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EFFECT OF
LABOUR TURNOVER ON ORGANIZATIONAL PERFORMANCE
CHAPTER ONE
INTRODUCTION
1.1
Background of the Study
In all
economic activities human effort is the key. It is the human knowledge
transferred into activity that give utilizes or value to all commodities. And
that means who cultivates and whether he uses a hoe or tractor. It is the same
who saws, weeds, processes, store and sells. It is also man who extracts iron
ore, processes it into steel.
It
postulates that who invents, designs, makes and operates machines is man who
creates, transmits and seeks knowledge etc. thus, every human endeavour here
one earth has man’s finger print. Thus without human effort which is considered
vital for production so many managerial effort would been proved abortive. This
effort also is usually called labour.
Labour is
the most important resources in organization. This is why labour is define as
human effort both mental and physical assertion legitimately applied in
production of goods and services so as to satisfy human needs for a reward
known as wages and salaries.
In this
sense, labour include all labour, semi skilled labour and unskilled which all
gear towards the production of goods and services to earn a living through
their wages and salaries.
1.2.
Statement of the Problem
The problem
of labour turnover attract a reasonable percentage of attention in an organization
because labour represent the life wire of any organization. The rate at which
employee have organization is alarming, the types and number of works who are
terminated or resigning their various jobs show how effective and efficient is
the management in its operation which also determined the level of stability,
growth and development of the organization. Although, in some organizations,
there, is extent to which mobility of workers is considered acceptable.
1.3.
Objectives of the Study
Purposively,
this project is to be educate whoever is concerned in its significance of the
study on the following objectives:
To examine
the effects of labour turnover on the performance of Enugu State Water Board.
To enumerate
the problems of labour turnover and how it can be minimized in Enugu State
Water Board.
To examine
the major causes of labour turnover in an organization using Enugu State Water
Board as a case study.
1.4.
Significance of the Study
The study
would be of significance to the Enugu State Water Board in identifying the
problems and causes of labour turnover. This study is expected to provide
solution the research work is of benefit to the body of knowledge students and
other researchers. Other organizations that have similar problems can also
benefit from the research work.
1.5.
Research Questions
What are the
effects of labour turnover on the performance of Enugu State Water Board?
What are the
problems of labour turnover and how can it be minimized in Enugu State Water
Board?
What are the
major causes of labour turnover in Enugu State Water Board?
1.6. Scope
of the Study
The extent
of this research covers all concept, the causes, problems, effects and the
measures to be taken to tackle the problem of labour turnover that deserves to
be minimized. This study will be restricted to the effects of labour turnover
on organizational performance in Nigeria.
Limitation
of the Study
This
research is not lastly due to some proposition for any organization. He
classified cost of turnover into direct and indirect cost.
Direct Cost
This is the
cost that associated with the costs of replacing the employees and training the
newly hired such as costs of communicating the vacant position cost of
administering the recruitment function, cost of screening the applicant
interviewing the candidates, administering selection tools tests, meeting hr
candidate, concluding background investigation, cost of preparing new employee
training materials, conducting training session, giving on the job training and
the costs of separating former employee from the firm such as administering
paper work/meeting, conducting exit interview paying several pay/packaged,
vacation time etc.
Indirect
Cost
Turnover
also brings with indirect cost especially when the employees who are leaving
were liked by the organizations client, customer loyally may be affected.
Again, as the new employees learn their jobs, the quality of the product and
service may suffer.
Michael
Armstrong, human resources practice page 381 enumerated the following as cost
of labour turnover, leaving cost, direct cost of replacement opportunity cost
of time spent, direct cost of introducing replacement, loss of input.
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