EFFECTS OF LABOUR TURNOVER ON ORGANISATIONAL 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.

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.

Objectives
of the Study

Purposively,
this project is to be educate whoever is concerned in its significance of the
study on the following objectives:

i)              
To examine the effects of labour
turnover on the operation of Kaduna State Water Board.

ii)            
To enumerate the problems of labour
turnover and how it can be minimized in Kaduna State Water Board.

iii)         
To examine the major causes of labour
turnover in Kaduna State Water Board.

Significance
of the Study

The
study would be of significance to the Kaduna 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.

Research
Questions

                   
What are the effects of labour turnover
on the operations of Kaduna State Water Board?

                   
What are the problems of labour
turnover and how can it be minimized in Kaduna State Water Board?

                   
What are the major causes of labour
turnover in Kaduna State Water Board?

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.