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Walgreens Turnover Essay

3809 words - 16 pages

A Case Study of the Employee Turnover Problem in Walgreens Co.

Jason Nguyen
GM 591 Leadership and Organizational Behavior
Professor Horst
August 19, 2011

Walgreens Pharmacy is a drugstore chain that operates in the United States. This Company provides its customer with multichannel access to consumer goods and services, and pharmacy, health and wellness services in communities across America. Walgreens has become a fortune five hundred company and a popular landing spot for new college gradates. Instead of becoming a permanent home for new employees, it has become a stepping-stone for better job opportunities. This study provides literature reviews, ...view middle of the document...

My responsibilities also include developing and maintaining a comprehensive understanding of business process and industry practices pertaining to purchasing and distributing. Also analyzing corresponding data to effectively recommend system procedures changes, enhancements, and development of functional specifications or interface opportunities with costs and or return on investment summarized. My department also develops and presents cost-benefits analyses of proposed programs and makes specific recommendations tied to the business goals of the department and company. My work pertains to projects in strategy development, industry trends, competitive analysis, and company positioning as it relates to pharmacy purchasing and distribution.
Walgreens has become a fortune five hundred company and a popular landing spot for new college gradates. Walgreens continued growth sparked a hiring increase within the industry. Walgreens was eager to hire young college graduates hungry for work. Instead of becoming a permanent home for new employees, it has become a stepping-stone for better job opportunities. This problem continued even after the dip in the economy and the deep cuts in the workforce. Upon further investigating this trend, the hiring department found that a reduction in job security, organizational commitment, and job satisfaction where the causes of the turnover trend.
Problem Statement
How can changes in managerial strategies effect employee job satisfaction and reduce employee turnover in Walgreens Pharmacy?
Walgreens’ employees are not satisfied with the management style. This ultimately causes Walgreens to loose money due to turnover Employee turnover affects the effectiveness of management, the job satisfaction of employees, and the shareholder’s of Walgreens stock. Employee turnover has become a common problem within the organization. After a couple months, new employees recognize working for Walgreens is a stepping-stone for a different career path and stay for a couple of years only to gain work experience. The rate of employee turnover decreases labor efficiency. The end result is an increase in operational costs and a reduction in Walgreens’ profitability.
Literature Review
This section of the paper will discusses the research used to assist in analyzing Walgreens Pharmacy’s high employee turnover problem as a result of organizational culture, ineffective leadership style, and employee dissatisfaction. The first two studies will discuss employee’s psychological climate and leadership style. The next two studies address the necessity for building within an organization and how to reintroduce team meetings. The final two studies will present strategies that minimize turnover and the benefits, limitations, and drawbacks of the restructuring process.
The study by Soumendu Biswas pertains to a Human Resource (HR) study in India that revealed a variety of factors that significantly affect employees’ attitude towards their...

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