Question 58

Dysfunctional turnover results in the loss of a desirable, high-performing employee.

Dysfunctional turnover negatively impacts an organization by leading to the departure of valuable employees who contribute significantly to its success. Losing high-performing individuals can disrupt team dynamics and reduce overall productivity.

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

While severance payments may occur in cases of turnover, this option does not specifically address the concept of dysfunctional turnover, which is more about the quality of the employees leaving rather than the financial implications of their departure.

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

This option accurately captures the essence of dysfunctional turnover, which refers to the exit of critical talent that the organization relies on for its success. High-performing employees are often the ones who drive results, and their loss can have detrimental effects on morale and performance.

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

Employee transfers do not constitute turnover; rather, they represent a movement within the organization. This option fails to address the implications of losing key talent, which is central to the concept of dysfunctional turnover.

D) The organization can replace a poorly performing employee.

Replacing a poorly performing employee may be a functional outcome of turnover, but it does not relate to dysfunctional turnover specifically. Dysfunctional turnover focuses on the loss of high-value employees, not the replacement of underperformers.

Conclusion

Dysfunctional turnover is particularly harmful because it leads to the exit of high-performing employees, which can severely affect an organization's effectiveness and competitive edge. In contrast, the other options either misinterpret the nature of turnover or focus on aspects that do not capture the detrimental effects of losing key talent.