High Employee Turnover Rate

The principal problem that Zenith is facing is a high employee turnover rate. Two major reasons for their

turnover are absence of intrinsic rewards and job satisfaction. Because of the lack of intrinsic motivation

and job satisfaction employees are not interested in performing their work. Due to these two factors

employees lose their interest and motivation to do the work. Workers are closely observed by their

supervisors and have no freedom to take the participation in the decision-making procedure for their

company so they feel that the company ignores them. This feeling of ignorance causes lack of

membership behaviour and citizenship behaviour among them, which gives the birth to high employee

turnover rate.

Dissatisfaction of the Employees

Employees are not satisfied with their work as well as their pay system. Most of the employees are paid

fixed base pay and on commission basis. Performance pay system encourages sense of competition

among employees, which lead them into dissatisfaction with their job and employers. Mostly sales staff

is dissatisfied with the pay system because their base pay is very low and they are paid on commission

basis that solely depends on the sale. But, because of the company’s reputation and quality of the

products sales are not high so they are not able to get the high income and feel dissatisfaction. Because

a sales person who is innovative and eager to do his/her best do not find the opportunities to earn more

and satisfy their needs. Another reason of their dissatisfaction is that they have to face the client’s anger

and abuses without any fault.

Dissatisfaction of the Customers

Customers of the zenith’s products are totally unhappy with the company because company makes a lot

of promises but did not fulfill them. By keeping numerous promises company attracts a large number of

customers but it become a hard matter for the Zenith to fulfill all the demands of customers at a proper

time or within a short period of time. So customer faces the problems of late delivery, low quality lack of

up to date features of the systems. The customers’ disappointment became more atrocious when

company started charging from the customers for the failure of poorly designed system that was

Zenith’s responsibility not the customers.

Ignorance of the top management

Management’s ignorance nature also created many problems that could be stopped to occur if

management gives his consideration towards them. Management was familiar with the problems of

sales decreasing, over budgeted but they did not take appropriate steps and do efforts to nip these

problems in the beginning. Zenith Medical Systems Incorporation


Lack of trust

Zenith has a large number of employees and they are divided into different departments. These

departments do not have trust upon each other. They always blamed each other for the poor quality of

work and tried to find incompetency within other departments like system department thinks that

installation problems are occurred because of the incompetency of installation department and pitiable

understanding of marketing department. System maintenance blames system department for making a

poor quality systems, installation department for faulty installation, marketing department for idealistic

false promises with customers. All the departments have worst relationships with each other.

Lack of co-operation

Workers do not have trust on each other, as well as there is a lack of cooperation and coordination

between them. Workers are limited to do their own jobs. They are not interested to do the help of their

co-workers. They have a limited prospective around their job. They have no feelings of brotherhood and

good relationships at the workplace. Their only interest is to fulfill their own needs. They have no spirit

of teamwork and motivation to work together. They created an individualistic environment at the


Decreasing Revenue

Due to the insufficient work quality s faced a lot of problems with the systems .to deal with those

problems and to improve the failures of systems, maintenance department have to spend a large

amount of time in repairing the crashes or provide those quality products that were promised with the

customers. In this way company spent its most time to perform those activities that are not helpful to

gain the revenue, which is very helpful to raise its economy and profits.

Poor quality products and bad reputation of the company

Zenith failed to provide standard quality products to their customers. All customers have complaints

about its product quality. They are very disappointed because they did not get those standard products

that were promised by the company at first. Poor quality of the products left a negative impression on

company’s reputation and in the market zenith loses its good reputation.

Late deliveries

Because of the keeping so much promises and unavailability of time, company always fail to meet the

time lines and result is late deliveries.

Falling Sales

Sales of the Zenith medical systems are going to decrease continuously. Sales dropped loss of

$5,000,000.this is the result of unsatisfied customers, late deliveries, failure of systems.

The root causes for all the problems in zenith medical systems are its compensation system, managerial

strategy and poor reward system. Employee’s base pay is low and variation in pay basis like

performance pay, incentives and commission based pay also create a difference and problems among

the workers. Classical managerial strategy is using in the Zenith medical systems. Top management

Zenith Medical Systems Incorporation under strict guidelines makes decisions. Workers are doing the

work under the controlled supervision and they have no right to give their opinions in the decisions

making process. Reward system is also not good. No intrinsic rewards are for the workers that can

motivate them towards their work. Insufficient reward system is responsible for the lack of two types of

behaviour of the employees-membership behaviour and citizenship behaviour. Absence of this

behaviour causes job dissatisfaction, lack of cooperation, lack of motivation in the employees.