EFFECT OF LABOUR TURNOVER ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF NIGERIAN BREWERY PLC)

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ABSTRACT

This research is mainly carried out to investigate Effect of Labour Turnover on Organizational Performance. To effectively carryout this research, the questionnaire method of fact finding were used. It was observed that labour turnover has tremendous effect (positive or Negative) on the performance of an organization. It is in view of this that such recommendations was make by management to embark on motivational packages for their staff; so as to reduce turnover especially among high performance. 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

Title page

Certification --    --      --      --      --      --      --      --      --      i

Dedication --      --      --      --      --      --      --      --      --      ii

Acknowledgement--    --      --      --      --      --      --      --      iii

Table of Contents--     --      --      --      --      --      --      --      iv

Abstract -- --      --      --      --      --      --      --      --      --      vi

CHAPTER ONE: INTRODUCTION

1.1            Background to the Study--      --       --       --       --       --       1

1.2            Statement of the Problem        --       --       --       --       --       --       2

1.3            Research Questions       --       --       --       --       --       --       3

1.4            Objective of the Study-- --       --       --       --       --       --       3

1.5            Statement of Hypotheses --     --       --       --       --       --       4

1.6            Scope of the Study        --       --       --       --       --       --       --       5

1.7            Significance of the Study --     --       --       --       --       --       6

1.8            Limitations of the Study--       --       --       --       --       --       6

1.9               Operational Definition of Terms --   --       --       --       --       7

CHAPTER TWO: LITERATURE REVIEW

2.1    Labour Turnover -      --      --      --      --      --     --      --      9

2.2    Types of Labour Turnover-- --      --      --      --      --      10

2.3    Causes of Labour Turnover --      --      --      --      --      --      16

2.4    Labour Turnover Process--  --      --      --      --      --      20

2.5    It’s Effect on Organization Efficiency/Performance  --      --      22

2.6    Control --   --      --      --      --      --      --      -- --  --      26

CHAPTER THREE: RESEARCH METHOD

3.1    Research Design--      --      --      --      --      --      --      --      30

3.2    Population of the Study--     --      --      --      --      --      --      30

3.3    Sample/Sampling Technique--      --      --      --      --      --      31

3.4    Method of Data Collection -- --      --      --      --      --      31

3.5    Method of Data Analysis     --      --     --      --      --      --      32

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1    Data Presentation --    --      --      --      --      --      --      33

4.2    Test of Hypotheses --  --      --      --      --      --      --      42

4.3    Discussion of Findings --             ---     --      --      --      --      48    

CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATIONS

5.1    Summary --       --      --      --      --      --      --      --      --      49

5.2   Conclusion --      --      --      --      --      --      --      --      49

5.3    Recommendations--    --      --      --      --      --      --      50

        References

        Appendixes

 

 

 

 

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

The of resources or labour turnover is the rate at which the employer recruit and discard employees or that employees tend to stay or the rate of traffic through the revolving door. Turnover  is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover, relative to its competitors, it measn that employees of that company have a shorter average tenure than those of other companies in the same industry.

High turnover may be harmful to a company’s productivity if skilled workers are often leaving and the workers population contains a higih percentage of noise workers. In the united states, the average total non-farm seasonally adjusted normally turnover rate was 31% for the period of December 2000 to November 2008.

                               i.            Death

                             ii.            Termination of appointment

                          iii.            Staff lay off

                          iv.            Resignation

                             v.            Retrenchment

On the other hand the firm or organization based on the following reason when there is dynamic management for effective use of it’s resources. After the allocation of funds for capital goods, labour investment rank second highest. There is no doubt that organizational invest huge amount of money for the procurement, maintenance, training and development of personnel. When organizations fail to curb the glaring problem posed by labour turnover, it leads to a continuous and persistent rise in declining productivity and it prevents the company from achieving its set goals and objectives.

1.2     Statement of the Problem

The effect of labour turnover in organizational  performance can be summed in terms of coat and at times of good will or corporate image. The resultant cost of a high turnover can be observed in the organizational in the following area production, administration, procurement and training cost.

Organizations do not attempt to differentiate between voluntary and involuntary effect on organizational performance. Efforts will be made in identifying the relationship between labour turnover and organizational performance. The types and the resultant tangible and intangible cost, in view of knowing this. Hence,  “the research study examination” labour turnover and it’s effect on organizational performance using the Nigeria Brewery Plc Benin City as a survey.

1.3     Research Questions

1.                How does organization use turnover to increase the quality of the personnel and consequently increase organizational performance?

2.                What work is most important to promoting in avoiding labour turnover?

3.                Does labour turnover boost the morale of the employees in the organization?

4.                Does labour turnover affect organizations performance?

5.                Is labour turnover an indicator of employees dissatisfaction in organizations?

1.4     Objective of the Study

1.                To find out the effect of labour turnover as t affects modern organizational performance

2.                To recommend or suggest a new approach to labour turnover in organization where it will be useful for the management to regulate effective labour.

3.                To enable the organization know the causes of labour so that the government management and other employees representative regulate and create a better incentive to employees remains in the particular organization.

4.                To acquaint the organization with the knowledge that right quality of personnel can only be achieved through a systematic management of labour.

1.5     Statement of Hypotheses

Due to the presents economy difficulties and problems faced by management and workers in organizations, the following hypothesis shall be tested.

1.                High labour turnover does not effect organizational performance \

2.                Management does not utilize labour turnover to improve the quality of their personnel

3.                Labour turnover does not have economy implications on the individual affected.

 

 

1.6     Scope of the Study

This study is concerned about the effect of labour turnover in organization performance, a survey of Nigeria brewery plc Benin City. It intends to define performance and relate the two key terms “labour turnover and organizational performance”. Iti also is concerned with the remote and immediate causes of labour turnover among employees. The study is of two types, and will try to recommend a new approach to labour turnover in organization as it is inheritable and sometimes a deliberate act done by management.

This research study will be conducted within personnel function, but with a different view to labour turnover in organization become it will try to reveal two district categories that discourage. The effect of each category on organizational performance will be highlighted. The topic “labour turnover” s very broad that within the limited duration enough world on this research will not be done, so particular attention will be given to a manufacturing company: Nigeria Brewery Plc, Benin City

 

 

 

1.7     Significance of the Study

This work will contribute greatly to the body of knowledge to the area of labour management in organization. Secondly, it will enable the government know how to handle issues, policies and programmes of labour in the economy.

Significantly, management will find the study reference tool effective for taking decisions. On labour matters. It will also serve as a reference tool to students as well as researchers specifically as labour matters have become an academic problem in Nigeria’s economy. There is no doubt that they will find the study as a source of information which will be of immense value for their study and research.

 1.8    Limitation of the Study

A lot of problems hindered the progress in carrying out a thorough research on this work. They are basically geographical constraints, all time and financial constraints which is greatly due to the fact that time for this work is shared between academic work and other activities.

 

 

 1.9    Operational Definition of Terms

In social science, there is usually the problem of definition, because getting a generally accepted definition is difficult. For the purpose of the research work. Definition will be done in the most suitable operational definition of terms.

Labour: The aggregate of all human, physical and mental efforts used in creation of goods and services.

Turnover:  It is the rate at which employers recruit and discard employers in the organization.

Job satisfaction: Lock (1976) is an appraisal of ones job. Vroom Theory 1964 also states that job satisfaction is an emotional response to do a job or satisfaction one gets wile working.

Moral:  Liker and Willits (1940) defined moral as individuals mental attitude towards all features of his work and towards the people with him or whom he works for.

Dissatisfaction: Bluedon (1978) says it’s is the inability of  management to satisfy his employee in certain areas like salary structure, working conditions and environment.

Tenure:   It is the length of time an employee hold an office.

Organizational Performance:  It is the extent to which the organizational objective are achieved with the use of organizational available resources.

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