Strategic Problem Solving: Addressing Employee Turnover at Lidl UK

This report delves into the problem of high employee turnover at Lidl UK, examining the issue through various analytical techniques such as SWOT, PESTLE, and Fishbone analysis. It identifies the HR department as the primary area of concern, impacting stakeholders like owners, investors, and customers. The report proposes observation as a key method for understanding the root causes of turnover. Alternative solutions, including enhancing growth opportunities, boosting employee motivation, and providing comprehensive training and development, are explored. The application of a PMI decision-making tool favors enabling training and development as the optimal solution. An implementation plan is outlined, covering management overview, major tasks, budget, resources, timeline, security, documentation, performance monitoring, and acceptance criteria. The plan emphasizes regular review meetings and feedback to ensure successful implementation and address any emerging issues, aiming to reduce employee turnover and improve overall organizational performance. Desklib provides access to similar solved assignments for students.

PROBLEM SOLVING AND
DECISION MAKING

Table of Contents
PROBLEM DEFINATION.............................................................................................................3
Organization, type of business and problem................................................................................3
Technique for identification and defining the problem...............................................................4
CURRENT SITUATION AND ALTERNATIVE SOLUTION.....................................................4
SWOT Analysis...........................................................................................................................4
PESTLE analysis.........................................................................................................................5
Fishbone analysis.........................................................................................................................6
Alternative solution.....................................................................................................................6
APPLICATION OF DECISION MAKING TOOL........................................................................7
IMPLEMENTATION PLAN..........................................................................................................7
REVIEWING IMPLEMENTATION PROCESS............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

PROBLEM DEFINATION
Organization, type of business and problem
Lidl is one of the famous company of UK. It offers fresh fruits and vegetables, groceries
along with various other products online as well as offline. It was established in 1994 and now it
has around 800 stores across various areas and cities of Britain (
About us, 2021). It works with
the aim of enabling best quality products at lowest possible prices. Along with operating its
business it majorly focus over the making of contract with the local suppliers so that it can along
with operating the business may also be focussed towards the sustainability aspect.
The main business associated with the Lidl is selling fresh fruits and vegetables along
with groceries. This means that the business of Lidl is related with selling of products. It is also
to be noted that the Lidl source majority of its products from the local farmers and suppliers of
UK.
There are various department of Lidl including, purchase, human resource, information
technology, finance and various others. Every department of the company is having specific
roles and responsibility which is directed towards the goal of the company. Likewise,
accountability with regard to the various department is also accomplished so that work will be
performed on time and goal of the company will be achieved.
Out of the various department the major problem is associated with the human resource
department because company is facing a high turnover rate with regard to employees. As
employees are one of major asset of the organization and with the absence of employees no
organization would able to perform their business. And with the increase turnover rate the HR
department is facing a major problem. As human resource department is majorly related with the
hiring as well as retaining employees of the organization so raising the rate of employee's
turnover is fully associated with the HR department of the company (Tafti, Mahmoudsalehi and
Amiri, 2017).
Stakeholders are those group of personnel who have interest in the company's operation
and can also affect the function of the company with their moves. With the raise turnover rate,
owners, as well as investors along with customers are being affected at large. This is because
with low labour workforce the company's operation are being affected and as a result the owners
are affected because company is not able to accomplish its sales and profit target. Likewise,
investors are also affected in terms of gaining low return from investment. In the same way

customers on which the whole company is depended are also affected because of the non-
meeting of their needs and requirement.
Technique for identification and defining the problem
Observation:
It is one of the major tool which is related with the analysis of the situation and the
problem associated with organization. As per this tool the current trends and its impact are being
observed by selecting a specific group of people or employees of specific department (Becker,
2017). With regard to the above problem of employees turnover observation tool will be used.
With the help of observation technique only the problem but its reason will also be identified. As
the problem is related with the employees turnover so it can be observed through employees
trend that how many employees are retaining in the organization and why they are leaving the
organization. Thus, with the help of observation analysis and tool the problem along with its
reason will be easy to identify. In addition, of this it is also to be noted that since the problem is
related with the internal affairs of the company so it would be easy to identify the problem with
the analysis of the trend of the employees in terms of their absenteeism rate and the turnover rate.
CURRENT SITUATION AND ALTERNATIVE SOLUTION
SWOT Analysis
Strength:
This is related with the aspect associated with capability of the company (Vlados, 2019).
High brand value, strong market image, focussed innovation, growth opportunities are counted
as Lidli strength. With regard to the current issue the above strength will able to resolve it in
terms of engaging employees with growth opportunities, enabling work in well-known brand and
various other modes.
Weakness:
It includes the loopholes of the company (GURL, 2017). Ethical issue, high work
pressure, company's internal environment, work focussed culture may act as weakness with
regard to raise in the issue because it will increase the turnover of the employees.
Opportunities:

Raised sales, digitalization, working practice, new segment may act as opportunity that
could help the Lidli to overcome the issue of employee's turnover. This is because with these
opportunities Lidli can hold its employees.
Threat:
High competition, low pricing strategy, presence of substitutes, low innovation would act
as biggest threat that may affect the Lidli in terms of high employee's turnover.
PESTLE analysis
Political:
Brexit issue, price war of USA, Changing rules and regulations may impact negatively
with regard to the current issue of the Lidli.
Economic:
Changing economic situation, economic environment and condition act may again act as
negative aspect with regard to the persisting issue of employee's turnover in terms of further raise
in rate.
Social:
Sustainability aspect, employee's satisfaction, and other may act as resolving factors with
regard to employee's turnover because it will enable to hold employees easier.
Technological:
Changing technology, innovation, up-gradation of existing technology may assist the
Lidli to hold the employee's with better growth opportunities.
Legal:
Pay scale dispute, changing legal environment may act as challenge with respect to Lidli
in order to resolve the issue.
Environmental:
Eco-friendly products, focussed over local farmers, sustainability aspect will act positive
aspect in association with resolving the issue because employees will learn and adopt various
new mode of business.
Thus, it can be right to said that there are various aspect in the context of PESTLE
analysis which will lead to resolve the issue of employee's turnover with respect to Lidli.

However, it is also analysed that there are some other aspects that will lead to raise the issue
instead of resolving it.
Fishbone analysis
Through this analysis it can be interpreted that the major problem is raised employee's
turnover which is being cause with the reason of lack of motivation in terms of payment with
regard to performance, low growth opportunities with lack of training, lack of adequate
recruitment process , high work pressure, tough organizational culture and various other.
Its effect with regard to the concerned department and the Lidli would be high in terms of
losing competitive advantage, non-accomplishment of objective, missing of sales targets and
others.
Alternative solution
 Enabling growth and career opportunities
 Focussed over raising employee's motivation
 Enabling training and development to employees
 Employee's focussed organizational culture.
High employee’s
turnover
Performance and pay
Recruitment
Organizational culture
Lack of training

APPLICATION OF DECISION MAKING TOOL
Solution 01 – Raising employee’s motivation – PMI Model ( score scale is 5)
Plus Points Minus Points Interesting Points
Lower absenteeism-4 Conflict and tension
creation-(-4)
Good job and hard work-
(+4)
Higher retention rate-5 Poor work culture-(-3) Improved productivity –(+4)
Improved relation-5 Higher expectation and
lower grabbing-(-3)
Individual and company
goal attainment-(+3)
High equality service-4
Goal attainment-3
Total Plus Points = 21 Minus Points = (-10 ) Interesting Points = (11)
Final Value for solution 01 = 21 + 11 – 10 = 22
Solution 02 – Enabling training and development to employees – PMI Model ( score scale is 5)
Plus Points Minus Points Interesting Points
Enabling growth-5 Expensive-(-5) Lead to hold employees-
(+4)
Raised performance -5 High requirement of time –(-
4)
Employees feel involved in
the organization-(+4)
Innovation and creativity-4 Resistance of employees-(-
3)
Learning of better skill and
guide them to future path-
(+5)
Higher retention-4
Raised job satisfaction-5
Total Plus Points = 23 Minus Points = (-12 ) Interesting Points = (+13)
Final Value for solution 01 = 23 + 13 – 12 = 24
Thus, from the above it is clear that the best solution is enabling training and development
because its score as per PMI model is highest and enable more benefits in comparison of the next
best alternative solution.
IMPLEMENTATION PLAN
Introduction:
The main problem was related with the raised rate of employee's turnover. This can be
resolved through the adoption of enabling training and development the employees.

Management overview:
The support that is being accepted from the management is related with the enabling of
funds and implementation of the proposed plan. Enabling time and resources is also expected
from the management.
Major task:Meeting holding:
In order to resolve the issue a meeting with the discussion of the problem along with its
proposed solution will need to be hold with the management of the company. This will include
the solution discussion along with its analysis. Under this meeting the following aspects will
need to be discussed:Budget:
It is the major aspect with regard to the planning. Here the estimated budget with regard
to the implementation of the solution will need to be discussed. The estimated with regard to the
solution would include the cost of 400£.Resources:
Human resource, required equipment and machinery, laptop, stationary and funds.Time duration:
With regard to the implementation of the proposed solution the estimated time duration
would be around 7 months under which the employees will be trained as well as equipped with
the required skills.
Implementation schedule:
Task Duration Resources
Making of proposal 10 days Laptop, office premises.
Meeting arrangement 10 days Board room, projector,
computers
Holding of meeting 2 days Board room, computer, digital
projector
Budget discussion 8days Contact with various suppliers
and others so that the

equipment will be delivered.
Arrangement of review
meeting
6 month (one meeting on every
alternative month)
Feedback form, projector,
computer, stakeholders, office
room
Security and privacy:
Various security measures in terms of non disclosing the schedule as well as budgeting of
the meeting will need to be taken off. Likewise, security measures in terms of non-disclosure of
the solution of the meeting that was discussed in the board room will also be taken off.
Documentation:
Under this step various document in association of the plan will be made. Likewise,
documents including the minutes and budget documents will also be completed and approval of
the authorized signatory will also be taken here.
Performance monitoring:
This is also an important step which will be implemented in the form of arranging the
review meeting under which the performance of the plan will be monitored. Likewise,
improvement if any will also be adopted along with eliminating the non-useful steps.
Acceptance criteria:
As the solution of enabling training and development has got the highest positive score
with regard to the PMI tool so it would be right to said that the adoption of this tool will lead to
deliver success.
Plan approval:
The entire plan need to be approved from the board of director and other key
stakeholders.
REVIEWING IMPLEMENTATION PROCESS
Reviewing the process is one of the major aspect to grabbing success with the concerned
plan. This is because with the review of the plan on adequate time will lead to have the
identification of the issue along with suitable action and steps will also be taken so that the
problem will be resolved in the best and most effective manner (Mrša, 2021).

This is an important aspect with regard to implementation of the plan and its success.
With regard to the current plan it will be reviewed with the help of holding review meeting as
well as feedback form of the stakeholders.
3 Review meeting will be held on alternative basis on every one month. Under those
meeting various aspect with regard to the performance of the plan will be analysed and
monitored (Nosratabadi and et.al., 2019). This will lead to have better analysis of the
performance of the plan. Likewise, in case of presence of any loopholes and negative aspect with
regard to the plan will also be determined so that the most appropriate solution with respect to
problem and loophole will be made out with the discussion among the stakeholders.
Likewise, feedback form will also be considered as a reviewing tool under which the
result of the implied solution will be taken from the stakeholders (Nason, Bacq and Gras, 2018).
This will lead to have determination of the loopholes and drawbacks of the continuing plan.
Likewise, along with determination the most appropriate solution will also be pinned so that the
plan will be effectively implemented within the organization.
It is also to be noted as the solution that will be adopted in the context of the problem is
related with the employee's training and development and when review from the employees with
regard to the proposed solution will be taken then this will lead to have raised the chances of the
success of the plan as well as improvement as per the choice of the employees will also be
inculcated so that the best result with respect to growth and development of the employees will
be grabbed and the Lidli issue of the high turnover rate of employees will be resolved.
CONCLUSION
From the above report it is concluded that with the adoption of adequate planning and
taking of suitable steps in terms of adequate identification of the issue and connecting it with the
concerned organization will lead to have a right problem analysis. Likewise, with the mode of
determining the solution and judge it on the basis of PMI tool and making of plan accordingly
will lead to resolve the concerned issue in a better way. Reviewing will also lead to contribute a
major role with respect to raising the efficiency with respect to the proposed solution.

REFERENCES
Books and journals
Becker, H.S., 2017. Problems of inference and proof in participant observations. In
Sociological
methods (pp. 398-412). Routledge.
GURL, E., 2017. SWOT analysis: A theoretical review.
Mrša, V., 2021. Should we open the reviewing process.
Food technology and
biotechnology. 59(1). pp.1-2.
Nason, R.S., Bacq, S. and Gras, D., 2018. A behavioral theory of social performance: Social
identity and stakeholder expectations.
Academy of Management Review. 43(2). pp.259-
283.
Nosratabadi, and et.al., 2019. Sustainable business models: A review.
Sustainability. 11(6).
p.1663.
Tafti, M.M., Mahmoudsalehi, M. and Amiri, M., 2017. Critical success factors, challenges and
obstacles in talent management.
Industrial and Commercial Training.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis.
Journal of Strategy and
Management.
Online referencesAbout us., 2021. [Online]. Available through <https://www.lidl.co.uk/about-us>
1