ABSTRACT
The study was motivated by the need to investigate the
impact of retention of employee on organisational success in Lagos state
Ministry of education. Forty staff were randomly selected for the study. Data
on the impact of retention of employee on organisational success were collected
from the sampled staff with questionnaire instrument designed to elicit
relevant responses. The analysis of data was based on frequency count with
simple percentages and Chi-square (X2) statistical method.
Descriptive survey design was employed for the study. The findings of the study revealed retention of employee has a great
influence on the organizational success. It was also found that condusive working environment has a strong on the
performance of an organization. Organisations with highly motivated employee,
better human related, moderate hours of work, access to loanable funds, cordial
relationship between the superior officers and subordinates tends to perform
better in productivity than in organizations where these are lacking. On the basis of the findings, it was
recommended that policy
makers provide
a process of encouraging, planning, and investing in employees’ professional
development. Organisational investment in employees was associated with higher
level of employee affective commitment to the organisation. This process will
indicate that management is committed to establishing a long term relationship
with employees. These educational investments could make employees more
committed to their profession and put in their best in achieving organisational
growth and development.
TABLE OF CONTENTS
Title
Page……………………………………………………………………….I
Certification…………………………………………………………………….II
Dedication………………………………………………………………………III
Acknowledgement………………………………………………………………IV-V
Table
of contents………………………………………………………………..VI-VII
Abstract ………………………………………………………………………...VIII
CHAPTER ONE:
INTRODUCTION
Background
to the Study…………………………………………………...1 - 5
Statement
of the Problem…………………….....……………………………..5
Purpose
of the Study…………………………………………….....……………6
Significance
of the Study…………………………………………..………...6
Research
Question………………………………………………………………..7
Research
Hypotheses……………………………………………………………..7
Scope
of the Study……………………………………………………………...7
Limitation
of the Study…………………………………………………....8
Definition of Terms……………………………………………………………….8
Chapter Two
o Human Resource Management.
o Concept of Employee Retention.
o The Importance of Retaining Employees.
o The Three Rs of Employee Retention.
o Kei’s Employee Retention Wheel.
o Ten Ways to Retain Employee.
o Myths about Employee Retention.
o Barrier to Success.
o Factors That Affect Employee Retention.
o Reason for Employee to come to an
Organisation.
o Reasons for Employee to stay with the
Organisation.
o Solution to the Problem.
o Employee Benefits that should be
provided by the Organisation.
CHAPTER ONE
INTRODUCTION
1.1 Background of
the Study
Retaining employees whose knowledge has
high competitive value is becoming a critical and well-recognized challenge
(Taylor, 2004 and Williamson, 2008). Such employees are known as knowledged
workers in that they “have high degrees of expertise, education, or experience,
and the primary purpose of their jobs involves the creation, distribution or
application of knowledge” (Davenport, 2005).
The retention
of employees has been shown to be significant to the development and the
accomplishment of the organization’s goals and objectives. Retention of
employees can be a vital source of competitive advantage for any organization.
Today,
changes in technology, global economics, trade agreements, and the likes are
directly affecting employee/employer relationships. “Until recently, loyalty
was the cornerstone of that relationship. The loss of talented employees may be
very detrimental to the company’s future success. Outstanding employees may
leave an organization because they become dissatisfied, under paid or
unmotivated (Adeniran 2005). While trying to retain employees within the
organization, the organisation may face other challenges such as demand for
higher wages by skilled employees, not complying with organization practices,
and inadequate good interaction with their co-workers.
Besides these
problems, lack of information about the employees’ performance may complicate
an organization’s endeavour to retain productive employees. Without adequate
information an organization may not be able to distinguish productive workers
from non-productive ones. Employees often may take credit for the successes and
deflect failures to other employees. Insufficient information about employees’
performance may result in adverse selection by them (Grossman and Hart 1999).
The better employees may move to other organizations for better opportunities.
The co-workers who cannot improve their positions are more likely to stay. This
is especially possible when due to inadequate information outstanding
performance is not rewarded i.e, lack of motivation for outstanding
performance. Non productive and productive workers end up receiving the same or
nearly the same compensation and package of perks because of management’s in
ability to distinguish talented employees from the rest of the labour force in
the organization.
The problem of attempting to keep
talented members of the work force may be further complicated because of
superiority complex of these talented employees to organisational success
(Simon, 1996). It is another result of asymmetric information where both the
manager does not know the information for which to ask from the employee and
the employee does not know what to provide. Therefore, productive workers
cannot distinguish themselves from non-productive co-workers. Even if an
organization is fortunate enough to retain talented employees, the company may
still have to cope with agency costs resulting from them and their colleagues.
When information about an employee’s activities is difficult to gather, the
employee may be motivated to act in his own interest which may diverge from the
interest of the organization. This divergence of interests results in costs to
the organization in the form of excessive prerequisite consumption, shirking of
job responsibilities and poor investment decision making. (Jensen and Meckling,
1996) explained that it is in an employee’s interest to over consume perks and shirk
job responsibilities of the firm if they are not sole owners of the
organization.
Employees may
also be enticed to make suboptimal investment decisions for the firm. Since
most company employees have their wealth tied up in the organization for which
they work, employees may attempt to make investment decisions which are less
risky than the stock holders of the firm would prefer. This is done to reduce
the risk of failure by the company, which protects the no diversified employee
from loss of wealth. This investment strategy may also reduce the return on
investment that the diversified owners of the firm desire. (Mark, 2000).
The employees or agents of the
organization may also use a short sighted approach in investment selection to
enhance their own career chances (Narayanan 1985). The employee can signal the
labour market his superiority through the selection of a fast starting project,
which may fizzle out later for the firm. This strategy may cause the firm to
miss profitable long-term projects or much needed research and development.
Employees may also attempt to increase the size of the firm through
acquisitions and project selection regardless of the effect on company
profitability in order to increase their own power base within the
organisation.
1.2 Statement of
Problem
Organisations
are confronted with diverse problems which affect the accomplishment of their
goals and objectives. Retention of employee is one of the major problems in
most government investments in recent years. There is the general outcry in
Lagos State that her employees are not properly remunerated and incentives were
not regularly paid. Recently, Lagos state foreign doctors embarked on strike
actions which lead to mass exit of patients from Lagos state hospitals. It is
also observed that most of erudite scholars are now leaving government
educational institutions to private institutions as a result of better offer.
These poses problems for the government to retain its skilled employees so as
achieve its objectives.
It also observed
that majority of individuals leave government investments for private
investment after they have enjoyed government investment on staff investments
such as in-service training leading to failure in the output of government
investments.
It is also discovered
that privatisation of Government investments which leads to mass unemployment
of government staff have also contributed to mass outflow of government
employees to other private sector due to the fear of lack of job security. This
poses the problem of retention of employee as one of the factor hindering the
success of government establishments.
1.3 Purpose of the
Study
The purpose of this study can be
summarised as follows:
1.
Determine the important benefits enjoyed by public sector
workforce in Lagos state ministry of education compare to that of the private
businesses.
2.
Assess the important organizational strategies that
contribute to the retention of the skilled public sector workforce.
3.
Investigate the extent to which organizational culture contribute
to the retention of the public sector workforce.
4.
Determine the extent by which staff turnover will enhance
the achievement of government objectives.
5.
Determine the rate of demand for government employment to
private businesses.
6.
Determine the benefits of retaining skilled employees in
public sector.
1.4 Significance of
the Study
In order to achieve high organisational
success, this study helps organisations to know the extent by which retention
of skilled employee contributes to the actualization of organisational
objectives.
It also enables organisations to
cultivate the habit of retaining skilled employees by setting up criteria for
determining the productive capacity of an employee. This study will also help
government to know the extent by which skilled manpower contributes to economic
growth and development.
Also, it will enable employees with the
opportunity of negotiating for condition of service that will ensure job
security. It will also provide employee with the knowledge of self-evaluation and
upgrading from time to time, through in-service and on-the job training so as
to enhance its productivity level.
It also enlightens the trade unions in
the selection of appropriate strategies for ensuring job security for its
members. It will reveal to what extent employees’ productive capacity has been
improved or the organisational objective has been achieved as a result of
retention of employee.
It will enable the society to know the
extent by which employee retention contribute to organisational success and in
turn contribute to societal growth and development.
1.5 Research
Questions
Answers were provided for the following
research questions in this study.
1.
How is the public sector workforce aware of any retention
efforts in their agency?
2.
What make public sector workforce think about leaving their
work?
3.
How public sector workforce does feels unique about their
agency’s retention situation?
4.
Does public sector organizations discuss with the workforce
specific reasons why they were leaving or not?
5.
Does public sector workforce aware of specific retention
problems in their agency?
6.
What type of work environment or organizational culture e.g.
supervisory style, work itself, is most appealing to workforce?
1.6 Research
Hypotheses
The research hypotheses for this study
consist of the following.
Ho1: There is no significant
relationship between the retention of employee and the organizational success.
Ho2: There is no significant
relationship between the performance of an organisation and its environment.
Ho3: retention of employees has no
significant impact on organisational achievement.
1.7 Scope of the
Study
This study was focused on the impact
the retention of employee on the organizational success in Public Sector with a
particular concentration on Lagos State Ministry of Education.
1.8 Limitation of the
Study
The scope of
the study was limited to Lagos State Ministry of Education. The available
time and resources for study was quite limited.
1.9 Definition of
Terms
Organisational Success: An organisation’s
ability to remain solvent and grow within its market.
Talented employee: This is the employee
that has capacity to contribute to organisational success through his natural
skills.
Privatisation: This is the act of
selling government investments to private individuals or bodies.
Career Planning: An organizational
initiative to help employees assess their skills, defines their career goals,
and creates an action plan for accomplishing those goals. The organization is
also responsible for holding employees accountable to those goals.
Employee Development: A system for
assisting employees to develop within their current jobs or advance to fulfil
their goals for the future.
Employee Retention: A company’s ability
to keep quality employees who are contributing to business success.
Employee Satisfaction: The level to
which employees enjoy their jobs and are willing to put forth effort toward the
success of an organization.
Goal Setting: The process of
establishing one’s plans for future jobs and careers.
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