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THE CAUSES AND EFFECT OF LABOUR TURNOVER IN BUSINESS ORGANISATION (A CASE STUDY OF OKIN BISCUITS NIG. LTD, OFFA, KWARA STATE)

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Employee Turnover Ratio : Reasons Good Employees Quit Their Jobs

 

CHAPTER ONE

INTRODUCTION

  • BACKGROUND OF THE STUDY

There is a vast literature on the causes of voluntary employee turnover dates back to 1950. By developing various factors that combined a number of factors contorting to turn\over. Labour turnover is an outward flow of workers i.e the sailed, unskilled and semi-skilled labour as a result of their own or employer’s decision. This implies that the exist of workers could be voluntary of involuntary. Labour turnover in an organiza\tion becomes problem to the organization, if it does not quicly taken into consideration, this is so especially when an organization does not seek for immediate especially when an organization does not seek for immediate replacement for competent and qualified labour.

Labour turnover could be caused by, many factors, madequate wage levels leading to employees moving to competitors, poor morale and low levels of motivation with the work frocas cercruiting and selectinhjng the wron g employees in the first employment.

High labour turnover without adequate replacement causes performance to fall below expectation. Productivity it self cannot be achieved without efficient labour.

Labour turnover does not just create cost, some level of labour turnover is important to bring new ideas, skills andf enthusiasm to the labour force.

The dissatisfied of workers find it difficult top adjust to rigid requirement which will simply result to labour turnover, absentees, work stoppage such as strike and lockout.

1.1    OBJECTIVE OF THE PROBLEMS

This study will identify various problems that an organization will face with labour turnover and the problems includes the following:

  1. What labour the contribute to labour turnover? Does labour turnover receive enough attention form the organization?
  2. What are the various labour turnover occur in an organization?
  3. Form the aforementioned facts labour turnover need to be addressed by paying attention to workers needs because this will go along way to improve productivity of the workers.

1.2    OBUJECTIVES OF THE STUDY

The objective of the study are to examine the effect of labour turnover in an organization.

  1. To examines the effect of reward system on labour turnover this shows whether motivation or reward have negative or positive impact on the workers.
  2. To examine the effect of supervision on labour turnover, the relationship between the supervisdion and workers, will be used as major tool in determining the effectiveness of the organization.

1.3    SCOPE OF THE STUDY

This study is based on labour which is the most important aspect of every organization without labour effective. In the sense that labour is all human efforts both skilled and unskilled directed towards production. When we are talking about labour, also necessary to know what about likewise it cannot evade the effort. Although, all labours are mobiles, but the ,mobility of the skilled labour is highly noticed in the labour market. This research basically show the problems facing an organization on labour turnover to organizational productivity, improvement in production sections.

1.4    SIGNIFICANCE OF THE STUDY

This study is aimed at focusing on the causes and effect of labour turnover, in business organization. So there are some of the areas of those who benefit from it.

  1. The organization of the research work and other organization.
  2. The Management students.
  3. We researcher aimed other researchers.
  4. It will be great important to production to minimize labour turnover, in the organization resources.
  5. It will also serves as reference to industrial organization wishing to improve the labour productivity of labour will serves as sing of development for the organization.

1.5    LIMITATION OF THE STUDY

  1. The time allocated for writing this project work fell within a semester along with other academic commitment such as lecture assignment, test e.t.c
  2. There is adequate find constitute problem in the area of traveling to get adequate information no area of data collection.
  3. The researcher could not have opportunity to attend any seminar pertaining to this study.

1.6    STATEMENT OF RESEARCH HYPOTHESIS

The two hypothesis to be postulated is for clarify and brevity? Which would be tested in chapter for this project. The hypothesis are tested below in which ho is null hypothesis while it is the alternate hypothesis.

  1. Ho: That labour turnover have causes and effects on business organization.

Hi: That labour turnover, does not have causes and effects on business organization.

  1. Ho: That labour turnover increases organization profitability.

Hi: That labour turnover, does not increases organization profitability.

1.7    DEFINITION OF TERMS AND CONCEPTS

  1. Administrators: Persons who administer: it also a little used for some managerial position such as the administration of bank.
  2. Allocation: A quality of resources allocated for a particular items in speaking about money, a travel allocation would be an amount of money, set aside for travel.
  3. Appraise: To assess the value of a property, a person’s job performance of other items of value.
  4. Bankrupt: A legal or economic term that means insolvency or in ability to pay one’s department.
  5. Effectiveness: The extent to which the designed result is realized frequently compared with efficiency Employee satisfaction: The degree to which employee need are met a relative measure.
  6. Hygeine factor: A construct in Herzbery theory of motivation factor that do not motivate positively but that could demotivate if handled poorly.
  7. Labour: This refers to the human of any kingf, physical or mental directed at the production of goods and service.
  8. Labour turnover: This is the measurement of the number of employee leaving a company.
  9. Management: It is an activity that involve coordination of al the resources of an organization through the process of planning organizing, directing and controlling in order to obtain organization objective effectively efficiently.
  10. Organization: It is a rational coordination of the activities of a number of people for the achievement of some common explicit goal through division of labour function or through hierarchy of authority.

 

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