Final answer:
When a high performing member leaves an organization, it's a reflection of broader issues which can be similar to business exits in a competitive market, as evidenced by the U.S. Small Business Administration's records of firm entries and exits.
Step-by-step explanation:
When a high performing member of an organization quits, it is often reflective of underlying issues within the company's structure or culture. In the world of perfectly competitive firms, this notion of exiting is more systematically analyzed. Companies that don't turn a profit, according to this model, will 'exit' the market, which is a straightforward way of stating a complex and often emotionally painful process, not unlike when a valued employee leaves a company. Failure in business results in job loss for workers, monetary loss for investors, and the potential loss of dreams for owners and managers, which correlates with the consequences of losing high-performing employees. The U.S. Small Business Administration has recorded that in 2011, while 534,907 new firms entered, as many as 575,691 firms failed.
Business failures and high turnover rates may be influenced by factors such as poor management, unproductive workforces, stiff competition, or shifts in market demand and supply. This can result in decreased output prices or increased input costs, making profitability challenging. While such business exits can be tough on the individuals involved, they are sometimes considered a necessary evil to maintain a flexible and customer-oriented economic system. Therefore, a high performing member exit can be symptomatic of these broader economic challenges and act as a catalyst for organizational reflection and change.