MGT603 Systems Thinking Report: Analyzing Sajos Enterprise Challenges

This report presents a Systems Thinking analysis of Sajos Enterprise, a multipurpose enterprise facing high employee turnover. The introduction provides an overview of the company and the application of Systems Thinking to address its challenges. A Rich Picture visually represents the complex system, highlighting factors contributing to turnover. The core of the report involves a Root Definition Report using the CATWOE model, analyzing the business from different perspectives (Customers, Actors, Transformation, Worldview, Owners, and Environment) to identify key issues. The analysis reveals that the company is facing the issue of greater turnover rate of employees. Based on the CATWOE analysis, the report offers two key recommendations: the implementation of Employee Retention Software and the implementation of a Compensation Management System. The report concludes with a list of references to support the analysis and recommendations. The main objective of the report is to offer improvement strategies to prevail over the identified issues of Sajos.

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Systems thinking
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Table of Contents
1.0 Introduction
Rich Picture
2.0 Root Definition Report (CATWOE) 3
2.1 Catwoe Model for Issue of High Employee Tirnover Rate 3
3.0 Recommendations
3.1 Recommendation # 01- Implementation of Employee Retention Software 5
3.2 Recommendation
Implementation of Compensation Management System 5
4.0 References: 6

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1.0 Introduction
Sajos Enterprise is well known multipurpose enterprise involved in the production of
refined cooking oil as well as related products of detergents. The company was
established in year 2000 by co-founders of Joseph and Sarah. Sajos have comparative
wider market share with strong foundation of customers. At present time, company is
facing the issues of greater turnover rate of employees that resulted in reduction of
entire level of productivity as well as depilated performance of business in highly
dynamic and competitive marketplace. This situation persuaded the company for
deployment of System Thinking Approach. In this sense, System thinking is based on
holistic approach utilised for tackling issues and provide practical alternatives for
issue resolution.
This report presented the critical analysis of causes and defects in system of Sajos
enterprise. The Catwoe chart is utilised for presentation of defects and their causes.
The aim of this report is to offer improvement strategies to prevail over the identified
issues of Sajos.
Rich Picture
Rich Picture provides the visual presentation of detailed, ill-defined and complex
system. It is based on terrific manner for conceptualisation of context and scope of
under studied system (Ho, 2015).
Durrant, et al (2018) stated that main benefits of Rich Picture comprises of
presentation of precise overview of complex system, indulgence of human factors,
excellent artefact of visual communication, and metaphors that are useful for
development of shared realisation.

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Delay in raw material pickup
Low Productivity
Human
Resource
Work
load
Internal
Politics
Work
Related
factors
Database
Management
Employees
Turnover
Personal
Factors
Fair
Standards
Better
offers
Organisational
Culture
Information
Flow
Sajos
Employee
Retention

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2.0. Root Definition Report (CATWOE)
The well-known framework of CATWOE model was developed by Peter Check land, and
considered as well-known model of problem solving. This tool is used for identification and
assessment of objectives of business and chief area of problems and presented the solution
accordingly (Paucar‐Caceres, et al 2016). This framework comprises of six main components
that are shown in following chart.
Source: Crowe, et al (2017)
The employment of this tool is useful for designing thinking tools intends for the facilitation
of effective decision making skills. The CATWOE model is highly suitable for evaluation of
issues in case of Sajos. The CATWOE model is applied on the case of Sajos.
2.1 Catwoe Model for Issue of High Employee TUrnover Rate
Sajos is an oil production business that also provides detergents as the by product. The
company is facing the issue of greater turnover rate of employees. A system thinking
approach is required for development of tactical and strategic environment that is vital for
maintenance and sustainability to attain competitive advantage.
Client/Customer: The clients are considered as the primary organisational stakeholders. The
achievement of customer satisfaction is integral. The customer satisfaction has direct impact

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on employee satisfaction that eventually leads to greater profitability. Incas of high turnover,
the enhancement of rates of turnover would have minimum effect on satisfaction of
customers (Torlak, 2016).
Actors: For the given situation, the management as well as employees are identified as main
actors mainly involved in different Human Resources Management. Due to inefficient
effective process of HR such as lower wages, biased reward systems would lead to greater
turnover rate of employees (Cardoso-Grilo, et al 2019).
Transformation: As Sajos enterprise deals with the manufacturing of oil and detergents. The
entire process required the transformation of input to output. The employee turnover process
in Sajos is based on manual operations. A transformation is required by shifting the system
from manual to automated operations. Greater turnover rate of employees would have intense
effect on bottom line of business (Zohuri, & Moghaddam, 2017).
World View: The world view is based on larger and expanded horizon and comprises of
different interested parties and diverse stakeholder group. It is considered as the most crucial
aspect of entire CATWOE Analysis. The viewpoint and approaches of different stakeholders
is different towards the same issue with contra dictionary interests. It enhances the entire
explicitly of CATWOE model. In relevant case, the greater turnover rate of employees would
have financial as well as emotional effects severally. If the company believes that turnover is
the main business issue, and then steps will be taken for recognition of perspective turnover
causes, compute cost of turnover for effectively addressing the issues and problems of
turnover (Óskarsdóttir, & Oddsson, 2017).
Owner: The owner represents the entrepreneur; shareholders as well as investor of Sajos that
is highly keen for making changes and decided either a project must begin or stop. The
owners have explicit authority of making decisions. The investors and shareholders are
relying on entire process of production with eventual dependence on profitability of the
company (Moore, Calvo-Amodio, & Junker, 2017).
Environment: On contrary with World View, this issue is related with the real and genuine
element of environment that can affect the company and might affect the entire company and
restraining the entire organisational systems. The greater turnover rate has negative impact on
morale of rest of staff. As the effect, job insecurity level also increases. The negative

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environment makes the employees less productive and enthusiasm (Cardoso-Grilo, et al
2019).
3.0 Recommendations
3.1 Implementation of Employee Retention Software
The Sajos is advised for the implementation of Cloud-Based Software EPM that will increase
the retention of employees. It is considered as efficient and smarter manner for management
of employees in precise manner. The HR software is useful for reduction of turnover rate of
employees and enhances the retention of employees by efficient and smooth procedures of
Human Resources. In order to retain high performing talent, companies are required to
engage its employees in proactive manner by utilization of diverse skillset. It is useful for
enhancing the employee environment and provides cloud base forecasting and imperative
solution of reporting (Navimipour et al 2015).
Source: Oracle (2019)
3.2. Recommendation
Implementation of Compensation Management System
A Compensation Management Software is useful for rewarding your team in effective
manner. It is well organised, efficient and process oriented on compliance controlling. It
resulted in maximisation of monetary investment of staff. This procedure also comprises of

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adherences wit polices of wages, salary budget, and computation of bonus, formulation of
benefits and dissemination of options for stocks. The HR department must comprise of hard
working individuals that ensure that entire rates of pay are aligned with budget of company
for assurance of profit. They must address the benefit administration of entire employees
sensitively (Pape, 2016).
A compensation management software can enhances the efficiencies, offer clear break down
of workforce of company, reduction in error of administrators, increasing abilities for
recognition of high performing rewards and overall enhances the competitiveness and
sustainability of the company. Bass, (2018) asserted that compensation management software
is highly versatile and cost effective manner for assurance of compliance of polices and
permitting the multiple management level for accessing the standardised information.
Source: People Track (2019).

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4.0. References:
Bass, J. M., Sarah, B., Razzak, M. A., & Noll, J. (2018, May). Employee retention and
turnover in global software development: comparing in-house offshoring and offshore
outsourcing. In 2018 IEEE/ACM 13th International Conference on Global Software
Engineering (ICGSE) (pp. 77-86). IEEE.
Cardoso-Grilo, T., Monteiro, M., Oliveira, M. D., Amorim-Lopes, M., & Barbosa-Póvoa, A.
(2019). From problem structuring to optimization: A multi-methodological framework to
assist the planning of medical training. European Journal of Operational Research, 273(2),
662-683.
Crowe, S., Brown, K., Tregay, J., Wray, J., Knowles, R., Ridout, D. A., ... & Utley, M.
(2017). Combining qualitative and quantitative operational research methods to inform
quality improvement in pathways that span multiple settings. BMJ Qual Saf, 26(8), 641-652.
Durrant, A. C., Kirk, D. S., Moncur, W., Orzech, K. M., Taylor, R., & Pisanty, D. T. (2018).
Rich pictures for stakeholder dialogue: A polyphonic picture book. Design Studies, 56, 122-
148.
Ho, J. K. K. (2015). Exploring the problem situation of parallel trading in Hong Kong with
the enriched rich picture building exercise (ERPBE). European Academic Research, 3(3),
2774-2794.
Moore, B., Calvo-Amodio, J., & Junker, J. F. (2017). Applying a Framework for
Complementarist Intervention Approaches to Service Organizations to Achieve a Sustainable
Holistic Management Model. Systemic Practice and Action Research, 30(5), 487-513.

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Navimipour, N. J., Rahmani, A. M., Navin, A. H., & Hosseinzadeh, M. (2015). Expert Cloud:
A Cloud-based framework to share the knowledge and skills of human resources. Computers
in Human Behavior, 46, 57-74.
Oracle (2019). EPM software- What Is Enterprise Performance Management?. Retrieved 13
April 2019 from https://www.oracle.com/applications/epm/what-is-epm.html
Óskarsdóttir, H., & Oddsson, G. (2017). A Soft Systems Approach to Knowledge Worker
Productivity—Analysis of the Problem Situation. Economies, 5(3), 28.
Pape, T. (2016). Prioritising data items for business analytics: Framework and application to
human resources. European Journal of Operational Research, 252(2), 687-698
Paucar‐Caceres, A., Hart, D., Roma i Verges, J., & Sierra‐Lozano, D. (2016). Applying soft
systems methodology to the practice of managing family businesses in Catalonia. Systems
Research and Behavioral Science, 33(3), 312-323
People Track (2019) People Track Software .Retrieved 13 April 2019 from
http://www.people-trak.com/products/features.asp?feature=4
Torlak, N. G. (2016). Improving the Role of Organisational Culture in Change Management
through a Systems Approach. In Organizational Change Management Strategies in Modern
Business (pp. 230-271). IGI Global.
Zohuri, B., & Moghaddam, M. (2017). Defining Threats and Critical Points for Decision-
Making. In Business Resilience System (BRS): Driven Through Boolean, Fuzzy Logics and
Cloud Computation (pp. 299-345). Springer, Cham.