This research work will be carried out
to know and understand the significant influence (whether positive or
negative) of labour turnover on the employees, employer, employees
productivity and organizational effectiveness. The research work will
also identify the causes of labour turnover; thus indicating employees'
attitudes toward the subject matter and emphasizing the reactions of the
employers within the context of the industry history. Meaningful too,
it is the desire of the research work to proffer solution to the subject
matter, (i.e. labour turnover in organisation).
TABLE OF CONTENTS
Table of contents
Background of the Study
Statement of the Problem
Purpose of Study
Significance of Study
Scope and Limitation of Study
Definition of Terms
Organization of the Study
2.0 Literature Review
2.1 Voluntary Separation
2.2 Avoidable Separation
2.3 Unavoidable Separation
2.4 Current Literature Review
3.0 Structural Composition
3.1 Labour Turnover
3.2 The Pattern of Job Mobility
3.3 Cost of Turnover and the Monopsony Model
3.4 The Causes of Bank Failure in Nigeria
4.0 Research Methodology
4.1 Research Design
4.2 Research Instrument
4.3 Sampling Plan
4.4 Sampling Method
4.5 The Survey Procedure
4.6 Method of Analysis Data
4.7 Presentation and Analysis of Data
4.8 Analysis of Responses
4.9 Analysis of Respondents Bio-Data
4.10 The Rate of Labour Turnover
5.1 Summary of Findings
5.2 Suggestion for Further Studies
1.0 BACKGROUKD TO THE STUDY
The success of any organization depends
to a large extent on effective utilization of human resources. This is
mostly influenced by the organization's objectives coupled with the
skill, satisfaction and enthusiasm of the employees. The organization
must constantly work towards recruiting qualified hands, trail and also
make efforts to retain them, and one good way of maintaining the survival of the organization, -is to see that employees derive satisfaction from the jobs done by them.
One major recurrent problem in
industries nowadays is the increase in "LABOUR TURN-OVER" that is, the
avoidable separation of workers from organization. This is the problem,
which the study tends to examine with the aim of reducing the rate of
"Labour Turnover". Dissatisfaction among workers can manifest that are
itself in the form of serious industrial conflicts that are detrimental
to the achievement of the organizational goal such as absence from work,
low performance and gross indiscipline.
Labour turnover cannot be discussed
fully in isolation without mentioning personnel management, as labour
management is part of personnel functions. The definition of personnel
management by Thomas G. Spates is "a code of the way of organizing and
treating individuals at work so that they will each get the greatest
possible realization of their intrinsic abilities, thus attaining
maximum efficiency for themselves and their group and thereby giving to
the enterprise of which they are a part, its determining competitive
advantage and its optimum results".
The second emphasy is that of a good
personnel administration, which helps individuals to utilize their
capabilities to the full and to attain not only maximum individual
satisfaction as part of the work group. The assumption above is that, if
people are treated both as responsible individuals and co-operative
group members, they will respond by giving their best work to the
organization of which they are on essential part.
The sources of pressure for change are
numerous, but perhaps, the most common is the perception by management
of an opportunity for greater efficiency. Management may wish to take
advantage of developments offering greater manufacturing flexibility, it
may perceive the possibility of increased motivation and productivity,
or again, it may react to growing dissatisfaction on the part of workers
as expressed by a rise in absenteeism and labour turnover. This last
case is an example of pressure for improvements coming indirectly from
the workers themselves, but workers and their trade unions may also take
the initiative by submitting suggestions or making specific demands m
collective bargaining negotiations. Many governments are adopting a more
active approach to the promotion of improvements m work organizations.
Either by funding research, or even by legislation. Work organization
standards and models are important means of promoting work organization
improvement in promoting work organization improvements in centrally
In order to improve the organization at
work, many pitfalls must be avoided if efficiency, effectiveness, and
employees' satisfaction are to be increased. The first basis point is
that even small and seemingly simple organizations have a variety of
"sub-systems" which help to assure their continuing operation. Among
those most relevant to work organization and the improvement of job
content are: -
Task-oriented system: - equipment design and layout, standards work methods;
Human resources system: - personnel selection, training and assignment;
System of formal rules: - contractual obligations; work norms or quotas, work rules and established practices;
Reward and sanctioning systems: -
payment or allocation of privileges by results, career systems based on
performance, rate setting; disciplinary actions; and
Persuasive systems: - leadership, emulation, and promotional activities.
All these sub- systems have critical
impact on workers, that is, change in work organization which conflict
with these subsystems may generate considerable problems. Therefore,
collective agreements are particularly suitable for laying down
requirements with respect to working conditions and environment m a
particular organization. Negotiations between employers and employees
representatives can review and resolve problems which if neglected or
overlooked, may be aggravated by time and lead to conflicts or
management and production problems that are even more difficult to
settle (absenteeism, labour turnover, low product or service quality,
alls in output e.t.c.). As in the collective bargaining.
Convention, 1981, pg. 154).
1.1 STATEMENT THE PROBLEM
The problem of this study is centered on
finding the remote and. immediate causes of labour turnover and its
impact on organization effectiveness.
It is also to be studied in this
research of what effect remuneration has on labour turnover in an
organization. Also, the problem this research will look into is the pay
increase mechanism as a tool to reduce turnover in an organization.
An attempt will be made in this research
work to look into rate of turnover in each range of level of personnel
ranging from rank and file to the executive cadre.
Job satisfaction as a tool to control
labour turnover shall be looked into under this the effect of provision
of necessary working environment for employee by the organization this
shall be examined to see the effect on labour turnover.
Also sectorial labour turn-over will be
enlightened. It will be examined in sectorial level to see the glut or
disparity of movement within banking sector.
1.2 PURPOSE OF THE STUDY
The purpose of this study is to examine the following:
- To identify the causes of labour turn-over and what impact it has on organizational effectiveness.
- To determine the classified area with the highest rate of turn- over.
- To determine the effect of high labour turn-over rate on any organization.
- Making suggestions to the management for proper and effective control of labour turn-over.
For the problem of labour turn-over to
be brought under control, if workers recruited and trained are not
retained, the expenses incurred in. the process will not be justified.
Therefore, policy recommendations should
be made on ways of improving the organizational effectiveness in
industries in order to enhance their contributions towards the growth of
1.3 RESEARCH HYPOTHESIS
The following statements show the variables and areas within which the study is based. They are: -
Ho:- Labour turn-over is not significantly related to organizational effectiveness
H1:- Labour turn-over is significantly related to organization effectiveness -
1.4 SIGNIFICANCE OF THE STUDY
WEMA Bank Plc and its branches in Nigeria will be viewed to identify and determine: -
To which extent workers leave the organization.
To study workers' expectations as regards needs satisfaction and its relationship to job satisfaction.
To provide an insight into the aims,
objectives, roles, modes of operation and opportunities of labour
turnover on organizational effectiveness in Nigeria.
This would serve as a guideline to
further research studies and would bring to light, to the management of
WEMA Bank Plc, the area of checks and corrections.
Hence, it would make a significant contribution to knowledge.
1.5 SCOPE AND LIMITATION OF STUDY
The study provides the descriptive view
on labour turnover and its relationship to the variables highlighted in
the study's hypothesis. The study will cut across mainly, on the banking
industries, where it is believed that issues of labours turnover is
However, a nation-wide survey of the
banking industries would have given a more comprehensive appraisal of
the study, but due to time and money constraints, this could not be
achieved. Therefore, the study will only be limited to WEMA Bank Plc
(which is the case study of the research), and since the industry has a
large number of branches in the country, the researcher will only be
limited to two particular branches to which the respondents will be
interviewed through the use of questionnaires and then will be chosen at
1.6 DEFINITION OF TERMS
For a study of this nature, it is
important to clarify and explain the basic key words used in the study,
so that a better understanding of the topic will be achieved.
They are as follows: -
v LABOUR TURNOVER: - This refers to the
degree of movement, in and out of an organization within a given period
of time (say, a month or year). It could also mean the movement of
people, men or women out of an employment.
v CODE:- A set of techniques or rules and regulation used :in supervising people at work .
v PERSONNEL DEVELOPMENT:- Aids acquired
by individuals to utilize their capacities to the full towards the
attainments of individual satisfaction and co-operate satisfaction .
v WORK FORCE: - The required manpower strength of an organization
v VOLUNTARY SEPARATION: - This refers to
when an individual or employee decides to leave or resign his
employment on his personal reasons.
v AVOIDABLE SEPARATION: - This refers to
an employee leaving his employment on the grounds of or reasons within
the employer competent, issues like severe discipline or bad working
conditions, unnecessary redundancy e.t.c .
v UNAVOIDABLE SEPARATION: This refers to
where the cause of leaving an employment is beyond the control of the
employer or even the employee, e.g. death, illness, marriage or
1.7 ORGANISATION OF THE STUDY
This research shall be divided into five chapters.
Chapter one shall be the introductory
chapter. Here, we shall have Background knowledge of the study to be
followed by Statement of the problem. Purpose of the study to follow the
research Hypothesis. Significant of the study, scope and limitation of
the study shall also follow respectively. This chapter shall be ended by
definitions of terms frequently to be used in this research work.
Chapter two to examine some existing literature on labour turnover in general and in Nigeria Banking sector in particular.
Chapter Three will talk about the
research Methodology. Limitation, data collection, processing and
Analysis procedures. Here, both the primary and secondary sources of
information were made use of.
He fourth Chapter shall consist of the
Interpretations of data, which will be based on the information supplied
in Chapter three of the study. Finally, the last chapter, which is to
end, will state the findings, recommendations, and conclusion, which
will be the summary of the whole chapter.