are the heads of the company. Leaders are not the one who
directly interacts with the members of the organisation. Managers communicate with the
employees and all other staff members on the behalf of the leaders. For effective working of any
organisation, it is very important for their members to make optimum utilisation of the available
resources, in order to avoid the situation of spoilage or losses. Organizational resources are used
to provide benefits and stability to the organisation and the employees contributing in it. Good
leaders and managers are the one who initialize the resources of the organisation in to their
working for creating and maintaining sustainable position of the company in the competitive
grounds. This assignment is based on the recent changes occurred in Company A due to its
acquisition by the large group of organisations, it is also based on the understanding of the
challenges and opportunities in integrating leadership in the cited firm, operations and financial
management and the contribution of information systems to decision making as appropriate and
knowledge, skills, abilities and approaches necessary to effectively orchestrate the effective
utilisation of organisational resources, systems and processes, it also lay emphasis on effective
leadership, operation management and financial analysis to inform decision making process in
Co A.

ANALYSIS
The organizations are driven by its leadership. According to the Bortolotti (2015) culture
is the most hot and discussed topic in leadership. Leadership is the most important aspect of any
organization and it is very broad concept. Either it’s an organization, a group or a team, they all
look forward to their leaders and follow their instructions and have strong faith in them as they
consider them their mentors. Charismatic leaders clearly specify a vision and tend to strengthen
the inbuilt core values of the vision. The post-acquisition leadership style adopted by the new
leader of Co A is autocratic leadership. Autocratic leaders is the dominant leadership , restrict
the contribution of their subordinates in decisions, exert power and are overly assertive and do
not consider the opinions and values of others (Bass, 1990; De Cremer 2006). According to De
Cremer (2006), autocratic leaders reduce the level of satisfaction and motivation of the
subordinates. Moreover, Autocratic leaders force their followers to endure the leader's opinions
instead of pursuing their own ideas by restricting self-determination and sovereignty of
subordinates, on the other hand before the company A was acquired by the large organization,
the old leaders use to follow trasformational and transactional leadership within the firm.
Integrated leadership is the combination of all approaches of leadership in order to
achieve the common goal and objective. It works across the boundaries to combine all the
concepts of the leadership, it work along with the five major approaches of the society:
government, media, business, community and nonprofit. This provides strengths and values to
all the members of the organization.
In the concept of leadership, culture is the most discussed aspect, it should lay emphasis
on how leaders should practice different leadership approaches in different cultures and among
different kind of people.
As per the study of Daniele, (2015) Integrated leadership theory states that, this theory is
a step which is used to combine all the other leadership theories, contingency, trait and behavior
to examine the relationship of the leader and follower.
This theory provides the guidelines to become an effective leader, it states the
development of effective leader-follower relationship development and effective communication
is the first and foremost requirement with in the firm. Leader is someone who influence the
followers to work as per their assigned manner.

Since the autocratic leadership is followed by the new leaders of the organization it
creates the sense of demotivation and dissatisfaction among the employees of the Co A, to
reduce the employees turnover, leaders decided to follow operational and strategic leadership
into their working.
Financial management is that unit of the organization where finance managers deals with
all the monetary issues and investments of the organization in order to regulate its working
properly, as the entire organization was acquired by the large industry all of its working take the
drastic change including the financial department of the organization. As per the view of
Katsikea (2015) the main responsibility of the finance managers is to analyze the outcomes of
the money. It can also be referred as the effective ad efficient management of the money.
Financial management as tangled dimensions of money and activities which are concerned with
planning and analyzing investments and money.
As per the view of Naff ( 2017) disadvantages of financial management which Co A can
consider within their organization are:
Research,knowledge and time: Collecting information for financial management is very
critical task and it requires sufficient time, and after gathering the data analyzing it also very
time consuming process.
Cost: The cost involved in collecting and analyzing information for the financial
management is very high. Such large amount can be used in some productive outcomes of the
business.
Attention and Revision: The financial outcome of the business keeps on changing and
revising it on regular basis is very long and time consuming process for the finance managers.
According to the Kim (2017) advantages of financial management is:
Power: Financial management provides powers and authority to managers to take
organization in the right direction.
Availability of the money: When the finance managers of the organisation done their
work effectively, the firm is never out of money and stocks.
Planning: It allows the finance managers to construct plans and policies for the future
working of the organization.
Operational management, it operates the working of the organization. As per the view of
Schermerhorn (2014)operational management concerns about the designing and controlling the

production process of the organization. For functioning business, resources are necessary in form
of energy, labors, employees and raw materials. These resources are then used to implement the
functions of the organization. The main aim and responsibility of the operational management is
to assist the working of the firm, operations are conducted to manage quality and services.
Operational managers also regulated the day to day working of the organization.
According to the study of the Hoffman (2018) Leadership is most accurately defined
concept and it depends upon the specific features of the leadership that individual has taken in
the mind. The main concern of this report is regarding the occurring changes taking place in Co
A post acquisition. After the company is being takeover by the another there are some bog
changes occurred in the organization, the new heads and leaders started adopting autocratic
leadership, such leadership styles force their employees to complete the work in their manner
and also creates pressure on them. Before acquisition company is following transformational and
transactional leadership styles which tends to create the motivation among the employees.
The complications occurred within the organization, effects its working adversely. For
example skilled and competent people expect compensation, reward, career development and
recognition and in return assure organizational commitment.
Organizational structure is used to define the working basis of the organization, whether
it is working on a mechanistic manner or organic manner. While on the other hand the culture of
the organization lay emphasis on its attitude, beliefs, values, motivation and different patterns of
the leadership style. As in the case of Co A, analyzing and evaluating these elements and
considering the information cited above, it can be clearly analyzed that brilliant talents of Co A
are not able to generate outputs because of the structural and cultural changes brought by the
new leader ship and therefore, the employees of the company are leaving the company for better
opportunities. Before acquisition, Co A was a more people oriented organization and lay stress
on the staff development under its transformational leadership. From research it has been found
that Transformational leadership, provides various kinds of benefits to the working of the
organization in order to provide best working environment.
Information system plays very vital role in the decision making process, as all the
decisions and suggestions are implemented on the basis of collected and gathered data and
information, as the changes occurred in the Co A due to its takeover by the large organization
become essential for them to enhance their network of the information. As per the view of Snell

(2015)information required in decision making process is classified into two categories, decision
making level of management and the amount of structure in the decision situation managers face.
For running a successful organization, support of information technology is very important at all
the levels of the organization.
Dinh (2014 ) stated that information system is the combination of software, hardware and
all the other integrated network products, that provide data and information to the managers
which in turn help in analyzing and monitoring the specifications. In Co A, Information system
helps in making valid decisions by providing accurate information. If the organizational
members of the Co A can use information system in their working, According to the Hoffman
(2018)advantages of information system are:
Communication: Information systems provides an ease in exchanging information and it
makes it quite easy and efficient.
Cultural gap and globalization: Information system helps in implementing the cross
culture relationship among the employees of the organization.
Availability: It allows the business to operate their functions 24*7, around the globe. This
means that they can operate their business anytime and at anyplace.
While, According to the Peter (2018) disadvantages of information system in the process
of decision-making are, sometimes information are of dominant culture; nature of some
information are biased; issues related to security and privacy.
Leaders and Managers are the foundation of every business organization, their work is
control, monitor, coordinate and the plan the working of the organizations like Co A. Leading
and managing organization are different but interrelated concepts. They are the basis on which
business practice their functions to earn productivity and profit.
Leadership is the skill of an individual which helps the organization to achieve its goals
and objectives.
Theories of the leadership that can prove to the beneficial for Co A to motivates and
develop its employees:
Trait Theory: As per the view of Veloso (2015) leadership is the interpersonal skills of
the individual, and it can be learn and develop through training. This theory assumes that traits
of the leadership are intrinsic.

According to the Northouse (2018)advantages of Trait Theory are it allows to modified
the behavior pattern of the individual,it states general traits of the individual helps in becoming
successful leader, it helps in identifying the potential of the leaders and valid techniques.
As per the view of Neale (2016)disadvantages of Trait theory are, identification of traits
is the critical process, it allows only partial development of the skills, it does not create the sense
of situational awareness.
Behavioral theory: This theory concentrates on the specific behavior of the leaders under
different circumstances and situations, it is also called as human relations movement theory, it
studies the behavior of the individual leader for analyzing the qualities of effective leader. It
helps in understanding the behavior of the individual by the means of motivation, expectations,
relationship and etc.
According to the Saurombe (2017)advantages and disadvantages of Behavioral theory
are: The first and the crucial advantage of Behavioral theory is that it supports t5he idea that
leaders can be created from training and development and also one can encompass qualities of
leadership from experiences, it also provide broad approach to the leadership as a characteristic
which can be developed. Major disadvantage of this theory is that, learning and training does not
allow the leaders to apply theory practically and this theory does not provide the proper and
required information about the situations and cultural contexts.
Contingency theory: It is considered as a best leadership theory. According to the
contingency theory states that there is no best possible method of leadership is available which
can be applied under each and every situations and circumstances. This theory states that every
situation required new practice or method of leadership and leaders of the organization must
have skills and qualities to apply each and every theory of leadership under different situations
and circumstances.
As per the view of Snell (2015)advantages of contingency theory is, it allows the leaders
to practice different types of leadership, helps in developing interpersonal skills, enhance the
creativity and innovations of the individual, practical approach.
Model of operational management is abstract and visual representation of the values of
the organization, it represents how organizations actually run in the business grounds. Models of
the operation management provide the blueprint or the structure of the organization, on the basis

of which functions of the organization can be conducted. It helps in describing the way, the
organization performs its business.
Financial analysis is conducted in the business to identify the financial outcomes, profits,
expenses and investments of the business. This is the prime basis for conducting decisions of the
business. Financial analysis is used to identify the strength and weaknesses of the organization
by calculating its profits and losses. It helps in analyzing the financial structure of the
organization. Financial analysis can be conducted by Break-even points, identifying margin
ratio, safety margin, net profit, gross profit ratio, equity return, net assets return, and operating
assets return.
The total overall workforce of Co A is consisted of 500 people. The new leadership
policies used downsizing as a strategy for cost reduction and in consequence 10% of the entire
workforce has been made redundant. Though restructuring is a very common strategy for cost
cutting and many companies comply with it for cutting expenses. It has been found that 89% of
companies that adopted downsizing had a purpose of cost cutting, yet only 46% of those
companies achieved their goal. Yet the outcome of this action not only yields reduced cost in
return many companies are negatively affected in terms of losing skills and experience. In Co A
Leadership practices followed by the new leaders after acquisition of the company was the topic
of stress , as the significance of leadership practices vary from culture to culture. Leadership is a
very huge concept and it is different in each and every organizational cultures. It is very
important for the leaders to develop the quality to handle individuals of different cultures and
traditions in order to maintain transparency in the organization. All the managerial activities of
the organization are conducted by its managers and operators. In an organization leaders have
more authority then managers as they are the heads of the company. Leaders are not the one who
directly interact with the members of the organization. Managers communicate with the
employees and all the other staff members on the behalf of the leaders. For effective working of
any organization it is very important for their members to make optimum utilization of the
available resources, in order to avoid the situation of spoilage or losses
CONCLUSION
Company A is very old and reputed organization practicing business since last so many
years. In 2017 the company was acquired by the large organization in order to enhance its
working and profit ratio. Externally the acquisition might not seem to get affected that much as

much it has been internally effected due to change of leadership. Since, the employees have been
working in a cooperative environment, so the change in environment and autocratic leadership
style has greatly affected the employees ,management is the operating unit of any organization, it
is the most essential part of any industry. It helps in maintaining its long term success in order to
ensure the overall growth and development. Managerial activities are conducted by the leaders
and managers of the organization, their first and foremost responsibility is to make sure that the
company is working in a desired manner and all their employees and workers are highly
motivated towards their work. Financial business planning is a measures that are implemented
by the business organizations into their working for practicing business functions effectively and
efficiently. Planning is essential part of the business for conducting its operations successfully.
Business plans helps in retaining growth and development of the business. A variety of financial
and leadership business tools are available for measuring the growth of the business. Analysis
are monitored to gather the information and plans which are related to the business activities in
order to conduct it effectively. Every business works to increase its productivity and
profitability. Determining the current position of the business is first and foremost step to
analyses the required changes in the business. Business operation is the strategy of co-occurring
the cultures and objectives of business along with the information technology. Business
information system is use to analyze the functions of the business absorbed by information
technology and it also helps in increasing customer services , sales and helps in providing a
better work environment.
RECOMMENDATIONS
One of the most essential recommendations for the company related to its strategic
management is that its leadership needs to shift back from autocratic to transformational because
of the situation of the employee turnover. Research employees and organizational commitment
had a positive correlation with the transformational leadership attitudes of their employers. The
main reason behind using transformational leadership is that it helps in providing the motivation
to the employees. Autocratic leadership is the dominant form of leadership, it enables the
employees and all the other members of the organisation to take part in the decision making
process. This strategic fit can help company score good on congruency model. For example,
consider people and culture; where there is a positive encouraging and empowering
environment, people are tend to be happy and produce good results. Similarly, considering

structure and People; every employee expects reward and recognition in return of tasks
performed, and organizational structures with transformational leadership have reward systems
and they give career development opportunities. These recommendations can be very helpful for
Co A to overcome its issues.
REFERENCES
Books and Journals:
Bortolotti, T., 2015. Successful lean implementation: Organizational culture and soft lean
practices. International Journal of Production Economics. 160. pp.182-201.
Daniele, G., 2015. Exenatide regulates cerebral glucose metabolism in brain areas associated
with glucose homeostasis and reward system. Diabetes, p.db141718.

Dinh, J.E., 2014. Leadership theory and research in the new millennium: Current theoretical
trends and changing perspectives. The Leadership Quarterly. 25(1). pp.36-62.
Hersey, P.,2014. Management of organizational behavior (Vol. 9). Upper Saddle River, NJ:
Prentice hall.
Hoffman, M., 2018. People Management Skills, Employee Attrition, and Manager Rewards: An
Empirical Analysis (No. w24360). National Bureau of Economic Research.
Katsikea, E., 2015. Why people quit: Explaining employee turnover intentions among export
sales managers. International Business Review. 24(3). pp.367-379.
Kim, S.Y., 2017. Employee empowerment and turnover intention in the US federal
bureaucracy. The American Review of Public Administration. 47(1). pp.4-22.
Naff, K.C., 2017. Personnel management in government: Politics and process. Routledge.
Neale, N.R., 2016. Work engagement, job satisfaction, and turnover intentions: A comparison
between supervisors and line-level employees. International Journal of Contemporary
Hospitality Management. 28(4). pp.737-761.
Northouse, P.G., 2018. Leadership: Theory and practice. Sage publications.
Peter, G.N., 2018. Leadership: Theory and practice. SAGE PUBLICATIONS Incorporated.
Saurombe, M., 2017. Management perceptions of a higher educational brand for the attraction
of talented academic staff. SA Journal of Human Resource Management. 15(1). pp.1-10.
Schermerhorn, J., 2014. Management: Foundations and Applications (2nd Asia-Pacific Edition).
John Wiley & Sons.
Snell, S.A., 2015. Managing human resources. Nelson Education.
Veloso, A., 2015. How employees perceive HRM practices: Differences between public and
private organizations. Human resource management challenges and changes, pp.19-36.
Online
Organisational Resource Management, 2018.[Online]. Available through :
<https://www.crcpress.com/Organizational-Resource-Management-Theories-
Methodologies-and-Applications/Kantola/p/book/9781439851203 >