How A UPS Manager Cut Turnover

In 2006, Jennifer Warren was promoted to district manager for United Parcel Services' operations in Buffalo, NY.She was responsible for $225 million in revenue, 2,300 workers, and the processing of some 45,000 packages per hour.When she took over in Buffalo, 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.Most of the UPS's current executives began as part-timers during their college years, and then moved into full-time positions.UPS has always treated its part-timers well.High pay, flexible work hours, full benefits, and substantial financial aid for college are some of the benefits provided by the company.Yet, these benefits didn't seem to be enough to retain workers at the Buffalo facility.

Warren developed a comprehensive plan to reduce turnover.The focus was on improving hiring, communication, the work place, and supervisory training.

The hiring process was modified 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.

Next, she analyzed the large database of information that UPS had on her district's employees.Based on the data, she concluded that there were five distinct groups working for herdifferentiated by age and stages in their careers.These groups had different needs and interests.Warren modified the communication style and motivation techniques she used with each employee to reflect the group to which h/she belonged.

Many new UPS employees in Buffalo were intimidated by the huge warehouse in which they had to work.To ease the intimidation, she improved lighting throughout the building and upgraded break rooms.To further help new employees adjust, she turned some of her best shift-supervisors into trainers who provided specific guidance during the new hires' first week.

Finally, Warren 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 way, and how to identify the different needs of people.Supervisors learned to demonstrate interest in their workers as individuals.

By 2010, Warren's program was showing impressive results.The attrition rate had dropped from 50 percent to 6 percent.During the first quarter of 2010, not one part-timer left a night shift.Annual savings attributed to reduced turnover are estimated to be around $1 million.Additional benefits included a 20 percent reduction in lost workdays due to work-related injuries and a drop from 4 percent to 1 percent in packages delivered on the wrong day or at the wrong time.

Questions referring to the case :

1. Did Jennifer Warren, as a district manager achieved the Goals of Organizational Behavior? Discuss your answers.

2. From your analysis, what are the motivation theories that had been used or help to motivating part-time employees?

3. Discuss Jennifer Warren's leadership qualities?

4. Suggest how can Jennifer Warren use technology to communicate effectively to the part-time employees?

Discussion Question :

Understanding the concept of group behavior and team, would you prefer to work alone or as part of a team? Why?