Relevant facts or background of the case – highlight the important facts that are relevant to your statement of the problem.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Answer the case 

Relevant facts or background of the case – highlight the important facts that are relevant to your
statement of the problem.

Most of the employees at Maxim were factory workers. Since it was only a medium size company, there was no human
resource department. Whenever there was a need to get people, the factory manager hired the needed personnel
and informed the administration executive about it. Things were moving fairly well without any hitch since the
executives knew each other well.
The factory manager selected employees on the basis of his personal judgment during the interview with the candidate
which lasted for a few minutes. Prior to this brief interview, the factory manager checked on the candidate's
experience, family background, educational level and the references received from school and previous job.
The factory manager simply went by his own intuition and made up his mind as to whom he is going to hire. The rest
of the executives generally accepted the factory manager's decision. Once the candidate was offered employment, he
or she was sent to the factory for completing formalities such as completing an application form and a brief physical
examination. Then they were asked to report to work the following day. There was no formal job instruction and
whatever the instruction was, it lasted only a few minutes. Whenever the new employee encountered difficulty, some
guidance were offered.
Employee turnover at Maxim was above the average for the industry. Every month a number of employees left their
jobs. Some of them could not adjust to their jobs or work environment while other failed to meet the work
requirements.
Since the company was making money, the factory manager or the managing director of the company did not bother
about the turnover problem. However, the factory manager was fully aware of the turnover problem.
Transcribed Image Text:Most of the employees at Maxim were factory workers. Since it was only a medium size company, there was no human resource department. Whenever there was a need to get people, the factory manager hired the needed personnel and informed the administration executive about it. Things were moving fairly well without any hitch since the executives knew each other well. The factory manager selected employees on the basis of his personal judgment during the interview with the candidate which lasted for a few minutes. Prior to this brief interview, the factory manager checked on the candidate's experience, family background, educational level and the references received from school and previous job. The factory manager simply went by his own intuition and made up his mind as to whom he is going to hire. The rest of the executives generally accepted the factory manager's decision. Once the candidate was offered employment, he or she was sent to the factory for completing formalities such as completing an application form and a brief physical examination. Then they were asked to report to work the following day. There was no formal job instruction and whatever the instruction was, it lasted only a few minutes. Whenever the new employee encountered difficulty, some guidance were offered. Employee turnover at Maxim was above the average for the industry. Every month a number of employees left their jobs. Some of them could not adjust to their jobs or work environment while other failed to meet the work requirements. Since the company was making money, the factory manager or the managing director of the company did not bother about the turnover problem. However, the factory manager was fully aware of the turnover problem.
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