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What is the effect of dysfunctional turnover on an organization?

Rationale

The organization loses a desirable, high-performing employee.

Dysfunctional turnover refers to the loss of valuable employees, particularly those who contribute significantly to the organization's success. When high-performing individuals leave, it can negatively impact team dynamics and overall productivity, leading to a decline in organizational performance.

A (The organization must pay a severance to terminated employees.) YOUR ANSWER

Severance payments are typically associated with layoffs or voluntary resignations, but they do not specifically relate to the concept of dysfunctional turnover. While severance may be a financial consideration, it does not capture the essence of losing a high-performing employee and the subsequent impact on the organization.

B (The organization loses a desirable, high-performing employee.) CORRECT

Dysfunctional turnover specifically emphasizes the departure of key talent, which is detrimental to organizational health. Losing a high-performing employee can lead to skill gaps, decreased morale among remaining staff, and potential loss of competitive advantage, making this choice directly relevant to the question.

C (The organization transfers employees from one unit to another.) YOUR ANSWER

Employee transfers may occur for various strategic reasons, but they do not imply turnover. Transfers can even retain talent within the organization, thus not reflecting the adverse effects associated with dysfunctional turnover, which focuses on the exit of valued employees rather than their reassignment.

D (The organization can replace a poorly performing employee.) YOUR ANSWER

Replacing a poorly performing employee may result in a functional turnover, which can be beneficial. However, dysfunctional turnover is characterized by the loss of well-performing staff rather than the replacement of underperformers. This choice does not address the negative implications of losing high-quality talent.

Conclusion

Dysfunctional turnover primarily highlights the adverse consequences of losing high-performing employees within an organization. The departure of these valuable individuals can lead to significant operational challenges, including decreased productivity and potential disruptions in team cohesion. In contrast, the other options either do not directly relate to the concept of turnover or describe scenarios that do not reflect the detrimental effects associated with losing top talent.

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