Permalco Case Study

746 Words3 Pages
After careful consideration, our team has identified the overarching problem Permalco faces as employee dissatisfaction due to engagement issues. Employee engagement expresses the extent to which employees bring energy and commitment into an organization. Research has proven that engaged workers tend to be more productive and loyal to their employers. Companies whose employees lack engagement are in danger of high turnover rates and low productivity. We have come to the conclusion that, based on the information provided, Permalco has a poor selection process and poor development process. We believe that Permalco can improve their selection process by providing a realistic job preview for new employees and applying the four-fifths rule throughout…show more content…
Currently, Permalco is focused heavily on a very specific set of skills amongst students and minorities. We believe that their focus on specific skill sets is tolerable; however, they are going about solving the minority issue the wrong way. Current employees specifically brought up this issue, and there a many legal consequences the company could face if they do not have a proper ratio of minorities. By utilizing the four-fifths rule, Permalco can more efficiently and effectively solve this problem. This ratio test will be able to properly identify whether or not the organization’s hiring rate for majority groups surpasses that of minority groups. By identifying the minority/discriminatory issues, Permalco can take legal precautions and avoid future litigation; meanwhile, simultaneously taking care of their perceived lack of females and minorities. This perceived lack of minorities can lead others to believe there is an occurrence of adverse impact within the organization; therefore, it is important to take this precautionary measure. This ratio test must be administered in addition with a realistic job preview for…show more content…
We believe that Permalco can rid this overarching issue by focusing on their selection process and engaging employees. To improve their selection process, we suggest that they utilize the four-fifths rule and provide candidates with a realistic job preview. To further engage and develop their employees, we suggest that, among other things, Permalco should adopt a mentorship program to help new employees (and current employees for that matter) acclimate to the Permalco environment and culture. We believe that following the aforementioned steps will improve their high turnover rate and overall production, but more importantly, it will lead to more satisfied
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