Exploring Factors that Cause Rt Mart's High Rate of Employee Turnover from the Perspective of Organizational Behavior

Abstract

The competition in the retailing industry in China is fierce. Retail players compete for the limited market share based on cheaper but higher quality goods and services. Rt-Mart is a leading retailer in China, with wide distribution networks based on its online and offline networks. Depending on its extensive distribution networks in China, Rt-Mart can achieve an effect of scale in reducing suppliers' bargaining power and cost in inbound and outbound logistics. Just the economy of scale is not enough for Rt-Mart. Rt-Mart also tries to minimize the labor cost, although it has benefited from the pandemic purchase during the COVID-19 in China. The decrease in labor cost meant a low wage and an opportunity of no pay for overtime work or overloads. As a result, a high employee turnover rate is ordinary throughout China's retailing industry. This article then identifies the factors that cause the high employee turnover rate from the organizational behavior perspective. Three factors are founded in this article, namely: the organizational culture, the leadership style, and the motivation at Rt-Mart. Rt-Mart's organizational culture is authoritarian, which is harmful to smooth and open communication between the management and employees. Its leadership style is transactional, which emphasizes results rather than the actual needs of followers. Furthermore, Maslow's Need Hierarchy theory poorly motivates employees in the lower levels. Therefore, to reduce the high employee turnover rate, this article recommends that Rt-Mart consider the following three tips: self-management team, developing transformational leadership, and cultivating an organization that embraces teamwork, respect, fairness, and recognition.