Fundamentals of Management: Report on Ford's Employee Turnover Issues

This report examines the issue of high employee turnover at Ford Motor Company, highlighting its detrimental impact on organizational performance and financial stability. The report identifies key contributing factors, including poor communication between workers and management, unsatisfactory workplace environments, inadequate salary packages, lack of career growth opportunities, and the autocratic leadership style. The analysis reveals that Ford spends significant resources on training programs, which are essentially wasted due to the high turnover rate. The study also points out the importance of employee motivation, trust, and coordination within the organization. The report suggests the implementation of motivational theories, such as Maslow's Hierarchy of Needs, and strategies like regular payment hikes to address the issue and improve employee retention. Furthermore, the report references relevant literature, including corporate reports and academic research, to support its findings and recommendations.

Running head: FUNDAMENTALS OF MANAGEMENT
Fundamentals of Management
Name of the Student
Name of the University
Author Note

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FUNDAMENTALS OF MANAGEMENT
Task 2: High Employee Turnover in Ford
Out of all the organizational issues that are encountered by the food company, the high
rate of employee turnover in recent times have compromised and the overall quality of
organizational performance. The company has to encounter huge amount of financial loss that is
caused due to this high rate of employee turnover. This is mainly due to the fact that the
company each year spends nearly $1.2 million for the training program that is aimed to improve
the level of skills of inexperienced workers at various departments. It has been seen for the past 2
years on average 80 employees are resigning from their respective post in every month
(Corporate.ford.com, 2017). Hence, the cost of the training program that is being provided to the
workers is accounted as total loss for the company.
It is believed that the poor communication between the workers and the management is one of
the major causes of employee dissatisfaction. This in turn is causing high rate of employee
turnover. The poor workplace environment is believed to be one of the major causes of high
employee turnover rate. It is also evident that the employees are not satisfied with the salary
packages that are being provided. High rate of employee turnover can also be one of the major
De-motivating factors for the existing employees of Ford Company. There are also few cases,
where the senior workers are forced to leave the organization due to lack of career growth
opportunity. This is a major loss for the company due to the fact that they are not able to further
utilize the experience of the senior workers that can be used to provide valuable mentoring
advice to the new employees. The trust and coordination level among the workers within the
organization is also compromised due to the fact that they are not satisfied with the environment
of the workplace.

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As the workers leave the organization, the company had to spend more money, in the
process of recruitment. Being one of the reputed automobile organizations, the Ford Company
has like to implement effective methods of recruitment to select the best candidates. It is
important to mention that due to shortage of skilled automobile engineers the company is not
able bring about the innovation that is needed to maintain sustainability within the workplace.
The autocratic style of leadership within the organization is regarded as one of the main
cause of poor employee motivation as they are not able to take part in the crucial decision
making process. From the survey that has been conducted with employees of Ford company, it is
evident that most of the new workers are not able to properly communicate with the management
regarding the issues within the workplace (Kuvaas et al.2016).
It is important for the company to introduce motivational theories like the Maslow's
Hierarchy of Needs that uses different levels of within the organizational structure to deal with
the issues of poor environment within the workplace. Regular payment hike for the senior
employees can also help them to maintain high level of motivation within the workplace (Anitha,
and Begum 2016).

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Reference
Anitha, J. and Begum, F.N., 2016. Role of organisational culture and employee commitment in
employee retention. ASBM Journal of Management, 9(1), p.17.
Corporate.ford.com. (2017). Sustainability Report 2016/17: Ford Motor Company. [online]
Available at: https://corporate.ford.com/microsites/sustainability-report-2016-17/index.html
[Accessed 27 Aug. 2017].
Kuvaas, B., Buch, R., Gagné, M., Dysvik, A. and Forest, J., 2016. Do you get what you pay for?
Sales incentives and implications for motivation and changes in turnover intention and work
effort. Motivation and Emotion, 40(5), pp.667-680.