Magic Grafix Case

Magic Grafix is a company with a net worth estimated about $60 million per year. This company specializes in desktop publishing and website development for many U.S, companies throughout the United States. Magic Grafix has been in business for about three years and with well over 100 employees on staff. After another 14 months in business the employee cap went from 140 employees to 220 employees along with a children's software game and also a cell phone program that has showed mush success with PDA (blackberries) and smart phones (HTC-droid based, and iPhone series-apple product) (University of Phoenix, 2011).

Although Magic Grafix has had such major success, there has been a new trend going on within the company. HRM (human resource management) has noticed within the last few months that 30 percent of the employees have just randomly quit. This is extremely alarming because these are new hires that have been with the company less than six months. With this sudden trend of employee turnover rate will start to bring distress to the company as well. There will be a loss in productivity which will cause a loss in profit margin as well. Finally if the word gets out that Magic Grafix has a high turnover rate and cannot keep employees happy, they will be known as one of the worst companies to work for. This will affect consumers and they will buy their computer publishing products from other competitors.

One of the first ideas that Magic Grafix needs to fix is their interviewing technique. When working for a company on this grand scale of the number of employees and company production there needs to be a three step interview process. The first step is an interview is a skills test for the position that an applicant is applying for. If an applicant if applying for advanced robotics and design does not need to be interviewing for a customer service position with a played out script. They most likely will fail and not be offered the job. The skills test needs to match the job description. The second interview should be a personal interview with the HRM staff. This is when the HR representative is able to feel out the potential candidate's strengths and weaknesses. They can gage exactly what these candidates' intentions are and whether they have plans on staying or passing. The last interview process is a panel interview with HRM staff and a few departmental managers. They will be able to see the client's behavior under high stress situations when being asked random questions at a rapid pace. They can see how they will handle situational and behavior issues that may arise on the spot which need immediate action. To solve the attrition problem with the new hires, each departmental manager needs to offer constructive criticism whether it is good or bad to all new employees after 30 days of employment. This can help the managers see how the new employees are doing on the job, how they are understanding the progress of the