Strategic Planning Framework Research Paper Example | Topics and Well Written Essays - 2000 words

Strategic Planning Framework - Research Paper Example up to the standards as the company is losing its grip over its market share as well as the position it had achieved earlier in the market based on the quality of its products and services. The two main reasons behind these situations are: 1. High employee turnover rate; 2. Decreased customer satisfaction. Let us discuss these problems in some detail in order to know how these problems are affecting the overall business of the company. 1. High Employee Turnover Rate As Beam (n.d.) states, â€Å"employee turnover is the process of replacing one worker with another for any reason† (p. 1). High employee turnover means that the company is not able to retain its employees. It is a fact that experienced employees yield higher levels of productivity as compared to employees who join the company as fresh employees. The reasons behind high employee turnover ratio are usually improper employee recruitment and lack of a proper incentive plan. When we inquired the managers of NexGen, we ca me to know that they had started hiring less experienced employees in order to cut down the cost of retaining experienced employees. They also took this step as the result of some resignations from their key employees. However, this strategy of the company is proving unsuccessful because new employees are not able to show good performance, and their managers fire them from their jobs after a very short span of time. Another reason that we came to know through analysis was the lack of a proper incentive plan to retain high performing employees. The incentive plan could have motivated the employees to remain associated with the company instead of resigning from their positions. A couple of people who had worked for the company earlier revealed that the company did not use to reward them for their... We would recommend the managers of the company to implement all solutions without any delay if they want to succeed in this current downscale economy. Although the solutions may take some time in proper implementation, the process should be started right away in order to save the company from bearing more loss. For example, the hiring of skilled employees may take a couple of months, but the effects on the company will be long lasting. Similarly, implementation of an incentive plan would need a proper financial analysis. Managers of the company would have to analyze all financial factors before designing the plan in order to save the company from suffering extra costs of developing and implementing the incentive plan. Implementation of a quality management system also needs planning. Managers of the company need to set guidelines and train employees to follow those rules while developing any new product. Introduction of after-sale service plan can be done right away as no time-taking planning is needed to take such steps. The managers just need to hire some outdoor service employees to implement this step.