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Club Med Harvard Case/turnover


In light of these differences, American GOs are finding it difficult to advance into management positions within the organization. .
             Turnover.
             Turnover within an organization can be both beneficial and detrimental depending on the type of employee. Turnover is advantageous if the employee that quits or is terminated is not adding value to the company. This would be functional turnover. The organization should strive to stop dysfunctional turnover, which is when a good employee quits for either avoidable or unavoidable reasons. Costs associated with voluntary and involuntary turnover include recruiting, selecting, lost productivity, potential lawsuits, workplace vandalism, and loss of talented employees. Club Med does not have a training program; therefore they do not suffer turnover costs related to training.
             Club Med's costs related to recruitment, selection, and placement of employees includes the time it takes to screen resumes, sending out rejection letters, interviewing potential employees, costs of placing adds in the trades, and time spent answering employee placement concerns. To estimate the costs of these activities, Club Med would have to look at how much time was spent on each of these tasks and what the payroll cost was for the employees engaging in these activities. They would also need to know their fixed costs, such as costs of placing job advertisements and traveling costs associated with recruitment. For example, an interview takes about thirty minutes. Multiply that by how many interviews are given. Then multiply the total time spent on interviews by the payroll costs for the HR employees that are conducting the interviews. This gives an idea to how much time and money are spent in the selection phase. Nevertheless, this does not include the time it takes to screen out resumes or the costs of recruiting, which can also be significant costs as well.
             Under the current hiring practices of Club Med, the HR department unintentionally hires GOs that do not perform as expected.


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