In 1998, Jennifer Shroeger was promoted to district manager for UPS’ operations in Buffalo, NY. When she took over, she faced a serious problem: turnover was out of control. Part-time workers, who account for half of the Buffalo facility’s workforce, were leaving at the rate of 50 percent a year. Her highest priority was to reduce this turnover rate. The entire UPS organization relies heavily on a part-time workforce. Shroeger modified the hiring process to screen out people who essentially wanted full-time jobs. Given that it typically took new part-timers six years to work up to a full-time job, it made sense to try to identify people who actually preferred part-time work. Shroeger expanded training so that supervisors had the skills to handle increased empowerment. Recognizing that her supervisors were the ones best equipped to understand the needs of part time employees, supervisors learned how to assess difficult management situations, how to communicate in different ways, and how to identify the different needs of people. Supervisors learned to demonstrate interest in their workers as individuals. By 2002, Shroeger’s program was showing impressive results. The attrition rate had dropped from 50 percent to 6 percent.
1. In dollars-and-sense' terms, why did Jennifer Shroeger want to reduce turnover?
2. What are the implications from this case for motivating part-time employees?
3. What are the implications from this case for managing in future years when there may be a severe labour shortage?
4. Is it unethical to teach supervisors "to demonstrate interest in their employees as individuals"? Explain.
5. What facts in this case support the argument that OB should be approached from a contingency perspective?