business and management ia

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Business and ManagementIAWhat strategies can be taken by Kuehne + Nagel to solve

the high levels of staff turnover?

[Pick the date]

Canadian International School of SingaporeChanutda Wittemaier

Candidate Number: 001347-008

Research Proposal:497

Executive Summary: 162

Written Report:16782011-2012


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1 | P a g e C h a n u t d a W i t t e m a i e r0 0 1 3 4 7 - 0 0 8

Table of Contents

Cover Page..1

Contents Page..2

Acknowledgement 3

Executive Summary.4

Research Proposal ..5

Chapter 1: Introduction..6

Chapter 2: Review of Related Theories.7

Chapter 3: Procedure or method8

Chapter 4: Main Results and Findings..9

Chapter 5: Analysis and Discussion..10

Chapter 6: Conclusions and Recommendations11


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Acknowledgement

I would like to take this opportunity to thank all those who have helped me in writing this

project and making it a success. A particular thanks to:

Erwin Wittemaier, the president of Kuehne+Nagel Singapore for his help andsupport as well as giving permission to interview at the company and access to

past data

Miss Lena Phua, Human Resources Manager, for her help and support and doinginterviews

Mr. Joe Ah-Tieng for his help and support throughout this project. I would alsolike to thank him for his guidance throughout.

To the workers of Kuehne+ Nagel for voluntarily cooperating in the questionnaire


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Executive Summary

The aim of this project is to answer the following question: what strategies can be taken

by Kuehne + Nagel Singapore to solve the problems of high staff turnover?

An interview with human resources was held to see that the workers are happy with their

responsibilities but there seems to be a lack of communication within the managers and

subordinates of the company. A survey was also conducted to see that the workers lack

motivation due to lack of recognition, no job security and sense of belonging.

It was suggested or recommended that Kuehne + Nagel regards the communication and

leadership style taken. If the company is unable to raise the certainties of job security and

motivation of the employees by recognizing achievements, appraisals and so on, the

companys staff turnover would keep increasing. Also, training seems to be a concern

and recommended that training should be given to all employees as well as holding social

events to enhance relationships amongst workers.


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Research Proposal and Action Plan

Research Question: What strategies can be taken by Kuehne + Nagel Singapore to solve

the problems of high staff turnover?

Rationale:

Kuehne + Nagel (Switzerland) are one of the largest non-vessel operating common

carriers in the global transportation and logistics. Since the last few years, the branch in

Singapore has been experiencing high levels of staff turnover. The manager of the branch

expressed that every year, there are about 25 staff members leaving the company each

year. So, the manager is very keen to find strategies to better retain the companys

employees, as it costs time and money to train new employees.

Areas of the syllabus

2.1- Human Resource Planning (Recruitment and Selection) 2.3- Communication (Types and Network) 2.4- Leadership and Management (Styles) 2.5- Motivation ((Maslow, Herzberg, Theory X and Y)

Theoretical Framework

Theories such as Maslow, Herzberg, and Theory X and Y will be used to examine the

motivation level of employees and suggest strategies for improvement. The recruitment

and selection method will be analyze to evaluate retention capacity. Types of

communication and network will be used to examine the impact of communication
http://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Transport


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process within the company and suggest improvements as well as evaluating the different

leadership and management styles existing to suggest alternatives.

Methodology and Individuals to be approached

Primary Research:

An interview with the head of the human resources department to collectinformation on the staff motivation, leadership styles, communication and HR

planning that is done in the company.

I will conduct a survey to collect sufficient data from the staffs of the company to

overview the feelings and possible causes for the high levels of staff turnover.

Secondary Research:

I will ask for permission of collection of relevance past data ex: of staff turnoverrates, company profile

Internet research of related theories to be discussed and applied in the project.Anticipated Difficulties Solutions

Sample may not be representative of all the

employees

Take a larger number of people

to increase reliability

The research is only on one branch and

therefore suggestions may only benefit this

branch only

Specify suggestions for this

branch only

Difficulty of gathering sufficient primary and Arrange meetings withother staff members to


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secondary sources fulfill the needed

information

Carry our surveys usingemail, if not found as a

secondary source

Biased answers from questionnaires by

employees

Collect as many as possible

data so that it is more

reliable

Acknowledge in conclusion

Action Plan:

Starting

Date

Action

06/01/2011 Discuss with teacher of possible plan, subject, and company to research

on

08/21/2011 Complete research proposal and action plan

09/17/2011 First Interview with HR Manager, and send out questionnaires

09/18/2011 Complete Introduction

10/01/2011 Complete review of related theories

12/28/2011

01/01/2012

Complete main results and findings

Analysis of Findings

01/11/2012 Complete conclusion and recommendations


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02/07/2012

02/10/2012

02/15/2012

Complete appendices, bibliography, and executive summary

Complete 1st

draft

Complete 2nd draft

02/27/2012 Submit the final draft


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Chapter 1: Introduction

1.1: About the Company

August Khne and Friedrich Nagel founded the forwarding and commissioning

business in 1890 in Bremen, Germany, concentrating on cotton and consolidated freight,

and until the mid-twentieth century operated nearly exclusively in the seaports of

Germany. In the early 50s, Alfred Khne initiated the company's international expansion,

and first offices were opened in Canada, followed by the Benelux region, and soon

thereafter the Middle East. As of the mid-1960s, Klaus-Michael Khne - following in his

grandfather's and father's footsteps - continued with the expansion of the company's

network and scope of services and products. The Group employs approximately 61,500

people in 900 offices in more than 100 countries and has approximately 7 million sqm of

warehouse space under management.

Seafreight: Number 1 global seafreight forwarder

Airfreight: Top 3 global air cargo forwarder

Contract Logistics: Top 3 global contract logistics provider

Road & Rail: European Top 6 provider

1.2: Statement and Significance of the problem

The company is facing high staff turnover, losing a number of valuable workers

between 2010-2011. The decrease in number of workers impact the productivity and
http://en.wikipedia.org/wiki/Bremenhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Klaus-Michael_K%C3%BChnehttp://en.wikipedia.org/wiki/Klaus-Michael_K%C3%BChnehttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Bremen


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profit earned by Kuehne+Nagel. The company must find solutions to retain the number of

workers and reduce the staff turnover rate.

1.3: Purpose of Study

To build up strategies that can be taken by Kuehne + Nagel to solve the problems

of high staff turnover. To consider motivational and demotivational factors within the

company to suggest solutions to reduce staff turnover and prevent workers from leaving

in the future.

1.4: Research Question

What strategies can be taken by Kuehne + Nagel Singapore to solve the problems of high

staff turnover?


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Chapter 2: Review of Related Theories1

The following theories were reviewed:

Maslows Hierarchy of needs McGregors Theory X and Y Herzbergs Two Factor Theory Types of Communication and network Recruitment and Selection process Types of Leadership and Management styles


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Chapter 3: Methodology

Primary research consisted initially of a detailed interview with the head of the

Human Resources of Kuehne+Nagel, Singapore on:

General Information of staffs Staff Motivation Leadership and management styles Communication styles within the company HRM planning used

I conducted a survey to collect sufficient data from the staffs of the company. The survey

will consist of questions on the feelings of the staffs working at the company and possible

reasons for the high levels of staff turnover.

I also undertook secondary research involving access into the companys past data of

staff turnover rates in the past years.

Analysis ofthe companys past turnover rates Surveys took by staffs to come to a conclusion of causes and process strategies that

can be taken by the company.

Internet Research: relevant studies and theories that is involve in the companyshigh staff turnover rate

It must be noted that the data collected is only considering one branch of the

company and staffs of that branch. Also, the data and information collected is only a

sample and not the whole staff number is taken into account.


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Chapter 4: Main Results and Findings

4.1: Summary of Interview of G.M

Kuehne+Nagel is a logistics company that provides services in Singapore and

around the world. Ms. Phua noticed the increasing level of staff turnover in these past

few years. She recognized that there was an increasing lack of motivation amongst

employees and the communication within the company was decreasing. There seems to

be a disconnection between superiors and subordinates resulting in lowered motivation

and negative relationships. Also, there is a high percentage of employees who dont feel

secured in their position at the company. It is believed that increase wages or rewards can

motivate employees as they feel acknowledged and motivate employees. Increasing

communication amongst the employee should also be regarded to bring together the

superiors and subordinates as to create a positive working atmosphere. This is planned to

be trips or events that benefit the company and employees such as charity events of trips

to other places to improve the relationship across the company.

4.2: Main Results of Survey of Employees

Survey for the current employees is obtained from the questionnaire (appendix 2).

The questionnaire relates to the Maslows Hierarchy of needs, McGregors Theory X and

Y, and Herzbergs two factor theory. This helps identify specific positives and negatives


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aspects of the business that need to be regarded. The answers are presented in graphs for

statistical purposes and brief explanation.

0

10

20

30

Yes No

1)Are you satisfied

with the pay system

adopted by

Kuehne+Nagel

Questions 1-3 relates to

the basic needs of

Maslows Hierarchy of

needs and Herzbergs

two factor theory. The

graph gives a positiveresponse which the

most of the employees

are satisfied with their

salary, hence satisfying

the basic needs and

hygiene factor.


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0

5

10

15

20

25

30

Very Happy Happy Not Happy

2)Are You Happy With

Your Salary?

0

5

10

15

20

25

30

Not at all Somewhat Yes

3)Does your

remuneration packageoffer you with enough

money to acquire basic

life needs such as food,

clothing and maintain a

proper shelter?


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0

5

10

15

20

Yes No

4)Are you given job

security by the

company

0

5

10

15

20

25

Yes No

5)Do You Feel Safe

While in Your Working

Environment?

Question 4-6 relates to

Maslows Hierarchy of

needs and Herzbergs

two factor theory. The

graph shows that the

working environmentis safe, hence satisfying

the safety needs of

Maslows theory and

hygiene factor of

Herzbergs Theory.

However, there is a

high percentage of

employees who are not

satisfied with their job

security.


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0

5

10

15

20


6)Are You Satisfied

with the Working

Conditions (working

hours, workplace,facilities, etc)?

0

5

10

15

20

25

30


7)Do You Hold Good

Relationships Amongst

Subordinates and

Superiors Within the

Company?

Question 7 and 8 deals

with the belonging and

love needs of Maslows

theory and the hygiene

factor; office and

subordinates

relationship of the

Herzbergs theory. Theresults who that the

relationship is quite

concerning. The results

in question 8 show that

most employees do not

feel there is enough

recognition for their

achievements by

superiors.


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0

5

10

15

20

25

30


8)Are Your

Achievements

Acknowledge and

Recognized bySuperiors?


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4.3: Analysis of Former Employee Surveys

I was able to survey 4 former employees through mail. Three out of four

answered no for reasonably salary, two out of four answered no for rewards in terms of

recognition and two answered sometimes. In decision making, they were always

participated.

0

5

10

15

20

25


10)Are you happy with

the responsibility and

role you are given at

work?

0

5

10

15

20

25

30


9)Do You Feel the

Company Offers Enough

Possibilities for Your

Personal Growth?

Questions 9-10 relates

to self -actualization

needs of Maslows

hierarchy of needs and

motivation of

Herzbergs two factor

theory and Theory x

and y. The results show

that there is somewhat

a satisfaction and the

employees are happy

with the amount of

responsibility and rolethey are given.


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Questions Yes Sometimes No

Reasonable Salary 1 0 3

Reward 0 2 2

Decision Making 4 0 0

Chapter 5: Analysis and Discussion

5.1: Introduction

Firstly, the identification of motivational factors within the employees of

Kuehne+Nagel using three theories: Abraham Maslows hierarchy of needs, Herzbergs

two factor theory and McGregors Theory X and Theory Y.

5.2: Abrahams Maslows Hierarchy of Needs.


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Psychological Needs:

This is the first and basic needs which employees need to be able to survive and

protect their dependents. Therefore, the income form employment should be high enough

to meet the basic necessities such as food, shelter, clothing, etc. From the data collected,

workers are fairly satisfied with their salaries and working conditions. 78% of the

workforce enjoys their daily tasks, and 80% of workers agree that his/her and their

familys needs are met. Hence, Kuehne+Nagel fulfills the physiological needs of its

workforce and progress to the next level.

Safety and Security Needs:


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Kuehne+Nagel fulfills the safety and security needs of its workforce with about

70% of workers feeling that they have a clear outlined career path and secured job. The

company is also engaged in the safety of its workers and provides the workforce with

effective tools, resources, and processes. 70% of workers are satisfied with tools,

resources and processes.

Social Need:

Social need is the last lower order before progressing to the higher order needs.

Workers need to have a sense of belonging as it allows for affiliation and direction. The

graph gives a positive response which the most of the employees are satisfied with their

salary, hence satisfying the basic needs and hygiene factor.

5.3 Herzbergs Two Factor Theory


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Hygiene Factor:

The hygiene factor is satisfied to an extent in the company. From the results

(appendix 2), the workers are happy with their salary but feel that there is no job security

and relationship amongst workers. The results in question 8 show that most employees

do not feel there is enough recognition for their achievements by superiors. This could be

due to

management style and lack of communication.

Motivational Factor:

Recognition, sense of personal achievement, and opportunity for growth and

advancements are part of the Herzbergs motivational factor. From the results, it seems

that there is a lot of uncertainty and somewhat in that the company offers the

employees enough possibilities for personal growth as well as the recognition of

achievements.


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5.4 McGregors Theory X and Theory Y

From the results of the survey, it seems the employees are targeted towards

Theory Y as compared to Theory X. A high number of employees are happy with the

responsibilities and role that they are given, workers desires to satisfy social and self-

actualizing needs, and most people seek responsibility and recognition for achievements.


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Chapter 6: Conclusion and Recommendations

6.1 Conclusions

All in all, it is conclusive from the questionnaires and analysis that

Workers need more motivation to work. There is somewhat a lack ofmotivation to an extent which leaves them uncertain of their jobs.

Maslows Heirarchy of needs, Herzbergs and McGregors theories are notfully fulfilled to enhance the company and the employees.

There is a lack of communication within subordinates. Recognition and jobsecurity are uncertain for the employees, leaving them wanting to leave for

another job.

6.2 Recommendations

6.2.1 Motivation

The lack of motivation in the company is due to feelings of not being

recognized for their roles and achievements to the company and that they feel there is no

job security.

The company should introduce more appraisals, awards to recognizeworkers for their achievements to increase the motivations of the

employees so they feel that they are valued as a valuable person to the

company.


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Workers who demonstrate good work should be rewarded. Arecommended motivational method is awarding employee of the

month to increase self-actualization needs and sense of achievements

of the employees.

6.2.2 Leadership Style and 6.2.3 Communication

There seems to be an autocratic leadership style as the employees feel they

are not participated in the company and recognized.

Leaders should arrange social events or charitable events that theemployees and manager can participate in. This can be done monthly

or annually to give the workers and managers the opportunity to

bond and communicate. This will enhance and strengthen the

relationships and communication within the company

6.2.4 Training

Training should be given to all employees when they are recruited.Training should involve on and off-site training to enhance the

necessary skills and preparation for the company. This will strengthen

the skills of the employees to be given opportunities for increase

growth.


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6.3 Limitations and Improvement for Further Research

However, a better approach to this issue would need a research on the

training needs to enhance this research project. Therefore further research on the

training processes and recruitment should be done to analyze the possible factors

that staffs turnovers are increasing.


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Bibliography and References

Jones, Rob, Carlo Raffo, and Alain Aderton. "Marketing Mix, Marketing Share."

Business Studies. By Dave Hall. Fourth ed. Pearson Education. Print.


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Appendices

Appendix 1:

Abraham Maslow, in 1943 put forward the theory that people are motivated by certain

needs. These needs consist of 5 types and levels, which he named the hierarchy of needs.

Maslow argued that people tend to satisfy their needs systematically that is one after

another in a hierarchy (second one cannot be satisfied until the first one is satisfied)

McGregors theory X and Y

McGregor states that there are two opposing management attitudes towards workers and

these will affect how workers are motivated, according to him, managers can be

classified as theory X managers and theory Y managers

Theory X managers assume that workers: Theory Y managers assume that workers:


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1. Are lazy and will try to avoid work asfar as possible.

2. Are not ambitious, dislikeresponsibilities, and prefer to be led.

3. Want security above all and workonly for money

4. Must be forced, controlled andthreatened by punishment

1. Enjoy work and in fact considerwork as natural as play.

2. Are ambitious, like to accept andtake responsibilities.

3. Can gain job satisfaction and do notwork only for money

4. Are capable of workingindependently and are capable of

imagination to solve problems

Herzbergs two-factor theory

According to Frederic Herzberg theory, 1959, there are two groups of factors, which are

important to workers; they are hygiene and motivation factors.

Hygiene factors (mainly physical aspects)

Hygiene or maintenance factors, contribute very little to motivate workers but prevent

dissatisfaction. Workers can be demotivated if hygiene factors are absent, or inadequate.

Examples of hygiene factors include:

Adequate salary Job security (contract, pension) Safe working conditions Proper policies Quality of supervision


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Hygiene factors are basic requisites for workers to work, but most of them will not make

them work harder. For example, higher wages may not lead to higher performance but if

workers are under paid their performance will go down.

Motivating factors (mainly psychological aspects)

Motivating factors or satisfiers encourage personal development and pride. When they

exist workers are motivated and perform better. For example:

Responsibility Challenging work Opportunities for promotion Recognition for good work Sense of achievement

Importance of Herzberg theory

This is important because it allows managers to see clearly two categories of factors.

They can then motivate workers by making the work more rewarding and also ensure that

hygiene factors are present so that workers are not demotivated

Criticism of Herzberg theory

The theory does not apply to low-level workers because they lack education of ability

for promotion and therefore are not interested in more responsibilities, challenging work,

etc.

Taylors scientific theory

Taylor developed his theory of scientific management as he worked from a labourer to a

works manager. He observed that workers, when left on their own, will work at a much

slower pace than their capabilities (soldiering effect). He argued that:


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1. A managers job is to plan the tasks of the workers and tell them what to do.2. An employees job is to do what it being told and get paid3. An employee is an individual and is mainly concerned with maximizing his

economic gain.

4. A managers duty is to design incentives to motivate workers.Taylor, therefore, suggested that:

Proper job design will increase productivity. This can be done by simplifying jobsinto specialized sequence of motion (division of labour or specialization). This can

be determined by scientific study

Workers can be motivated by paying them more if they work hard and therefore payshould be linked to output through a system of piece rate.

Workers should be selected and assigned individual tasks based on their abilities.Influences of Taylors ideas:

They were first adopted by Ford Motor Co. by using conveyor belts in the massproduction of cars

Most factories are using the principles of scientific management Many non-manufacturing businesses, like McDonalds, are now using a system of

scientific management: same cooking temperatures, times, etc. throughout the

world.

Weaknesses in Taylors approach:

It ignores the non-financial factors that motivate workers. Money is an importantfactor but many people work for reasons other than money, ex. To achieve

something


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It ignores the differences between people. While the output of factory workers canbe measured, it is not easy to measure the output of professionals such as doctors,

teachers etc.

Appendix 2

Questionnaire

1) Are you happy with the pay system adopted by Kuehne + Nagel?Yes No

2) Are you happy with your salary?Not Happy Happy Very Happy

3) Does your remuneration package offer you with enough money to acquirebasic life needs such as food, clothing and maintain a proper shelter?

Yes Somewhat No

4) Are you given job security by the companyYes Somewhat No

5) Do You Feel Safe While in Your Working Environment?Yes Somewhat No

6) Are You Satisfied with the Working Conditions (working hours, workplace,facilities, etc)?

Yes Somewhat No


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7) Do You Hold Good Relationships Amongst Subordinates and Superiors Withinthe Company?

Yes Somewhat No

8) Are Your Achievements Acknowledge and Recognized by Superiors?Yes Somewhat No

9) Are you happy with the responsibility and role you are given at work?Yes Somewhat No

10)Do You Feel the Company Offers Enough Possibilities for Your PersonalGrowth?

Yes Somewhat No

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