1. Introduction
This is a report which will analyze the case study of whirlpool, a global market leader in
manufacturing of appliances all over the world. The focus of the report will be on the
significance of global retention strategies in global competitive environment and the major
strategies that has been taken by the organization for improving the retention rate so that the
can prevent the reduction in turnover rate in the organization. However, the report will also
highlight the relationship management practices in Whirlpool which will identify the
relationship with the employees, trade unions and consumers. The report will conclude by
providing a reflection on global business standards in an organization.
Importance of retention strategies in the
current global competitive environment
Global retention strategies will have a significant impact on maintaining competitive
advantage and long-term sustainability. The increase in the turnover rate within an
organization will increase the overall cost structure a and will have a negative impact on the
performance and productivity of the organization. Thus, it is essential that the employees
remain in the organization by maintaining the required level of productivity and performance
(Deery & Jago, 2015). However, the implementation of the global retention strategy not only
ensures that turnover is decreased but also attracts new talents in to the organization.
Moreover, retention strategies are focus on developing effective between the employees and
the management. The various retention policies used by the organization are the means of
keeping the employees satisfied. Effective retention strategy will reduce the overall cost as
cost of replacing an employee is high and if the turnover rate is high it will affect the
organization significantly. Thus, retention strategy will reduce the replacement cost of the
employees in the organization. High retention rate will ensure high productivity and enhances
the recruitment processes. The employees stay in the organizations that tend to fulfill their
promises made during their recruitment and global retention strategies ensures transparency
in the human resources parties within the organization. Moreover, it will boost the morale of
the employees and improve their level of commitment to the organization.
Three major retention strategies of
Whirlpool and effectiveness of these
strategies
The three retention strategies taken by Whirlpool are as follows:
Measuring the influence of resignation of an employee on the organization
Understanding the probability of resignation of a particular employee
Developing plans which will be able to prevent this loss
2. These retention risk tool kit has been a success for the organization and it can be understood
form the pilot study they have conducted within the organization. The talent management and
diversity unit within the organization developed a set of questionnaires which were asked to
the managers. The questionnaire consisted of 25 close ended questions that attempted to find
out how much the managers were aware about their employees and their relationship with the
employees. These methods have been effective as the organization has been able to identify
the extent of the managers interaction with their employees and the underlying problems in it.
Thus, the problems that were addressed were mitigated with effective strategies which
included quarterly meetings where they shared their experiences and learned form each other.
Thus, it was seen that the employees and managers that were involved in pilot test were able
to develop a better communication among them.
Relationship management is important as improve the quality of the organizational culture.
Whirlpool’s strategy of implementing relationship management ensured that the retention rate
decrease especially among the employees that took part in the pilot test. Moreover, the
managers and the employees were able to identify their lacking which enabled them to grow
at a personal level. Thus, these strategies show that whirlpool focused on developing a better
communication between the workforce and the managers within the organization.
Communication in an organization has to be two-way as flow of information is important for
better understanding of the goals and objectives of the jobs they are performing. Thus, the
tool that the organization developed is incorporated with the human resources and the
managers use this tool to develop effective relationship with the employees. This enables
them to know more about the problems the workforce is facing and how it can be mitigated to
retain the employees that are getting dissatisfied with the policies within the organization.
Moreover, the organization also developed programs for training the managers so that they
can improve their interpersonal skills. Thus, Whirlpool focused on improving the manager
and employee engagement within the organization which will motivate them and facilitate in
being more productive.
Recommended retention strategies for
Whirlpool and its effectiveness
The recommended retention strategies for Whirlpool are as follows:
Planning of careers instead of filling of roles
Investing in line managers
The organization will consist of top performers and it would be wrong to think that they
would stay in their position forever. The employees have their short term and long-term goals
and it is the responsibility of the organization to provide them with the opportunity of moving
forward towards their career objectives. Thus, the organization will have to provide more
challenging roles, enable them to grow at a personal level as well as at an organizational
level. Individual growth is important for the employees as stagnancy ion growth will
3. demotivate the employees and they will look for better options for fulfilling their goals and
objectives (Dennis, 2016). Thus, it is essential for the organization the needs and wants of the
employees so that they can develop paths for each of them in their own way. Thus, if
employees want to shift to different roles, it is feasible to provide them with the desired job
profile they are looking, it may happen some employees wants to move up the ladder and
reach a level of a manager. Thus, it is the responsibility of the organization to provide
him/her with the opportunity of moving up the ladder. It may also happen that an employee is
driven my money and so it is viable to provide him/her with the opportunity of earning more.
It is essential to invest in the managers as they have the maximum level of interaction with
the employees. The turnover rate is dependent on the environment the manager creates
among its workforce and it can be said that most of the employees quit because of their
managers. Thus, it is essential to spent on training and development program for the
managers so that they can improve their interpersonal skills and leadership skills. The
managers should have essential skill of communicating the goal, objectives and role of each
of employees within an organization. Moreover, the managers should be able to motivate
their workforce and discuss with them about their career goals (Bryant & Allen, 2013). This
will enable to keep their p0erosnla goals in alignment to the organizational goals. Thus, it is
essential to have individual conversation with employees on a regular basis so that it
increases the team bonding. Thus, it can be seen that the responsibility of the manager are
crucial in highly motivated and effective workforce. Thus, maintaining skillful leaders within
the organization will improve the retention rate and productivity.
Whirlpool’s relationship management
practices
Whirlpool has focused on developing good relationship with the consumers and the indirect
stakeholders in the organization. Thus, the organization has focused on using customer
relationship management to provide the organization with better customer experience. Thus,
the organization focuses on developing cooperative, ongoing and long-term relationship with
the customers. Whirlpool has implemented CRM in to their business model where they are
using technology to provide the consumers with a better customer experience. On the other
hand, they are using the retention strategies to develop a smooth relationship with the
employees (Terera & Ngirande, 2014).
Various instances suggest that Whirlpool have had issues maintaining good relationships with
the trade unions. Whirlpool follows all the global trade laws maintaining diversity and
providing equal opportunity to the workers. Thus, the organization is focusing on maintaining
a good relationship with the trade union as they belong to the manufacturing sector. The
organization is highly dependent on the labors working in their factories and thus, Whirlpool
is focused on maintaining all quality standards in terms of health, safety and work
environment.
Comparative analysis of relationship
management
4. The comparative analysis of Whirlpool suggests that the major competitors in the industry are
making use of similar strategies to develop a good relationship with the consumers. Jenn-
Air is using similar strategies as they are belong to the manufacturing sector and highly
dependent on their workforce. Similarly, Indesit is following similar strategies in maintaining
appropriate relationship with the trade unions (Ahammad et al., 2016).
Whirlpool as a growing organization with a
global scope
Whirlpool is a growing organization in terms if their global human resource practices. The
diversity in the global human resources is increasing at a rapid rate and the organizations will
have to keep on changing their human resources to improve the quality of their workforce.
Thus, there are new challenges faced by the organization on a day-to-day basis and the
organization is focused on acquiring talent that is more global. Thus, they want to increase
their intellectual property and use innovation gain competitive advantage in the market.
Five strategies that manage key relationship
issues
The five strategies, which will facilitate in managing global relationship issues, are as
follows:
Focusing on relationship with customers and suppliers:
It is essential to maintain good relationship with the suppliers and the customers at the same
time, as they are the indirect stakeholders in the organization. Thus, communication is one of
the most essential parts of building a relationship with the customers and the suppliers
(Howard, Turban & Hurley, 2016). The organizations will have to communicate effectively
with the suppliers to develop a bond, which is based on mutual understanding.
Changes in the expectations:
The organizations will have to be focused on the quality and the quantity of the inventory.
This will enable to identify the weaknesses of their suppliers in the market and data analysis
will ensure them to create a competitive strategy for business. Thus, they will be able to
manage effectively their relationship with respective suppliers by keeping track of their data
(Shaw, Park & Kim, 2013).
Maintaining trust, loyalty and openness:
The relationship between the organization, suppliers and the customers are based on the trust,
loyalty and openness. The organizations should be transparent about their policies and
should develop a relationship based on trust. This will provide competitive advantage in the
long run. The suppliers should be treated equally as partners, which will facilitate in
5. achieving innovation and collaboration. Thus, this increases the success are of the
organizations (Hancock et al., 2013).
Setting standard agreements on beforehand:
The organization will have to set standard agreement with the trade union even though they
have minimum in this age of globalization. However, they may cause problems so it is
necessary to maintain all the necessary factors. However, there are differences in trade union
laws in different countries, their effectiveness vary and the organizations will have to
evaluate the situations carefully.
Use of technology:
The organization should make use of technology so that they can manage their supply chain
and relationship with the customers in a better way. Thus, innovation in technology and
vertical integration is required to maintain this.
Reflect professional standards of practices
within business organizations
This report has highlighted organizational human resources in terms of marinating
relationship with the employees and the trade unions. Whirlpool was going through a phase
where they had high turnover rate but they were able to change this by implementation of
global retention strategies within the organization. Thus, the repot has been able to highlight
the retention strategies that are implemented to improve relationship management.
Conclusion
Thus, it can be concluded from the report that Whirlpool had issues with their retention rate
but they have been able to make changes to their retention strategies, which have had positive
impact on the human resources of the organization. The manufacturing companies always
face problems with trade union and even though the significance of trade union has decreased
significantly, there are some implication which has been able to portray.
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