THE IMPACT OF LABOUR TURNOVER ON ORGANIZATION EFFICIENCY (A CASE STUDY OF NIGERIA BOTTLING COMPANY BENIN CITY)

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  • Name: THE IMPACT OF LABOUR TURNOVER ON ORGANIZATION EFFICIENCY (A CASE STUDY OF NIGERIA BOTTLING COMPANY BENIN CITY)
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ABSTRACT

This study examined the effect of labour turnover in an organization efficiency the work was carried out using Nigeria Bottling Company Benin City as a case study. In this project, data were obtained through primary and secondary source, primary data were collected by means of questionnaires and oral interview administered to the staff after. Chi-square was to test the hypothesis and the result revealed that turnover is used by organization to increase the quality of its personnel and consequently increase organization efficiency. This project work recommended among others that management should improve on motivational packages to avoid the turnover of high performance due to the fact that turnover is an indicator of low moral of employee dissatisfaction.

 

 

TABLE OF CONTENTS

Title Page: ……………………………..……………………………………… i

Certification: ……………………….………………………………………… ii

Dedication: …………………………………………………………………….iii

Acknowledgements: ……………………………………………………………iv

Abstract: ……………………………………………………………………….v

Table of contents…………………………………………………………….vi

 

CHAPTER ONE: INTRODUCTION

  • Background of the Study: ………………………………………………1
  • Statement of Problem: ………………………………………………….2
  • Research Questions:……………………………………………………..2
  • Objectives of the Study: ……………………………………………….2-3
  • Statement of Hypothesis (es): …………………………………………..3
  • Siygnificance of the Study: ……………………………………………3-4
  • Scope of the Study: ………………………………………………….4-5
  • Limitation of the Study: ……………………………………………..5-6
  • Definitions of Terms: ……………………………………………….6-7

 

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1     Introduction: ……………………………………………………………..8

2.2     Types of labour turnover ……………………………………………………….8-13

2.3     Causes of labour turnover……………………………………………13-16

2.4     Labour turnover process……………………………………………..16-18

2.5     Consequences ……………………………………………………….18-26

 

CHAPTER THREE: RESEARCH METHOD AND DESIGN

3.1     Introduction: ………………………………………………………….27

3.2     Research Design: ……………………………………………………..27

3.3     Description of Population of the Study: ………………………………27

3.4     Sample Size: ………………………………………………………….27

3.5     Sampling Technique: ……………………………………………..27-28

3.6     Sources of Data Collection: …………………………………………….28

3.7     Method of Data Presentation: …………………………………………..28

3.8     Method of Data Analysis: ………………………………………………29

 

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND HYPOTHESIS TESTING

4.1     Introduction: ………………………………………………………….30

4.2     Presentation of Data: ……………………..………………………30-35

4.3     Data Analysis: …………………………………………………………36

4.4     Hypothesis Testing: …………………………………………………37-38

 

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1     Introduction: ……………………………………………………………39

5.2     Summary of Findings: …………………………………………….39-40

5.3     Conclusion: ………………………………………………………….40-41

5.4     Recommendation: ……………………………………………………41-42

REFERENCES………………………………………………………43-44

APPENDIX……………………………………………………………..45

Appendix A……………………………………………………………46

Appendix B…………………………………………………………….46

Appendix C………………………………………………………….46-47

 

 

 

CHAPTER ONE

INTRODUCTION

  • Background of the Study

Generally, all costs related to the leaving and replacement of employees can be considered to be cost of recruitment and selection. As early as 1960, turnover costs with as advertising, college recruiting, and applicants travel expenses, medical examinations and psychological testing recruitment awards for employees, and hotel entertainment.

 

The costs of these items can be accounted for, and the same roughly holds for the loss of sales because of vacancies and higher average pay due to extra overtime. More difficult to estimate are the extra expenditures for training and learning contextual skills, because these includes also the costs of coaching, supervision and the; loss of quality and product output.

Even more complicated is the accounting for items like the loss of team productivity. The loss of effectiveness of informal communication and co-ordination process and a decreased motivation of those employees who are left behind Mobley (1982). Mitchell and Corbett (1998) estimated the costs of labour turnover to US companies “to be several billion dollars per year” of which 20 percent consists of direct turnover costs and 80 percent of costs than can be associated but are not directly visible.

  • Statement Of The Problem
  1. The effects of labour turnover in an organizational efficiency can be summed up in terms of costs and at times in terms of goods will or corporate image.
  2. The result and cost of high labour turnover to as certain that a consciously considered labour turnover by management are worth its application in an organization in presenting a recommendation, some important questions are to be asked. Of what benefit is reasonable level of turnover of an organization? With a better crop of human resources made available to the organization will it affect labour management.
    • Research Questions
  3. Does labour turnover in an organization affect corporate image?
  4. Does management considered labour turnover in an organization important?
  5. What benefit is reasonable level of turnover to an organization?
  6. If human resources unit is made available to the organization will it affect labour management?
    • Objectives Of The Study

This study hopes to achieves the following objectives

  1. To examine the effect of labour turnover on organizational efficiency.
  2. To find out the effect of labour turnover on organizational efficiency and suggest solution to such problems by way of recommendation.
  3. To find effect of labour turnover on organizational efficiency.

 

  • Statements Of Hypothesis

The following hypothesis shall direct the trust of the study.

Hi: The rates at which employees leave organization do not affect its efficiency.

Hii: Leave of relatively expensive employees.

This applies especially in case a firm uses a compensating system based on seniority or if the premiums for social security are age related. If the rise of labour costs exceed the increase of productivity of an employees, replacement of it later becomes profitable.

 

  • Significance Of The Study

The essence of new concept in the management of labour turnover in an organization is directly related to its lever of efficiency. The accomplishment of set goals differs on the quality of its personnel it becomes important that their right quality of personnel can only be ensure through a systematic management of labour turnover because of low production in personnel who still manage to pass through the recruitment and selection process into organization.

Organization annually invest huge sum of money into the maintenance of personnel. As a result of these it become necessary that the rate of which personnel leave and enter the organization should be managed to ensure that organization efficiency is not inspired.

In every organization setting, the human elements in it have degree of output or performances. The organization should identity these individuals and categories them as either high or low performance to leave.

This research was carried out with the view that organization should desist from absolute ideology that the stability of labour is a measure of success.

It is hope that firms will adopt a dynamic approach towards the management of labour turnover as it has affects on the overall organizational efficiency.

  • Scope Of The Study

The management of the organization we studied was convinced to be on the right – hand – side of the top of the bell. Labour turnover was indeed an issue. In the period 1995 – 1997 it was an average 16 percent and had risen to 18 percent in 1998.

In the later year, a quarter of all offices had turnover percentages of more than 25 percent; some even more than 40 percent.

In its 1999 plan of operation top management complained that “a turnover rate is too high and jeopardizes the quality of services and costs a lot of money”.

It formulated the policy target to decreases turnover with one third in 1999. Ironically, the performance of organization studied is largely dependent on the labour turnover in other forms, as its product is the deployment of temporary workers.

However, similar to other firms the agency feels that it has to gain by a loyal and experienced staff. The later are the subject of our study intermediaries, supervisors, office managers, support staff and the like.

  • Limitation Of The Study

However, one must not fail to indicate the problem encountered by the research, while carrying out the research work.

The problems were basically that the research work. The problems were basically that of geographical constrain, academic pressure, time constraint and financial constraint respectively. There was also the problem of getting the needed materials for a thorough research work. The case study was that of the Nigeria Bottling Company.

The researcher paid several visited on the company and he was directed to go through a series of complex of bureaucratic protocols before being given the needed assistance at the Benin office, the Benin officer was used because that was the only appropriate place to embark on such intensive research work.

On a visit to the company, a senior personnel staff assisted that research which is in distributing the questionnaires round the department and also the supervisor and managers. Another visit was made by me the researcher to the company so as to collect the completed questionnaires and also for the interview which work pressure did not permit the personnel department staff to grant on time.

  • Definition Of Terms

In social science there is usually the problem of definition, because getting a generally accepted definition is difficult for the purposes of this research work. Particular definitions will be deemed to be the suitable definition for this research work.

  • Labour Turnover: This is the movement of employees out of the organization.
  • Organization Efficiency: This is the extent to which the organization objects is achieved with use of organizational resources.
  • Tenure: This is the length of time on employee continuously work in an organization. Breaking, service due to illness in services training etc are exclusive.
  • Dissatisfaction: Dissatisfaction is the liability of management to satisfy the employee. Poor salary structure and poor working condition are inclusive.
  • Vitality: Vitality can only apply to human in relation to their likeness, energy and ideals at work place.
  • Job Satisfaction: This is a technique, which measure the extent of satisfaction employees get while working.
  • Moral: Moral is defined as individual mental attitude towards all features of his work and towards all the people with whom he or she works with, or work for.