Risk Management in Hiring, Employee Turnover, Information Loss, Supervision, and Independence

Running head: RISK MANAGEMENT
Management Practise
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RISK MANAGEMENT
Risk of hiring unqualified personnel
The ability to get qualified and competent staff is a great risk in Riverwood logistics.
The interviewers are encouraged to not exclusively depend on academic qualifications and
referees in hiring. By that, they may get hire a person based on how conversant he or she is in
the position they should hold. Thus, the committee should make an effort to interview all
applicants instead of choosing a selected few or ask for work-samples from their previous
employers. Based on research conducted by Arnold and Sylvester (2005), interview processes
are often perceived as inaccurate and biased due to a perceived chat between the interviewee
and interviewer.
Risk of high employee Turnover
Employee motivation and organizational culture determines the rate at which the
employees stay with an organization. Employee retention is dependent on salaries, bonuses
and remunerations. According to the Motivator- Hygiene theory of Herzberg, a pay is a
frequent hygiene factor that causes dissatisfaction among the current employees. However, it
is very costly to use high pay as a way to retain employees in the long-run, especially for self-
funded firms like Riverwood (Beher, Possingham, Hoobin, Dougall, & Klein, 2016)..
Riverwood Logistics has a high risk of employee loss due to poor salaries and
remunerations. The line in Maslow’s theory of Hierarchy of needs also places safety needs
and physiological needs as important factors in terms of basic needs.