Management Information System Assignment PDF

Running Head: MANAGEMENT INFORMATION SYSTEM
Management Information System
Name of the Student
Name of the University
Author Note

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Introduction
The Riverdale Brewing Company is a prominent brewery that runs its operations from
the city of Sydney in New South Wales. While the Riverdale Brewing Company is renowned for
its manufacture of high quality wine, beer and champagne, it has come under a lot of flak of late
because of its high employee turnover. While the management of the Riverdale Brewing
Company does recruit manpower in large numbers, employees just don’t seem to continue
working here for too long, and usually give in their resignation after just six to eight months of
service. The high employee turnover that is detected at the Riverdale Brewing Company requires
immediate investigation as it can prove to have hugely negative consequences for the company
in the long run. If the Riverdale Brewing Company is not able to retain its employees, it will not
be able to carry out the consistent manufacture of high quality alcoholic beverages that it is so
well known for. This report investigates the reasons behind the high rate of employee turnover at
the Riverdale Brewing Company. It also recommends solutions that the company can adopt in
order to keep its workforce happy and content over the long run rather than giving them the
incentive to leave within just a few months of joining the company (Anvari etal, 2014).
The Problem of High Employee Turnover
The Riverdale Brewing Company has been experiencing a high employee turnover for
the last one year or so. More and more people seem to be joining the company’s labor force
every three months, and then are immediately replaced with new employees because they either
resign or are fired. None of the employees that have been recruited by the Riverdale Brewing
Company have shown any consistency in terms of performance and usually leave the workforce

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within a few months of joining. The reasons behind their instant resignation remain unclear.
Some resign because they are unable to cope with the work pressure while others resign because
they feel they are not good enough for upholding the company’s standards when it comes to
alcohol production. Most of the reasons given for leaving the company tend to be quite vague in
nature, as a result of which it becomes difficult to arrive at an exact reason behind this high
employee turnover. The high turnover rate is one that applies for skilled and experienced
employees as well as those who are entirely new at the job and have to be trained in order to
render adequate service for the company (Karatepe, 2013). Many of the older members of the
workforce have given in their resignations stating some frivolous reason or the other while the
new ones upon joining don’t seem to want to stay for too long. A thorough investigation must
therefore be made as to why the employee turnover rate is so high, if the company wants to
continue to establish its presence in the Australian market and keep the type of clients that it
already has at the moment (Hausknecht & Holwerda, 2013).
Understanding the Problem of High Employee Turnover
High employee turnover is detrimental for any well performing manufacturing company
and the Riverdale Brewing Company is no exception. A high employee turnover can result in the
company not being able to manufacture the exquisite alcoholic beverages that it has earned a
good name for. The products made available by the Riverdale Brewing Company are hugely
popular in all parts of Australia and have takers from every age group (Hancock etal, 2013).
While those in their youth tend to prefer the Riverdale Brewing Companies wide range of beer
products, those in their middle age and twilight years savor the champagne, wine and other
sophisticated alcoholic drinks this company is known to manufacture. However, a high employee

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turnover if allowed to continue, can end up damaging the reputation of the company by a
considerable degree. If employees are not satisfied and if they feel de-motivated enough leave
after working for just a few months, then the company will not be able to maintain the type of
consistency that is required if it is to keep on producing alcoholic beverages of excellent quality
for its clientele. It will be impossible to keep on training new employees every time they are
recruited, resulting in poor quality work being done by new arrivals. This in turn will have a
huge impact on the manufacturing process overall, and ultimately the alcoholic beverages
produced by the Riverdale Brewing Company that make their way into the market, will not taste
as good or as delightful as they used to before. Sales will be affected largely, profits shall decline
and the company may soon enough find itself on the verge of a shutdown after incurring huge
loss. It is therefore imperative to address the problem of high employee turnover as quickly as
possible if the company wants to keep itself from going down the road of decay and destruction
(Mowday etal, 2013).
Investigating the Problem of High Employee Turnover
A number of strategic approaches need to be adopted in order to investigate the problem
of high employee turnover at the Riverdale Brewing Company in Sydney. The existing
employees at the company need to be interviewed while getting in touch with a few erstwhile
employees can also be a good idea. Apart from conducting one on one interviews with the
employees at the Riverdale Brewing Company, efforts can also be made to draw up a
questionnaire and have some of the employees, that is those who are willing of course, to fill
these out (Zopiatis etal, 2014). Upon reading and interpreting the answers in the questionnaire,
some understanding may be arrived at as to why the turnover rate of employees at the Riverdale

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Brewing Company is so high at present. In addition to conducting in depth personal interviews
and distributing questionnaires, an investigation into the high turnover employee rate of the
company may also be carried out by conducting focus group discussions with the employees.
This will entail sitting down with the employees in groups of four or five, and generally
discussing their problems and noting down the feedback they have to give in order to improve
their experience at the company (Jehanzeb etal, 2013). The focus group discussions should be
carried out with a good deal of care and over two to three hours at least in order for the
management at the Riverdale Brewing Company to fully understand what it is that employees
require the most from the company. Efforts ought to be made in order to make the focus group
discussions as interactive as possible if employees are to provide honest and complete answers
about the difficulties that they are facing when working for the company, and the reasons that are
compelling them to give in their resignations. The questions asked in the course of such focus
group discussions should be informal in nature so that employees feel relaxed and comfortable
and end up actually speaking about their true feelings and experiences at the company rather than
just coming up with answers or statements that are in neutral in nature or which are being made
just to keep the top level management happy.
Resolving the Problem of High Employee Turnover
An important step that may be taken in order to control or resolve the problem of high
employee turnover at the Australian Brewing Company is to adequately invest in the employees.
The company should consider offering loyalty bonuses for those who are likely to remain
working with the company after one year. Old timers should be allowed to take more paid leaves
than what they are entitled to at present (Kwon & Rupp, 2013). Every effort should be made to

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make employees feel that they are valued by the company. Introducing the concept of medical
leave and by offering medical coverage for a fixed sum of money can also go a long way in
getting the company to have its employees feel that they are valued by the management (Jensen
etal, 2013).
Rewards and incentives should of course be announced for those who are able perform
well for the company (Terera & Ngirande, 2014). A hike in salary or an additional pay in the
form of an incentive should be given to employees who perform a greater number of duties than
what they are expected to do. The hike should be a substantial one so that the employee feels
overwhelmed when receiving it and becomes more persistent than ever in doing plenty of work
for the company in the long run without even being told to take up extra duties and
responsibilities. By offering rewards and incentives, the employees of the company will have
every motive to do their best for the company rather than leave their job at the earliest.
The management should adopt a more understanding approach when it comes to
employees taking leave or a day off from work. If employees have to take leave in order to
attend social or family functions, then this should be acknowledged and allowed. The gratitude
that the employee feels upon being granted leave for such an occasion will result in him doing
better work for the company in the days to come (Mosadeghrad, 2013). Understanding should be
especially demonstrated towards employees who are parents and who have families to return to
at the end of the day. Employees who have children studying in school or who have children who
are not keeping too well at home, must be left off from work as and when they need to provided
they are able to show sufficient cause or reason for taking such leave in the first place.

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Selecting the right employees for the Riverdale Brewing Company is also something that
the management needs to try and do in order to prevent a high staff turnover. At the time of
recruitment, the management needs to ensure that the candidates they pick for the job are those
who fit the needs and requirements of the job perfectly (Qureshi etal, 2013). The candidates
should have the right qualifications and experience that is necessary for working in a brewery.
Ideally such individuals should have an educational background in economics, finance and
management if they are to be used to potential. Picking a candidate who has a greater leaning
towards the creative arts may turn out to be a bad decision for the management as such a person
may find the work of the company tedious and boring in the long run. The management should
also inquire about whether the employees have any ideas and thoughts about how they would
like to be administered while working at the Riverdale Brewing Company. Their thoughts and
suggestions in this respect should be duly taken into consideration by HR managers at the time of
recruitment.
Thus, there are definitely several effective solutions that the Riverdale Brewing
Company can put into place in order to prevent the problem of high employee turnover that the
company is currently faced with. By introducing rewards and incentives for existing as well as
new employees, by recruiting the right candidates for the job, by being more understanding about
employees taking leave and by interacting more with employees on a day to day basis, the
management of the Riverdale Brewing Company will successfully motivate its employee base
enough to retain them at the company for a long period of time. When employees find that they
are being duly rewarded, that their opinions and suggestions are being taken into consideration
by the management, that they are being paid more than their basic salary if they do extra work,
they will no longer desire leaving the company at the earliest. Instead they will want to stay on

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and do as much as possible so that they can profit in terms of earning an increased annual income
and consequently enable the company to increase its profits as well. A high employee turnover is
undoubtedly the most detrimental thing that any company can be faced with, and by adopting the
various solutions that have been stated in this report, the company will find itself in a position to
resolve the problem of increased employee turnover once and for all. It will be able to create a
workforce that is healthy, happy and ready to its utmost for the progress and overall development
of the Riverdale Brewing Company.
References
Anvari, R., JianFu, Z., & Chermahini, S. H. (2014). Effective strategy for solving voluntary
turnover problem among employees. Procedia-Social and Behavioral Sciences, 129, 186-
190.
Hancock, J. I., Allen, D. G., Bosco, F. A., McDaniel, K. R., & Pierce, C. A. (2013). Meta-
analytic review of employee turnover as a predictor of firm performance. Journal of
Management, 39(3), 573-603.
Hausknecht, J. P., & Holwerda, J. A. (2013). When does employee turnover matter? Dynamic
member configurations, productive capacity, and collective performance. Organization
Science, 24(1), 210-225
Jehanzeb, K., Rasheed, A., & Rasheed, M. F. (2013). Organizational commitment and turnover
intentions: Impact of employee’s training in private sector of Saudi Arabia. International
Journal of Business and Management, 8(8), 79

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Jensen, J. M., Patel, P. C., & Messersmith, J. G. (2013). High-performance work systems and job
control: Consequences for anxiety, role overload, and turnover intentions. Journal of
Management, 39(6), 1699-1724
Karatepe, O. M. (2013). High-performance work practices, work social support and their effects
on job embeddedness and turnover intentions. International Journal of Contemporary
Hospitality Management, 25(6), 903-921.
Kwon, K., & Rupp, D. E. (2013). High‐performer turnover and firm performance: The
moderating role of human capital investment and firm reputation. Journal of
Organizational Behavior, 34(1), 129-150.
Mosadeghrad, A. M. (2013). Quality of working life: an antecedent to employee turnover
intention. International journal of health policy and management, 1(1), 43.
Mowday, R. T., Porter, L. W., & Steers, R. M. (2013). Employee—organization linkages: The
psychology of commitment, absenteeism, and turnover. Academic press.
Qureshi, M. I., Iftikhar, M., Abbas, S. G., Hassan, U., Khan, K., & Zaman, K. (2013).
Relationship between job stress, workload, environment and employees turnover
intentions: What we know, what should we know. World Applied Sciences
Journal, 23(6), 764-770.
Terera, S. R., & Ngirande, H. (2014). The impact of rewards on job satisfaction and employee
retention. Mediterranean Journal of Social Sciences, 5(1), 481.

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Zopiatis, A., Constanti, P., & Theocharous, A. L. (2014). Job involvement, commitment,
satisfaction and turnover: Evidence from hotel employees in Cyprus. Tourism
Management, 41, 129-140.