ABSTRACT

This research is mainly carried out to investigate labour turnover and it’s impact on organizational efficiency using Nigeria Brewery plc, Benin City as a survey. The study adopted survey research design in which questionnaire was used in date collection. The population of this study is made up of all employees of Nigeria Brewery plc, Benin City. Simple random sampling was used in sampling the population and the main research instrument was questionnaire. To effectively carryout this research, the questionnaire method of fact findings were used. Four hypotheses were tested using X², it was observed that labour turnover has tremendous effect (positive and negative) on the efficiency of an organization. The study therefore recommended that management should embark on motivational packages for their staff, so as to reduce turnover especially among high performers. 

TABLE OF CONTENT

CHAPTER ONE: INTRODUCTION

1.1       Background of the study 

1.2       Statement of the problem 

1.3       Objectives of the study 

1.4       Research questions 

1.5       Statement of the hypothesis 

1.6       Scope of the study 

1.7       Significant of the study 

1.8       Limitations of the study 

1.9       Operational definition of terms 

CHAPTER TWO: LITERATURE REVIEW

2.1       Introduction 

2.2       Meaning of labour turnover 

2.3       Types of turnover 

2.4       Labour turnover process 

2.5       It’s effect of organizational efficiency 

2.6       The control 

2.7       Summary of review 

CHAPTER THREE: RESEARCH METHOD

3.1       Introduction 

3.2       Research design 

3.3       Population of the study 

3.4       Sample and sampling techniques 

3.5       Instrumentation 

3.6       Method of data collection 

3.7       Method of data analysis 

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1       Introduction 

4.2       Data presentation and interpretation 

4.3       Data analysis and hypothesis testing 

4.4       Discussion of findings 

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Introduction 

5.2       Summary of findings 

5.3       Conclusion 

5.4       Recommendations 

References 

Appendix 

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND TO THE STUDY

In human context of resources turnover or labour is the rate at which an employer recruit and discard employees, i.e how long employees tend to stay or rate of traffic though the revolving door.

Turnover 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 means that employee 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 high percentage of noise workers. In the United States, the average total non-farm seasonally adjusted monthly turnover rate was 31% for the period of December 2000 to November 2008.

The dynamism of the general environment has equally affected labour friend now the employees seems to move from one company to another, in search for better service condition. Some reasons identified for such movement are factors like dissatisfaction, financial stand of the organizations economy and misconduct against staff. Staffs tend to leave a company also for the following reasons:

Ø Death

Ø Termination of appointment

Ø Staff lay off

Ø Resignation

Ø Retirement

On the other hand, staff can come into the firm or organization based on the following reasons 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 organization invest huge amount of money for the procurement, maintenance, training and development of personnel. When organizations fail to curb the glaring problems posed by labour turnover, it leads to a continuous and persistent rise in declining productivity and it prevents the company from achieving it’s set goals and objectives.

1.2       STATEMENT OF THE PROBLEM

The impact of labour turnover in organizational efficiency can be summed in terms of cost and at times of good will-or corporate image. The resultant cost of a high turnover can be observed in the organization in the following areas, production, administration, procurement and training cost.

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

1.3       OBJECTIVES OF THE STUDY

Ø To find out whether labour turnover affects organizational efficiency

Ø To determine if management can uti;lize labour turnover to improve the quality of their personnel.

Ø To examine the extent to which labour turnover have economic impression on the individual affected.

Ø To ascertain whether labour turnover can boost the moral of the employees in the organization.

1.4       RESEARCH QUESTIONS

Ø How does organizations use turnover to increase the quality of the personnel and consequently increase organizational efficiency?

Ø Does management include labour turnover techniques to improve the quality of the product?

Ø Does labour turnover boost the morale of employees in the organization?

Ø Does labour turnover affect organizations efficiency?

Ø Is labour turnover an indicator of employees’ dissatisfaction in organization?

1.5       HYPOTHESIS

The following hypothesis shall be tested.

Hypothesis I

Ho:   High labour turnover does not affect organizational efficiency

Hi:     High labour turnover affect organizational efficiency

Hypothesis II

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

Hi:     Management can utilize labour turnover to improve the quality of their personnel.

Hypothesis III

Ho:   Labour turnover does not have economic implication on the individual affected.

Hi:     Labour turnover have economic implications on the individual affected .

On the individual affected

Ho:    Labour turnover does not boost the morale of the employees in the organization

Hi:     Labour turnover tends to boost the morale of the employees in the organization.

1.6       SCOPE OF THE STUDY

This study is concerned about the impact of labour turnover in organizational efficiency.

It intends to define efficiency and relate the two key terms “labour turnover and organizational efficiency”. It also is concerned with the remote and immediate cause of labour turnover among employees. The study is of two types and will try to recommend a new approach of labour turnover in organization as it is inevitable and sometimes a deliberate act done by management.

This research study will be conducted within personnel function, but wit a different view of labour turnover in organizations because it will try to reveal two district categories that discourages. The effect of each category on organizational efficiency will be highlighted.

The topic “Labour turnover” is very broad that within the limited duration enough work on this research will not be done, so particular attention will be given to a manufacturing company: Nigeria Brewery Plc, Benin City.  This topic covers only “Nigeria Breweries Plc, Benin City” and no preference will be made to similar companies or non-similar companies.

1.7    SIGNIFICANCE OF THE STUDY  

          This work will contribute greatly to the body of knowledge in the area of labour management in organization.

Secondly, it will enable the government know ho to handle issues, policies and programmes of labour in the economy.

Significantly, management will find this study reference tool effective for taking decision 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 Company. There is no doubt that they will find the study as a source of information which will be of immerse value for their study and research.

1.8    LIMITATIONS 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 sciences, there is usually the problem of definition because getting a generally acceptable definition is difficult for the purpose of research work.

Definition will be done in most suitable operational definition of terms:

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

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

3.           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 while working.

4.           Moral: Liker and Willits (9140) defined moral as individuals’ mental attitude towards all features of his work and towards the people with him or whom he work for.

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

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

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