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

​CHAPTER ONE

INTRODUCTION

1.0     
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 turnover.
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 organization 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.

Lanbour 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 abour likewise it cannot evade the effort. Although, all
labours are mobiles, but the, mobility of the skilled labour is highy noticed
in the labour market. This research basically show the problems facting 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 babour turnover have causes and
effects on business organization.

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

2.     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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