@2010AbstractThe paper involves the analysis of the strategic issue of high staff turnover in Jeledan Company. It involves the use of questionnaires to find what causes staff turnover. It also shows the effects of high staff turnover. It further uses the Strategic Issues Analysis (SIA) approach by King (1982: 145) to come up with motivation as a strategic approach to curb the high staff turnover problem. The method involves the application of judgment, the use of models and data collection. High Staff Turnover in Jeledan CompanyIntroductionAccording to the United States of America Act; a small business is one that is independently owned and operated and one that is not dominated in its field of operation.
However, the Small business Administration is authorized by the aforementioned act to develop a more detailed definition according to sales volume and the number of employees. For a business to be classified as Small Business; the following features should be met: the management is sovereign since it owns the business, capital is applied and it is thus owned by an individual or a group of individuals, the operational area is local but the market is not (Hodgetts & Kuratto 1998). Table 1.1that shows the quantitative classification of small businesses: TYPE OF BUSINESSNUMBER OF EMPLOYEESTURNOVERManufacturing250-1500Wholesaling-$7.5m-$22mRetailing100$2m-$7.5mService-$1.5m-$10m (Hodgetts & Kuratko 1998:6)In the United Kingdom small businesses are defined as businesses with a small share of the market, they are managed in a personalized manner by their owners or part-owners, they operate independently (Deakins & Freel, 2003:37). Table 1.2 the European Union DefinitionNumber of EmployeesSize of Enterprise0-9Micro12-49Small50-249Medium(Deakins & Freel 2003:38)Bigolow, Fahey & Mahon (1993) define issues as developments that would affect business performance and its capacity to meet its objectives.
Also, Dutton & Ottensmeyer (1987: 356) pointed out that issues are classified as strategic because they can alter the business’s feat if left unchecked. Due to the impact posed by strategic issues; their control is therefore imperative. This therefore has led to the formulation of management strategies. According to Wartick and Mahon (1994: 293) issues management is an elaborate meticulous process by which an institution is able to identify, evaluate and respond to social and political issues which may impact notably upon it. However, the working definition made use of by King (1982: 45) is that a strategic issue is a circumstance or pressure in the business that involves: possible outcomes that is vital to, or of probable high impact on the business’s general performance, controversy, in that rational people may take dissimilar positions with regard to the impact of the issue and strategic costs in that various possible outcomes implied by the issue would prescribe that different strategy should be implemented. The two types of strategic issues brought to light by Dutton & Ottensmeyer (1987:356) are: internal and external issues.
Internal include issues such as employee dissatisfaction and the development of new technology. External issues include competition, political unrest and changes in regulatory regulations. Since the aforementioned issues could cripple the normal functioning of a small business, researchers have come up with ways to curb the issues. King (1982: 145) came up with the following methods of the control of strategic issues: resolution may be spearheaded by an individual or group in authority or recognized to be expert in the area, in the event the issue is formally modeled; a predictive model may be generated to predict the likelihood of major change.
This mode of is only conducive for recurrent issues since models are expensive and time consuming to build. The third method involves the “issue staff study” in which an issue is posed and planning staff sets out to collect data and conduct analyses to resolve the issues. The fourth method is the Strategic Issues Analysis (SIA) approach. This method involves the application of judgment, the use of models and data collection (Dutton & Ottensmeyer 1987).