Research and Evaluation

            This section collects data from New United Auto Manufacturing (NAM) staff, vendors, and resources and presents relevant analysis based on data collected. The specific research objectives are to determine the trends of employee hiring and termination in the company, and its financial relationships with retailers and suppliers over the last 20 years and draw from these data, explanations as to why the company’s performance has dropped significantly over the last few years.

            Data for on NAM’s human resources are summarized on the charts below. As discussed in Trochim (2006), charts are a useful way of presenting a description of research data. Table 1 presents a time-series of the different elements of human resources at NAM. A time-series chart presents how specific variables change across time. Table 1 presents a time series of NAM’s employee yearly turnover rate, hiring rate, and termination rate over the last 10 years.

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Table 1

            There are several points of analyses that can be made based on this time-series for the three relevant employee statistics. Firstly, it should be observed that the year 2003 is a relevant point of divergence in the series. A point of divergence is a time period where previous trends end and a new trend begins (Corder & Foreman, 2005). Before the year 2003, employment termination/resignation rates have always been below employee hiring rates. This indicates that there were more people who were entering the company than people leaving the company. Such a trend is indicative of a growing company, since it means that the human resources of the company had been growing annually. However starting from year 2003 and onwards, this trend is broken and is followed by a trend where hiring and termination rates are almost equal during each succeeding year. This means that there are more or less the same number of people being hired and being terminated in the company and is indicative that the human resources growth has ceased.

While this discovery does not necessarily have a negative implication, it is indicative of a possible growing degree of dissatisfaction among employees. This possibility is further supported by the increasing employee turnover rate also perceived from 2003 onwards. The average time that employees spend in the company decreased from 3.8 years at the end of 1998 to 1.3 years at the end of 2008. This means that newly hired employees are more and more likely to leave employment after about one year which indicates (Costello, 2006). If such trends are expected to continue, then the work output of NAM’s workforce would most certainly be affected.

            Table 2 below shows the financial input of vendors versus the financial output of suppliers across 10 years.

            Based on the data presented, it can be seen that the financial output of the company to suppliers has been held almost constant for the past 10 years. On the other hand from 2003, a decline in the input from vendors is observed. Despite this trend continuing onwards to 2008, the output to suppliers did not decrease significantly. This means that the company still continued buying suppliers and conducting regular operations despite the prevalence of a shrinking market. This explains quantitatively how the company suffered significant losses by 2008.

            In conclusion, the results show that further analysis be conducted in the company’s employment practices from 2003 onwards to determine whether there were fundamental changes that brought about the increase in employee turnover rates and possible dissatisfaction of the employees. The reasons behind maintaining financial relations with suppliers at the same level despite financial input from vendors was pursued.


Corder, G., Foreman, G. (2005). Nonparametric Statistics for Non-Statisticians: A Step-by-Step Approach. Wiley.

Costello, D. (2006). “Leveraging the Employee Life Cycle.” CRM Magazine, 10(12), 48-48.

Trochim, W. (2006). Research Methods. Knowledge Base.


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