3. Introduction
Mex fabrics started in 1938 by importing Italian,
French, Spanish, and ties under several brands.
With implementation of NAFTA they expanded
with importing technology and extended product
line to shirts, trousers, belts, Scarves & cufflinks.
They concentrated on product standardization
and high quality products.
4. Contd…
Majority of works were women.
Internal magazine promoted this
organization culture of Max fabrics.
They Provided excellent training & provided
bonus for punctuality & attendance.
5. Case Analysis
MexFabrics is an established manufacturer of
men’s clothing in Mexico
Case focuses on possible causes of employee
turnover and strategies to reduce the same
High turnover of skilled women staff is
threatening
Product quality
Productivity
Profitability
Reputation
6. Contd….
Gap between production order, training and
output
Low quality products lead to customer
dissatisfaction , affects reputation
Major causes of employee turnover is the
organizational structure that involves :
Reward system
Strength of leadership
Less commitment from employees
7. Analysis of Root Cause
Unfair treatment
Lack of education
Personal and social issues
Drop in attendance
Difference in pay
HR Manager is expected to outline strategy
8. Problems & Issue
High labor turnover
But Bonus were given even though there
was low productivity
Low literacy among employees restricted
them from attending skill development &
training classes
More over they came from poor families so
they just wanted to earn for to their day to
day living
Incomplete socialization process
9. Contd…
Human Resource department fail to
ensure workers welfare and they
were not able to realize the reason for
turnover.
Ego clash between new and old
workers in giving facilities like
transportation child care.
10. THEORIES ASSOCIATED TO CASE
Theory of Motivation
If possible these design practices should be
implemented:
1. Job rotation: The practice of moving
employees from one job to another
2. Job enlargement: Increasing the number of
tasks employees perform within their job
11. Contd…
3. Job enrichment: Giving employees more
responsibility for scheduling, coordinating, and
planning their own work
4. Empowerment: A psychological concept in
which people experience more self-determination,
meaning, competence, and impact regarding their
role in the organization
12. Socialization process
Along with selecting people with compatible
values, companies maintain strong cultures
through the process of organizational
socialization
Organizational socialization refers to the process
by which individuals learn the values, expected
behaviours, and social knowledge necessary to
assume their roles in the organization
If a company’s dominant values are clearly
communicated, job candidates and new hires are
more likely to internalize these values quickly and
deeply
13. Stages in socialization :
Pre arrival Encounter Metamorphosis
Socialization is an important process for
absorbing corporate culture as well as helping
newcomers to adjust to co-workers, work
procedures, and other corporate realities
Myers-Briggs type Indicator Test(MBIT)
A good person-organization fit improves job
satisfaction and organizational loyalty because
new hires with values compatible to the corporate
culture adjust more quickly to the organization
14. Solutions
More men rather than women
Employers from developed countries in
manufacturing areas
Provide Child care facility to the newer
employees too
Business process outsourcing
Counseling
15. Contd…
Introduce capital intensive technique
Appropriate motivation should be provided
Hire employees with prior experience
Gender distribution
Education : new employees should have
basic education to understand mission and
values of MexFabrics
Test potential of employees
Company Expansion
16. Conclusion
If the labor turnover increase over time, the
company may face closure.
Good staffing, Appropriate motivation, will
reduce the staff turnover.
