Holden Motor Company: Business Impact of Managerial Turnover

This report examines the impact of managerial turnover on Holden Motor Company's business operations. It begins with an introduction to the company and identifies the managerial problem of high turnover. The report outlines research questions, the chosen research philosophy (Interpretivist), approach (deductive), design (descriptive), and strategy (secondary qualitative research). Findings reveal the impact of turnover on training and hiring costs, and knowledge management. The analysis suggests that high turnover negatively affects the business, potentially contributing to the company's challenges. The report provides recommendations for improving managerial retention and overall organizational performance. The report highlights the importance of effective management in achieving strategic visions and maintaining operational efficiency. The study uses secondary data to provide a comprehensive analysis of the issue.

Running head: HOLDEN MOTOR COMPANY
HOLDEN MOTOR COMPANY
Name of the Student
Name of the University
Author Note

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Executive Summary
The primary aim of the report is to throw light on the overall concept of the business problem
which is currently being faced by the Holden Company. The report will follow a comprehensive
format whereby the overall concept related to the managerial turnover will be discussed and in
line of this, the aspects relating to the business problems being faced in association with this will
be discussed accordingly. Therefore, the report will follow a comprehensive format whereby the
first part of the report will throw light on the Introduction chapter which will then be followed by
an analysis on the current business problems which are being faced by the firm. Certain
recommendations will be provided with respect to the overall manner in which the firm will be
able to manage its overall managers in the long run.

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Table of Contents
Introduction......................................................................................................................................3
About the Company.........................................................................................................................3
The Managerial Problem.................................................................................................................4
Research Questions..........................................................................................................................5
Research Program............................................................................................................................5
Findings and Analysis......................................................................................................................7
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
The internal operations of any business can be understood to have a great impact on the
overall operations of a business. In association with this, it is crucial to understand that, a
business needs to ensure that all the related aspects of the firm are in place (Ansoff et al. 2018).
This assists in ensuring that the productivity of the business can be maintained as per the highest
level possible and that the brand image of the organization can also be well maintained. In line
with this, the aim of the report is to discuss about the different internal programs which is being
faced by the chosen organization. The organization which has been chose for the purpose of the
assessment can be understood to be chosen for the assessment is the Holden Motor Company in
Australia. The chosen business issue is the Impact of high managerial turnover on the overall
business operations (Berman et al. 2019). The primary aim of the report is to highlight the ways
in which the managerial turnover in the business has had an impact on the overall business. The
report will identify the research problem and form a research question along with presenting a
design for the research program. The latter half of the report will present a findings and Analysis
related to the firm and in line with this, certain Recommendations will also be provided.
About the Company
The Holden is an Australian automobile brand and former manufacturer which imports
manufactured cars under the Holden brand. The firm is headquartered in Port Melbourne in
Victoria. The company was found in 1856 as a saddlery manufacturer in South Australia. The
firm was renamed Holden Ltd in 1998 and General Motors-Holden in 2005 (Holden.com.au
2019). The firm has offered badge engineered models due to the sharing arrangements like
Nissan, Chevrolet, Suzuki, Toyota and the Vauxhall Motors. The company had been facing

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certain issues and problems related to the overall internal management and this is the reason that
in 2017, Holden closed down its manufacturing unit and thereby continues the operation as the
importer of the vehicles.
The Managerial Problem
The managerial problem which will be discussed within the scope of the study can be
understood to be related to the Impact of the managerial turnover. The managers form an integral
part of the organization and it is with respect to this, threat their guidance and overall
contribution goes a great extent ensuring that the firm is being able to successfully achieve the
overall operations and in line with this, they are successful in attaining their overall objectives
which assists the firm in attaining the highest level of productivity. Even the Holden in Australia
had been facing certain problems regarding the overall managerial turnover. Hence, in this
report, the problem related to the impact of the managerial turnover on the business shall be
discussed (Berman et al. 2019). The employee turnover can be understood to be a phenomenon
whereby a large set of the employees often leave the organization and this then leads to the
increase in the overall operational costs of the organization and in line with this, it also leads to
the decrease the overall operational efficiency (Reuters.com 2019).
The managerial problem can be taken to be a scenario whereby, a large number of
managers tend to leave the organization in turn for better opportunities or for the existing issues
which are taking place in the firm. Hence, this aspect tends to be related to the overall manner in
which the managerial turnover has a strong impact on the overall operations of the firm (Ansoff
et al. 2018). One of the reasons why the firm has not been performing well and had to close
down could be contributed to the fact that the organization has been failing to manage the

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different managers of the firm and in line with this, the firm was unable to achieve some of the
strategic visions (Bratton and Gold 2017). Therefore, the manner in which the business would
be impacted by the problem would be examined in the paper along with understanding the way
in which suitable solutions can be provided for the problem at Holden.
Research Questions
The research questions which the report aims to answer can be understood to be as
follows:
 What is the impact of managerial turnover on the business?
 What are the ways in which managerial turnover can be avoided?
 What recommendations can be provided to improve the scenario?
Research Program
The research program which has been selected for the purpose of the analysis can be
understood to be as follows:
Research Philosophy
The research philosophy can be understood to be a belief about the manner in which the
data about a phenomenon is generally gathered and the way in which the information can be
generally used and analyzed (Kumar 2019). In line with this, it is integral to understand that, the
research philosophy which can be understood to be adopted for the study in order to determine
the impact of managerial turnover on the business operations and work upon the secondary
information which is available on the topic. The Interpretivist Research Philosophy will be

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adopted for the study as it will assist in determining the impact of the issue on the operations of
the Holden group.
Research Approach
The research approach can be defined as a plan and a procedure which generally tends to
comprise of a plan which is formed in order to undertake a detailed method of data collection,
analysis as well as the interpretation (Lasserre 2017). The deductive research approach shall be
applied for the purpose of the study as it will assist in understanding the manner in which the
managerial turnover has had an impact on the business and will be helpful in finding relevant
information out of the secondary data collected.
Research Design
The research design can be stated to be a set of procedures which are used to collect and
analyze the measures of the variables which have been specified in the research problem. The
descriptive research design shall be adopted for the purpose of the study as it will assist in
defining the problem which exists in detail and will also assist in understand the manner in which
the firm can overcome these issues.
Research Strategy
The research strategy can be understood to be the overall propaganda which is generally
adopted for the purpose of the study. In line of this, it becomes integral to gain an access to the
right research strategy and ensure that the purpose of the study can be achieved and attained in
the right manner (Kumar 2019). In line with this, it is integral for the researcher to make use of
the secondary qualitative research which will assist in understanding the impact of the

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managerial turnover on the overall operations of the firm and will provide an insight into the
manner in which the given problem can be resolved.
Data collection
The data collection method can be identified as the way in which the researcher tends to
collect the data for the purpose of the research (Quinlan et al. 2019). In line with this, the data
collection method which shall be adopted for the research can be understood to be the Secondary
data methods using various news articles, business reviews and other journal articles.
Data analysis
The data analysis method which can be identified to be adopted for the purpose of the
study can be understood to be the qualitative analysis technique whereby various aspects relative
to the topic will be understood and analyzed.
Findings and Analysis
The concept of Managerial Turnover at Holden
According to Cascio (2015), the job security and the pay of the firm`s top manager
typically rests on the overall performance of the firm and the related future prospects. In line
with this, the firm`s top managers are often considered to be the fortune of the firm(Noe et al.
2017). However, the business environment whereby a firm would be required to perform in has
become increasingly dynamic and with respect to this, it has become increasingly difficult for the
different managers to perform well and deal in high profits with respect to the work environment
(Lasserre 2017). Hence, this forms one of the reasons why the different managers are often not
willing to continue the work because, they feel the increased burden of the operations of the firm

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on them and in line with this, it also becomes integral for these members to undertake initiatives
which will ensure that, the firm is able to divide the different responsibilities easily. However,
very often this is not the case and in line of this, the managers are not provided with an
autonomy to perform as per the required standard and do not achieve the respective autonomy
which makes it difficult for the members to perform well and hence, the turnover rate turns out to
be very high (Li, Kim and Zhao 2017). At Holden, there was a time where the Managerial
turnover was quite high and this was due to the reason that, the strategic vision could not be well
communicated.
Impact of Managerial Turnover at Holden
Therefore, according to Holden.com.au (2019), the managerial turnover has a profound
impact on the overall operations of the business and the manner in which the performance of the
business as a whole is affected can be measured in the following manner:
Training and Hiring costs
When an employee at any position leaves the job then in such a case, it has a profound
impact on the overall training as well as hiring costs of the firm. Therefore, the managerial
turnover has an impact on the hiring costs of the organization and in line with this it tends to
increase the time spent on the briefing and training of the new employees as well which takes up
time and funds of the firm (Cascio 2015). Therefore, even at Holden, the high managerial
turnover costs had an impact on the hiring and training costs of the firm.
Knowledge management

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Secondly, when the managerial turnover is high in any organization, it tends to have an
impact on the Institutional knowledge which is shared within the different members of the firm.
This is because, the different managers often act as the holders of the knowledge of the firm and
in line of this, if the turnover rate of the managers are considerably high then with respect to this,
this will have a strong impact on the manner in which the knowledge in an organization is
managed and the way in which the ethics of the firm is governed (Hom et al. 2017). This then
has an impact on the overall business operations of the firm. The knowledge and overall vision
of the firm was lost to a great extent at Holden due to the fact that the managerial turnover was
high (Noe et al. 2015)
Decreased Morale
The high turnover rate of the different managers also has a strong impact on the overall
morale of the different employees. This means that, in case a firm wants to ensure long term
success, then in such a case, it becomes increasingly crucial to see to it that the overall Morales
of the different employees can be increased (DeCenzo, Robbins and Verhulst 2016). In case the
different managers of the firm tend to leave the operations, then in such a case, the morale of the
different employees and all the other members of the firm also goes down to a great extent. With
respect to this, it also becomes increasingly relevant for the firm to ensure that, it is able to
undertake initiatives to ensure higher morale of the employees. The morale of the employees also
decreased considerably at Holden due to the high managerial turnover rate of the firm (Mathieu
et al. 2016).

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Recommendations
Therefore, the following recommendations can be provided to improve the employee
Morales.
 Increase in autonomy: The different managers who are present at Holden must be
allowed with adequate autonomy (Reuters.com 2019). This will ensure that the
employees will be successfully able to engage in the freedom of doing their own tasks
and achieving the targets of the firm successfully, the managers will be then willing to
continue the operations with the firm (Huang et al. 2016).
 Communication of shared vision: The shared vision of the organization is required to be
successfully shared with the different members of the group (Sparrow, Brewster and
Chung 2016). In lieu with this, it is integral that when the shared vision is envisioned into
all the operations of the firm, then in such a case, the overall motivation of the employees
and the managers to continue working for the firm can improve to a great extent
(DeCenzo, Robbins and Verhulst 2016).
 Sharing of burden: The managers should not be burdened at a great extent. With respect
to this, if the managers are given the facility to share the burden at the workplace. In line
with this, it becomes important for the firm to ensure that, the burden of the managers
needs to be revised and shared (Morschett, Schramm-Klein and Zentes 2015).
Conclusion
Therefore, from the above analysis, it could be rightfully understood that, the impact of
the managerial turnover at Holden had a huge impact on the overall operations of the firm and
with respect to this, it can be understood to be very important for the different members of the

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firm to ensure that adequate initiatives can be taken so as to see to it that the manager will
successfully be able to continue the operations. The report followed a comprehensive format
whereby certain analysis was undertaken on the same topic and the way in which the managerial
turnover can be reduced has been provided.
References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Berman, E.M., Bowman, J.S., West, J.P. and Van Wart, M.R., 2019. Human resource
management in public service: Paradoxes, processes, and problems. CQ Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Cascio, W.F., 2015. Costing human resources. Wiley Encyclopedia of Management, pp.1-1.
Cascio, W.F., 2015. Managing human resources. McGraw-Hill.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Holden.com.au 2019. Holden Motors Australia. [online]. Available at:
https://www.holden.com.au/ (Retrieved on: 10 Sept. 2019).
Hom, P.W., Lee, T.W., Shaw, J.D. and Hausknecht, J.P., 2017. One hundred years of employee
turnover theory and research. Journal of Applied Psychology, 102(3), p.530.
Huang, Y.H., Lee, J., McFadden, A.C., Murphy, L.A., Robertson, M.M., Cheung, J.H. and
Zohar, D., 2016. Beyond safety outcomes: An investigation of the impact of safety climate on