University of Southern California Dissertations and Theses

The effects of organizational culture on millennial engagement and turnover in start-ups: an innovation study

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The effects of organizational culture on millennial engagement and turnover in start-ups: an innovation study

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Content Running head: EFFECTS OF CULTURE ON TURNOVER 1

THE EFFECTS OF ORGANIZATIONAL CULTURE ON MILLENNIAL ENGAGEMENT
AND TURNOVER IN START-UPS: AN INNOVATION STUDY

by

Amanda Dawn Holdsworth

A Dissertation Presented to the
FACULTY OF THE USC ROSSIER SCHOOL OF EDUCATION
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
DOCTOR OF EDUCATION

December 2017

Copyright 2017 Amanda Dawn Holdsworth

EFFECTS OF CULTURE ON TURNOVER 2
Dedication

To my darling husband, Doug, for your unwavering love and encouragement, and for taking
on additional responsibilities with our children and our home so I could focus on my studies.
Thank you for believing in not only me, but also our future.
To my incredible daughters and inspirations, Avery and Shelby. I hope that by seeing the
sacrifices I made throughout my journey you have learned to never give up on your dreams.
You can accomplish any goal with hard work, faith, and perseverance.
To my amazing parents for your confidence in my abilities. I would have never achieved
what I have in life without your ardent love and support, and for that, I am forever grateful.

EFFECTS OF CULTURE ON TURNOVER 3
Acknowledgements

Sincerest thanks to my dissertation chair, Dr. Anthony Maddox, for your support and
guidance. During our first semester together studying innovation, I was drawn to the way
you tackled difficult concepts, and I am so grateful I had opportunity to learn from you over
the years.
Thank you to committee member, Dr. Kenneth Yates, for challenging me to dig deeper and
find new dimensions of my research. Your experience, knowledge, and willingness to help
were invaluable throughout this process.
Thank you to committee member, Dr. Volker Sick, for stepping outside your discipline to
provide critical feedback and encouragement. I am thrilled we were able to continue the
diversity, equity, and inclusion discussions we started at the University of Michigan, and I
hope to work together again.
Thank you to my colleagues at both the University of Michigan and Oakland Schools for
your optimism and kindness. A special thank you to my supervisor, Dr. Wanda Cook-
Robinson for your belief in my abilities and your constant counsel.
Finally, thank you to my fellow Ed.D. classmates. Words cannot express how much the
collegial and supportive environment we shared helped get me through each day, class, and
dissertation draft. I look forward to sharing in our journeys together as Trojan alumni.

EFFECTS OF CULTURE ON TURNOVER 4
Table of Contents
Dedication 2
Acknowledgements 3
List of Tables 6
List of Figures 7
Abstract 8
Chapter One: Introduction of the Problem of Practice 9
Organizational Context and Mission 10
Organizational Performance Status/Need 10
Related Literature 11
Importance of Organizational Innovation 14
Organizational Performance Goal 15
Description of the Stakeholder Groups 15
Stakeholder Groups’ Performance Goals 16
Stakeholder Group for the Study 18
Purpose of the Project and Research Questions 18
Methodological Framework 19
Definitions 19
Organization of the Dissertation 20
Chapter Two: Review of the Literature 21
How Culture and Engagement Affect Organizational Performance 21
The Clark and Estes (2008) Gap Analytic Conceptual Framework 27
Stakeholder Knowledge, Motivation, and Organizational Influences 28
Summary 39
Conceptual Framework 40
Chapter Three: Methodology 43
Participating Stakeholders 43
Data Collection and Instrumentation 44
Data Analysis 48
Limitations and Delimitations 53
Summary 53
Chapter Four: Findings 54
Participating Stakeholders 55
Overview of Findings 55
Findings for Knowledge Gaps 55
Findings for Motivation Gaps 59
Findings for Organizational Gaps 64
Summary 70
Chapter Five: Results 73
Summary of Knowledge Influences and Recommendations 76
Summary of Motivation Influences and Recommendations 81
Summary of Organizational Influences and Recommendations 86
Integrated Implementation and Evaluation Plan 94
Summary 110
Strengths and Weaknesses of Approach 111
Limitations 112
EFFECTS OF CULTURE ON TURNOVER 5
Future Research 112
Conclusions 113
References 116
Appendices 130
Appendix A: Interview Protocol 130
Appendix B: Customer Freight Interview Questions 131
Appendix C: Observation Protocol 134
Appendix D: Informed Consent for Non-Medical Research 135
Appendix E: Recruitment Letter 141
Appendix F: Survey of Participants Immediately Following the Training 143
Appendix G: Delayed Survey of Participants Immediately Following the 145
Training

EFFECTS OF CULTURE ON TURNOVER 6
List of Tables

Table 1. Organizational Mission, Global Goal, and Stakeholder Performance Goals 17

Table 2. Knowledge Factors 31

Table 3. Motivation Factors 35

Table 4. Organizational Factors 38

Table 5. Summary of Knowledge Influences and Recommendations 77

Table 6. Summary of Motivation Influences and Recommendations 82

Table 7. Summary of Organizational Influences and Recommendations 87

Table 8. Outcomes, Metrics, and Methods for External and Internal Outcomes 97

Table 9. Critical Behaviors, Metrics, Methods, and Timing for Evaluation 98

Table 10. Required Drivers to Support Critical Behavior 100

Table 11. Components of Learning for the Program 104

Table 12. Components to Measure Reactions to the Program 106
EFFECTS OF CULTURE ON TURNOVER 7
List of Figures
Figure 1. Customer Freight’s organizational chart and hierarchy as of March 2017. 16

Figure 2. Conceptual framework of the knowledge, motivation, and organizational 41
needs necessary for Customer Freight to meet its stakeholder and global
goals.

Figure 3. Customer Freight’s organizational chart and hierarchy as of March 2017. 74

Figure 4. The New World Kirkpatrick Model. 95

Figure 5. Sample dashboard reports. 109
EFFECTS OF CULTURE ON TURNOVER 8

Abstract
Start-up companies in turbulent industries such as third-party logistics (3PL) transportation
services must understand what motivates employees to succeed on the job, as well as the
knowledge and organizational resources these employees need to help the company reach its
goals. With annual employee turnover rates hovering just under 50%, it is imperative that 3PL
leaders have a complete understanding of what attracts employees to accept positions at their
firms and how engagement and organizational culture affects talent retention. Of interest to
start-ups is the retention of millennials, who will comprise more than half the workforce in the
next five years. This study used the Clark and Estes’ gap analysis framework to evaluate
influence on millennial operations staff members working at a 3PL start-up. Through an analysis
of documents, observations, and one-on-one interviews, findings centered on a lack of strategic
planning, clear communication, and formal onboarding and training processes as driving factors
behind knowledge, motivation, and organizational gaps. The study also determined that
although the start-up environment energized and motivated millennial staff members, the lack of
work-life balance and difficulty envisioning long-term career paths within a company affected
organizational culture, engagement, and turnover. The Kirkpatrick and Kirkpatrick New World
Model, a training evaluation framework, was applied to the research findings to develop
recommendations for addressing barriers to the company achieving its goals, as well as to
support the millennial operations staff members in reaching their individual goals.

EFFECTS OF CULTURE ON TURNOVER 9

CHAPTER ONE: INTRODUCTION
Introduction of the Problem of Practice
Organizational culture is not tangible: it cannot be directly seen, heard, or felt, but it
permeates daily life within a company (Flamholtz & Randle, 2011). Defined as a set of values,
beliefs, and behavior patterns that form the key identity of companies, organizational culture
influences the thoughts and feelings of employees, impacting overall performance (Carrillo &
Gromb, 1999; Lund, 2003; Ooi & Arumugam, 2006; Pool, 2000; Rashid, Sambasivan, & Johari,
2003; Saeed & Hassan, 2000; Schein, 2004; Yusof & Ali, 2000). Culture can function as either
the social glue binding employees together, or the barrier to change within an organization,
hindering its ability to move forward (Detert, Schroeder, & Mauriel, 2000; Golden, 1992;
Linnenluecke & Griffiths, 2010; Smircich, 1983).
In start-up companies, culture is strongly influenced by the organization’s leadership, the
industry in which the company operates, the personalities of its employees, and the alignment of
employees’ personal values with the stated company goals and purpose (Sadri & Lees, 2001).
How start-ups identify, manage, and promote their culture is an important problem to address
because employees in new companies not only work very closely for long hours, but likely
socialize together outside of the office, sharing the same beliefs about equity, fairness, and the
organization (Sadri & Lees, 2001). If the company’s leadership team does not have a solid
understanding of its own culture, including its employees’ motivation and goals, it risks weak
growth, high and costly turnover, low productivity, and a shallow talent pool from which to
recruit (Bulygo, 2013).

EFFECTS OF CULTURE ON TURNOVER 10

Organizational Context and Mission
Customer Freight (CF) is a pseudonym for a start-up third-party logistics provider (3PL)
founded in 2014 in the Midwest. The company’s mission is to empower its expertly-trained
employees to provide top customer service 24 hours a day, seven days a week. In addition to the
two co-founders and co-owners, aged 27 and 38 (the “executive leadership team”), CF employs
six full-time, male operations staff members between the ages of 25 and 29, and two part-time,
female administrative assistants in their mid-50s. In 2016, CF averaged $30,000 in daily revenue
from a total of 6,000 truckloads, an increase from 2015 by 11%, 4.7%, and 20.6% respectively.
Although third-party logistics is one of the fastest-growing sectors in freight services with
53% of global companies’ transportation budgets managed by 3PLs, more than 44% of 3PLs
struggle to attract talent and 42% admit to difficulties in retaining top employees (Capgemini &
Langley, 2015). As a start-up, these challenges deeply impact Customer Freight: in 2016, CF
lost two staff members by regrettable separation—employees whom the company wished would
have stayed (Liberman, 2012)—and four by involuntary separation.
Organizational Performance Status/Need
It is imperative that Customer Freight’s executive leadership team understand the driving
factors behind the company’s current 60% employee turnover rate. Although Hausknecht and
Holwerda (2013) cautioned that not all turnover is equal in terms of human capital and social
capital, CF has attempted to differentiate and brand itself as a customer-focused 3PL providing
the personal attention companies are seeking in a crowded marketplace. This reputation is
difficult to maintain with a constantly changing staff. Turnover not only disrupts operations and
slows company routines and organizational learning, it also affects culture and subcultures,
greatly influencing the success of a start-up (Carrillo & Gromb, 1999; Cordes, Richerson, &
EFFECTS OF CULTURE ON TURNOVER 11

Schwesinger, 2010; Hausknecht & Holwerda, 2013). Start-up executives may believe they are
effectively communicating short- and long-term goals, but employees may misinterpret the
messages creating a disjointed understanding of the company’s mission, vision, and goals
(Mallinger, Goodwin, & O’Hara, 2009).
Additionally, Customer Freight has aggressive growth goals consisting of employing 20-
25 full-time operations staff members by December 2020 who will generate an average of
$200,000 in revenue daily (Customer Freight, 2017). With a 0% growth rate in operations staff
positions over the last two years, Customer Freight’s executive leadership team needs to
understand how its current culture, driven by hiring and onboarding processes as well as job
satisfaction, employee engagement, and turnover, affects employee performance and overall
organizational growth. Job satisfaction includes passive factors such as job security, benefits,
and future opportunities within the company, whereas employee engagement is active, and stems
from an individual’s ability to innovate, effectively apply his or her skills at work, and an
alignment between their work and the organization’s goals (Macey, Schneider, Barbera, &
Young, 2011). By having a clear understanding of what comprises the company’s culture,
leaders can more effectively attract and hire organizational matches, creating a more enjoyable
workplace, boosting employee morale, and increasing teamwork, innovation, and performance
(Sadri & Lees, 2001).
Related Literature
Culture has the potential to affect outcomes desired by individuals and organizations
including commitment, loyalty, turnover, and employee satisfaction (Chow, Harrison, & Wu,
2001; Ooi & Arumugam, 2006). Flamholtz and Randle (2011) defined a strong organizational
culture as “one that people clearly understand and articulate” and a weak culture as “one that
EFFECTS OF CULTURE ON TURNOVER 12

employees have difficulty defining, understanding, or explaining” (p. 9). Hynes (2009) further
attested that organizations recognized for strong corporate cultures are more successful than
companies with no or weak culture identification. Zappos, Google, and Virgin, are frequently
considered to be progressive corporations with strong organizational cultures because, as
Flamholtz and Randle (2011) noted, their employees not only understand the corporate culture,
but clearly articulate it to others both inside and outside the company. Other organizations,
hoping to mirror those companies’ successes, rush to update their décor, allow pets at the office,
and buy expensive espresso machines (Parr, 2012). But strong organizational culture is not
realized solely through tangible employee perks. Instead, it is realized through clear
communication, engagement, job satisfaction adaptability, and cohesiveness (Cordes et al., 2010;
Macey et al., 2011).
In start-up companies, culture can influence both the motivation and confidence of
entrepreneurs and their employees, and vice-versa (Hopp & Stephan, 2012). Highly-motivated
and self-efficacious entrepreneurial teams thrive in performance-based environments where the
members trust their leaders and co-workers, are given the resources to do their jobs, are
committed to the team, and whose goals are aligned with those of the organization (Hopp &
Stephan, 2012; Wang & Wu, 2012). When employees are engaged or motivated to do the best
for not only their own personal benefit, but that of the overall organization, companies see a 19%
increase in operating income over the course of a three-year period (Robertson & Cooper, 2011;
Stairs, Galpin, Page, & Linley, 2006).
Organizations also need to be cognizant of how investing in employee growth and
engagement can positively affect culture. The facilitation of employee learning can lead to an
increased sense of belonging and engagement, ultimately affecting an organization’s competitive
EFFECTS OF CULTURE ON TURNOVER 13

positioning (Acton & Golden, 2000; Karia & Ahmad, 2000; Karia, 1999; Ooi & Arumugam,
2006). Employee engagement, recognized as the emotional connection between individuals and
their companies, has a pronounced impact on employee creativity and productivity, as well as
external customer loyalty (Bakker & Demerouti, 2008; Tillman, Hamill, Dungan, Lopez, &
Shou, 2017). Highly engaged employees are more likely stay with an organization longer,
participate in fewer voluntary withdrawals, and are often higher performers compared to less
engaged employees (Caesens, Stinglhamber, & Marmier; 2016; Memon, Salleh, & Baharom,
2015). Macey, Schneider, Barbera, and Young (2011) further posited that employee
engagement, an active state, is more critical to individual and company performance than job
satisfaction, a passive state of contentment. In 2015, 35% of 3PLs noted one of their top
workforce issues was enhancing employee motivation and engagement (Capgemini & Langley,
2015), further signifying the industry’s focus on talent attraction and retention.
Additionally, in the start-up environment, conflict caused by the close physical, and often
personal working relationships between owners and employees expose differences in needs,
beliefs, perceptions, and personalities, creating a gap between organizational and individual
goals (Gialuisi & Coetzer, 2013). However, by leveraging the personal connectedness of
employees through open lines of communication, flexibility, strategic goal alignment, and high
levels of employee engagement, start-ups can often out-perform larger, more established
competitors (Groysberg & Slind, 2012). The more employees feel like valued members of an
organization, the more likely they are to stay and contribute (Hynes, 2009; Ooi & Arumugam,
2006). Furthermore, employees in start-ups tend to have a greater sense of purpose as they work
toward impacting something larger than themselves in a quickly growing, tight-knit organization
(Hurst, 2014). They also demonstrate higher levels of commitment in exchange for both future
EFFECTS OF CULTURE ON TURNOVER 14

personal economic gain and non-financial rewards such as more autonomy (Hopp & Stephan,
2012; Wang & Wu, 2012).
Finally, it is important to note that start-ups often attract a younger workforce comprised
of those from the millennial generation, born between 1981 and 1998 (Fry, 2017). Although
differences between generations are often over-exaggerated (Hauw & Vos, 2010) organizational
leaders, particularly those in start-ups, need to understand what attracts and motivates this
generation to succeed at their companies. Millennials tend to be achievement-focused, seek out
new learning opportunities, are willing to put forth extra effort to help an organization succeed,
and, compared to other generations, are more willing to go without social time, such as coffee
breaks, to help an organization reach its goals (Hauw & Vos, 2010; Smith & Nichols, 2015),
making the start-up culture very attractive to them. More so than other generations, they value
coaching, feedback, teamwork, and work-life balance over financial gains and the traditional
corporate ladder (Bannon, Ford, & Meltzer, 2011; Cahill & Sedrak, 2012; Smith & Nichols,
2015).
The Importance of the Organizational Innovation
It is imperative for Customer Freight’s executive leadership team to conduct a needs
analysis of its operations staff members to understand how the company culture affects employee
performance, engagement, and overall organizational growth. Although CF has set aggressive
growth goals, it is currently facing a 60% annual turnover rate and has not added a new
operations position in two years. With fierce competition from other 3PLs for talent as
evidenced by more than 40% of companies in the industry admitting to recruiting and retention
struggles (Capgemini & Langley, 2015), it is critical that CF’s executive leadership team creates
a culture of full engagement and job satisfaction. To do so, they must understand what attracts
EFFECTS OF CULTURE ON TURNOVER 15

employees to work for the company, what motivates them to succeed on the job, and what
knowledge and organizational resources employees must have to help the company reach its
goals.
Organizational Performance Goal
By December 2018, Customer Freight will implement an innovative culture plan with the
purposes of increasing employee engagement and success, and decreasing regrettable employee
turnover. Customer Freight’s president and vice president established this goal after completing
360 leadership assessments in March 2016, which revealed numerous underlying issues related
to employee satisfaction. The achievement of Customer Freight’s performance goal in this
proposed investigation will be measured by the results from an employee satisfaction survey to
be conducted in December 2018.
Description of the Stakeholder Groups
Customer Freight has three primary internal stakeholder groups: the executive leadership
team, comprised of the company’s two co-owners; and staff members or all non-owner
employees, divided into operations and administrative staff. Customer Freight currently has 10
employees including six logistics brokers who manage 22 customer accounts, and two part-time
administrative assistants who are responsible for general office tasks. Of the 10 employees
outlined in Figure 1, seven previously worked in non-management roles in the retail and
construction industries. The two co-owners previously worked in transportation (one in logistics
brokering, the other in asset-based trucking), and the business development manager, hired in
March 2017, previously worked at a client freight management company. Customer Freight’s
external stakeholders include clients in automotive original equipment manufacturers (OEMs),
other 3PLs, and 4PLs (brokerage firms that provide total freight management for outside
EFFECTS OF CULTURE ON TURNOVER 16

companies). In addition to its customer base, CF must maintain excellent working relationships
with trucking companies to secure the best truckload pricing for its clients.

Figure 1. Customer Freight’s organization chart and hierarchy as of March 2017.
Stakeholders Groups’ Performance Goals
Customer Freight’s three primary stakeholder groups have different
proficiencies/competencies and goals, as outlined in Table 1. The executive leadership team, for
example, must first conduct a needs analysis of the operations staff before developing formal
onboarding, training, and evaluation programs to address those needs by December 2017. Also
by this date, the executive leadership team will replace 100% of informal documentation with
formal plans. The administrative staff is responsible for achieving a task-based goal by
December 2017 of creating and documenting 100% of formal processes related to their job
functions. The operations staff, on the other hand, has a stakeholder goal of each developing a
personal growth plan, outlining their short- and long-term goals in alignment with Customer
Freight’s mission and goals.

EFFECTS OF CULTURE ON TURNOVER 17

Table 1
Organizational Mission, Global Goal, and Stakeholder Performance Goals

Organizational Mission
Customer Freight’s mission is to empower its expertly-trained employees to provide top
customer service 24 hours a day, seven days a week.
Organizational Global Goal
By December 2018, Customer Freight will implement an innovative culture plan with the
purposes of increasing employee engagement and success, and decreasing regrettable
employee turnover.
Stakeholder 1
Executive Leadership Team
Stakeholder 2
Operations Staff
Stakeholder 3
Administrative Staff
Stakeholder 1
Proficiencies/Competencies
Executive leadership team
proficiencies consist of hiring
and onboarding new
employees, evaluating
employees, developing
formal policies and
procedures, developing
commission structures,
business development, client
management, budget
management, financial
reconciliation, general office
management and firing
employees.
Stakeholder 2
Proficiencies/Competencies
Operations staff member
proficiencies include
scanning load boards,
checking trucking company
prices, bidding on loads,
tracking loads, running the
monthly staff meetings, and
calculating daily profit and
loss margins.
Stakeholder 3
Proficiencies/Competencies
Data entry, answering the
phones, digital document
conversions, ordering of
office supplies, and running
errands.
Stakeholder 1 Goal
By December 2017, the
executive leadership team
will conduct a needs analysis
of the operations staff,
followed by the development
of formal onboarding,
training, and evaluation
programs to address those
needs. Also by this date, the
executive leadership team
will replace 100% of informal
documentation with formal
plans.
Stakeholder 2 Goal
By December 2017, 100% of
the operations staff will
develop a growth plan,
outlining their short- and
long-term goals with CF in
the context of the overall
organizational mission. Plans
will include the steps they
need to take to achieve these
goals and the resources CF
needs to provide staff
members to assist and support
them.
Stakeholder 3 Goal
By December 2017, CF
administrative staff will
create and document 100% of
formal processes related to
their job functions. This will
aid in potential future lags in
training after turnover, as the
current administrative staff
members are of retirement
age.

EFFECTS OF CULTURE ON TURNOVER 18

Stakeholder Group for the Study
Although a complete analysis would involve all stakeholders, the stakeholder group of
focus for this study was Customer Freight’s executive leadership team, consisting of two males,
ages 27 and 38. However, in order to create a culture of full employee engagement and job
satisfaction while reducing operations staff turnover, data collection and analysis centered on
CF’s six, millennial male operations staff members, ranging in age from 25 to 29. Since the
operations team is considered the core, or “money-maker” of the organization, it is imperative
that CF’s executive leadership team understands the staff members’ perceptions of the company
culture, what motivates them to stay with the company, and their levels of job satisfaction and
employee engagement.
Purpose of the Project and Research Questions
The purpose of this project was to conduct a needs analysis of the operations staff in the
areas of knowledge, motivation, and organizational resources the need to help the company reach
its performance goal. The analysis began by generating a list of possible needs and moved to a
systematic examination focused on actual or validated needs, finishing with recommendations
for implementation and evaluation. While a complete analysis would focus on all stakeholders,
for practical purposes, the data collection and analysis portions of the study focused on Customer
Freight operations staff members.
As such, the questions that guide this study are the following:
1. What are the knowledge, motivation, and organizational needs that Customer Freight
operations staff members perceive as being conducive to employee engagement and
retention?
EFFECTS OF CULTURE ON TURNOVER 19

2. What are the knowledge, motivation, and organizational recommendations to meet
those needs?
Methodological Framework
Clark and Estes’ (2008) gap analysis, a systematic, analytical method that helps to clarify
organizational goals and identify the gap between the actual performance level and the preferred
performance level within the organization, was adapted for a needs analysis. Assumed
knowledge, motivation, and organizational needs were generated based on personal knowledge
and related literature. These needs were validated by analyzing documents and conducting a
literature review, observations, and one-on-one interviews. Research-based solutions were
recommended and evaluated in a comprehensive manner.
Definitions
Corporate/Organizational Culture: A set of values shared by the people in an
organization that tend to persist over time even as group membership changes (Kotter & Heskett,
1992).
Employee Engagement: The active, emotional connection between individuals and their
companies that has a pronounced impact on employee creativity and productivity, and external
customer loyalty (Bakker & Demerouti, 2008; Macey et al., 2011; Tillman, Hamill, Dungan,
Lopez, & Shou, 2017).
Job Satisfaction: The positive emotional state resulting from the appraisal of one’s job
and job experiences, and what is obtained from those experiences (Macey et al., 2011).
Millennial: Those born between 1981 and 1998 (Fry, 2017).
Regrettable Turnover: The departure of employees whom companies wished would have
stayed (Liberman, 2012).
EFFECTS OF CULTURE ON TURNOVER 20

Start-Up: A human organization designed to create a new product or service under
conditions of extreme uncertainty (Ries, 2011, p. 27).
Third-Party Logistics Provider (3PL): A transportation provider that assists companies
during various points in the traditional supply chain model; strong focus on both inbound and
outbound transportation (Gibson & Cook, 2001).
Organization of the Dissertation
Five chapters are used to organize this study. This chapter familiarized the reader with
key concepts and terminology typically found in discussions regarding 3PLs, start-ups, and
organizational culture. Customer Freight’s mission, goals, and stakeholders as well as the initial
concepts of a gap analysis adapted to needs’ analysis were also introduced. Chapter Two
provides a review of current literature surrounding the scope of the study. Topics such as
millennials in the workplace and the correlation between culturally-fit companies, engaged
employees, and strong financial returns will be addressed. Chapter Three details the assumed
needs for this study including the methodology behind participant selection, data collection, and
analysis. In Chapter Four, the data and results are assessed and analyzed. Finally, Chapter Five
provides solutions, based on data and literature, for addressing the needs and closing the
performance gap, as well as recommendations for implementation and evaluation plans for the
solutions.

EFFECTS OF CULTURE ON TURNOVER 21

CHAPTER TWO: REVIEW OF THE LITERATURE
This chapter examines current literature addressing the links between organizational
culture, job satisfaction, employee engagement, and performance. The first section explores
contexts supporting the definitive impact of an established and recognized culture on employee
and organizational performance. The second section provides an overview of the application of
Clark and Estes’ (2008) gap analysis framework to this problem of practice. Finally, the chapter
concludes with an analysis of stakeholder knowledge, motivation, and organizational influences,
and how these factors contribute to both employee and organizational performance.
How Culture and Employee Engagement Affect Organizational Performance
A strong culture promoting an organization’s core values and brand can lead to growth,
productivity, and talent development (Carrillo & Gromb, 1999; Ooi & Arumugam, 2006; Saeed
& Hassan, 2000; Yusof & Ali, 2000). Workplace culture serves as the ultimate recruiting tool,
and can keep employees enthusiastic about coming to work (Hynes, 2009; Ooi & Arumugam,
2006). Long-term financial performance of an organization can also be directly impacted by a
defined corporate culture (Kotter & Heskett, 1992). In a study conducted over the course of 11
years, Kotter and Heskett (1992) found that companies with strong cultures increased revenues
by an average of 516% more than companies without defined cultures. Additionally, those with
well-defined and recognized cultures saw an 827% increase in stock prices and a 755%
improvement of net incomes higher than companies considered to be culturally deficient (Kotter
& Heskett, 1992, p. 11).
Defining Organizational Culture
Schein (2004) rooted his theory of organizational culture when he defined it as, “the
result of a complex group learning process that is only partially influenced by leader behavior”
EFFECTS OF CULTURE ON TURNOVER 22

(p. 11). An organization’s culture is strong or thriving when employees report being engaged
and empowered; held accountable; and have a clear understanding of company goal, values, and
norms (Ooi & Arumugam, 2006). Organizational culture is everywhere, and companies that
appear to be cultureless, do not understand and recognize the value of a defined culture to its
people (Flamholtz & Randle, 2011). On the other hand, companies that ensure new employees
‘fit in’ with the current staff, are employing an effective retention strategy aimed at creating and
maintaining high levels of work group cohesion (Gialuisi & Coetzer, 2013).
How employees perceive and interpret leaders’ actions can trigger either positive or
negative effects on job satisfaction and organizational performance (Alvesson, 2012). For
example, Cordes, Richerson, and Schwesinger (2010) stated that successful companies emulate
what researchers refer to as cooperative corporate culture: one in which cooperation boosts
morale, cohesiveness, and even team spirit amongst employees. This type of culture also enables
an organization to be more readily able to adapt to change in the marketplace, industry, and
environment (Cordes et al., 2010).
Organizational Culture in Start-Ups
Defined as, “a human organization designed to create a new product or service under
conditions of extreme uncertainty,” (Ries, 2011, p. 27) start-ups require management that focuses
specifically on that uncertainty. Some entrepreneurs, recognizing failures within traditional
management structures, launched start-ups seeking more autonomy and innovation, and less
forecasting and planning; most flounder under this approach (Ries, 2011). Although
entrepreneurs have passion, energy, and vision for their ventures, Ries (2011) argued that
successful start-ups must have a rigorous footing built on experimentation, systems processes,
evaluation, and accountability to succeed.
EFFECTS OF CULTURE ON TURNOVER 23

Launching a start-up requires a disciplined management style to harness an
entrepreneurial spirit, opportunities, and even challenges, while those who choose to work for
start-ups, tend to value independence, individualism, and achievement (Freytag & Thurik, 2007;
Ries, 2011; Stuetzer, Obschonka, Audretsch, Wyrwich, Rentfrow, Coombes, Shaw-Taylor, &
Satchell, 2015). Employees are also willing to commit to a start-up when they sense a higher
potential for growth and profit (Wang & Wu, 2012). Hence, start-ups tend to attract like-minded
individuals—often friends—who work together in an environment built on trust and motivation,
devoid of high levels of internal competition (Rauch & Frese, 2007; Wang & Wu, 2012).
Millennials in the Workplace
Often drawn to the collaborative and autonomous nature of start-ups, millennials, or those
born between 1981 and 1998 (Fry, 2017), prefer a flexible work environment and an
interpersonal relationship with their management (Andert, 2011; Smith & Nichols, 2015). They
purposefully seek out companies that make an impact, have a clear mission and vision, and take
a sincere interest in their employees (Sujansky & Ferri-Reed, 2009). Millennials value managers
with transformational leadership styles who emphasize trust, relationship-building, coaching,
mentoring, and investment in individuals’ skills development (Thompson & Gregory, 2012).
Furthermore, by creating and nurturing this type of environment, organizations can realize higher
productivity, lower absenteeism, and enhanced employee retention rates up to 788% return on
investment (Gilley, Waddell, Hall, Jackson, & Gilley, 2015; Nolan, 2015).
Within the next five years, millennials will account for over half of the U.S. workforce
(Pew Research Center, 2010); therefore, if organizations are going to succeed, managers must
learn and adopt leadership and management styles complementing this generation. Companies
can leverage millennials’ talent, energy, enthusiasm, and technological skills to increase
EFFECTS OF CULTURE ON TURNOVER 24

performance long-term by creating a desirable culture focused on work-life balance, teamwork,
continuous feedback, recognition, employee development, and a clear purpose (Kilber, Barclay,
& Ohmer, 2014; Smith & Nichols, 2015; Sujansky & Ferri-Reed, 2009; Thompson & Gregory,
2012). Leadership teams in start-ups have an advantage over larger companies in terms of
harnessing millennial talent because they value innovation and collaboration, and can more
easily and quickly tailor their relationships and interactions to the unique needs of their
individual employees (Cordes et al., 2010; Thompson & Gregory, 2012).
How Investing in Training Leads to Job Satisfaction and Employee Engagement
When organizations invest in effective employee training programs such as formal
assessment and incentive programs, they are more likely to have decreased turnover and higher
employee job satisfaction and performance levels (Kotey & Folker, 2007; Macey et al., 2011).
They also found that highly trained and experienced employees give companies a competitive
advantage; however, small businesses and start-ups often struggle with executing informal and
formal training programs due to budgetary and time constraints. These types of companies are at
an advantage, though, when seeking to adapt to internal or external changes, as they can do so
more rapidly than larger organizations (Cordes et al., 2010).
Jacobs and Jaseem Bu-Rahmah (2012) posited that although structured, onboarding and
on-the-job training programs may be a resource challenge for many organizations, they can be
critical to an employee’s success, and the success of the organization. Employees who serve as
mentors to new hires must continuously remain aware of all company policies and procedures,
thus creating a cyclical learning environment, often referred to as peer-to-peer learning (Jacobs
& Jaseem Bu-Rahmah, 2012). By incorporating peer-to-peer training and mentoring, employees
EFFECTS OF CULTURE ON TURNOVER 25

are empowered to develop new skills, acquire new knowledge, and grow professionally (Gialuisi
& Coetzer, 2013).
The benefits and disadvantages of implementing informal or formal employee training
programs need to be weighed by singular organizations, although organizations with formal
trainings and assessments tend to experience higher employee performance (Jacobs & Jaseem
Bu-Rahmah, 2012; Kotey & Folker, 2007). Cherrington (1991) noted that by implementing
successful training programs, organizations experience increased positive employee attitudes and
loyalty because employees recognize the organization is supporting their own personal
development and career advancement (Ooi & Arumugam, 2006).
The need for formal and informal employee training programs. To thrive,
organizations should foster a continuous learning environment in which employees can develop
and utilize new skills while building a shared vision (Senge, 1990). Kofman and Senge (1993)
defined learning organizations as those whose cultural norms defy business traditions, and that
are grounded in transcendent human values such as humility and compassion. Learning
organizations also have a set of practices in place for productive conversation and coordinated
action, as well as the ability to systematically understand and work with the ups and downs of
life (Kofman & Senge, 1993). Capable of interdependently thriving through change, learning
organizations have a competitive advantage because employees are empowered by leaders who
serve as designers, teachers, and stewards (Kofman & Senge, 1993). In this model, employees
can not only develop new skills, but the creative tension fostered within learning environments
enables an organization to more swiftly adapt to change (Senge, 1990). Gialuisi and Coetzer
(2013) further suggested that if small companies provide enough opportunities for professional
EFFECTS OF CULTURE ON TURNOVER 26

development and personal growth, talented employees are more likely to commit to the
organization in the long-run.
Although the development of formal onboarding and training is perceived as being costly
and time-consuming, the potential benefits can outweigh the risks if implemented appropriately.
Almeida and Aterido (2015) posited that investing in employees through on-the-job coaching
and mentoring has a direct effect on higher productivity through adoption of new technologies
and procedures. Moore, Blake, Phillips, and McConaughy (2003) determined that more than
two-thirds of employees reported at-work training led to major and noticeable increases in their
own productivity. In addition to performance rewards, companies that incorporate formal
training programs also have opportunities to further communicate and reiterate company goals
and overall vision on a consistent basis (Durkalski, 2008).
Retain high-performing employees through talent development. When a person
believes he or she can achieve a goal, he or she is motivated to overcome challenges to succeed
(Pajares, 2006). Self-efficacy, the confidence in one’s own ability to accomplish a goal, can help
employees flourish and feel valued by their company (Bandura, 1997). In turn, their confidence
and motivation grows, positively affecting work and organizational performance (Pajares, 2006).
Managers in learning organizations often demonstrate “openness, systemic thinking, creativity,
self-efficacy, and empathy” (McGill, Slocum, & Lei, 1992, p. 5), and by investing in employee
talent development, companies demonstrate a commitment to a learning environment that also
values high levels of performance (Kirkpatrick & Kirkpatrick, 2006; Pajares, 2006).
Employees who are trained and assessed in frequent intervals have a higher likelihood of
adapting to the company’s culture and achieving a higher rate of success (Grossman & Salas,
2011). Therefore, organizational leadership needs to constantly review and evaluate its training
EFFECTS OF CULTURE ON TURNOVER 27

process, as well as analyze the failures and successes of employees’ post-training to ensure the
needs of employees are being met (Kirkpatrick & Kirkpatrick, 2006). When high-performing
employees leave, a company may not have a qualified and appropriate replacement on staff, and
in small companies and start-ups, the resources to quickly and effectively recruit someone of the
same experience may not be available (Wagar & Rondeau, 2006).
The Clark and Estes (2008) Gap Analytic Conceptual Framework
According to Clark and Estes (2008), the gap between actual and desired performance at
an organization must be identified, analyzed, and addressed for an organization to reach its
performance goals. As part of the process to determine if cultural gaps affect organizational
performance, Clark and Estes’ (2008) gap analysis framework will be applied to Customer
Freight. Through the utilization of the gap analysis process, human causes of performance issues
will be uncovered and validated through literature reviews, one-on-one interviews, and
observations, leading to the identification of research-based solutions to narrow the gap (Clark &
Estes, 2008).
Learning and Motivation Theory
The three primary causes of performance gaps include knowledge, motivation, and
organizational influences (Clark & Estes, 2008). Knowledge refers to a person’s skillset,
whereas motivation is the drive to complete a task or reach a goal (Clark & Estes, 2008).
Finally, organizational influences encompass training and professional development, equipment,
employee engagement, processes, and level of managerial support (Clark & Estes, 2008).
Clark and Estes (2008) posited that in a work environment, employees experience one of
three motivational processes including active choice, persistence, and mental effort. Cultural and
personal differences can influence one’s learning and motivational preferences (Clark & Estes,
EFFECTS OF CULTURE ON TURNOVER 28

2008), and in the case of Customer Freight, the workplace culture and its effect on performance
will be examined. Clark and Estes (2008) defined five work environment elements that can
affect motivation: vague and constantly changing goals, unfairness, unnecessary barriers,
constant internal competition, and negative and biased feedback. Although employees are often
motivated by different factors, the overall stakeholder knowledge, motivation, and organizational
influences at Customer Freight will be examined as part of the gap analysis process.
Stakeholder Knowledge, Motivation, and Organizational Influences
According to Clark and Estes (2008), the knowledge and motivation of employees as well
as organizational influences, must be examined to appropriately address performance gaps.
Applying their gap analysis framework to Customer Freight will aid in identifying areas of
opportunities and weaknesses as they relate to company culture, performance, and growth. This
section introduces the specific knowledge, motivation, and organizational influences examined in
this study.
Knowledge and Skills
Oftentimes, people are unaware of their lack of knowledge as it pertains to their
performance goals, causing skills gaps in the workplace (Clark & Estes, 2008). A lack of
knowledge or skills can be attributed to many factors including an employee’s unwillingness to
admit they do not know how, why, or what to do or even when, where, or with whom to do it.
The deficit can also be caused by an organization’s poor communication or the withholding of
important information. A potential knowledge gap can be assessed by uncovering whether a
work goal is clearly understood by and communicated to employees; if employees know the
proper process and procedure to complete a task related to the goal; and if they have experience
accomplishing a similar goal or type of work (Clark & Estes, 2008).
EFFECTS OF CULTURE ON TURNOVER 29

Knowledge influences. Krathwohl (2002) revised Bloom’s Taxonomy of Learning, a
framework to classify intent and expectations for learning, to further define factual, conceptual,
procedural, and metacognitive knowledge categories. Factual knowledge includes foundational
elements that employees need to understand to function in the workplace at a basic level and to
solve problems as they arise (Krathwohl, 2002). Conceptual knowledge consists of the
interrelationships between elements such as principles, theories, and models within the larger
organizational structure (Krathwohl, 2002). Procedural knowledge includes subject-specific
methods and processes, while metacognitive knowledge relates to employees’ awareness of their
own understanding of what is required of them (Krathwohl, 2002). In the metacognitive
knowledge process, learners reflect on what they have learned to utilize the knowledge in applied
practice to their role (Krathwohl, 2002).
The purpose of this section is to review relevant knowledge-related influences pertinent
to the achievement of Customer Freight’s stakeholder goal of the executive leadership team
conducting a needs analysis of the operations staff, followed by the development of formal
onboarding, training, and evaluation programs to address those needs by December 2017. Also
by this date, the executive leadership team will replace 100% of informal documentation with
formal plans. Literature focusing on procedural and conceptual (declarative), and metacognitive
knowledge will be reviewed and discussed.
The executive leadership team should empower employees to be experts in specific
areas. Allowing and encouraging employees to become subject matter experts in connection to
their roles can help organizations foster new ideas and create a culture of empowerment
(Dhawan, 2015). Additionally, research shows that employees will eventually complete tasks as
expected if they are trained by peers who initially struggled in a specific area, while the trainers
EFFECTS OF CULTURE ON TURNOVER 30

become more active and effective leaders through the process of teaching others (Bandura, 1997;
Denler, Wolters, & Benzon, 2006). In start-ups, it is important for an executive leadership team
to enable employees to experiment and push the boundaries of innovation (Ries, 2011). Doing
so enhances achievement, self-efficacy, and the belief that one’s own actions determines their
success (Rauch, & Frese, 2007).
Staff members need to understand their own motives, successes, and failures to help
their organization realize its growth goals. Metacognition is the process of thinking about
thinking (Flavell, 1976). Fewer than 20% of leaders can articulate their own individual purpose,
leaving them unable to turn purpose into action (Craig & Snook, 2014). The transportation
industry tends to be turbulent and fast-paced (Gibson & Cook, 2000), leaving employees little
time to reflect on what went well and what could have been improved throughout their workday.
However, to appropriately set and track progress towards organizational goals, staff members
need to understand their own motives, successes, and failures for an organization to realize its
growth goals. Employees with higher cultural metacognition understand how their own
assumptions affect rapport, idea sharing, and innovation in the workplace (Morris, 2012). They
also trust their colleagues and leaders, and the overall organization benefits from more idea
sharing and better creative collaboration (Morris, 2012). Furthermore, through regular self-
assessments, employees feel empowered to assist co-workers in areas in which they are confident
in their skillset (Dhawan, 2015).
Each staff member needs to be regularly assessed on common company processes and
procedures. New employees who are trained and assessed in frequent intervals have a higher
likelihood of adapting to the company’s culture and achieving a higher rate of success
(Grossman & Salas, 2011). Kirkpatrick’s (1994) four-levels-of-evaluation model was expanded
EFFECTS OF CULTURE ON TURNOVER 31

by Clark and Estes (2008) to gauge reactions (Level 1), impact during the training program
(Level 2), transfer of knowledge (Level 3), and the bottom line (Level 4). To create an operative
training program, Customer Freight’s executive leadership team should consider assessing the
areas in which current and past employees have traditionally and consistently struggled so that
the material is reviewed and addressed for appropriateness and effectiveness. By ensuring that
staff members are prepared for success, companies must determine the needs of both the
organization and its employees through constant review and evaluation of its training process, as
well as analysis of the failures and successes of employees post-training (Kirkpatrick &
Kirkpatrick, 2006). Ongoing monitoring of all employees’ knowledge and application of
company- and job-specific procedures needs to occur both periodically and episodically to
ensure long-term adaptation (Clark & Estes, 2008). Through a leadership system that enables
self-reflection and formal training programs, processes, and policies, employees are empowered
to become true owners of their roles, while further deepening job, company, and industry
knowledge and skills (Dhawan, 2015; Flavell, 1976; Grossman & Salas, 2011; Krathwohl,
2002).
Table 2
Knowledge Factors

Organizational Mission
Customer Freight’s mission is to empower its expertly-trained employees to provide top
customer service 24 hours a day, seven days a week.
Organizational Global Goal
By December 2018, Customer Freight will implement an innovative culture plan with the
purposes of increasing employee engagement and success, and decreasing regrettable
employee turnover.
Stakeholder Goal
By December 2017, the executive leadership team will conduct a needs analysis of the
operations staff, followed by the development of formal onboarding, training, and evaluation
programs to address those needs. Also by this date, the executive leadership team will replace
100% of informal documentation with formal plans.
EFFECTS OF CULTURE ON TURNOVER 32

Knowledge Influence Knowledge Type Knowledge Influence
Assessment
All employees need to be
routinely assessed on
common company processes
and procedures.

Procedural

Observe employees working
on real situations (e.g. view
RFPs, create bid, view
results, select trucking
company, bid on RFP) at two
weeks post-training; one
month post-training; and six
weeks post-training. Re-
evaluate at six months post-
training to ensure process
consistency.
Staff members should be
empowered to be subject
matter experts in specific
areas.

Conceptual Gauge the level of self-
regulation by assessing how
employees are learning and
subsequently teaching
colleagues. Gauge
receptiveness of fellow
employees through initial
reactions and adoption rates
of new material.
To appropriately set and
track progress towards goals,
staff members need to
understand their own
motives, successes, and
failures to help CF realize its
growth goals.
Metacognitive CF collects profit and loss
numbers daily. If an
employee is bidding too low
on a truckload or is not
properly tracking a truck, the
numbers will immediately
show losses.

Motivation
Motivation is what inspires and guides our efforts (Clark & Estes, 2008). Motivation
consists of a person moving from intention to action (active choice); continues moving in the
same direction even with challenges (persistence); and develops new approaches and solutions
(mental effort) (Clark & Estes, 2008). The combination of active choice, persistence, and mental
effort leads to increased motivation, and when combined with knowledge, skills, and work
processes, leads to increased performance (Clark & Estes, 2008). Customer Freight’s
stakeholder goal requires motivation through self-efficacy and attribution. The purpose of this
EFFECTS OF CULTURE ON TURNOVER 33

section is to review relevant motivation-related influences pertinent to the achievement of
Customer Freight’s stakeholder goal. Literature focusing on self-efficacy and attribution theories
will also be reviewed and analyzed.
Self-efficacy theory. Self-efficacy refers to the beliefs people have about themselves
and their capabilities (Bandura, 1997). Self-efficacy beliefs are considered the foundation for
not only personal success, but also motivation and well-being. If a person believes he or she can
accomplish something, he or she is more motivated to work toward the desired outcome, even as
challenges and difficulties arise (Pajares, 2006). Self-efficacy helps individuals self-regulate
their actions and thoughts through self-correction (Pajares, 2006). In Bandura’s (1997) social
cognitive theory, self-efficacy is viewed not only as an individual’s current psychological state,
but also as a product of past performance, as well as an individual’s observations of others
(Denler, Wolters, & Benzon, 2006). A social theory, in that a group’s belief in its shared ability
to reach goals or accomplish specific tasks, it is referred to as collective efficacy (Pajares, 2006).
Pajares (2006) posited that collective efficacy affects an organization either positively or
negatively depending on the circumstances.
Employees need to realize that they are capable of not only succeeding in their jobs, but
that they can also serve as leaders, trainers, and role models for co-workers. Self-efficacy is
important for all employees, particularly in start-ups where they must have confidence in their
ability to perform tasks in often uncertain circumstances (Baum & Locke, 2004). Individuals
demonstrating self-efficacy are more likely to motivate and train others, and through a cycle of
positive feedback and modeling, co-workers’ confidence in their own abilities grows (Dhawan,
2015; Pajares, 2006; Van Der Vegt, Emans, & Van De Vliert, 1998). Furthermore, Teece (1980)
argued the value of resources that are rare, inimitable, and non-substitutable such as knowledge,
EFFECTS OF CULTURE ON TURNOVER 34

increase the more they are used, positively influencing both an employee and an organization
(Wang & Wu, 2012). Additionally, when employees feel valued by a company, their self-
efficacy grows and their potential to lead others increases, as does their performance (Pajares,
2006). Through self-efficacy, employees begin to believe they can successfully lead others, yet
they understand their own shortcomings and potential areas for growth (Grossman & Salas,
2011; Pajares, 2006; Van Der Vegt, Emans, & Van De Vliert, 1998), and through collective
efficacy, believe they can influence change by working together (Bandura, 1997).
Attribution theory. Examining why individuals believe certain events occur and how
they subsequently react is an important aspect of attribution theory (Anderman & Anderman,
2006). Weiner’s (1985) model of attributions outlines how people learn by forming casual
beliefs, tying together locus, stability, and controllability attributions (Anderman & Anderman,
2006; Weiner, 1985). Locus attribution relates to whether an individual perceives the cause of
an event is internal or external; stability refers to the assignment of an event to internal or
external causes, secure or unstable; and controllability relates to whether an individual believes
the cause of an event is under his or her control (Anderman & Anderman, 2006). Pekrun (2011)
suggested that post-event emotions can also be explained through attribution theory, in which
pride is felt when an individual achieves success and believes it was achieved because of effort
and ability. Failure can cause shame, resulting in an individual believing the situation was
uncontrollable (Pekrun, 2011).
Employees must understand both individual and organizational success depends on the
efforts they put forth as employees, members of each team, and the overall company team.
According to Weiner’s (1985) attribution theory, individuals are motivated by goals when they
master the environment themselves. Those seeking out entrepreneurial adventures often have
EFFECTS OF CULTURE ON TURNOVER 35

high loci of control because to envision success, they must believe their actions determine their
rewards (Rauch & Frese 2007). Goette, Huffman, Meier, and Sutter (2012) concluded that
although an organizational sense of competitiveness may enhance workplace efficiencies, it
could also lead to negative conflict between groups. In start-ups, it is imperative that employees
commit to and trust one another because of the uncertainty of their environment (Wang & Wu,
2012). Inter-organizational competitiveness can create a culture of distrust, causing a decrease in
self-esteem, effort, and hopelessness (Weiner, 1985), negatively affecting overall success.
Table 3
Motivation Factors

Organizational Mission
Customer Freight’s mission is to empower its expertly-trained employees to provide top
customer service 24 hours a day, seven days a week.
Organizational Global Goal
By December 2018, Customer Freight will implement an innovative culture plan with the
purposes of increasing employee engagement and success, and decreasing regrettable
employee turnover.
Stakeholder Goal
By December 2017, the executive leadership team will conduct a needs analysis of the
operations staff, followed by the development of formal onboarding, training, and evaluation
programs to address those needs. Also by this date, the executive leadership team will replace
100% of informal documentation with formal plans.
Assumed Motivation Influences Motivational Influence Assessment
Self-efficacy – Employees need to realize that
they are capable of not only succeeding in
their roles, but that they can also serve as
leaders, trainers, and role models for co-
workers.
CF leadership needs to first empower its
employees to become experts in their roles to
gain confidence in their abilities. Confidence
can help motivate employees to be able to
train and lead teams of co-workers. Leaders
can encourage others by improving
communications processes, job rotations, staff
appreciation activities, and maintaining an
equitable pay scale. When employees feel
valued by a company, their self-confidence
grows and their potential to lead others
increases.
Attribution – Employees must understand that
both individual and organizational success
depends upon the efforts they put forth as
CF has done a good job at creating a non-
competitive team environment; however,
there are some employees who do not feel it is
fair that more tenured staff are assigned to
EFFECTS OF CULTURE ON TURNOVER 36

employees, members of each team, and the
overall company team.
larger client accounts, thus leading to a larger
paycheck based on the current commission
rates. With a reorganization of customer
accounts and the opportunity to work with a
variety of clients, CF staff could experience a
more balanced pay scale, which could lead to
feeling more valued and more motivated to
either grow current accounts or secure new
accounts.

Organizational Influences
When leaders are perceived as being involved participants through support, creativity,
and autonomy, organizations will experience financial success (Denison & Mishra, 1995;
Finkelstein, 2016; Pfister, 2009). However, a lack of material resources and efficient and
effective processes can prevent the achievement of both individual and group performance goals
within an organization (Clark & Estes, 2008). Organizations are often evolving with new people
being retained and more tenured stakeholders leaving, forcing structural and cultural changes;
organizations that do not fully address the potential and current performance gaps, risk becoming
unresponsive both internally and externally (Kezar, 2001). In addition to the replacement costs,
turnover can also result in up to $16,000 in lost organizational revenue per departed employee
(Borysenko, 2015).
General theory. Organizational culture can be measured by linking employee
involvement, consistency, adaptability, and mission to performance (Denison & Mishra, 1995).
In many organizations, culture is automated and unconscious (Clark & Estes, 2008), yet, if an
organization’s leaders are not aware of the overarching culture and/or sub-cultures, they will not
be able to control or manage them (Schein, 2004). Furthermore, self-managed teams have been
shown to better correct problems, resolve conflict, and empower employees under them, leading
to greater efficiencies and performance (Alper, Tjosvold, & Law, 2000).
EFFECTS OF CULTURE ON TURNOVER 37

A general resistance by staff members to adopt new processes and procedures. As
Clark and Estes (2008) noted, organizational work processes compatible with workplace culture
help create a stable, yet flexible environment. Through Schein’s (2004) lens of cultural analysis,
visible organizational structures and processes (artifacts); strategies, goals, and philosophies
(exposed beliefs and values); and unconscious thoughts and beliefs (underlying assumptions),
basic workplace assumptions can be uncovered and examined in terms of non-negotiability
(Schein, 2004). After uncovering the source of resistance, potential non-negotiable assumptions,
process, and procedures can be agreed upon, implemented, and communicated (Schein, 2004).
A culture of distrust in the organization between staff members and senior
management. Although some modern organizations tend to thrive from tension between
stability and change, leaders must focus on the people within the organization and what they
need to succeed (Clark & Estes, 2008; Johnson, 1998). Clearly communicated visions, goals,
and measurement processes connect work procedures and business objectives, helping to build
trust within an organization through commitment and continuous communication and
improvement (Clark & Estes, 2008). Additionally, teams displaying efficacy in conflict
resolution and management, are more likely to work productively than those experiencing doubt
(Alper, Tjosvold, & Law, 2000). Moreover, small companies with low employee voluntary
turnover have higher levels of participative decision-making, open communication, and
employee engagement (Wagar & Rondeau, 2006). Through the development of fundamental
trust built on a foundation of open and honest communication, leaders build a reputation and
culture of keeping their employees’ best interests in mind. In a trust-based culture, employees
feel comfortable utilizing the organization’s leaders for advice, assistance, and clarification.
EFFECTS OF CULTURE ON TURNOVER 38

Staff members are exhausted and overwhelmed with the overall pace of the industry.
With 90% of third-party logistics (3PLs) providers retaining contracts even during depressed
economies, competition for clients is high (Morton, Oikawa, Wavell, Mazara, Mcglory,
Quadrilatero, Baechler, Baker, & Phillips, 2016). The non-stop nature of transportation has
forced 3PLs to serve as one-stop providers: if products or parts are not delivered to the correct
place at the right time, in the proper condition, the supply chain from start to finish is affected
(Neubauer, 2011). The constant wear of both the start-up environment and the logistics industry
has left operations staff members exhausted and overwhelmed, and when workers are stressed,
their capacity of thinking about more than three new items at once significantly decreases (Clark
& Estes, 2008). Job autonomy can help create positive stress, often reversing the effects of
negative workplace stress (Sisley, 2010). It is in a company’s best interest to recognize and
remove controllable organizational barriers to success.
Table 4
Organizational Factors

Organizational Mission
Customer Freight’s mission is to empower its expertly-trained employees to provide top
customer service 24 hours a day, seven days a week.
Organizational Global Goal
By December 2018, Customer Freight will implement an innovative culture plan with the
purposes of increasing employee engagement and success, and decreasing regrettable
employee turnover.
Stakeholder Goal
By December 2017, the executive leadership team will conduct a needs analysis of the
operations staff, followed by the development of formal onboarding, training, and evaluation
programs to address those needs. Also by this date, the executive leadership team will replace
100% of informal documentation with formal plans.
Assumed Organizational Influences

Organizational Influence Assessment
Cultural Model Influence 1: There is a general
resistance by staff members to adopt new
processes and procedures.

Interview questions about resistance to
change and innovation. Conduct
review/audit of organizational processes
including all previous iterations.
EFFECTS OF CULTURE ON TURNOVER 39

Cultural Model Influence 2: There is a culture
of distrust in the organization between staff
members and the executive leadership team.
Interview questions about whether staff
members trust the executive leadership
team. Conduct 360 leadership reviews of
the executive leadership team.
Cultural Setting Influence 1: Staff members are
overwhelmed and exhausted with the 24/7 pace
of logistics freight brokering.

Interview questions about daily routines
and feelings of being overwhelmed.
Inquire about ideas to ease the strain.
Inquire about incentives and rewards.
Observe a typical day at the office.
Cultural Setting Influence 2: Only the two
executive officers have been with the company
for more than two years. Turnover has been
high and staff members find it difficult to
envision long-term career paths within the
company.
Interview questions about knowledge of
peers within the industry to whom staff
members can benchmark career paths,
challenges, and opportunities against.
Inquire about long-term career goals.

Summary
Supportive, autonomous, yet somewhat structured workplace cultures can positively
influence an organization’s bottom line (Clark & Estes, 2008; Denison & Mishra, 1995; Pfister
& Hartmann, 2011; Sisley, 2010). A strong corporate culture can also positively affect both
employee retention and organizational performance (Kotter & Heskett, 1992). In many cases,
for organizational success to occur, employees need to understand that the success of the
company is the culmination of the achievements of each person. Particularly in start-ups, the
perception of socio-economic norms and culture can influence employees’ individual beliefs, in
turn impacting organizational performance (Hopp & Stephan, 2012). Entrepreneurship tends to
attract those with a strong internal locus of control, as they believe their own actions determine
their later successes; because of this, it is important for leaders in start-ups to attract, hire, and
retain employees who can commit to an autonomous, risky, and focused work environment
(Rauch & Frese, 2007).
In the following chapter, the Clark and Estes (2008) gap analysis model was applied,
utilizing data analysis, observations, and one-on-one interviews to further analyze and
EFFECTS OF CULTURE ON TURNOVER 40

understand how the knowledge, motivation, and organizational influences are preventing
Customer Freight from reaching its organizational global goal, and to determine the factors
inhibiting CF staff members from reaching their goals.
Conceptual Framework: The Interaction of Stakeholders’ Knowledge and Motivation in
the Organizational Context
A conceptual framework creates a structure for concepts, theories, and beliefs that both
inform and support a research study (Maxwell, 2013). Often displayed as a graphic or model, a
conceptual framework aids researchers in refining goals, developing appropriate research
questions, and identifying potential threats, as well as justifying the purpose of the research study
(Maxwell, 2013). Although each of the potential knowledge, motivation, and organizational
influences are presented as independent concepts, they are not isolated from one another.
Customer Freight loses four to five employees each year due to termination or
resignation. Bryant and Allen (2013) note that the average hard cost of finding, hiring, and
training a new employee is 100% of his or her annual salary. At CF, the average new employee
salary is $40,000, meaning the loss of and hiring replacements for five employees costs the
company about $200,000 each year in addition to $16,000 or more in lost revenue from not being
able to operate at full capacity (Borysenko, 2015). This does not include the cost of relationships
the departed employees built with customers and colleagues.
For this study, the relationship between corporate culture, employee engagement, and
organizational performance in start-ups will be examined through the lens of knowledge,
motivation, and organizational influences. Strong corporate cultures exist in organizations with
clearly communicated and understood values and norms that serve as guiding principles for all
employees (Flamholtz & Randle, 2011).
EFFECTS OF CULTURE ON TURNOVER 41

Figure 2. Conceptual framework of the knowledge, motivation, and organizational needs
necessary for Customer Freight to meet its stakeholder and global goals.

As shown in Figure 2, the knowledge influences for this study began with new staff
members learning about Customer Freight’s ideas, terminology, and models (conceptual),
followed by training in general logistics industry terminology and company software. This
hands-on training equips them with the appropriate skill base (factual) to function as an entry-
level operations staff member. Following this, formal CF policies and processes (procedural) are
introduced. No assessments are given. Promotion and growth opportunities, as well as rewards
and recognition are mandated by the executive leadership team with little feedback from staff
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members, and at this point in the study, it is not known whether staff members are required to, or
decide on their own to participate in self-reflection as part of their employee evaluations. The
organizational influences box explains the company goals, resources available to staff members,
the physical office environment, and the management style and physical presence of the
executive leadership team.
Prior to data collection and analysis, it was unknown how Customer Freight operations
staff members’ knowledge, motivation, and organizational needs were influenced by factors such
as retention, turnover, engagement, and culture.

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CHAPTER THREE: METHODOLOGY
In this chapter, the Clark and Estes (2008) gap analysis model is applied using one-on-
one interviews, observations, and document analyses focusing on Customer Freight’s operations
staff. The questions that guided this study are as follows:
1. What are the knowledge, motivation, and organizational needs that Customer Freight
operations staff members perceive as being conducive to employee engagement and
retention?
2. What are the knowledge, motivation, and organizational recommendations to meet those
needs?
Participating Stakeholders
The primary stakeholder group for this study was Customer Freight’s executive
leadership team, consisting of two males, ages 27 and 38. However, in order to create a culture
of full employee engagement and job satisfaction while reducing operations staff turnover, the
executive leadership team had to conduct a needs assessment of CF’s six, millennial male
operations staff members, ranging in age from 25 to 29. This stakeholder group was important to
study because by understanding how the operations staff members feel about Customer Freight
and its goals, what they experience daily in their jobs and work environment, and how they are
motivated to succeed, CF’s leadership team will be able to implement viable processes for
decreasing turnover and increasing employee engagement, while gaining a better understanding
of the current culture. The perspectives of staff members will also inform the executive
leadership team’s decisions as they relate to areas that influence company culture such as
rewards, recognition, policies, procedures, and hiring, onboarding, and talent retention plans.

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Data Collection and Instrumentation
This study utilized document analyses, observations, and interviews to determine the
knowledge, motivational, and organizational influences and needs necessary for Customer
Freight to reach its organizational and stakeholder goals. Using these three methods, data was
triangulated, increasing the credibility and validity of the research. In the following sections, the
use of these data collection methods is detailed.
Content analysis of formal Customer Freight documents provided a historical reference
as to how the company’s policies, procedures, training programs, and other rules align with the
reality of the staff members’ jobs and work environments. As Merriam and Tisdell (2016)
posited, data found in documents can be used in a similar manner as interview and observational
data, and in this case, can provide the exact wording and language of the leadership team’s
messaging (Creswell, 2014). Analyzing documents aided in interpreting how formal policies
have been traditionally communicated, how often policies and procedures have been changed
and/or further developed, the type of language company executives use to communicate key
messages relating to the organization, how staff members have digested this information, and
how it has or has not affected their work habits and motivation.
Due to the busy, stressful nature of the logistics industry, the observation of Customer
Freight’s operations staff members in their work environment provided a better understanding of
the company culture, as well as how formal and informal policies and procedures influence
decision-making amongst staff members. This is particularly important because the observation
of how employees are empowered and motivated to not only do their jobs, but also reach the
company’s goals, can be indicators of turnover. Additionally, observing the interactions between
leadership and staff members and between staff members at different levels of seniority, the
EFFECTS OF CULTURE ON TURNOVER 45

communications channels used to deliver key messages, the relationships and interactions
amongst all staff members, and the resources available to and utilized by staff allowed for better
insight into the office culture.
Finally, one-on-one interviews enabled a deeper dive into the knowledge, motivation, and
organizational influences on Customer Freight operations staff members, and how these
influences are perceived as having either a positive or negative impact on the company’s
progress toward its goals. Patton (2002) noted that through interviewing, researchers are given
the opportunity to enter another person’s perspective, particularly if the assumption is that the
perspective of the other person is meaningful. Valuable insight into how they are treated as
employees, how the company meets or can better meet employees’ professional development
goals, and how they interpret various messages from leadership, was gained. These are often
considered to be components of an organization’s culture (Mallinger et al., 2009).
Documents and Artifacts
The way messages, including formal policies, are communicated to employees, has a
bearing on their motivation to follow processes and procedures, as well as their motivation to
help the company succeed. Formal communication materials can lend insight into how
employees are treated and what standards they are held to, ultimately affecting a company’s
culture and its bottom line. According to Miles, Huberman, and Saldaña (2014), checking for
representativeness, triangulating across data sources and methods, weighing the evidence,
looking for negative evidence, and ruling out spurious relations are tactics used to assess the data
quality of official company documents.
To better understand how Customer Freight’s leadership formally communicates
company policies and procedures, the collection and review of official CF documents was
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conducted. This method provided both a historical understanding of CF, as well as the
opportunity to unobtrusively analyze changes over time. Of interest were strategic plans,
business plans, employee handbooks, policies, procedures, and position manuals. For the
document analysis portion of this study, the researcher served as the key instrument for data
collection.
Observations
Researchers are rarely total participants or total observers; they are often a mix, assigned
to a role that only participants can define (Merriam & Tisdell, 2016). By making the research
interests known while seeking cooperation from participants, conducting the study openly
provided relief from being a participant (Bodgan & Biklen, 2007). In this study, the researcher
was an observer-as-participant because the research activities were known to the group (Gold,
1958).
Four, four-hour workplace observations were conducted to collect firsthand information
on the company’s physical environment, the participants, activities, interactions, conversations,
and subtle factors that would not otherwise be identified (Creswell, 2014; Merriam & Tisdell,
2016, p. 141). The focus of the observations was to gain a better understanding of Customer
Freight’s culture including how staff members work and interact with one another; how they
interact with leadership and vice versa; how they handle daily tasks; how they are encouraged
and motivated throughout the day; how they are empowered to make decisions and lead others;
how they speak to and interact with customers; how Customer Freight’s policies and procedures
are implemented; and the organizational and industry terminology used. The observations
painted a clearer picture as to how the workplace culture and cultural norms positively or
negatively impacted employees’ progress toward meeting Customer Freight’s goals. Indicators
EFFECTS OF CULTURE ON TURNOVER 47

of potential causes of the company’s high turnover rate were also observed. Post-observation,
additional field notes were recorded at a coffee shop down the street from Customer Freight’s
office.
Interviews
In this study, the primary method of data collection was one-on-one interviews,
conducted with each of Customer Freight’s 10 employees. These interviews were held in one of
Customer Freight’s private conference rooms at the company’s Midwest operations location.
The rarely-used conference rooms are located at opposite ends of the building, which aided in
making participants more comfortable. During the interviews, a trusting interview partnership
was established by making the participants comfortable through brief introductions and
providing overviews of the researcher’s background and the interview protocol (see Appendix A
for complete interview protocol). The informed consent form was then reviewed, followed by
the purpose of the study, and a reiteration of the integrity and confidentiality of the process.
The interview questions concentrated primarily on experience, behavior, opinion, and
values, with a keen focus on how knowledge, motivational, and organizational influences
affected Customer Freight operations staff members’ job satisfaction (see Appendix B for
interview questions). The interviews provided the researcher with an opportunity to explore why
staff members initially wanted to work at Customer Freight; their training and onboarding in
relation to their previous work experience and role hired for; what a typical day at the office
involves; how and why they are motivated to succeed in their roles; how they are included in the
decision-making process; how the company’s goals are communicated to them; how they
understand the goals; and how they are supported in their roles.
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Post-interviews, the researcher went to a quiet coffee shop down the street from the office
where she uploaded the audio transcripts to Rev.com for transcription, wrote analytic memos,
and began analyzing written notes taken during the interviews. To ensure validity, transcribed
notes were later offered to interview participants for the purposes of respondent validation
(Merriam & Tisdell, 2016). Checks for outliers were also conducted to determine if they needed
to be examined further through a different form of data collection (Miles, Huberman, & Saldaña,
2014); no outliers were found.
Conducting standardized, open-ended interviews for this study provided the opportunity
to review and fully word each question in advance so that the interviews were highly focused and
efficient (Patton, 2002). A formal, standardized, open-ended interview format also enabled data
to be more easily analyzed, as respondents’ answers to the same questions were compared. This
format did not pose typical reliability issues because the same questions were asked of each
participant (Patton, 2002). The researcher was prepared to conduct additional interviews in the
case that markers or passing references about important issues occurred (Weiss, 1994); however,
that did not happen.
Data Analysis
Documents and artifacts were first analyzed for evidence consistent with the concepts in
the conceptual framework. Handwritten notes were recorded, and later coded for themes
consistent with the conceptual framework. During the interview and observation components of
this study, data analysis began during data collection. Analytic memos were written after each
interview and each observation, and notes, concerns, and initial conclusions about the data in
relation to the conceptual framework and research questions were recorded. Post-interviews, the
transcripts were transcribed and coded. The first phase of analysis utilized open coding,
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searching for empirical codes and applying a priori codes from the conceptual framework. The
second phase of analysis consisted of empirical and a priori codes being aggregated into
analytic/axial codes. The third phase of data analysis identified pattern codes and themes that
emerged in relation to the conceptual framework and study questions. Adequate time was spent
coding and analyzing data in pursuit of saturation (Merriam & Tisdell, 2016).
Credibility and Trustworthiness
Credibility, or internal validity, refers to how research findings match reality, and
whether those findings are believable and accurate (Lincoln & Guba, 1985; Merriam & Tisdell,
2016). In qualitative research, it is difficult to replicate methods and results to confirm reliability
and validity because the researcher is the key instrument of data collection, whereas in
quantitative studies, surveys serve as the standardized instrument (Creswell, 2014).
Additionally, as Maxwell (2013) stated, qualitative researchers “rarely have the benefit of
previously planned comparisons, sampling strategies, or statistical manipulations” (p. 123) and
are therefore forced to address validity threats usually after the research is underway. To
increase the validity and reliability of results in qualitative studies, researchers can use a
consistent data collection process, as well as triangulation of methods, sources, theories, and
analysts (Lincoln & Guba, 1985; Merriam & Tisdell, 2016).
The credibility and trustworthiness of this study was maintained by using three different
qualitative methods (document analyses, observations, and interviews) to triangulate the
processes and findings (Merriam & Tisdell, 2016). Post-research, a peer review process with
three colleagues was utilized to solicit feedback on not only consistency, trackability, and logic
of the research design and process, but also the findings (Lincoln & Guba, 1985).
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During the observations, the goal was to write enough descriptive content to enable
readers to visualize the situations and environment that were witnessed. According to Merriam
and Tisdell (2016), it is important to capture rich notes that not only detail the observations, but
will enable the transferability of findings. Following the observations, one-on-one interviews
with Customer Freight operations staff members were conducted. Once this phase was
completed and the notes compiled, the audio recordings were sent to Rev.com, a third-party
transcriber, to avoid any personal biases during the transcription process. After receiving the
transcripts back, they were cross-referenced with the researcher’s notes, and before completing
the analysis, participants were asked if they would like to review the findings to confirm their
responses were accurately captured. This form of member check and respondent validation
aided in ensuring credibility (Merriam & Tisdell, 2016).
Regardless of the research methods, there are two forms of validity threats: bias and
reactivity. In terms of reactivity, the researcher was aware of the potential influence on both the
observation and interview phases, and that personal involvement may affect the validity of the
inferences drawn from (Maxwell, 2013). The researcher also conducted a critical self-reflection
as part of the study to assess personal reflexivity, examining relationships, assumptions, biases,
and theoretical orientation (Merriam & Tisdell, 2016).
According to Miles, Huberman, and Saldaña (2014), checking for representativeness,
triangulating across data sources and methods, weighing the evidence, looking for negative
evidence, and ruling out spurious relations are tactics that can be used to assess the data quality
of official documents. Determination was made that what was captured was an authentic portrait
of what was observed (Miles et al., 2014).

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Validity and Reliability
In quantitative research, it is imperative to have both valid and reliable findings, ensuring
internal validity, external validity, and reliability (Merriam & Tisdell, 2016). Furthermore, to
have confidence in the findings, researchers must carefully plan how data will be collected,
analyzed, interpreted, and presented (Merriam & Tisdell, 2016). Kurpius and Stafford (2006)
also noted that having a reliable test does not necessarily mean the results are valid, while
Merriam and Tisdell (2016) posited that validity is how the processes and findings of one study
can relate to another, but does not automatically equal reliability.
Ethics
As a qualitative researcher, the primary role in this study was to ensure human subjects
were protected from harm, had a right to privacy, understood and granted informed consent,
were not deceived, and knew that participation in the study was voluntary (Merriam & Tisdell,
2016). Before the study commenced, the proposal was submitted to and approved by the
University of Southern California Institutional Review Board to ensure the correct methods and
safeguards were in place to appropriately protect the rights and safety of the participants. In
preparation for observations, an introduction was made to Customer Freight’s staff, and a brief
explanation of the process was provided, including how there would be little to no interference
with their day-to-day tasks. The purpose of the study—to gather information on areas that can
help employees and the company reach the goals set forth—was reiterated. At the beginning of
the interview phase, to ensure the subjects are protected with privacy, informed consent forms
were distributed. The forms were reviewed with participants before they signed so they
completely understood that their responses would be kept private and confidential, transcripts
and audio tapes would be destroyed post-transcription, and that their participation was voluntary,
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enabling participants to remove themselves from the study at any time without affecting their job
status at Customer Freight (Glesne, 2011). When participants signed the informed consent
forms, they were reminded that they had the option to decline audio recording, and instead,
handwritten notes would be taken. Participants were also informed that they would have the
opportunity to review transcripts from their own interview to ensure accuracy. Incentives were
not offered to not coerce participants to be a part of the study (Glesne, 2011); however, thank
you notes were sent to each participant.
As previously mentioned, a potential conflict of interest is the researcher’s relationship to
one of Customer Freight’s co-owners. Although the study did not directly focus on the
operations staff members’ feelings about the owners, ideally, the possibility that participants
would feel coerced or pressured to participate was minimized (Merriam & Tisdell, 2016). To
recruit participants, an explanation of the study’s purpose was provided as outlined: to
understand how corporate culture, including employee engagement, formal and informal
training, processes, policies, and rewards programs, affects organizational performance and
employee turnover rate. It was noted that it would be beneficial for the employees, as well as
CF, to understand how to successfully recruit, retain, and engage talented employees.
At the beginning of the interviews, to lessen the chances of potential feelings of coercion,
each participant was asked to give themselves a pseudonym. A prepared script was read by the
researcher when participants sat down, restating the purpose of the study as outlined above.
During the script reading, participants were informed that no harm would come to them during
the study, and that they had the right to decide not to participate and could withdraw from the
study at any point with no penalty or retribution. Participants were notified that the audio and
written transcripts of the interview would be sent to a third party to affirm the separation between
EFFECTS OF CULTURE ON TURNOVER 53

the roles as a researcher and the co-owner’s wife. It was also noted that the transcripts would be
destroyed post-transcription, and that the raw data would not be shared with the owners. All files
were kept in a locked file storage box until transcription, coding, and analysis was completed by
a third party; the files were then destroyed.
Limitations and Delimitations
Limitations
The limitations of this study included time constraints, as a total of 16 hours of
observations does not allow for the full establishment of relationships and trust. Additionally,
employees may have been guarded with their responses given the nature of the researcher’s
relationship with the co-owner.
Delimitations
Although all of Customer Freight’s stakeholder groups could have greatly influenced this
study, only the data collected from operations staff members were selected, as those employees
serve as the core of the organization and are the group facing the largest turnover rate within the
company. Analyses of documents, observations, and interviews were conducted, but anonymous
feedback was not sought through surveying because the stakeholder group of focus only
consisted of six people.
Summary
Chapter 3 outlined the procedures and methodology used for this study including
document analyses, observations, and interviews. Chapter 4 presents the data collected and
provides a detailed overview of the validation process.

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CHAPTER FOUR: FINDINGS

This chapter presents findings in categories of assumed influences through the lens of
Clark and Estes’ (2008) knowledge, motivation, and organizational (KMO)
framework. Assumed influences were validated through qualitative research consisting of
document analyses, observations, and one-on-one interviews with the study’s stakeholder group
of focus, operations staff members at Customer Freight. The study began with a thorough
review and assessment of all official Customer Freight documents including job descriptions,
new hire checklist, after-hours commission program fact sheet, confidentiality and non-compete
agreement, dispatch and tracking protocol, employee handbook, reference guide, and operations
manual. Following the document analysis process, four, four-hour observations of Customer
Freight’s 3,000 square foot office took place over the course of two weeks. The observation
protocol (Appendix C) was adhered to, and both descriptive and reflective notes were taken.
The following week, nine 30-to-60-minute one-on-one, in-person interviews were
conducted. Although the stakeholder group of focus only consisted of six individuals, the
researcher felt it was imperative to gain insight into the three, non-operations staff members’
experiences as it pertained to Customer Freight’s organizational culture. The data compiled from
those three interviews were used exclusively to analyze information for the attribution theory
portion of the study. During the interviews, 20 standard questions were asked of each
participant, and with to 19 follow-up questions (see Appendix B). All interviews were recorded
with written consent, transcribed, coded, and analyzed. All eligible stakeholders participated in
the interviews and were present during the observations.

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Participating Stakeholders
Although the primary stakeholder group for this was Customer Freight’s executive
leadership team, the data collection and analysis focused on CF’s six male, non-owner operations
staff members who range in age from 25 to 29. One hundred percent of the operations staff
members voluntarily participated in the one-on-one interviews and were observed during at least
three of the four observation sessions. The co-owners of the company were not in the office
during most of the interview sessions, providing privacy and anonymity for the interviewees,
lessening potential pressure to participate.
Overview of Findings
The data presented in this chapter are organized by knowledge, motivational, and
organizational influences. In analyzing the data, influences were deemed validated if they were
confirmed by more than one instrument and/or were present among 65% of the participants. As
Maxwell (2013) noted, the use of multiple methods reduces potential biases through the
triangulation of findings. A “validated gap” notation indicates that there is a gap and that the
influence needs to be addressed for Customer Freight to achieve its goals. A “no gap”
classification implies that a gap was not found, and no changes need to be undertaken (based on
the data collected). Finally, if an influence is classified as “unable to validate,” it indicates that
data could neither be validated or invalidated because there was not enough collected; a further
study is needed.
Findings for Knowledge Gaps
Declarative knowledge. Data on declarative knowledge influences, as identified in the
literature review, were collected and analyzed. One validated gap influence is described below.
New employee assessment. Gap validated.
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During the one-on-one interviews, 100% of participants indicated that a formal
assessment of their knowledge and/or skills was not conducted either prior to their hiring or post-
training. James (pseudonym), an operations staff member who had previously worked in retail
noted,
I didn’t have any background in logistics, so I kind of had to get how the industry works
and trucks and customers and all that. I mean, probably within one day, we kind of went
over all the basics. That was it. (p. 2).
Furthermore, in Customer Freight’s new hire checklist, processes to assess new employees’
skillsets are not addressed or even mentioned.
Procedural knowledge. Data on procedural knowledge influences, as identified in the
literature review, were collected and analyzed. The influences in which gaps were validated are
listed below.
Analogous onboarding process. Gap validated.
Of the six operations staff members, one reported three days of onboarding, two reported
four days of onboarding, and three reported five days of onboarding, indicating an inconsistent
onboarding process. Jake (pseudonym), an employee with a background in manual labor, stated,
“He (the president) kind of just showed me how to do something, handed me a phone, and said,
‘Go.’ I spent about a week just doing by trial and error” (p. 2). Later in his interview, Jake
noted that,
If I could change anything in training, it would be that I did the training, or the operations
manager. Somebody who is involved in it every day, who is familiar with all the
software in the time-being, and I think that a training process has to be at least a
week. There’s not a set training schedule, to be honest with you. I think that’s a little bit
EFFECTS OF CULTURE ON TURNOVER 57

of our problem with keeping employees here because the training is not set, and they’re
thrown into the mix right away. That could throw people the wrong way. That can be
very tough on them (p. 7).
Jay (pseudonym), who studied supply chain management in college, had a different experience:
I had a week of training, three days of it was in the back with the bosses, just learning the
systems, learning the (load booking and tracking) software, basically. Then, once I could
comprehend that and be productive, I went out. Thursday and Friday, I went out on the
floor with the guys and that’s when I could actually build real loads, and track real
freight, and that’s when I started (p. 2).
Through the review of Customer Freight documents, it was discovered that there is not a
formal onboarding process or even guidelines as to who will conduct the onboarding and
training. Moreover, during one observation period the chief operating officer and one operations
staff member were discussing a new employee who was just hired and would be starting in two
weeks. The chief operating officer stated he would do the training, but that he might have a
meeting during one of the onboarding sessions and would need the operations staff member to
take over if necessary, taking away from the staff member’s ability to meet his numbers for the
day. There was not a discussion around what would be covered or how, but perhaps that
conversation took place later.
Routine employee assessment. Gap validated.
All six operations staff members acknowledged that with the exception of their annual
reviews, routine employee assessments do not happen. Additionally, the annual review is
conducted by the chief operations officer, not the operations supervisor with whom they most
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closely work. Monthly staff meetings are held to review the team’s performance, but John
(pseudonym), who previously worked in the service industry, stated
I think the monthly meetings are good, and being kind of a review as opposed to a
meeting mid-month going over the current month. But then again, that would also, I
guess, may be an improvement to halfway through the month...do a review of the current
month as well (p. 5).
Interestingly, although five of the six operations interviewees said that as a group, they
did not meet
more than once per month, the operations supervisor, Jake claimed,
Then we have a weekly training meeting where not the whole company gets together, but
more or less, the operations gets together, and we talk about discussion topics. What we
can improve on, positives, negatives, how we can turn the negatives into
positives. Usually, it’s just about a little brief, 30-minute meeting every week where we
just go over (topics) and get everybody energized (p. 12-13).
Analysis of documents revealed that Customer Freight does not have a formal employee
assessment template, and there is no formal schedule for evaluating employees.
Metacognitive knowledge. Data on metacognitive knowledge influences, as identified
in the literature review, were collected and analyzed. The influences in which gaps are validated,
are listed below.
Staff members’ understanding of how their own motives, successes, and failures help
the organization realize its growth goals. Gap validated.
Four operations staff members appeared to be more focused on their growth within
Customer Freight versus how they impact the company’s growth goals. For example, Jake,
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blatantly outlined his personal plans when he stated, “My real goal in my career path would be to
run the company. The goal I’m talking about is to where this is my office...within the next five
years” (p. 5).
Customer Freight does not have a business plan, nor a strategic plan, potentially making
it difficult for staff members to align their goals with the organization’s.
Synthesis of Knowledge Findings
Although only two of Customer Freight operations staff members have prior experience
working in the logistics field, all employees have the capability to succeed in their roles through
the attainment of knowledge and skills pertinent to the industry. The results demonstrated that
Customer Freight does not create baseline assessments for new employees, nor does it conduct
routine assessments of current employees. Through consistent evaluation and review of
employee assessment results, CF can adjust its training program to meet the needs of its staff and
potentially increase long-term employee success. During the one-on-one interviews, participants
enthusiastically voiced support for additional training, particularly in areas that would help them
develop new skills such as customer service and sales, as well as in industry knowledge
including how to book different types of freight and predicting market variances. However,
without formal business and strategic plans, an organizational chart, or job descriptions, it is
difficult for operations staff members to align their goals with those of the organization.
Findings for Motivation Gaps
Self-efficacy. Data on influences related to self-efficacy and as identified in the literature
review, were collected and analyzed. The influences in which validated gaps are listed below.
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Employees need to believe they are capable of not only succeeding in their jobs, but
that they can also serve as leaders, trainers, and role models for other employees. Gap
validated.
A confident staff can assist Customer Freight in handling difficult customer situations,
obtaining new customers, and ensuring incident-free services. By displaying their knowledge of
subject-specific skills, techniques, and procedures, CF employees can demonstrate greater
confidence and motivation, while training with other employees (Bandura, 1997; Krathwohl,
2002). Through the analysis of documents, observations, and interviews, it is apparent that
Customer Freight’s operations staff members, except the operations supervisor, do not have the
opportunity to formally serve as trainers, and there is only one management-level position
available in the current structure. The company has made some strides, however. For example,
operations staff members are now given the opportunity to plan and run the company’s monthly
meeting. There is current evidence that, thus far, this has been an effective form of leadership
development: since the inception of staff-run meetings, one employee received a promotion and
one expanded his work team. This shift was efficacious because through displaying their
knowledge of subject-specific skills, techniques, and procedures, most CF employees
experienced a greater degree of confidence and motivation, while training with other employees
(Bandura, 1997; Krathwohl, 2002).
During the interviews, Jake detailed how he proposed a process change that was later
implemented. He discussed that having his idea accepted by the executive leadership team was
very motivating: “It makes you feel worth something. What you think or your suggestions are
worth something to them” (p. 4). However, even though the operations staff members noted 10
times during their interviews that the company’s owners trusted and respected them, no other
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employee specifically pointed out how he was given the opportunity to lead, train, or mentor co-
workers.
Attribution.
Employees must understand both individual and organizational success is contingent
on the efforts they put forth as employees, members of a team, and the overall company
team. Gap validated.
This study’s literature review outlined Weiner’s (1985) attribution theory, noting
individuals are motivated by goals when they master the environment themselves. It also
explored how, in relation to Customer Freight, those seeking out entrepreneurial adventures must
believe their actions determine their rewards (Rauch & Frese 2007). The operations staff
overwhelmingly noted that the best part of their job is their co-workers, mentioning they enjoyed
the small, family-like culture the company provides. Without a formal business plan
communicating the company’s goals, staff members cannot visualize how their daily efforts lead
to anything more than increasing the company’s bottom line. In fact, when asked specifically
what Customer Freight’s mission was in an open-ended question, the following answers were
given, demonstrating a lack of clarity: to provide top customer service; to grow; to have honesty
and integrity; to maintain excellent customer relationships; to keep employees happy; and to
make money. Furthermore, during the interviews, operations staff members stated they wanted
to be high up in the company, but did not correlate this personal goal with the company growing
and expanding.
Leadership must have a thorough understanding of what motivates employees to
persist in a high-stress, fast-paced environment. Gap validated.
EFFECTS OF CULTURE ON TURNOVER 62

Customer Freight’s two co-owners, comprising the executive leadership team, both have
backgrounds in the transportation industry. Jimmy (pseudonym) specifically, worked as a broker
and then a team manager, so he understands the environment: “This is a hard industry. If I could
choose tomorrow to do the same thing in a different industry, if I could just wave a magic wand,
I would do it. It’s just a hard, hard industry” (p. 4). Joey (pseudonym), on the other hand,
started his career on the carrier side of logistics, and works out of a different office than the
operations center, which he visits one to two times a week. He has a different outlook on the
industry, stating, “I think I live for the stress” (p. 3).
The executive leadership team also have differing views of the onboarding, training, and
employee engagement processes. Joey feels that the company is now “looking at the long-term
fix” (p. 2), and believes that their “training has to be a little more in-depth; right now, we’re
kinda just going through the basics and not going by what truly makes us successful” (p. 2).
Jimmy, however, is cautious about investing in people long-term because of the company’s high
turnover rate, stating,
I guess part of my feeling for that (training) is that if we invest too much in people, we
have had turnover here, so I get to a point where that’s too much and then somebody
leaves…I feel bad now when somebody leaves. If I’ve invested (in) training programs
and videos and books to people and then they’re gone next year, it’s going to be harder to
deal with I think (p. 3).
When asked specifically about what they think motivates their staff members to stay, the
executive leadership team stated they felt their employees stay because the company offers an
opportunity to earn a lot of money for those who started with the company during its early stages
EFFECTS OF CULTURE ON TURNOVER 63

(Joey, p. 4; Jimmy, p. 5). Jimmy also pointed out that many of their operations staff members
have an “entrepreneurial spirit” (p. 5).
The gap exists, however, because neither Joey nor Jimmy would address any additional
potential factors that motivate their employees. This is an issue because the six operations staff
members collectively mentioned motivating factors 62 times in their one-on-one interviews.
Synthesis of Motivation Causes
In the analysis of the interview results, somewhat unexpectedly, factors such as rewards
and recognition were not as motivating as having the opportunity to work for a start-up that has
been in existence for only three years. Although there were 10 positive mentions of the
company’s generous bonus and commission structure, and six appreciative comments about
rewards such as company dinners, birthday cakes, free lunches, and gift cards, there were 27
mentions regarding long-term career and growth potential as being the most motivating factor.
When asked about what drew him to work at Customer Freight, Jay replied, “The potential…I’m
looking for a career. It’s not a stepping stone” (p. 5). James (pseudonym) reiterated his main
motivator was growth: “All of our goals here…pretty much all of the guys who started from
almost day one is making this place grow huge” (p. 8). Although the potential for growth in a
start-up is initially a motivating factor, once the thrill of building a company is over, new
motivational influences may need to take the place of the adrenaline experienced by early
employees.

EFFECTS OF CULTURE ON TURNOVER 64

Findings for Organizational Gaps
Validated Organizational Gaps
Culture.
Staff members are overwhelmed and exhausted with the 24/7 pace of logistics freight
brokering. This is an area of extreme concern for both Customer Freight and its
employees. Throughout the interviews, several comments were made addressing issues
surrounding the causes of exhaustion and feelings of being overwhelmed, such as a lack of work-
life balance; a stressful, fast-paced industry; heavy workloads that do not allow for breaks or
lunch; and a lack of vacation/time-off. When asked what he didn’t like about his job, Jay
responded,
The stress. You take it home. But yeah, I think really only the negative is just how
stressful brokering is, but it’s not like that’s ever going to let up. It’s your customer and,
I think, whenever you have a customer, it’s...you can’t go to another logistics company
and it be any different. It’s just how it is (p. 6).
Justin (pseudonym), the only operations staff member with previous logistics experience, pointed
out that the stress and pace is an industry-wide problem:
...this industry is extremely stressful. When I came here (Customer Freight), they told
me, “Hey, we know what you’re working over there, 80, 90 and literally you don’t have
any work-life balance. We’re not going to say you’re going to work 8 to 4 and 40 hours,
but we’re not going to douse you like that.” Other companies I’ve been with, they don’t
care. I literally, and this was all sorted out, I literally worked 72 straight hours and hadn’t
slept the whole weekend because it was too busy to sleep. I still was supposed to work
Monday. I said I couldn’t drive into work because I couldn’t see straight. I ended up
EFFECTS OF CULTURE ON TURNOVER 65

falling on my stairs...suffered a concussion and getting seven staples in my head from
sheer exhaustion. I hadn’t slept in days. They did not care. Did not care. They wanted
me at work on Tuesday with seven staples in my head (p. 5).
However, Jake noted,
I know the sacrifice I have to make. I haven’t had a life in three-and-a-half, almost four
years. There was a vacation that I went on five months ago, and the first two days of the
vacation, I was hammering my phone, looking at every email, until finally, the guy I was
with was like, “Dude, just shut it off, just set your notifications off,” and for those three
days...the first day was stress and anxiety, but then I was finally able to release, it was
like, this is really a stress-reliever (p. 6-7).
During all four of the observation periods, the researcher noticed that the operations staff
rarely got up from their desks with the exception of the operations supervisor who appeared to be
very antsy. Although ball chairs (molded chairs with exercise balls held in the middle) were
available to the employees, they were not being used, and the large, well-equipped
break/lunchroom was virtually empty all day. One day, the chief operations officer ordered in
Mexican food for the team at noon, but no one took more than five minutes to eat; they all got
up, took their lunches, and sat back down. Three of the operations staff members did not break
to eat until after 2:00 p.m.
In addition to seven paid holidays, per the Customer Freight Employee Handbook,
vacation is accrued based on the following schedule (p. 23):
• Completion of 90-day probation period, but under one year of employment = three (3)
days
• First full year of employment = five (5) days
EFFECTS OF CULTURE ON TURNOVER 66

• Second full year of employment = (seven) 7 days
• Third full year of employment = 10 days
• Fifth full year of employment = 12 days
When reflecting on the company he left to come work for Customer Freight, James noted,
“I had a lot more vacation there. I think we get like five days here. I mean, my last job...I was
sacrificing almost a month of vacation to come here” (p.11).
Turnover has been high and staff members find it difficult to envision long-term career
paths within the company.
During the interviews, participants mentioned 30 times that having a steady base of
employees would allow the current staff more time for better customer engagement, streamlined
processes, and company growth. John communicated,
I don’t want to use the word, ‘understaffed,’ but definitely, if the workload were to
lighten, I don’t think that it would take away from the work ethic of anybody here, so
maybe to have a little bit more free time to work on certain things would definitely help
excel both personally and the whole company. Like I mentioned earlier, even just
customer interaction. I think that’s really the one thing that’s needed (p. 9).
James further surmised,
I mean, we’ve had some turnover in the company. Possibly setting certain dollar
amounts for positions and stuff like that will maybe influence some of the new people we
have coming through to stay. I would like to see people stay longer. I’ve seen a lot of
people come and go for different job opportunities, so we have to almost offer them
something where they’re gonna see the potential we see and be able to stay, and not say,
“Cool, I got some experience, I’m gonna leave.” Or, “Hey, I was here for a little bit and
EFFECTS OF CULTURE ON TURNOVER 67

it’s just not for me” kind of thing. Recently, I think two people ended up leaving kind of
thing, it puts us in a pickle, and if we don’t have those people to jump in right off that bat,
it just became us four for a while doing everything. Puts a struggle on your back (p. 12-
13).
As for long-term career paths within the company, although the “growth potential” of
working in a start-up was mentioned 15 times and four staff members noted they wanted a job
that would turn into a career, three participants stated they would leave the company if they
started seeing signs of stagnant growth and/or a lack of opportunities for them to move up. John
stated, “If, for any reason there was a top to reach and that was reached, and I just didn’t see it
extending past that as far as personal growth, then that would cause me to leave” (p. 9). Jay
echoed that statement: “I don’t know anybody can do it (brokering) for more than 10 years. So, I
think you’re running between five and 10 years where you either want to get promoted or you’re
looking at doing something else” (p. 5).
Addressing the issue of visualizing long-term opportunities within Customer Freight, two
employees suggested that CF’s executive leadership offer the opportunity to job shadow other
positions within the company; two employees commented that having a formal organization
chart with job descriptions would demonstrate additional opportunities within the company; and
one person commented that by having all operations staff members switch jobs for an hour or so,
co-workers would have a better understanding of the demands on each role and would perhaps
discover a position they would eventually like to have. When asked where he saw himself in two
or five years, Jude was unsure of the next steps within the company, commenting, “In two years,
hopefully as an account manager or whatever comes after that” (p. 6).

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Non-Validated Organizational Influence Gaps
Procedures and policies.
General resistance by staff members to adopt new processes and procedures. This
influence was not validated. In fact, participants noted nine times throughout the interviews that
they understood they were in a start-up and that processes and procedures had to be tried out and
tested. Jake was quick to infer that new processes and procedures would be beneficial and
welcomed, as the company’s current relaxed environment could be contributing to its
shortcomings:
I also think it sets them up for failure, these guys that come in, because they get into this
norm of this is how it runs, and then they get into the real work, and they’re not lax
anymore, sitting back and stuff like that. If it doesn’t work out here and they go on to a
different job, there’s no ping pong tables there. You got to actually sit up and do your job
(p. 12).
Jay also supported the idea of having formal procedures and policies: “I think if we had some
type of system where every time we had a lane bid (an offer made to carry a shipment), it was
shot out to our carriers...one organized thing every time” (p. 11).
Culture.
Culture of distrust in the organization between staff members and senior
management. Thirteen times during the six interviews, participants mentioned how Customer
Freight’s owners trust and respect them, and how they trust the owners; there were zero mentions
of distrust. Jake noted,
...the two owners started involving me in those conversations. Getting my input, telling
me where they think that things are going, where I think things could improve, asking me
EFFECTS OF CULTURE ON TURNOVER 69

my opinions and things like that. They involve me a lot in that, in those discussions (p.
3).
Additionally, during the interviews, participants cited benefits to working at Customer Freight
such as the trusting and respectful culture; open door communication; and the fact that is a small,
family-like company. Justin, having come from another logistics firm, enthusiastically pointed
out, “...if you want to just do a one-on-one, you literally walk into one of the two owners’
offices, text them, or call them.” Jude (pseudonym), an employee who recently moved from
afternoons to days, stated,
The nice thing about (the owners) or even (the operations supervisor) and everybody else
that’s above me is everybody’s pretty open with at least listening to what you have to
say. (The owners) would always be willing to sit down if I had an idea that I wanted to
sit with them and pass by (p. 7).
Synthesis of Organizational Findings
Although difficult to discern from analyzing documents, it was overwhelmingly apparent
during both the observations and interviews that teamwork at Customer Freight is strong. In the
interviews, participants mentioned 24 times how much they enjoyed their co-workers and that
the office was a collaborative environment. As compared to mentions of knowledge influences
(25) and motivational influences (62), organizational influences (145) are the strongest within
Customer Freight. Operations staff members are seemingly trying to balance factors such as
stress, turnover, and lack of work-life balance with positive influences such as the organizational
culture and growth potential when deciding whether to stay or leave the company.
Additionally, the demographics of the operations team leads one to ponder the effects of
a more diverse workforce. All six operations staff members are men between the ages of 25 and
EFFECTS OF CULTURE ON TURNOVER 70

29, and each one discussed how they enjoyed having an open office environment. They also
noted, somewhat sheepishly, that the office is like a fraternity—which was confirmed by the
researcher. During the observations, she noted that everyone on the operations team was dressed
very casually; one desk had eight empty Styrofoam coffee cups teetering on the side; classic rock
music played loudly from one workstation; the TV in the reception area had ESPN’s
SportsCenter playing nonstop; and when there was small talk amongst the team, it always
centered around hockey and the Stanley Cup playoffs. Even though all staff members were very
open to having women in the office, it was extremely difficult for the female researcher to
envision a woman or women operating and succeeding in that environment.
Summary
The findings clearly identified several knowledge, motivation, and organizational gaps
within Customer Freight. In terms of knowledge gaps, the company does not create baseline
assessments for new employees, and current employees are not routinely assessed or evaluated.
This is of concern to the millennial operations staff members who seek continual feedback from
superiors in a non-demotivating fashion. When their work is not acknowledged, millennials
often assume they are doing an unsatisfactory job; they need positive reinforcement to feel
appreciated and valued (Smith & Nichols, 2015; Sujansky & Ferri-Reed, 2009). The operations
staff members would also enthusiastically welcome learning opportunities to help grow their
skill sets in areas that would be beneficial to the company such as customer service, sales,
various modes of transportation, competitor analyses, and market variances; however, there are
no offerings or support available to them. Smith and Nichols (2015) posited that if organizations
do not invest in training talented millennial employees, other companies are likely to woo them
away. Additionally, the staff members cannot align their individual work goals with those of
EFFECTS OF CULTURE ON TURNOVER 71

Customer Freight because there are no business or strategic plans in place, making it difficult for
them to self-assess their progress and results. Because millennials place a high value of working
for a purpose, it is imperative to their success that they are aware of a company’s mission, vision,
and goals so they understand how their roles support the company’s goals (Hewlett, Sherbin,
Sumberg, 2009). Start-ups must rely on the goals of an organization aligning with its cultural
performance norms (Hopp & Stephan, 2012).
The findings indicated that traditional motivational drivers such as rewards and
recognition are not what motivates Customer Freight operations staff members. Although they
appreciate the company’s bonus and commission structures, company dinners, free lunches,
birthday cakes, and gift cards, all six operations staff members noted they were motivated by the
potential of being in on the ground floor of a new company. Start-ups that exhibit strong cultures
can effectively supply their talent pipelines by filling senior positions with committed and
engaged employees who then attract new employees with attributes that align with the
organization’s culture (Hynes, 2009). Sadri and Lees (2001) noted this cyclical process positions
an organization for long-term success. Customer Freight’s leadership must consider this strategy
because as the adrenaline of the start-up phase wears off, there are no other discernable factors
found to keep current operations staff members motivated.
Finally, a tight-knit culture amongst the operations staff members was discovered.
Teamwork is not only highly valued at Customer Freight, but is a key component of millennials’
ideal workplaces (Cahill & Sedrak, 2012; Sheahan & Sheahan, 2005; Smith & Nichols, 2015).
One major red flag in terms of an organizational gap, however, is the lack of work-life balance.
This was mentioned consistently in all six operations staff interviews, and during the
observations, it was noted they very rarely, if ever, left their desks. A lack of work-life balance
EFFECTS OF CULTURE ON TURNOVER 72

is a leading indicator for millennial employee turnover (Kilber, Barclay, & Ohmer, 2014;
Thompson & Gregory, 2012). Ranade (2016) pointed out that intellectual property is a start-up’s
greatest asset, and employee turnover can make or break a company during this phase. Customer
Freight must therefore, be cognizant of the demands placed on its operations team, as well as
their need for better work-life balance.
Addressing knowledge, motivation, and organizational issues, Mallinger et al. (2009)
suggested that an organization can better understand how its current culture aligns with its
mission and goals by examining influences such as employees’ comfort level with uncertainty,
their achievement motivators, opportunities for training and advancement, and how, if at all, the
physical layout of the organization affects performance. These are all contributors to employee
engagement and culture, yet they are the areas in which Customer Freight has gaps.

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CHAPTER FIVE: RESULTS
Organizational Information
Organizational Context and Mission
Customer Freight (CF) is a third-party logistics provider (3PL) with an administrative
office and an operations center located on the outskirts of a major Midwestern city. Third party
logistics is one of the fastest-growing sectors in transportation services, with 53% of global
companies’ transportation programs managed by third parties (Ellinger, Keller, & Bas, 2010;
Capgemini & Langley, 2015; Prockl, Pflaum, & Kotzab, 2012). In comparison to traditional
freight services, the differentiator of 3PLs is human interaction—freight brokers are empowered
to provide individualized and customized services versus fulfilling mass services as in traditional
freight programs (Prockl et al., 2012)
Founded in 2014, Customer Freight’s mission, defined by its executive leadership team,
is to empower its expertly-trained employees to provide top customer service 24 hours a day,
seven days a week. CF does not have a value proposition, nor a sales or marketing plan, relying
on referrals and an informal cold-call process to secure new business. The executive leadership
team believes that they can grow the company because they have established process-oriented
dispatch and tracking systems, and they also provide a point person 24 hours a day, seven days a
week.
Customer Freight currently has 10 employees including six logistics brokers who manage
24 customer accounts. Of the 10 employees outlined in Figure 3, seven previously worked in
non-management roles in the retail and construction industries. The two co-owners previously
worked in transportation (one in logistics brokering, the other in asset-based trucking), and the
business development manager, hired in March 2017, previously worked at a client 3PL.
EFFECTS OF CULTURE ON TURNOVER 74

Figure 3. Customer Freight’s organization chart and hierarchy as of March 2017.
Customer Freight’s external stakeholders include clients in automotive original
equipment manufacturers (OEMs), other 3PLs, and 4PLs, brokerage firms that provide total
freight management for other companies. In addition to its customer base, CF must maintain
excellent working relationships with trucking companies in order to secure the best truckload
pricing for its clients.
Organizational Performance Goal
By December 2018, Customer Freight will implement an innovative culture plan with the
purposes of increasing employee engagement and success, and decreasing regrettable employee
turnover. Customer Freight’s president and vice president established this goal after completing
360 leadership assessments in March 2016. The results of the assessments revealed numerous
EFFECTS OF CULTURE ON TURNOVER 75

underlying issues in terms of how the company was being run, as well as discrepancies in the
leaders’ vision and growth plans, and how they communicated with staff members.
Description of Stakeholder Groups
Corporate culture not only affects employees’ behavior and performance, but also the
overall process of recruiting new talent (Abdul Rashid, Sambasivan, & Johari, 2003). Although
a complete analysis would involve all stakeholders, the stakeholder group of focus for this study
was Customer Freight’s executive leadership team, consisting of two males, ages 27 and 38. To
create a culture of full employee engagement and job satisfaction while reducing operations staff
turnover, however, data collection and analysis centered on CF’s six, millennial male operations
staff members, ranging in age from 25 to 29. This stakeholder group is important to target
because by understanding how staff members feel about Customer Freight and its goals, what
they experience daily in their jobs and work environment, and how they are motivated to
succeed, CF’s leadership team will be able to implement viable processes for decreasing turnover
and increasing sales, while gaining a better understanding of the current culture. The
perspectives of staff members will also inform the executive leadership team’s decisions as they
relate to areas that influence company culture such as rewards, recognition, policies, procedures,
and hiring, onboarding, and talent retention plans.
Goal of the Stakeholder Group for the Study
Customer Freight’s stakeholder goal is for the executive leadership team to conduct and
complete a needs analysis of the operations staff, followed by the development of formal
onboarding, training, and evaluation programs to address those needs by December 2017. Also
by this date, the executive leadership team will replace 100% of informal documentation with
formal plans.
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Purpose of the Project and Questions
The purpose of this project was to conduct a gap analysis in the areas of knowledge and
skill, motivation, and organizational culture and climate necessary to reach the organizational
performance goal. The analysis begun by generating a list of possible needs and then moved to
examining these systematically to focus on actual or validated needs. While a complete needs’
analysis would focus on all stakeholders, for practical purposes, this analysis focused on
Customer Freight’s six operations staff members.
As such, the questions guiding this study were as follows:
1. What are the knowledge, motivation, and organizational needs that Customer Freight
operations staff members perceive as being conducive to employee engagement and
retention?
2. What are the knowledge, motivation, and organizational recommendations to meet those
needs?
Summary of Knowledge Influences and Recommendations
Introduction. The knowledge influences in Table 5 represent the complete list of
assumed knowledge influences and their probability of being validated based on the most
frequently mentioned influences to achieving the stakeholder goal during one-on-one interviews
and through the literature review. As indicated in Table 5, it is anticipated that these influences
have a high probability of being validated and for achieving the stakeholder goal. Table 5 also
shows the recommendations for these highly probable influences based on theoretical principles.

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Table 5
Summary of Knowledge Influences and Recommendations

Assumed
Knowledge
Influence:
Cause, Need, or
Asset*

Validated
Yes, High
Probability,
or No
(V, HP, N)
Priority
Yes, No
(Y, N)
Principle and Citation Context-Specific
Recommendation
Declarative: All
new employees
need to be
assessed for
Customer Freight
leadership to
understand their
knowledge and
skill levels; they
will then be
trained
appropriately.
V Y As related to Customer
Freight employees,
factual knowledge
includes foundational
elements that employees
need to understand to
function in the
workplace at a basic
level and to solve
problems as they arise
(Krathwohl, 2002) such
as industry and
company terminology.
Training guides new
employees through
demonstrated best
practices and enables
two-way
feedback. Job aids
and information
support varying levels
of familiarity.

Procedural: All
new employees
should undergo
an analogous
onboarding
process with
consistent
information
including one-
on-one training,
job shadowing,
and on-the-job
assessment.

V Y New employees who are
trained and assessed in
frequent intervals have a
higher likelihood of
adapting to the
company’s culture and
achieving a higher rate
of success (Grossman &
Salas, 2011).
Kirkpatrick’s (1994)
four-levels-of-
evaluation model was
expanded by Clark and
Estes (2008) to gauge
reactions (Level 1),
impact during the
training program (Level
2), transfer of
knowledge (Level 3),
and the bottom line
(Level 4).
Training gives new
employees
demonstrated practice
with feedback and
support, while job aids
such as checklists and
process maps, help
current employees
remember what to do
in infrequent
situations (e.g.
booking a refrigerated
truck during the short
produce season in the
South).
EFFECTS OF CULTURE ON TURNOVER 78

Procedural: All
employees need
to be routinely
assessed on
common
company
processes and
procedures.
V Y Ongoing monitoring of
all employees’
knowledge and
application of company
and job-specific
procedures needs to
occur both periodically
and episodically to
ensure long-term
adaptation (Clark &
Estes, 2008).
Job aids will help
ensure staff members
follow the company’s
processes and
procedures, while
supporting their
success.
Metacognitive:
To appropriately
set and track
progress towards
goals, staff
members need to
understand their
own motives,
successes, and
failures to help
Customer Freight
realize its growth
goals.
V Y Metacognition is the
process of thinking
about thinking (Flavell,
1976). Fewer than 20%
of leaders can articulate
their own individual
purpose, leaving them
unable to turn purpose
into action (Craig &
Snook, 2014). The
transportation industry
tends to be turbulent and
fast-paced (Gibson &
Cook, 2000), leaving
employees little time to
reflect on what went
well and what could
have been improved
throughout their
workday. However, to
appropriately set and
track progress towards
goals, staff members
need to better
understand their own
motives, successes, and
failures to help CF
realize its growth goals
(Clark & Estes, 2008).
Education enables the
acquisition of
conceptual,
theoretical, and
strategic knowledge
and skills,
empowering
employees to address
challenges, solve
problems, and
translate best practices
(Clark & Estes,
2008). By educating
staff members in the
importance of
reflection and goal-
setting, the
organization is
empowering.

Declarative knowledge solutions, or description of needs or assets. As noted in Table
5, the knowledge and skill levels of new employees should be assessed prior to initial
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training. Although all employees need to be trained in company policies, procedures, and goals,
Customer Freight leadership must gauge the new employees’ level of industry knowledge as well
as their basic skill levels in areas such as technology and customer service. If new employees
have industry experience, information and job aids can support them as they draw upon that
knowledge in new challenges at CF, while employees who have not worked in the industry will
need more training and guidance (Clark & Estes, 2008).
Training guides new employees through demonstrated best practices and enables two-
way feedback, whereas job aids and information support varying levels of familiarity (Clark &
Estes, 2008). Job aids consist of self-help information employees can utilize to perform a job
task, while information simply assists people in achieving a particular goal (Clark & Estes,
2008). For employees needing more extensive training, they will acquire knowledge and skills
that can be applied to hands-on practice before they officially start in their new roles (Clark &
Estes, 2008).
Procedural knowledge, solutions, or description of needs or assets. Building upon the
information provided in both Table 5 and the previous section, to ensure a consistent
understanding of company procedures and processes, all new Customer Freight employees must
undergo the same onboarding process with consistent information. This process should include
one-on-one training, job shadowing, and on-the-job assessment, and should utilize non-
traditional training methods such as videos, multimedia resources, and video game-like modules
to meet the expectations of millennial workers (Kilber, Barclay, & Ohmer, 2014). New
employees who are trained and assessed in frequent intervals have a higher likelihood of
adapting to the company’s culture as well as achieving a higher rate of success (Grossman &
Salas, 2011). Clark and Estes (2008) further note that through guided practice structured in the
EFFECTS OF CULTURE ON TURNOVER 80

same sequence as a typical day-on-the-job, new employees are given corrective feedback by
leadership, enabling them to understand proper policies, procedures, and terminology from the
beginning of their tenure. Training’s two-way dialogue helps address any misunderstandings
upfront (Krathwohl, 2002), while providing corrective feedback, helping employees achieve
stated work goals (Clark & Estes, 2008).
Kirkpatrick’s (1994) four-levels-of-evaluation model was expanded by Clark and Estes
(2008) to gauge reactions (level one), impact during the training program (level two), transfer of
knowledge (level three), and the bottom line (level four). Customer Freight’s current onboarding
practice of providing information and later, job aids, does not assist in the transfer of knowledge,
nor does it tie into the overall performance goals of the organization (Clark & Estes, 2008). To
create an operative training program, Customer Freight’s executive leadership should consider
assessing the areas in which current and past employees have traditionally and consistently
struggled so that the material is reviewed and addressed for appropriateness and
effectiveness. CF’s executive leadership can ensure that participants are initially prepared for
success by determining the needs of both the company and its employees through constant
review and evaluation of its training process, as well as analysis of the failures and successes of
employees post-training (Kirkpatrick & Kirkpatrick, 2006). Additionally, ongoing monitoring of
all employees’ knowledge and application of company and job-specific procedures needs to
occur both periodically and episodically to ensure long-term adaptation (Clark & Estes,
2008). Through consistent evaluation and review of employee assessment results, as well as the
solicitation of feedback from employees, CF can adjust its training program to meet the needs of
its team, and potentially increase long-term employee success.
EFFECTS OF CULTURE ON TURNOVER 81

Metacognitive knowledge solutions, or description of needs or assets. Metacognition
is the process of thinking about thinking (Flavell, 1976). Fewer than 20% of leaders can
articulate their own individual purpose, leaving them unable to turn purpose into action (Craig &
Snook, 2014). Although the fast pace of the transportation industry leaves workers little time to
reflect, Customer Freight employees need to understand their own motives, successes, and
failures for the company to realize its growth goals. By conducting regular self-assessments,
employees can recognize and understand any knowledge gaps they may have, but also feel
empowered to assist co-workers in areas in which they are confident in their skillset (Dhawan,
2015).
In addition, through metacognitive practices, CF employees can better determine the
areas in which they would like to grow professionally and begin to plan for additional education
to help them reach those goals. Education enables the acquisition of conceptual, theoretical, and
strategic knowledge and skills, empowering employees to address challenges, solve problems,
and translate best practices (Clark & Estes, 2008). The further education of employees will
provide CF a workforce generating conceptual knowledge to apply to problems and job
challenges in new ways, while adding value to employees’ tenure with the company (Clark &
Estes, 2008).
Summary of Motivation Influences and Recommendations
Introduction. Defined as what “gets us going, keeps us moving, and tells us how much
effort to spend on work tasks” (Clark and Estes, 2008, p 80), motivation is an influence that can
directly affect an organization even if the gap between goals and current performance does not
exist. The motivation influences in Table 6 represent the complete list of assumed motivation
influences and their probability of being validated. These assumptions are based on the most
EFFECTS OF CULTURE ON TURNOVER 82

frequently mentioned motivation influences to achieving the stakeholder goal during one-on-one
interviews, observations, and supported by the literature review. Also noted in Table 6, most
motivational influences have a high probability of being validated, and there is a high priority for
achieving the stakeholder goal. Finally, Table 6 provides recommendations for these influences
based on theoretical principles.
Table 6
Summary of Motivation Influences and Recommendations

Assumed
Motivation
Influence: Cause,
Need, or Asset*

Validated
Yes, High
Probability,
No
(V, HP, N)
Priority
Yes, No
(Y, N)
Principle and
Citation
Context-Specific
Recommendation
Employees need to
believe they are
capable of not only
succeeding in their
jobs, but that they can
also serve as leaders,
trainers, and role
models for other
employees. (SE)
Y Y When employees
feel valued by a
company, their self-
efficacy grows and
their potential to
lead others
increases, as does
their performance
(Pajares,
2006). Through
self-efficacy,
employees begin to
believe they can
successfully lead
others, yet they
understand their own
shortcomings and
potential areas for
growth (Grossman
& Salas, 2011;
Pajares, 2006; Van
Der Vegt, Emans, &
Van De Vliert,
1998), and through
collective efficacy,
believe they can
Provide opportunities
for employees to
further develop
presentation,
mentoring,
leadership, and
assessment skills.
Provide job aids for
employees during
their initial mentoring
sessions to assist in
the development of
their self-efficacy.
EFFECTS OF CULTURE ON TURNOVER 83

influence change by
working together
(Bandura, 1997).
Employees must
understand both
individual and
organizational
success is contingent
on the efforts they put
forth as employees,
members of a team,
and the overall
company team. (EV)
Y Y Goette, Huffman,
Meier, and Sutter
(2012) concluded
that although an
organizational sense
of competitiveness
may enhance
workplace
efficiencies, it could
also lead to negative
conflict between
groups.
Provide job aids and
training in the areas
of company goal
setting procedures,
promotion processes,
and cross-
organizational
collaboration.
Leadership must have
a thorough
understanding of
what motivates
employees to persist
in a high-stress, fast-
paced
environment. (EV)
Y Y Clark and Estes
(2008) outline five
workplace elements
that destroy work
motivation: vague
and constantly
changing
performance goals
and feedback;
dishonesty,
hypocrisy, and
unfairness;
unnecessary rules
and work barriers;
constant competition
with everyone; and
negative, critical,
biased, and
prejudicial feedback.
Education for high-
level, long-term
strategies focused on
business goal-setting,
employee
engagement tactics,
effective feedback
processes, and
corporate culture
analyses.
Additionally, training
for gauging
employees’ job
satisfaction.

Self-efficacy. The self-efficacy levels of employees can directly impact overall company
performance: when employees feel valued by a company, their self-efficacy grows, and their
potential to lead others increases, as does their performance (Pajares, 2006). Customer Freight
staff members need to believe they are capable of not only succeeding in their jobs, but that they
EFFECTS OF CULTURE ON TURNOVER 84

can also serve as leaders, trainers, and role models for other employees. Through self-efficacy,
employees begin to believe they can successfully lead others, yet they understand their own
shortcomings and potential areas for growth, and through collective efficacy, believe they can
influence change by working together (Bandura, 1997; Grossman & Salas, 2011; Pajares, 2006;
Van Der Vegt, Emans, & Van De Vliert, 1998). This is particularly important for millennial
employees who often prefer working in teams and the success their collective efforts bring
(Cahill & Sedrak, 2012; Hewlett et al., 2009).
When employees feel valued by a company, their self-efficacy grows, and their potential
to lead others increases, as does their performance (Pajares, 2006). The improvement of self-
efficacy, learning, and performance can be attained by encouraging employees to set their own
productive goals that are challenging, yet achievable (Denler, Wolters, & Benzon,
2009). Customer Freight’s leadership should provide training and education for employees to
further develop presentation, mentoring, leadership, and assessment skills, while assisting with
employee goal-setting and strategy development. Through training, employees can learn
strategies to better manage their own motivation, learning outcomes, environment, and time
(Dembo & Eaton, 2000).
Additionally, job aids should be utilized during employees’ initial mentoring sessions to
assist in the development of their skills and confidence. During these sessions, prompt feedback
will link learning strategies to improved performance (Shute, 2008), and trainers should provide
further opportunities for new employees to assess their own progress (Denler et al., 2009).
Cahill and Sedrak (2012) found that markedly, millennials seek immediate feedback, and when it
is not provided in a timely fashion, the assumption is that their work is not up to par.
EFFECTS OF CULTURE ON TURNOVER 85

Expectancy value. Expectancy value is determined when an individual’s performance
and persistence is affected by how much they value the activity, in addition to how well they
believe they will do on that specific activity (Wigfield & Eccles, 2000). Expectancy focuses on
the belief one has as to whether he or she can do the task, and is a strong predictor of persistence,
mental effort, and performance (Clark & Estes, 2008). Value, on the other hand, is a strong
predictor of active choice because an individual questions if he or she would want to complete
the task.
Clark and Estes (2008) posit that in a work environment, employees experience one of
three motivational processes: active choice, persistence, or mental effort. Active choice occurs
when the intent to pursue a goal is replaced by the action of doing it (Clark & Estes,
2008). Persistence refers to how one continues pursuing a goal in the face of challenges and/or
distractions, while mental effort is determined by one’s confidence (Clark & Estes, 2008). In
order to act upon a goal and persist in challenging times, Customer Freight employees must
understand that both individual and organizational success is contingent on the efforts they put
forth as employees, members of each team, and the overall company team. Through the
administration of job aids and training in the areas of company goal-setting procedures,
promotion processes, and cross-organizational collaboration, Customer Freight’s leadership is
providing employees with rationales focused on the utility value, or usefulness of specific tasks
(Eccles, 2006; Pintrich, 2003). This can aid in the development of motivation to succeed by also
activating personal interest in achieving the company’s goals (Eccles, 2006).
Delving further into employee retention and turnover, Clark and Estes (2008) outline five
workplace elements that decrease motivation: vague and constantly changing performance goals
and feedback; dishonesty, hypocrisy, and unfairness; unnecessary rules and work barriers;
EFFECTS OF CULTURE ON TURNOVER 86

constant competition with their peers; and negative, critical, biased, and prejudicial feedback.
Customer Freight’s leadership must not only understand the motivational barriers their
employees face, but they also need to have a thorough understanding of what motivates
employees to persist in a high-stress, fast-paced environment. They should be educated in high-
level, long-term strategies focusing on business goal-setting, employee engagement tactics,
effective feedback processes, and corporate culture analyses, while knowing how to gauge
employees’ job satisfaction. Finally, as additional motivation, they must understand that the
utility value of this work is correlated with the long-term success of the company; it is important
for employees to see the leadership team work toward and attain their goals; and that the cost
value will be beneficial in the long run (Eccles, 2006; Pintrich, 2003). In relation to millennial
workers, turnover is high when they cannot align their work to an overall purpose, do not receive
timely and helpful feedback, are not asked for input, are micromanaged, and do not have work-
life balance (Kilber, Barclay, & Ohmer, 2014).
Summary of Organizational Influences and Recommendations
Introduction. Organizational factors can either facilitate or curb both individual and
team performance (Rueda, 2011). The organization influences in Table 7 represent the complete
list of assumed organization influences and their probability of being validated. These influences
are sub-divided into cultural models and cultural settings. Cultural models are the shared
understandings of how the world within an organization operates or should operate (Gallimore &
Goldenberg, 2001), while cultural settings are the who, what, when, where, why, and how
(Rueda, 2011) of the social context comprising everyday life within an organization.
According to Rueda (2011), the roots of organizational gaps lie within the areas of
culture, structure, and policies and practice. Organizational culture cannot be imposed; it is
EFFECTS OF CULTURE ON TURNOVER 87

created through shared experiences and learning, and a sense of stability within the organization
(Schein, 2004). Table 7 also provides recommendations, based on theoretical principles, to close
the organizational gaps in the areas of cultural models and settings within Customer Freight.
Table 7
Summary of Organizational Influences and Recommendations

Assumed
Organization
Influence:
Cause, Need,
or Asset*

Validated
Yes, High
Probability,
No
(V, HP, N)
Priority
Yes, No
(Y, N)
Principle and
Citation
Context-Specific
Recommendation
Procedures and
Policies: There
is a general
resistance by
staff members
to adopt new
processes and
procedures.
N Y As Clark and Estes
(2008) note,
organizational work
processes
compatible with
workplace culture
help create a stable,
yet flexible
environment.
When creating processes and
procedures, solicit employee
feedback and test with
employees before full
implementation. Provide job
aids and training to ensure
understanding and
compliance. To improve
performance, identify and
remove any barriers to
creating, implementing, and
enforcing processes (Clark
& Estes, 2008). Align the
organization’s culture profile
with processes, procedures,
and goals (see below).
Cultural Model
Influence
1: There is a
culture of
distrust in the
organization
between staff
members and
senior
management.
N N Teams displaying
efficacy in self-
conflict resolution
and management,
are more likely to
work productively
than those
experiencing doubt
(Alper, Tjosvold, &
Law, 2000). By
developing
fundamental trust
through open and
Focus on the employees’
concerns to determine if they
are structural, procedural,
cultural, or organizational,
before deciding on the best
course of action.

Communicate consistently
and constantly.
EFFECTS OF CULTURE ON TURNOVER 88

honest
communication,
leaders build a
reputation and
culture of keeping
their employees’
best interests in
mind (Clark &
Estes, 2008).
Cultural
Setting
Influence 1:
Staff members
are
overwhelmed
and exhausted
with the 24/7
pace of
logistics freight
brokering.
Y Y Clark and Estes
(2008) note that
when workers are
stressed, their
capacity of thinking
about more than
three new items at
once significantly
decreases. High
stress positions can
also lead to
increased employee
turnover, disrupting
operations, routines,
organizational
learning, and
morale (Hausknecht
& Holwerda, 2013).
Clearly communicate the
organization’s vision, goals,
and measures of progress
(Clark & Estes, 2008) to
keep employees focused on
alignment and
achievement. Reexamine
the organizational structure
to determine if workloads
could be shifted and/or
whether the company should
hire additional employees.

Monitor levels of employee
engagement as noted below.
Cultural
Setting
Influence
2: Turnover
has been high
and staff
members find it
difficult to
envision long-
term career
paths within
the company.
Y Y Turnover affects
organizational
culture and
subculture which, in
turn, can influence a
company’s
successes and even
its failures (Carrillo
& Gromb, 1999;
Cordes, Richerson,
& Schwesinger,
2010). Research
indicates that small
companies with low
employee voluntary
turnover have
higher levels of
Regularly monitor
employees’ levels of
engagement through
anonymous surveys or a
third-party application.
Consider offering rewards,
recognition, and perks based
on employee responses.

Develop an organizational
culture profile by
interviewing three to four
employees who were hired
within the last six months
and then compare answers to
identify areas of similarities
and/or concern (Clark &
EFFECTS OF CULTURE ON TURNOVER 89

participative
decision-making,
open
communication, and
employee
development
(Wagar & Rondeau,
2006).
Estes, 2008). The profile
will help align the
predominant culture with the
organization’s policies,
procedures, and goals.

Procedures and policies. Procedures advise and guide employees on how to complete
specific tasks, whereas processes guide teams or individuals in combining procedures to create a
functioning unit (Clark & Estes, 2008). They further noted that organizational work processes
compatible with workplace culture help create a stable, yet flexible environment; however, when
processes do not align with an organization’s goals, failure is likely. Furthermore, when policies
do not support processes, chaos and inefficiency can ensue. Perhaps causing the most impact,
policies that do not integrate with an organization’s cultural setting can hinder not only employee
performance, but also the achievement of the overall goals (Rueda, 2011). Millennial workers
want to know that their work matters and do not want to be tasked with meaningless duties that
do not align with a company’s goals (Kilber, Barclay, & Ohmer, 2014), so clear communication
is imperative.
To improve performance, Customer Freight’s executive leadership team should identify
and remove any barriers to creating, implementing, and enforcing processes (Clark & Estes,
2008). When creating processes and procedures, employee feedback needs to be solicited and
considered to garner buy-in and to ensure that there is not a conflict between the organization’s
cultures and its goals (Clark & Estes, 2008). Employees should not be held to challenging
company standards if they are not given the necessary resources to do their jobs, or when a
policy is not supported by effective work processes and procedures (Clark & Estes,
EFFECTS OF CULTURE ON TURNOVER 90

2008). Customer Freight’s organizational goal is to implement an innovative culture plan with
the purposes of increasing employee engagement and success, and decreasing regrettable
employee turnover, but it cannot achieve this if its culture and work processes are not balanced
with the needs of its staff (Clark & Estes, 2008). By clearly communicating its vision, goals, and
ways to measure progress, CF’s executive leadership team can better align its structure and
processes.
Cultural models. Dynamic traits shaped by influences such as behaviors and artifacts,
cultural models are often invisible within an organization (Gallimore & Goldenberg, 2001). At
the structural level, cultural models shape the practices, reward structures, and policies (Rueda,
2011).
The perception that there is a culture of distrust at Customer Freight between staff
members and executive leadership team was not validated. Although teams that display efficacy
in self-conflict resolution and management are more likely to work productively than those
experiencing doubt (Alper, Tjosvold, & Law, 2000), multiple change initiatives have left CF
employees with an unclear vision of the organization’s goals. To prevent future feelings of
mistrust, the executive leadership team should focus on employees’ concerns to determine if they
are rooted in structural, procedural, cultural, or organizational influences before determining the
best course of action (Clark & Estes, 2008). By developing fundamental trust through open and
honest communication, CF leaders will further build a reputation and culture of keeping their
employees’ best interests in mind (Clark & Estes, 2008).
Additionally, the executive leadership team should reexamine the organizational structure
to determine if workloads could be shifted and whether the company should hire additional
employees. Formal job descriptions for each position need to be created and reviewed by staff,
EFFECTS OF CULTURE ON TURNOVER 91

and regular employee assessments or evaluations must be scheduled for the executive leadership
team to more clearly communicate goals and expectations (Kotter, 2007). By understanding
baseline performance expectations, career-enhancing opportunities within the company, and the
freedom to develop their short- and long-term goals, employees, particularly millennials, will
have ownership over their success within the company, and the executive leadership team will
create a better sense of commitment and self-confidence amongst its staff (Clark & Estes, 2008;
Smith & Nichols, 2015).
Cultural settings. Organizations consist of various cultural settings or social contexts,
and it is important for leaders to understand the specific work settings in which cultural settings
and behaviors are shaped (Rueda, 2011). Well-managed culture aids in developing a strong
sense of team throughout a company, serving as an organizational glue and helping to bring
people come together with common purpose and value (Flamholtz & Randle, 2011). Culture can
also influence the success of employees, and have a direct impact on a company’s financial
performance (Flamholtz & Randle, 2011).
Clark and Estes (2008) found that when workers are stressed, their capacity of thinking
about more than three new items at once significantly decreases. High stress positions can also
lead to increased employee turnover, disrupting operations, routines, organizational learning, and
morale (Hausknecht & Holwerda, 2013). At Customer Freight, operations staff members are
overwhelmed and exhausted with the 24/7 pace of logistics freight brokering. According to
Robertson and Cooper (2011), challenge pressures such as workload, tight deadlines, and goals
that are considered worthwhile, are positively because they provide opportunities for individuals
to grow and achieve (Robertson & Cooper, 2011). Hindrance pressures, on the other hand, are
more likely to not only damage an individual’s performance, but will also deplete their personal
EFFECTS OF CULTURE ON TURNOVER 92

well-being supply (Robertson & Cooper, 2011). These pressures, such as poor work
relationships, job insecurity, unclear goals, and unrealistic deadlines, create barriers to
achievement, growth, and accomplishment in the workplace (Robertson & Cooper, 2011), and
can also lead to high turnover rates amongst millennials (Nolan, 2015).
Although the high level of collegiality and trust experienced at Customer Freight
provides a valuable source of social interaction, and positively helps the operations staff
members cope with the demands of the job and the industry (Robertson & Cooper, 2011), the
executive leadership team must be sure to examine and monitor demands on employees, how
much control one has over his or her job, the support they receive, whether individuals
understand their roles within the organization, and how change is communicated and
managed. As Robertson and Cooper (2011) noted, if these key areas of work design are not
properly managed, employees are more likely to experience poor health and well-being while
experiencing lower productivity. Negative feelings in these areas are highly correlated with
employee turnover (Robertson & Cooper, 2011). The context-specific recommendation includes
regular touch-points with the operations staff to better align the office culture with CF’s policies,
procedures, and goals (Clark & Estes, 2008). Candid and clear two-way communication builds
trust, further enhancing employee commitment (Clark & Estes, 2008). CF’s executive leadership
team can gather feedback through traditional methods such as meetings and anonymous surveys,
or by deploying third-party applications such as TinyPulse, an employee engagement and culture
tool that gathers actionable data through once-a-week surveys and employee portals. Utilizing
technology with millennial staff members can provide quick feedback, praise, and guidance,
elements of a workplace most important to that generation of workers (Thompson & Gregory,
2012).
EFFECTS OF CULTURE ON TURNOVER 93

Another influencing factor affecting the culture at Customer Freight is employee
turnover. Turnover affects organizational culture and subculture which, in turn, can influence a
company’s successes and even its failures (Carrillo & Gromb, 1999; Cordes et al.,
2010). Research indicates that small companies with low employee voluntary turnover have
higher levels of participative decision-making, open communication, and employee development
(Wagar & Rondeau, 2006). In organizations with poor quality exchanges between supervisors
and employees, there is a strong correlation between supervisory leadership styles, perceived
stress, burnout, strain, and high turnover (Robertson & Cooper, 2011). With Customer Freight’s
turnover rate at 60%, staff members find it difficult to envision long-term career paths within the
company.
To address this immediate concern, Customer Freight’s executive leadership team needs
to develop an organizational culture profile (Clark & Estes, 2008). By interviewing three to four
new employees and comparing their answers to identify areas of similarities and/or concern, a
culture profile will help align the predominant culture with the organization’s policies,
procedures, and goals (Clark & Estes, 2008). There is a sense of urgency to address this issue, as
the research demonstrates that the primary reason Customer Freight’s employees stay at CF is
because they like the people they work with. However, if the organization continues to be a
revolving door for talent without substantial company growth, it risks losing everything. As
Kotter (2007) noted, beginning a transformation program requires aggressive, cross-
organizational cooperation, and if employees are not motivated to help the organization shift, the
effort will fail.

EFFECTS OF CULTURE ON TURNOVER 94

Integrated Implementation and Evaluation Plan
Implementation and Evaluation Framework
Effective training is a subjective term. Many trainers believe they are charged solely
with developing programs that will later be evaluated by questions related to how participants
enjoyed the program, if the training environment was pleasant, and whether participants felt they
were able to take away key information (Kirkpatrick & Kirkpatrick, 2016). Training programs
need to be properly evaluated for alignment to organizational goals to improve future
programming, to maximize the transfer of learning for participants, and to demonstrate the value
of training (Kirkpatrick & Kirkpatrick, 2016).
Furthermore, it is imperative that both learning and implementation are evaluated because
organizations must understand if a training program has been successful and whether there are
any barriers to change (Kirkpatrick & Kirkpatrick, 2016); barriers can be removed along the way
as to not impede the change process. The New World Kirkpatrick Model (2016), consisting of
four levels (Reaction, Learning, Behavior, and Results) was utilized to design an integrated
implementation and evaluation plan for this study (see Figure 4). Although traditional training
programs tend to overemphasize the importance of Levels 1 and 2, the Model suggests that the
planning of training programs should begin with the most important component, Level 4:
Results, followed by Level 3: Behavior, Level 2: Learning, and finally, Level 1: Reaction
(Kirkpatrick & Kirkpatrick, 2016). The Model connects training to performance by ensuring
plans provide compelling evidence that the recommended training will deliver measurable results
for the organization, and by keeping the focus on the outcomes that will be accomplished
through improved trainee performance (Kirkpatrick & Kirkpatrick, 2016).
EFFECTS OF CULTURE ON TURNOVER 95

Figure 4. The New World Kirkpatrick Model (Kirkpatrick & Kirkpatrick, 2016).
Organizational Purpose, Need, and Expectations
Customer Freight’s mission is to empower its expertly-trained employees to provide top
customer service 24 hours a day, seven days a week. With an average annual turnover rate of
60%, the company has set the goal of implementing an innovative culture plan with the purposes
of increasing employee engagement and success, and decreasing regrettable employee turnover
by December 2018.
Although a complete analysis would involve all stakeholders, the stakeholder group of
focus for this study was Customer Freight’s executive leadership team, consisting of two males,
ages 27 and 38. However, in order to create a culture of full employee engagement and job
satisfaction while reducing operations staff turnover, data collection and analysis centered on
CF’s six, millennial male operations staff members, ranging in age from 25 to 29. Customer
Freight’s owners state that the operations team is the core of the organization and without them,
EFFECTS OF CULTURE ON TURNOVER 96

there would be no business to run. This makes it imperative, and perhaps urgent, for CF’s
executive leadership team to understand what attracts these specific employees to work for a
start-up in a high-stress, high-turnover industry, and particularly, what motivates them to
stay. Customer Freight’s stakeholder goal is for the executive leadership team to conduct and
complete a needs analysis of the operations staff, followed by the development of formal
onboarding, training, and evaluation programs to address those needs by December 2017. Also
by this date, the executive leadership team will replace 100% of informal documentation with
formal plans. To realize this goal, the executive leadership team must understand the operations
staff members’ knowledge, motivation, and organizational needs that align with the
organization’s mission and performance goals.
Achievement of the organizational and stakeholder goals, can and should occur
simultaneously, particularly in a start-up environment where disciplined and cohesive teams can
shift quickly if necessary (Ries, 2011). The desired outcome of the stakeholder recommendation
is that the executive leadership team, with input from the operations staff, will implement an
innovative culture plan with the purposes of increasing employee engagement and success, and
decreasing regrettable employee turnover by December 2018. By working side-by-side,
employees are likely to feel that they are valued team members, increasing their self-efficacy,
motivation, and commitment, while the executive leadership team will gain beneficial and cost-
efficient insight into the prevailing organizational culture.
Level 4: Results and Leading Indicators
Table 8 outlines the proposed Level 4: Results and Leading Indicators in the form of
metrics and methods for Customer Freight’s external and internal outcomes. If the internal
outcomes are achieved as a result of the training and employee engagement activities provided
EFFECTS OF CULTURE ON TURNOVER 97

by Customer Freight’s executive leadership team, staff members’ and overall organizational
performance, or external outcomes, should also be realized.
Table 8
Outcomes, Metrics, and Methods for External and Internal Outcomes

Outcome Metric(s) Method(s)
External Outcomes
A 20% increase of new
customers by May 2018.
Percentage increase in number of
new customers.
Compare number of
customers in May 2018 to
May 2017, as well as the
number of new customers in
May 2018 as compared to
May 2017.
Unsolicited customer
referrals increase 5% by
May 2018.
Percentage increase in customer
referrals.
Number of customer
referrals in May 2018
compared to May 2017.
Internal Outcomes
Regrettable employee
turnover decreases 25% by
May 2018.
Percentage decrease in regrettable
employee turnover.
Number of employees
whose departure had a
negative effect on the
company in May 2018
compared to May 2017.
Employee referrals for CF
positions increase 25% by
May 2018.
Percentage increase in employee
referrals.
Number of referrals from
current employees for CF
positions in May 2018
compared to May 2017.
Employee satisfaction
scores increase 25%.
Percentage increase in employee
satisfaction scores.
Employee satisfaction
survey scores in May 2018
compared to November
2017.
By December 2017, each
operations staff member
will be booking five to
eight truckloads per day
with a 99% incident-free
rate.
Number of overall truckloads
booked by operations staff in
December 2017; average number
of truckloads booked by each
operations staff member each day;
average incident-free rates.
Compare figures from June
2017 to December 2017.
EFFECTS OF CULTURE ON TURNOVER 98

Level 3: Behavior
Critical behaviors. The few, specific actions that will have significant impact on results
if performed correctly, critical behaviors are also referred to as the most important indicators
(Kirkpatrick & Kirkpatrick, 2016). The stakeholder group of focus for data collection and
analysis was comprised of Customer Freight’s six millennial operations staff members. The first
critical behavior for this study is that operations staff members must report challenges they are
facing with current customers and barriers they need to overcome with potential customers to the
operations supervisor daily. The second critical behavior is that each operations staff member
must track the number of loads he or she books in one week, the number of loads per customer,
and the number and cost of service failures. Operations account managers have the additional
responsibility for submitting a daily profit-and-loss statement to the chief operations officer. The
third critical behavior is that the employees are encouraged to enhance current skills and learn
new ones. The final critical behavior is that each staff member must choose one month to lead a
15- to 20-minute training session on mission critical processes, procedures, or skills, sharing
their knowledge with colleagues. The specific metrics, methods, and timing for each of these
outcome behaviors appear in Table 9.
Table 9
Critical Behaviors, Metrics, Methods, and Timing for Evaluation

Critical Behavior Metric(s) Method(s)
Timing
Operations staff members must
report challenges they are facing
with current customers and
barriers they need to overcome
with potential customers to the
operations supervisor on a daily
basis.
Operations staff
members’ list of
challenges for the
day with current
customers.

Operations staff
members’ list of
Conduct 10-minute
operations meetings to
touch base on potential
issues for the day.
Daily

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barriers to
reaching potential
customers.
Operations staff members must
track the number of loads he or
she books in one week, the
number of loads per customer,
and the number and cost of
service failures. Operations
account managers are
responsible for submitting a
daily profit-and-loss statement to
the chief operating officer.
Number of loads
booked in one
week.

Number of loads
per customer.

The total number
of service failures.

Lost revenue due
to service failures.

Daily profit-and-
loss statement.
Conduct 45-minute
operations staff meetings in
which each person will
report out on the number of
loads they booked that
week, the diversity of
clients for the week, and
any service failures.
Weekly
Operations staff members are
encouraged to enhance current
skills and learn new ones.
Number of lunch-
and-learn
attendees.

Attendees report
out at the monthly
staff meeting on
what they learned
and how they are
applying it.
Conduct lunch-and-learns
paid for by Customer
Freight focusing on topics
of interest such as customer
service, sales, and
management training,
and/or an overview of
industry trends and
competitor news.
Monthly
Each staff member must choose
one month to run a 15- to 20-
minute training session on
mission critical processes,
procedures, or skills, sharing
their knowledge with other
employees.
Frequency of staff
members
volunteering to run
training session
(management
potential).

Thoroughness of the
training session and
evaluation plan to
ensure knowledge
transfer.

Follow-up
assessment of
In advance of the
structured monthly
meeting, one team member
self-selects himself or
herself to conduct a
training session in an area
critically-important to the
organization and in an area
he or she feels CF can
improve. The staff
member works with a
member of the executive
leadership team to ensure
alignment with
organizational goals.
Monthly
EFFECTS OF CULTURE ON TURNOVER 100

employees’
knowledge transfer
(timing dependent
upon topic).

Required drivers. Required drivers include processes and systems that not only
reinforce and reward performance, but also monitor and encourage the performance of critical
behaviors (Kirkpatrick & Kirkpatrick, 2016). Customer Freight operations staff members
require the support of their operations supervisor, executive leadership team, and the
organization to reinforce what they learn in the training to achieve personal and organizational
goals. Rewards should be established for achievement of performance goals to enhance the
organizational support of new reviewers. Table 10 details the recommended drivers necessary to
support critical behaviors of operations staff members.
Table 10
Required Drivers to Support Critical Behaviors

Method(s) Timing
Critical
Behaviors
Supported
Reinforcing

Executive leadership solicits employees’ suggestions
for training (both lunch-and-learns and employee-led).
Monthly 1, 3, 4
Job aids describing standard operations processes such
as bidding on, booking, and tracking a shipment.
Ongoing 1, 2
One-on-one meetings with an executive leadership
team member to discuss performance and career
goals.
Quarterly 4
One-on-one meetings with the operations supervisor
to establish personal and team goals (new employees).
Weekly for the first
three months;
monthly thereafter
1, 2, 3
EFFECTS OF CULTURE ON TURNOVER 101

One-on-one meetings with the operations supervisor
to discuss performance, challenges, and alignment
with goals (current employees).
Monthly 1, 2, 3
Encouraging

Operations team members meet to share their
challenges and successes, openly sharing advice and
assistance, as well as to provide a sounding board for
one another.
Monthly 1, 3, 4
Feedback and coaching from executive leadership
team.
Ongoing 2, 3, 4
Rewarding

Operations teams with the highest number of loads
booked plus (+) revenue earned minus (-) service
failures receive one day off.
Semi-annually 2
Incentives for bringing in new customers who stay for
six months or longer.
Semi-annually 1
Monitoring

Create system for easier tracking of loads, revenues,
and service failures.
Ongoing 2

Organizational support. In order to reach the organizational goals, Customer Freight’s
executive leadership team must support the operations staff members’ critical behaviors through
clear and consistent two-way communication, coaching, and necessary organizational resources
such as load tracking and booking software.
Level 2: Learning
Learning goals. On-the-job training provides staff members to share in the
responsibility for stellar organizational performance and a learning-based culture (Kirkpatrick &
Kirkpatrick, 2016). Following completion of the recommended solutions, most notably the
monthly lunch-and-learns and peer-to-peer trainings, the operations staff members will:
EFFECTS OF CULTURE ON TURNOVER 102

1. Believe they are capable of not only succeeding in their jobs, but that they can also serve
as leaders, trainers, and role models for other employees. (SE)
2. Understand both individual and organizational success is contingent on the efforts they
put forth as employees, members of each team, and the overall company team. (EV)
3. Be confident that the executive leadership team has a thorough understanding of what
motivates employees to persist in a high-stress, fast-paced environment. (EV)
4. Have undergone baseline assessments, helping Customer Freight’s executive leadership
team understand their foundational knowledge and skill levels; they will then be trained
appropriately. (D)
5. Understand their own motives, successes, and failures to help CF realize its growth
goals. (M)
6. Comprehend the company’s standard operations processes such as bidding on, booking,
and tracking a shipment, and why processes must be followed. (P)
7. Have a thorough understanding of the importance of and how to reflect upon and
articulate their challenges and successes, as well as their future goals. (M)
Program. The learning goals listed in the previous section will be achieved with a
monthly training program consisting of lunch-and-learns sponsored by Customer Freight and
peer-to-peer training sessions. The learners, CF operations staff members, will study a broad
range of topics pertaining to the success of start-ups, personal efficacy, personal growth,
visioning, and standard operating practices. Additional programs will consist of training in
professional knowledge and skills areas such as sales, customer service, company software,
general logistics industry news and research, leadership, and management. The program will be
blended, consisting of 10 face-to-face training sessions and/or lunch-and-learns, and 10, two
EFFECTS OF CULTURE ON TURNOVER 103

minute online-accessible videos. The total time for completion is 620 minutes (10 hours and 20
minutes).
The asynchronous videos will review standard operating procedures such as booking and
tracking trucks. A one-page printed job aid will also be accessible via the company’s
intranet. The procedures demonstrated in the videos and on the job aid will align to lessen
confusion when methods are applied. Following the videos, the learners will be provided the
opportunity to practice using the job aid and will receive feedback from their peer trainer. This
method will also be used to demonstrate key components of all positions within the company to
aid staff members in envisioning potential career paths at Customer Freight. Post-video, learners
will add notes to their personal growth plans, which will later be discussed with the chief
operating officer. During the synchronous, in-person sessions, the focus will be on peer-training
in which staff members will be empowered to select the topic and develop the training with the
assistance of the chief operating officer. Additionally, Customer Freight’s executive leadership
team will sponsor monthly lunch-and-learns for training in areas such as customer service and
sales techniques. Post-sessions transfer-of-knowledge assessment will take place as noted in
Table 11.
Components of learning. It is imperative that learning is evaluated because if it is not
effective, it wastes the organization’s resources. To close the gap between learning and
behavior, learners must feel confident, committed, and valued (Kirkpatrick & Kirkpatrick,
2016). To demonstrate effective transfer of knowledge, learning must be evaluated for
declarative knowledge where skills are held in one’s long-term memory while being observed
consciously in working memory (Clark & Estes, 2008). Learners must also recognize how the
training will add value to their jobs, and potentially, future careers (Kirkpatrick & Kirkpatrick,
EFFECTS OF CULTURE ON TURNOVER 104

2016). They must also be confident in their ability to apply what they learned after the training
concludes, and should be committed to using their new skills (Kirkpatrick & Kirkpatrick,
2016). As such, Table 11 lists the evaluation methods and timing for these components of
learning.
Table 11
Components of Learning for the Program.

Method(s) or Activity(ies) Timing
Declarative Knowledge “I know it.”
Knowledge checks using assessments and job
shadowing (new employees).
Daily for the first two weeks, followed by
weekly for the next two months.
Knowledge checks of employees using
assessments and job shadowing after a new
software, program, or process is introduced.
Daily for the first two weeks, followed by
weekly for the next two months.
Procedural Skills “I can do it right now.”
Discussion During the weekly operations staff meetings.
Group activity During the monthly staff meetings.
Simulation: bidding on, booking, and tracking
trucks (new employees).
Daily for the first two weeks, followed by
weekly for the next two months.
Attitude “I believe this is worthwhile.”
Discussions of the value of what employees
are being asked to do on the job.
During the training portion of the monthly
staff meeting. During training of any new
software, program, or process.
Observation of participants’ body language,
attention span, and attitude.
During training and lunch-and-learns.
Retrospective pre- and post-training
assessment.
After training.
EFFECTS OF CULTURE ON TURNOVER 105

Confidence “I think I can do it on the job.”
Discussions centering on questions,
challenges, and concerns.
During training. Follow-up sessions can be
added if needed.
Retrospective pre- and post-training
assessment.
After training.
Commitment “I will do it on the job.”
Create personal action plan. During training.
Develop team milestones. During training.

Level 1: Reaction
Table 12 lists the methods and tools that will determine how Customer Freight’s
operations staff members engage in the training sessions, as well as their feelings of satisfaction
and relevance post-training. To measure engagement during training, each operations staff
member will complete a short reflective writing assignment or reflective video exploring topics
such as their personal and professional goals, their management and leadership styles, and their
vision for succeeding at Customer Freight. In addition, the trainer will conduct several pulse
checks during training to gauge staff members’ engagement, relevance, and satisfaction, as
outlined below. Kirkpatrick and Kirkpatrick (2016) note that pulse checks enable trainers to
identify issues that need to be addressed immediately attention or correction.

EFFECTS OF CULTURE ON TURNOVER 106

Table 12
Components to Measure Reactions to the Program.

Methods or Tools Timing
Engagement
Pulse check During each training.
Reflective writing assignment
During training; assessment with supervisor one week
after training.
Relevance
Pulse check During training.
Open and scaled survey Two weeks post-training.
Customer Satisfaction
Pulse check During training.
Open and scaled survey Immediately following training.

Evaluation Tools
Immediately following the program implementation. Immediately following both the
asynchronous and synchronous trainings, a brief survey with both open and scaled items will be
sent to participants via email (see Appendix A) to assess the learners’ satisfaction with the
content as well as their feelings of material relevance in relation to their jobs and overall
performance and expectations (Level 1). The survey will also assess learners’ levels of
confidence and commitment of applying what they were taught to not only their jobs, but their
futures within the company (Level 2). As Kirkpatrick and Kirkpatrick (2016) note, evaluations
EFFECTS OF CULTURE ON TURNOVER 107

centering on learners shifts the focus from critiquing the trainer to sharing personal experiences
and viewpoints. This approach also enables trainers to evaluate multiple levels at once, and
provides insight into what is expected of the trainees once they return to their jobs (Kirkpatrick
& Kirkpatrick, 2016).
Delayed for a period after the program implementation. One week post-training, the
employees’ reflective writing assessment will be reviewed privately with the chief operations
officer during one-on-one meetings to identify potential areas for growth, future trainings, and
leadership opportunities. Two weeks post-training, a brief survey featuring both open and scaled
items will be sent to participants via email (see Appendix B) to measure participants’ training
satisfaction and feelings of relevance (Level 1); confidence and the value of applying what they
learned in training to their jobs (Level 2); application of the training to their jobs (Level 3); and
the extent to which personal growth plans and team milestones have been developed (Level 4).
One month post-training, during one-on-one meetings with the chief operating officer,
participants’ personal growth plans will be reviewed to determine alignment with team and
organizational goals, as well as to determine future training needs (as either a trainer or trainee).
Data Analysis and Reporting
A dynamic method of presenting data and program progress toward program goals is
through the utilization of a dashboard (Kirkpatrick & Kirkpatrick, 2016). Dashboards are
particularly useful when they are applied during program execution, featuring critical behaviors,
required driver performance, and leading-indicator status (Kirkpatrick & Kirkpatrick, 2016). It
is important for an organization’s leaders to receive a clear and concise graphical overview
recapping the program’s purpose, the problem being addressed, and the methodology used
(Kirkpatrick & Kirkpatrick, 2016). Reports must also include content addressing concerns
EFFECTS OF CULTURE ON TURNOVER 108

surrounding whether the program meet expectations; if not, why not, and if so, why (Kirkpatrick
& Kirkpatrick, 2016).
Due to the fast pace of logistics, Customer Freight’s weekly reports will feature
infographics highlighting its employees’ progress with additional content in bullet-point format
(see Figure 5). Level 4 reports will compare the number of new customers secured from that
week as compared to the previous week; the cumulative number of customers compared to the
benchmarked total from May 2017; the number of unsolicited customer referrals as compared to
the previous week; the number of regrettable employee turnovers; the number of new employees
referred by current employees; and the employee satisfaction scores (as compared to November
2017 scores). Additionally, per current Customer Freight reporting processes, the number of
overall truckloads booked by operations staff, average number of truckloads booked by each
operations staff member each day, and the average incident-free rates will also be tracked and
compared from June 2017 metrics. Similar dashboards will be created for Levels 1, 2, and 3, as
shown in Figure 5.

EFFECTS OF CULTURE ON TURNOVER 109

Figure 5. Sample dashboard reports.
EFFECTS OF CULTURE ON TURNOVER 110

Summary
The Kirkpatrick and Kirkpatrick New World Model (2016), a training evaluation
framework, was applied to this case study to plan, implement, and assess recommendations for
Customer Freight’s optimization of its stakeholder goal, as well as its organizational
goal. Centering on four levels (Results, Behavior, Learning, and Reaction), the actions proposed
in this plan place a strong emphasis on Levels 3 and 4, Behavior and Results, as the training’s
outcomes demonstrate on-the-job adaptation, performance, and success (Kirkpatrick &
Kirkpatrick, 2016). Evaluations conducted during and after trainings enable researchers to
analyze data and adjust components of the learning process along the way (Kirkpatrick &
Kirkpatrick, 2016). A major advantage of integrating the implementation and evaluation stages
is the ability to tweak or shift the training while in process to meet the needs and expectations of
the participants. This tactic also enables a researcher to influence the current training to
maximize programmatic results (Kirkpatrick & Kirkpatrick, 2016). Furthermore, through the
application of Kirkpatrick and Kirkpatrick’s (2016) Success Case Method (SCM) in which
participants’ first-person accounts of their experiences in a training initiative are carefully
analyzed, training is evaluated quickly, concisely, and accurately, culling actionable results and
effective and successful outcomes. The SCM’s data-based business case helps guide
intervention recommendations, influencing performance changes while bringing quantifiable--
and perhaps, cultural--impact to an organization (Kirkpatrick & Kirkpatrick, 2016).
The recommendations put forth in this chapter effectively address Customer Freight’s
knowledge, motivational, and organizational gaps while meeting the needs of its
employees. This plan has an excellent chance of success, in part due to the required drivers
having a strong focus on more structured, yet frequent communication, as well as processes and
EFFECTS OF CULTURE ON TURNOVER 111

systems that reinforce and reward performance. The recommendations, if applied as stated,
monitor and encourage the performance of critical behaviors and will positively affect the
outcomes of both Customer Freight’s millennial operations staff members and the organization.
Finally, it is important to note that training alone does not produce results (Kirkpatrick &
Kirkpatrick, 2016); organizations must commit to supporting their employees as they navigate
the post-training waters. Although business leaders want to see relevant, credible, compelling,
and efficient outcomes (Kirkpatrick & Kirkpatrick, 2016), it is important for them to examine
changed behaviors of training participants because those behaviors are the key to future
organizational success (Kirkpatrick & Kirkpatrick, 2016).
Strengths and Weaknesses of the Approach
The Clark and Estes (2008) gap analysis model provided a strong framework to apply to
this innovation study. By systematically examining how specific knowledge, motivation, and
organizational influences affected the attraction and retention of millennials in a logistics start-
up, the problem of practice was analyzed during a thorough and innovative process, uncovering
gaps not previously assumed, while dispelling others. Additionally, the Kirkpatrick and
Kirkpatrick New World Model (2016) strongly complemented the initial gap analysis by
providing a framework for recommendations to close the knowledge, motivation, and
organizational gaps identified.
The primary weakness was that the two frameworks applied did not allow for an
exhaustive case study in which recommendations on general, foundational, and innovative
business practices could have been made. For example, recommendations could have been made
for formal business, sales, and marketing plans; however, the purpose of this study was to
determine the root causes of the problem of practice and to recommend solutions at all levels.
EFFECTS OF CULTURE ON TURNOVER 112

Limitations
As with many research studies, there were limitations that can be addressed in future
work. Although 100% of the stakeholder group of focus participated in observations and
interviews, the population size only consisted of six people. Moreover, severely limited research
of third-party logistics firms, particularly focusing on the start-up stage and millennials, made it
difficult to compare the findings to industry benchmarks.
Future Research
Tackling the turnover rate at a start-up, third-party logistics firm is a challenge, primarily
because of the nature of the logistics industry. It is recommended that future research be
conducted at both mid-size and large-scale 3PLs, examining how employee engagement and
culture affect turnover rates of operations staff members. Ideally, companies successful at
tackling this industry-wide problem would be studied, and benchmarks developed.
Additionally, although much research exists surrounding the management of millennials
by other generations, there are few studies that explore the dynamic of millennials managing
millennials in both start-up and traditional office environments. As other generations adapt to
millennials in the workplace, how are millennials bringing those generations into their start-ups?
Are they being taught how to manage other generations, or are they creating a segregated
culture?
Conclusions
The purpose of this study was to examine one organization in the context of the greater
problem, the effect of culture on overall performance in the logistics industry. Customer Freight,
a logistics start-up, was selected as the organization to study because of its 60% employee
turnover rate. The company has aggressive growth goals that consist of employing 20-25 full-
EFFECTS OF CULTURE ON TURNOVER 113

time operations staff members by December 2020 who will generate an average of $200,000 in
revenue daily (Customer Freight, 2017). Although the primary stakeholders are Customer
Freight’s two co-owners, for this study, data collection and analysis focused on CF’s six
millennial male operations staff members. With a 0% growth rate in operations staff positions
over the last two years, Customer Freight’s executive leadership team needs to understand how
its current culture, including drivers such as employee engagement and turnover, affects
employee performance and overall organizational growth.
The Clark and Estes (2008) gap analysis model was the guiding framework for this
innovation study. The knowledge, motivation, and organizational influences impacting
Customer Freight’s culture were studied and analyzed through a review of literature, an analysis
of documents, observations, and interviews. The Kirkpatrick and Kirkpatrick (2016)
New World Model was applied to the research findings to develop recommendations for
addressing barriers to Customer Freight achieving both its global and performance goals, and for
the operations staff members to reach their goals.
Customer Freight faces three major challenges in its goal of implementing an innovative
culture plan with the purposes of increasing employee engagement and success, and decreasing
regrettable employee turnover. First, the company is operating in logistics, a turbulent industry
where more than 40% of companies admit to recruiting and retention struggles (Capgemini &
Langley, 2015). Additionally, Customer Freight is a start-up. Gialuisi and Coetzer (2013) found
that conflict caused by the close physical and personal working relationships between owners
and employees in start-ups can create gaps between organizational and individual goals due to
differences in needs, beliefs, perceptions, and personalities are exposed. This type of conflict is
a primary cause of turnover (Gialuisi & Coetzer, 2013). Finally, this study’s stakeholder group
EFFECTS OF CULTURE ON TURNOVER 114

of focus, which sees an average turnover of 60% each year, is comprised of millennials. The
Pew Research Center found that contrary to popular belief, millennials, or those born between
1981 and 1998, job hop four percent less than their Generation X counterparts did, as 63.4% stay
with their companies for 13 months or more (Fry, 2017). However, to attract and retain
millennial employees, companies and managers must understand what motivates and satisfies
this generation (Guha, 2010). Differences among the generations can also lead to high turnover
rates (Smith & Nichols, 2015). Millennials are on track to account for over half of the U.S.
workforce by 2020 (Pew Research Center, 2010), meaning, if organizations are going to succeed,
managers need to adopt their leadership styles to complement this generation’s work styles
(Thompson & Gregory, 2012).
This study uncovered immediate tasks Customer Freight can tackle such as the creation
of a strategic plan with input from employees. By engaging their millennial employees in the
process of developing a start-up’s strategic plan, the executive leadership team will demonstrate
that they trust their employees. Mutual trust is a critical factor in establishing strong
relationships with employees and decreasing turnover (Brower, Schoorman, & Tan, 2000;
Gregory & Levy, 2011). The leadership team must also meet their millennial staff members
where they are via technology. They prefer visual learning methods including video and
multimedia resources (Cekada, 2012), so asynchronous training and gathering feedback online,
as well as applications-based employee engagement feedback channels, will further engage these
employees, appealing to their need for a sense of belonging and involvement (Kilber, Barclay, &
Ohmer, 2014).
With the recommendations outlined in this study, Customer Freight can become an
industry leader in attracting and retaining top talent. Once a stable team is in place, Customer
EFFECTS OF CULTURE ON TURNOVER 115

Freight’s goals and culture will be clearer, signaling employees to align their individual goals
with those of the organization. In turn, the company can focus on its performance goals, and is
more likely to reach, and potentially surpass what was previously thought possible.

EFFECTS OF CULTURE ON TURNOVER 116

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Appendix A

Interview Protocol

Good morning/afternoon! Today, I would like to ask you a few questions regarding your
experience working at Customer Freight. I am seeking your insight about the company’s
onboarding procedures, development of policies and procedures, and the overall company
culture.
The purpose of my study is to understand how Customer Freight can be an organization
that staff members would like to work for in the long-term. It is particularly important for me to
understand your experience being hired on at CF and how you were trained when you first
started; how the company develops policies and procedures; what are the resources you have
been given to do your job; what your ideal resources and training consist of; what the current
culture is like; and how you envision CF creating a dynamic work environment in which you are
motivated to succeed.
I appreciate you volunteering to share your perspectives as part of my study. Just a
reminder: although I will audio record this interview in order to ensure I accurately account for
your responses, only myself, a third-party transcriber, and possibly my faculty advisor at the
University of Southern California will have access to it.
You will be assigned a pseudonym when I include your responses in my final paper so
that your identity will remain confidential. I will also give you an opportunity to review the
transcripts to ensure I have accurately captured your thoughts.
If, at any time, you do not want to answer a question, feel uncomfortable, or would like to
withdraw from the study, please let me know.
Do you have any questions before we get started?
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Appendix B

Customer Freight Interview Questions

Knowledge Influences
1) What types of jobs did you have before you started at Customer Freight?
o What industry or industry did you work in?
2) When you first started at Customer Freight, how were you trained?
o What were you trained in?
3) Please walk me through what your typical day at work involves.
o What is the process of bidding on a truck?
o What is the process of securing a truck?
o What is the process of tracking a truck?
4) What are some of the things the company is doing well?
o What are some of the ways you think Customer Freight can improve its quality of
service?
o How do you communicate your ideas in this company?
o What kinds of opportunities are available for you to share your thoughts on how
the company can improve quality?
o How often are you asked for your ideas about how to improve quality and
customer service?
o Have you seen changes occur as a result of your suggestions?
5) If available, what types of training would you like to see offered to Customer Freight
staff members?
o Ideally, what would you like to be trained in?
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§ How would this training help you?
o What do you think others should be trained in?
§ How would this training help Customer Freight reach its goals?
Motivational Influences
6) What drew you to Customer Freight?
o Do you still feel that way? Why or why not?
7) What do you like about your job?
8) What don't you like about your job?
9) What are the factors that keep you here?
10) How are the things that keep you here the same as your colleagues, if anything?
o How are they different?
11) What do you think others are motivated by within the company?
12) Ideally, what do you need to succeed in your role?
13) What are your individual career goals?
o How long do you see yourself working in your current position?
§ If you have reached that limit and hadn’t changed roles, what would you
do?
o Where do you see yourself in two years? Five years?
14) What would cause you to leave Customer Freight?
Organizational Influences
15) Can you describe what Customer Freight’s goals are? Please explain the goals in your
own words.
16) How would you describe Customer Freight’s office environment?
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17) How well do you feel that you fit in amongst your peers?
18) How do you feel about diversity, equity, and inclusion at Customer Freight?
o Are these initiatives supported and encouraged?
19) If you could change anything within the company, what would it be?
20) Is there anything else you’d like to share about Customer Freight’s norms, training,
rewards and recognition program, or goals?

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Appendix C

Observation Protocol

Length of Activity: 240 minutes
Location: Customer Freight’s Southeast, Michigan office
Date:
Time:
Observer:
Role of Observer:
Descriptive Notes Reflective Notes
Sketch of Operations room

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Appendix D

Informed Consent for Non-Medical Research

INFORMED CONSENT FOR NON-MEDICAL RESEARCH

EXPLORING THE RELATIONSHIP BETWEEN CORPORATE CULTURE AND

ORGANIZATIONAL PERFORMANCE IN SMALL TEAMS

You are invited to participate in a research study conducted by Amanda Holdsworth, M.A. and
Anthony Maddox, Ph.D. at the University of Southern California, because you are an employee
of Customer Freight. Your participation is voluntary. You should read the information below,
and ask questions about anything you do not understand, before deciding whether to participate.
Please take as much time as you need to read the consent form. You may also decide to discuss
participation with your family or friends. If you decide to participate, you will be asked to sign this
form. You will be given a copy of this form.

PURPOSE OF THE STUDY
The purpose of this study is to determine the factors needed for Customer Freight to create a stable
business operation through the implementation of a viable culture plan with the objectives of
increasing employee performance and success, and decreasing employee turnover. The study
seeks to understand how Customer Freight can be an organization that staff members would like
to work for in the long-term, as well as the role knowledge, motivation, and organizational
influences play in corporate culture, performance, and growth.

EFFECTS OF CULTURE ON TURNOVER 136

STUDY PROCEDURES
If you volunteer to participate in this study, you will be asked to be observed during four, four-
hour observation sessions at CF’s operations center. Handwritten notes will be taken during this
process, and you may be asked questions about your day-to-day tasks, but asked in a way as to
not interfere with your work.

You will also be asked to partake in a 20- to 45-minute one-on-one interview which will be
audio-recorded; handwritten notes will also be taken. This interview will take place in CF’s
conference room, and you may still participate if you do not wish to be audio-recorded.

POTENTIAL RISKS AND DISCOMFORTS
There are no anticipated risks.

POTENTIAL BENEFITS TO PARTICIPANTS AND/OR TO SOCIETY
By participating in this study, you have the opportunity to directly influence the vision and future
culture plans of Customer Freight.

POTENTIAL CONFLICTS OF INTEREST OF THE INVESTIGATOR
The investigator has a personal interest in the company for which this study is being conducted,
as the wife of one of the co-owners. The nature of this personal interest and the design of the
study have been approved and allowed by the institutional committees.

EFFECTS OF CULTURE ON TURNOVER 137

CONFIDENTIALITY
We will keep your records for this study confidential as far as permitted by law. However, if we
are required to do so by law, we will disclose confidential information about you. The members
of the research team, the funding agency and the University of Southern California’s Human
Subjects Protection Program (HSPP) may access the data. The HSPP reviews and monitors
research studies to protect the rights and welfare of research subjects.

Each participant can select a pseudonym, or ask the principal investigator to assign one to him or
her in order to protect confidentiality.

The investigator, Amanda Holdsworth, and faculty adviser, Dr. Anthony Maddox, will have access
to the recordings and transcripts. The audio recordings will be immediately uploaded to and
transcribed by a transcription service such as Rev.

The handwritten notes will be stored in a portable file box kept in a locked cabinet in an offsite
office and the audio recordings will be stored on an audio transcription app. You will have the
opportunity to review both the handwritten notes and audio transcripts for accuracy post-
transcription, after which, all transcripts will be destroyed by December 1, 2020.

EFFECTS OF CULTURE ON TURNOVER 138

PARTICIPATION AND WITHDRAWAL
Your participation is voluntary. Your refusal to participate will involve no penalty or loss of
benefits to which you are otherwise entitled. You may withdraw your consent at any time and
discontinue participation without penalty. You are not waiving any legal claims, rights or remedies
because of your participation in this research study.

ALTERNATIVES TO PARTICIPATION
If you do not wish to participate in the one-on-one interviews, you may participate in the
observations.

INVESTIGATOR’S CONTACT INFORMATION
If you have any questions or concerns about the research, please feel free to contact Amanda
Holdsworth via cell phone at 248.410.2148 or chaborek@usc.edu. Questions may also be sent via
mail to Amanda Holdsworth, Oakland Schools, 2111 Pontiac Lake Road, Waterford, MI 48328.

RIGHTS OF RESEARCH PARTICIPANT – IRB CONTACT INFORMATION
If you have questions, concerns, or complaints about your rights as a research participant or the
research in general and are unable to contact the research team, or if you want to talk to someone
independent of the research team, please contact the University Park Institutional Review Board
(UPIRB), 3720 South Flower Street #301, Los Angeles, CA 90089-0702, (213) 821-5272 or
upirb@usc.edu

EFFECTS OF CULTURE ON TURNOVER 139

SIGNATURE OF RESEARCH PARTICIPANT

I have read the information provided above. I have been given a chance to ask questions. My
questions have been answered to my satisfaction, and I agree to participate in this study. I have
been given a copy of this form.

AUDIO/VIDEO/PHOTOGRAPHS

□ I agree to be audio-recorded.

□ I do not want to be audio-recorded.

Name of Participant

Signature of Participant Date

EFFECTS OF CULTURE ON TURNOVER 140

SIGNATURE OF INVESTIGATOR

I have explained the research to the participant and answered all of his/her questions. I believe
that he/she understands the information described in this document and freely consents to
participate.

Name of Person Obtaining Consent

Signature of Person Obtaining Consent Date

EFFECTS OF CULTURE ON TURNOVER 141

Appendix E

Recruitment Letter

March 1, 2017

Name of potential participant
Street Address
City, State, Zip Code

Re: Exploring the Relationship Between Corporate Culture and Organizational Performance in
Small Teams by Amanda Holdsworth

Dear potential participant:

I am writing to let you know about an opportunity to participate in a research study to help
determine the factors needed for Customer Freight to create a stable business operation through
the implementation of a viable culture plan with the objectives of increasing employee
performance and success, and decreasing employee turnover. The study seeks to understand
how Customer Freight can be an organization that staff members would like to work for in the
long-term, as well as the role knowledge, motivation, and organizational influences play in
corporate culture, performance, and growth. This study is being conducted by me, Amanda
Holdsworth, a doctoral student at the University of Southern California.

EFFECTS OF CULTURE ON TURNOVER 142

I am contacting you for this study through a contact list provided by the Customer Freight co-
owners. You may opt out of this study and future contact by calling the contact on this letter.
Please note that agreement to be contacted or a request for more information does not obligate
you to participate in any study.

If you would like additional information about this study, please call me at 248.410.2148.

Thank you for considering this research opportunity.

Warm regards,

Amanda Holdsworth, M.A.

EFFECTS OF CULTURE ON TURNOVER 143

Appendix F

Survey of Participants Immediately Following the Training

1. The course materials were easy to follow. (L1: Engagement)
a. Strongly Disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly Agree

2. The training held my interest. (L2: Attitude)
a. Strongly Disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly Agree

3. I know what a personal growth plan is. (L2: Declarative Knowledge)
a. Strongly Disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly Agree

4. Please describe the process of completing your personal growth plan. (L2: Commitment)

5. I am clear about what is expected of me once I get back to my job. (L1: Relevance)
a. Strongly Disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly Agree

6. What I learned will help me do my job better. (L2: Confident)
a. Strongly Disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly Agree

7. I am clear about where I can access additional help once I get back to my job. (L1:
Relevance)
EFFECTS OF CULTURE ON TURNOVER 144

a. Strongly Disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly Agree

8. What was your biggest takeaway from the training? (L2: Declarative Knowledge)

9. What is the first thing you plan to apply from what you have learned today? (L2:
Declarative Knowledge)

10. What additional support will you need to implement what you learned? (L2: Procedural
Skills)

11. How can the training be improved? (L1: Customer Satisfaction)

EFFECTS OF CULTURE ON TURNOVER 145

Appendix G

Delayed Survey of Participants Following the Training

1. I have had the opportunity to apply what I learned in training to my job. (L2)
a. Yes
b. No
c.
2. I have successfully applied what I learned in training on the job. (L3)
a. Yes
b. No

3. If you selected “No” to either question above, please indicate the reasons (check all that
apply): (L3)
a. I do not have the necessary knowledge and skills.
b. I do not have a clear understanding of what is expected of me.
c. I have other, higher priorities.
d. I do not have the support to apply what I learned.
e. I have not been given the opportunity to apply what I learned.
f. The training didn’t give me the confidence to apply what I learned.
g. I don’t think what I learned during the training will work.
h. I have not been evaluated on applying what I learned in training, so I do not want
to continue trying.
i. Other (please explain):

4. If you selected “Yes” to question 1 and/or 2, how have you used what you learned in the
training on your job? (L3)

5. If you selected “Yes” to question 1 and/or 2, which personal and/or organizational goals
have you been able to achieve? (L4)

6. Looking back, taking the training was a good use of my time. (L1)
a. Strongly Disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly Agree
EFFECTS OF CULTURE ON TURNOVER 146

7. I was able to complete my personal growth plan. (L4)
a. Yes
b. No

8. Was there any information in the training NOT relevant to your job or professional
goals? If so, what? (L1)

9. What information should be added to this training to make it more relevant to your work?
(L1)

10. Looking back on the training, what would you change? (L1)

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Asset Metadata

Creator Holdsworth, Amanda Dawn (author)

Core Title The effects of organizational culture on millennial engagement and turnover in start-ups: an innovation study

School Rossier School of Education

Degree Doctor of Education

Degree Program Organizational Change and Leadership (On Line)

Publication Date 10/23/2017

Defense Date 10/23/2017

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag 3PL,3PLs,corporate culture,culture,education,employee engagement,Knowledge,logistics,millennial,Millennials,Motivation,OAI-PMH Harvest,organization,organizational culture,retention,small companies,small company,start up,startup,start-up,third party logistics,third-party logistics,training,Transportation,turnover

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Maddox, Anthony (committee chair), Sick, Volker (committee member), Yates, Kenneth (committee member)

Creator Email amanda@communicated.ca,chaborek@usc.edu

Permanent Link (DOI) https://doi.org/10.25549/usctheses-c40-445769

Unique identifier UC11264485

Identifier etd-Holdsworth-5851.pdf (filename),usctheses-c40-445769 (legacy record id)

Legacy Identifier etd-Holdsworth-5851.pdf

Dmrecord 445769

Document Type Dissertation

Rights Holdsworth, Amanda Dawn

Type texts

Source University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

Access Conditions The author retains rights to his/her dissertation, thesis or other graduate work according to U.S. copyright law. Electronic access is being provided by the USC Libraries in agreement with the a...

Repository Name University of Southern California Digital Library

Repository Location USC Digital Library, University of Southern California, University Park Campus MC 2810, 3434 South Grand Avenue, 2nd Floor, Los Angeles, California 90089-2810, USA