Effect of Labour Turnover on Organizational Performance

Effect of Labour Turnover on Organizational Performance

Chapter One

Objectives of the Study

Purposively, this project is to educate whoever is concerned about the significance of the study on the following objectives:

To examine the effects of labour turnover on the performance of the Kaduna State Water Board.
To enumerate the problems of labour turnover and how it can be minimized in the Kaduna State Water Board.
To examine the major causes of labour turnover in an organization using Kaduna State Water Board as a case study.

CHAPTER TWO

REVIEW OF RELATED LITERATURE

CONCEPTUAL FRAMEWORK

ORGANIZATIONAL PERFORMANCE

Organizations have an important role in our daily lives; therefore, successful organizations represent a key ingredient for developing nations. Consequently, economists and business managers consider organizations and institutions similar to an engine in determining the economic, social, and political progress (Gavrea et al., 2011). Continuous performance is the focus of any organization because, through performance, organizations are able to grow and progress. Therefore, organizational performance is one of the most important variables in the management research and arguably the most important indicator of organizational growth. Organizational performance is one of the most important concepts in management research. Although the concept of organizational performance is very common in the academic literature, its definition is difficult because of its many meanings (Hameed, 2011). However, Lebans and Euske (2010) provided a set of definitions to illustrate the concept of organizational performance thus:(a) performance is a set of financial and non-financial indicators which offer information on the degree of achievement of objectives and results; (b)performance is dynamic requiring judgment and interpretation;^) performance may be illustrated by using casual model that describes how current actions may affect future results; (d) performance may be understood differently depending on the person involved in the assessing of the organizational performance ;(e) to define the concept of performance is necessary to know its elements characteristic to each area of responsibility ;and (f) to report an organization’s level, it is necessary to be able to quantity the results .Kirby(2011) noted that organizational performance can be considered as an actual outcome of an organization measured against the output targets or goals. Hendry (2012) opined that performance in organizations is a multi-dimensional concept whose complexity makes it difficult to be defined from a single perspective due to the fact that performance is a multi-faceted organizational concept which cannot be measured using a single measurement tool. Upadhaya, Munir and Blunt (2014) noted that organizational performance encompasses three specific areas of firm outcomes: (a) financial performance (return on assets, return on investment); (b) product market performance (sales, market share); and (c) shareholder return (total shareholder return economic value added). Dozier (2016) considered organizational performance as an actual outcome of an organization measured against the outcome targets or goals .With regard to performance measurement in organizations, Muhammad et a/.(2014) indicated that measuring performance in organizations is necessary as it seeks to assess the value that employees bring into the organizations.

CONCEPT OF LABOUR TURNOVER

The concept of employee turnover is one of the most explored concepts in the field of organizational behaviour. The escalation of employee in the rate of employee turnover is a major concern for businesses and is clearly impacting on organizational performance (Gavrea et al., 2011). Labour turnover however refers to how many employees in an organization leave their position in a designated time period usually over the period of a year. Hendry (2012) considers staff turnover as the rate at which workers leave and be replaced by others within an organization. Similarly, CIPD (2014) refers to staff turnover as the proportion of employees who leave organization over a set period (usually 1-year basis), expressed as percentage of the total workforce numbers. Talent Management Alliance (2013) asserted that staff turnover can either be voluntary or involuntary whereby in voluntary employees leave the organization at will while in involuntary, the employer terminates the employment contract of the employee at attaining retirement .In most cases, labour turnover is costly as it reduces the output and disruptive, as it requires that schedules and programmes should be modified (Mabindisa, 2013).

CHAPTER THREE

RESEARCH METHODOLOGY

Introduction

In this chapter, we would describe how the study was carried out.

Research design

Research design specifies the methods and procedures for the collection, measurement and analysis of data relating to a given problem (Emory, 1970). In essence, it provides a procedural framework for the conduct of any given investigation. In other words, research design is the plan for a research project which may vary on the basis of the nature of the problem under investigation. Nwana (1981) perceived design to be a term used to describe a number of decisions which need to be taken regarding the collection of data before ever-the data are collected.

Survey research, under the general umbrella of descriptive method of research, was adopted for this study. One of the reasons behind selecting this method was due to its appropriateness enabling the researcher to find out the conditions or relationships that exist by collecting and analyzing data from only a few people or items considered to be representative of the entire group (Akuezuiolo, 1993).

Sources of Data

The data for this study were generated from two main sources; Primary sources and secondary sources. The primary sources include questionnaire, interviews and observation. The secondary sources include journals, bulletins, textbooks and the internet.

Population of the study

A study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description (Prince Udoyen: 2019). In this study the study population constitute of 1285 obtained from the Nominal rolls of Kaduna water board.

CHAPTER FOUR

PRESENTATION OF DATA AND ANALYSIS

Section A: Analysis of Demographic Factors

This section analyses the demographical details of the respondents using appropriate baseline computations. Please see appendix for all tables.

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

SUMMARY OF FINDINGS

In synopsis, the findings of the study are:

Pay (salary) dissatisfaction has significant relationship with organizational performance.
Employee training and development has significant relationship with organizational Performance.
Employee motivation has significant relationship with organizational performance.
Employee absenteeism has significant relationship with organizational performance.

CONCLUSION

This work examined the relationship between labour turnover and organisational performance in some selected plastic manufacturing companies in Anambra State. Data were sourced from the employees of these plastic manufacturing companies. The data generated were analyzed using simple percentage analysis and chi-square statistical technique. The study revealed that pay (salary) dissatisfaction significantly influences organizational performance. The study also found that employee training and development significantly influences organizational Performance. Finally, the study found that employee motivation significantly affects organizational performance. This finding implies that when employees are motivated through salary and training/development, the rate of their turnover will reduce but when they are not motivated, high rate of labour turnover will be experienced. Therefore, in order to improve organizational performance, employees need to be motivated in order to reduce high rate of employee turnover. The study therefore concludes that there is a significant relationship between labour turnover and organizational performance in the selected plastic manufacturing companies in Anambra State.

RECOMMENDATIONS

Based on the findings, the study recommends that:

Employees’ salary should be increased regularly to reflect current economic realities in order to reduce the incidence of labour turnover in organizations.
Similarly, training and development should be provided to employees in order to encourage them to stay in the organization.
Organizations should look into the factors that contribute to employee absenteeism in order to find out how to effectively reduce it.
Organizations should ensure that employees are effectively motivated in order to reduce the incidence of labour turnover.

REFERENCES

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Benedict, A. C., Josiah, M., Ogungbenle, S.K. & Akpeti, E. (2012). The effect of Labour turnover in Brewery Industries in Nigeria (A case study of Nigerian Breweiy Pic. and Bendel Brewery Ltd. in Benin City). Asian Journal of Business Management, 4(2): 114-123.
Boamah, R. (2014). The effect of motivation on employee’s performance: Empirical evidence from Brong Ahafor Education Directorate. Msc Thesis, Department of Management Science, Kwame Nkrumah University of Science and Technology, Uganda.
CIPD. (2014).Employee turnover and Retention. (Online).http://www.cipd.couk/hrresoures//actshots/employee-tumover-retention.aspx&gt. Retrieved. March 20, 2014.

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