Factors to be considered in decision matrix
A number of alternatives have been suggested as a solution to the high number of employee turnover in the organization. All these alternatives have to be measured in order to determine the best solution for the organization. Each of the alternatives provided have disadvantages and advantages to the organization. Their impact on the organization will determine which of the possible solutions will be best for the company.
The main factors that are going to be considered are going to be the cost of implementing the solution and the effects towards the organization’s work. These are the most important factors to consider when choosing the solution. Other minor factors can be considered when choosing the alternatives. These will only be considered when more than one solution scores the same in the decision matrix of the two main factors. Examples of minor factors include perception of the organization by employees if it implements the solution and public perception towards the organization if it implements the solution.
Weight of criterion used
The possible solutions that will be examined are outsourcing the human resource aspect of the organization, reviewing the pay structure and reviewing recruitment policy of the organization, restructuring the organization and downsizing. A decision matrix will be formed with the following criteria:
The cost of implementing the alternative
How the alternative will affect work
How the alternative will affect employee perception
How the alternative will affect public perception
Based on the four criteria, the cost of the alternative should be affordable and any costs incurred should not affect the work of the organization. All the alternatives will have a total score between 1 and 10, where 1 will be a low score and 10 will be the highest score on the decision matrix. The alternative will the highest total score will be selected
Decision Matrix
Based on the decision matrix above, the scores for the different criteria for each alternative selected for analysis is as shown below.
Validation of evaluation criteria
The criteria to be considered are going to be cost of the alternative, effect of the alternative on work, perception of the organization by employees, and perception of the organization by the public. This are all important factors that determine the effectiveness of the alternative selected by the company in order to reduce employee turnover. As mentioned earlier, the two most important factors to consider are the cost of the alternative and the effect on the organization’s work. These two are going to be weighted heavily meaning they are crucial in determining the solution the company takes. This is mainly because they are directly tied to the revenue as well as operation of the organization. The other two criteria are not as important in determining the solution and are therefore weighted less. They will only come into play in a situation where more than one alternative have the same weight based on the main criteria.
As observed from the above matrix, outsourcing is the best alternative for the organization because it scores the strongest in the two main criterion needed for the alternative.
References
Armstrong, M. (2007). A handbook of employee reward management and practice. Philadelphia: Kogan Page.
Arthur, D. (2012). Recruiting, interviewing, selecting & orienting new employees. New York: American Management Association.
Barrar, W., & Gervais, R. (2006). Global outsourcing strategies: An international reference on effective outsourcing relationships. Aldershot, England: Gower.
Bragg, S. M. (2006). Outsourcing: A Guide to Selecting the Correct Business Unit Negotiating the Contract Maintaining Control of the Process. Hoboken: John Wiley & Sons.
