IMPACT OF LABOUR TURNOVER ON ORGANIZATIONAL EFFICIENCY (A CASE STUDY OF NIGERIA BREWERY PLC)

ABSTRACT

This research is carried out to investigate labour turnover on organizational efficiency using Nigeria Brewery Plc as a case study. The broad objective of the study is to determine if inadequate compensation leads to labour turnover also to examine if labour turnover affect organizational efficiency. High turnover is caused by unhappiness with the work inadequate compensation unsafe and unhealthy condition unrealistic expectations, inappropriate process and poor candidate screening other causes are lack of career opportunities and challenges, dissatisfaction with the job-scope or conflict with management. The primary source of data collection was used while questionnaires were distributed to respondents to gather relevant information; the chi-square statistical tool was used to test the stated hypotheses. Findings revealed that management utilize turnover to improve the quality of their personnel. The study concluded that in profit-oriented organizations, it is important to detach all sentimental findings in carrying out assigned task as it is an acceptable business ethic. Recommendations reveal among others that labour turnover should be used to regulate the input of labour in the organization.

TABLE OF CONTENTS

Title Page                                                                

Certification                                                            

Dedication                                                              

Acknowledgements                                                 

Abstract                                                                  

Table of Contents                                                    

        Chapter One: Introduction                                   

1.1      Background to the Study                                        

1.2      Statement of the Problem                                       

1.3      Objective of the Study                                             

1.4      Research Question                                                  

1.5      Statement of the Hypotheses                                  

1.6      Scope of the Study                                                  

1.7      Significance of the Study                                        

1.8      Limitations of the Study                                         

1.9      Operational Definition of Terms                                      

Chapter Two: Literature Review                           

2.1   Introduction                                                            

2.2   The Review                                                             

2.2.1 Concept of Labour Turnover                                  

2.2.2        Meaning of Labour Turnover                                   

2.2.3        Types of Labour Turnover                                               

2.2.4        Effects of Labour Turnover                                      

2.2.5        Organizational Efficiency                                        

2.2.6        The Control                                                             

2.2.7        Causes of Staff Turnover

2.2.8 Impact of Staff Turnover on Employee Performance

2.2.9 Factors affecting Reduction of Staff Turnover

2.2.10 Impact of Motivation on Staff Turnover

2.2.11 The Impact of Organizational Size on Staff Turnover

2.3   Summary of the Review                                          

Chapter Three: Research Method                 

3.1   Introduction                                                            

3.2   Research Design                                                     

3.3   Population of the Study                                          

3.4   Sample/Sampling Techniques                                

3.5   Instrumentation                                                      

3.6   Method of Data Collection                                              

3.7   Method of Data Analysis                                         

Chapter Four: Data Presentation, Analysis and Discussion of Findings                                         

4.1   Introduction                                                            

4.2   Data Presentation and Interpretation                      

4.3   Data Analysis and Hypotheses Testing                   

4.4   Discussion of Findings                                           

Chapter Five: Summary, Conclusion and Recommendations and Suggested Areas for Further

Studies                                                                  

5.1   Introduction                                                            

5.2   Summary of Findings                                             

5.3   Conclusion                                                             

5.4   Recommendations                                                  

5.5   Suggested areas for Further Studies                                        References                                                              

Appendices                                                             

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

Labour turnover is the rate at which an employer gain and lose employee. High turnover may be harmful to company productivity, if skilled worker are often leaving and the workers population contains a high percentage of novice workers.

When the workers are satisfied with compensation and salaries payment high turnover will not be involved and there will be increases in productivity.

However, high turnover rate of skilled professional can pose as a risk to the business or organization, due to human capital (such as skill training and knowledge). Notably given the natural specialization of skilled professionals, these employees are likely to be reemployed within the same industry by a competitor (Testa, 2008).

This study carryout the numerous problem associated with labour turnover and its attendant effect on productivity and effectiveness of an organization.

1.2   Statement of the Problem

High turnover is caused by unhappiness with the work inadequate compensation unsafe and unhealthy condition unrealistic expectations; inappropriate process and poor candidate screening other causes are lack of career opportunities and challenges, dissatisfaction with the job-scope or conflict with management (Stear, 2011). When the worker is not happy with the work high turnover will be involved and there will be low productivity and poor candidate.

1.3   Objective to the Study

This shows the general objective of labour turnover and organizational efficiency. The following are the specific objectives of the research work:

•       To examine if labour turnover affect organizational efficiency.

•       To determine if labour turnover boost the morale of employees.

•       To ascertain whether labour turnover is an economic implication on the individual affected.

1.4   Research Questions

1.     Does labour turnover affect organizational efficiency

2.     Does labour turnover boost the morale of the employees in the organization.

3.     Does labour turnover have economic implication on the employees.

1.5   Statement of the Hypothesis (es)

The following Hypothesis will be tested.

Hypothesis One

H_O:   There is no significant relationship between high labour turnover and organizational efficiency

Hypothesis Two

H_O:   There is no significant relationship between labour turnover and the morale of the employees in the organization.

Hypothesis Three

H_O:   There is no significant relationship between labour turnover and economic implication on the employees.

1.6   Scope of the Study

This study is all about labour turnover and organizational efficiency. This research work will be conducted within personnel function, but with a different view to labour turnover in organizations, or a firm. Using Nigeria Brewery Plc, Benin City as a case study.

1.7   Significance of the Study

How the following will benefit from labour turnover and organizational efficiency:

Research: It will serve as a reference tool to students as well as researchers specifically as labour matters have become an academic problem in Nigeria economy.

Organization: It will enable the organization know how to handle issues, policies and programmes of labour in the economy.

General Public: They will find study as a source of information which will be of immense value for their study and research.

Customers: This work will contribute greatly to the body of knowledge in the areas of labour management to customers.

1.8   Limitations of the Study

A lot of problem 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 facts that time for this work is shared between academic work and other activities. The research has to go from staff to staff in the Nigeria brewery plc in search for solution to the problem. As a result of this, the researcher ran this regular visit to different head of department in the company.

1.9   Operational Definition of Terms

In social sciences, there is usually the problem of definition because getting a generally acceptable 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 his organization.

Job satisfaction: Lock (1976) is an appraisal of one’s job. Vroom theory (1964) also state that job satisfaction is an emotional response to do a job satisfaction one gets while working.

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

Dissatisfaction: Bluedon (1978) say it’s the inability of Management to satisfy his employees in certain areas like salaries, working conditions, structure and environment.
Tenure: This is the length of time an employee hold an office.

Organizational Efficiency: It is the extent of which organization objective are achieved with the use of the organizations available resource.

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