Turnover

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Employee Turnover at Pabst Brewing Company
Question 1
There are various reasons for the employee turnover at Pabst Brewing. The new ownership of the firm could have prevented the high number of employee turnover.
First, the differences in the executive and the owners’ strategic direction contributed to the huge turnover. The new owners failed to integrate the goals that had been previously set by the executive. The outgoing executive had invested heavily in the research on the firm’s products, but the new ownership failed to recognize it. The profits had soared due to research that had been done on the former brands. Further, the former marketing director confesses to having enjoyed a sense of mission over time but could not any longer. An integration of the strategic directions could have resulted in a better-managed firm.
Second, the new ownership failed to deal with the bad public relation that the firm was experiencing. This could have prevented the loose of more executive members. Further, the committed locals had nothing to be proud of when the headquarters were moved from Woodridge, Illinois, near Chicago, to Los Angeles. The public relation also failed further when the members of the executive who had left could not hide their frustrations. The failures were registered across the executive members. The lack of public response from the new ownership about the state of the firm destroyed the public relation of the enterprise. This could be prevented the management amicably solved the rising discontent.

The silence propagated the turnover further.
Lastly, they failed to integrate with the locals. The locals offered both supplies and acted as a customer base. However, the firm’s new management did not integrate with them. Once they were introduced, the profits soared again. The drivers of the earnings were former customers who were now beginning to use the products again. The new owners failed to recognize the efforts of the executive team and hence the turnover. Integration with the locals could easily solve any disconnect experienced with the locals.
Question 2
Various problems resulted from the way the new ownership handled the company. The employee turnover is the expected result. The firm also suffered a tainted public relation and further lost the commitment of the locals.
Employee turnover will have a negative effect on a business depending on the terms at which they leave. The fact that the executive left the Pabst brewing company means a lot for the future of the company. The reasons cited for the huge turnover were not personal and hence could have been easily solved had the new owners commit to ensuring a smooth operation. The frustrations of the employees were not properly handled hence a further surge in the company operations.
The image of the firm was tainted as a result of the employee turnover. The mere fact that the executive members of the company left soon after the new ownership took over faded the public image of the firm. The negative publicity was further accelerated by the frustrations expressed by the former employees. The information put out of to the public by the former employees was negative. Had the new ownership communicated an explanation to the events in the company, the tainted image would be saved. It would further protect them from the loss of employees who would have driven the firm’s new vision.
A dedicated local community was suddenly at a loss. This resulted from the failure to integrate them with the goals of the new ownership. Once the headquarters was moved, he firm lost the loyalty it enjoyed and apparently missed a customer base. Integrating the locals was a sure way to retain their loyalty.