Case-Small business management Essay Example | Topics and Well Written Essays - 500 words

Case-Small business management - Essay Example Miller was very smart because he instituted employee policies to keep his workers motivated. The fringe benefits the company offers its employees are above the industry average. The workers are given production incentives that allow them to earn a maximum of 135% of base pay. Miller is a people’s person that keeps the lines of communication open at all times with his employees. Since Miller took over the operation the firm has lowered its employee turnover rate to 3%. â€Å"Recent research shows that small business owners estimate the cost of replacing an employee at close to $6,000† (Robertson). Jim Miller did a great job at changing the organizational culture of Intermatic Inc. He empowered and trusted his employees which help improved their motivation. The communication and people skills of Mr. Miller created a great work environment for the employees of the company. He also cared about the personal problems of each of his staff members. The employees responded well and they increased their productivity. When the company downsized the firm and made changes to its structure the firm was at risk of losing the confidence of the employees, but instead Miller took advantage of the opportunity to implement a brand new corporate culture. The human resource department did a great job of creating a benefits package that attracted many workers. I believe one of the main reasons that the employee churn rate of the company is so low is due to the exceptional fringe benefit package the company offers. Another one of the reasons that the company has been successful under Miller is due to his great leadership abilities. Employees follow and listen to leaders they respect. The company had to consider various alternative solutions to improve the situation of the company. One alternative solution was to hire temporary employees that receive limited fringe benefits. A second alternative solution was to shut down its operations in the United States and