OB Model

As the general morale of the company has been lowering, we tend to see an increase in the lack of job satisfaction by employees. We also see a loss of profit from the decreased production and loss of sales due to competition. If we cannot compete with another company's offerings of salary and benefits, then people are likely to leave looking for greener pastures.
Not all turnover is bad of course as we are happy to see inadequate workers leave thus allowing us to bring in better trained and educated personnel. Bringing in new employees can lead to the influx of new ideas, as well as increase the motivation and morale of existing employees.
In closing, we can see that two factors that have led to a decline in production are absenteeism/turnover, and a general lowering of company morale. We can also see that the lowering of our production has a direct effect on our employee's morale, which in turn created more absenteeism. We need to address the environment within our company as the foundation of our company rests on having not just the machinery to produce, and well trained and managed workers, but happy workers.
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