Effects of Labour Turnover on Organizational Performance (A Comparative Study of Unilever and PZ Nigeria Plc)
Chapter One
OBJECTIVES OF THE STUDY
The main objective of this study is to examine the effect of’ labour turnover on organizational performance.
Hence in order to achieve the objective stated above, the following specific objectives shall be our guide:
To examine whether labour turnover have effect on organization efficiency.
To examine whether labour turnover have effect on organizational efficiency.
To examine the effect of labour turnover on organization image.
To examine whether labour turnover help to lay off unproductive workers.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
ORGANIZATIONAL PERFORMANCE
Organizations have an important role in our daily lives and 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.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), 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 constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine effects of labour turnover on organizational performance. Unilever And Pz Nigeria Plc form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain effects of labour turnover on organizational performance. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of effects of labour turnover on organizational performance
Summary
This study was on effects of labour turnover on organizational performance. Three objectives were raised which included: To examine whether labour turnover have effect on organization efficiency, to examine whether labour turnover have effect on organizational efficiency, to examine the effect of labour turnover on organization image, to examine whether labour turnover help to lay off unproductive workers and to examine whether better working condition has effect on labour turnover reduction in the manufacturing sector. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Unilever And Pz Nigeria Plc. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
This work examined the relationship between labour turnover and organisational performance in some selected plastic manufacturing companies. 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
Recommendation
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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