Abstract

 This study investigates the Impact of employee turnover on the productivity of CDC rubber factory Tiko. It adopts a descriptive research design. A total of 50 respondents were selected for the study using simple random sampling technique. Questionnaire was used to collect primary data. Data collected were analyzed using descriptive statistics. Hypotheses were tested through regression analysis. The findings reveal that the impact of employee turnover on the productivity of CDC rubber factory Tiko. Findings reveals that productivity management will better implement growth and better influence employee’s behavior in CDC. It has the highest number of respondent as well as percentage. The study establishes that employee turnover by use of it’s indicators has a strong impact on the productivity of CDC. The findings indicate that, 24 respondents with a percentage of 42.9% agreed to the fact that, their organisation at times is faced with unsatisfactory jobs. 21 respondents with a percentage of 37.5% strongly agreed to this fact. On the other hand, 3 respondents with a percentage of 5.4% disagreed on it. However, 2 respondents with percentage of 3.6% were neutral on this point, 22 respondents with a percentage of 39.3% agreed to the fact that, there is communication amongst employees in CDC. 22 respondents with a percentage of 39.3% strongly agreed to this fact. On the other hand, 3 respondents with a percentage of 5.4% disagreed on it. However, 1 respondent with percentage of 1.8% was neutral on this point, 20 respondents with a percentage of 35.7% agreed to the fact that, there is lack of respect for senior staffs. 20 respondents with a percentage of 35.7% strongly agreed to this fact.

It is recommended that CDC should check production policies and consequently reduction in financial performance. The performance guidelines should be updated at least annually to reflect changes in the economic outlook and the evolution of the organization portfolio.

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 gives value to all commodities.  It is the same who saws, weeds, processes, store and sells. It is also the 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 endeavor here on earth has man’s finger print. Thus without human effort which is considered vital for production so many managerial effort would have been proved abortive. This effort also is usually called labour.

Over the last two decades of awareness of managerial issues, the issue of employee turnover still exists in most of the organization throughout the world. Even in the highly developed industrial nations, the rate of employee turnover is still very high.

Moreover, looking into the gender perspective, Women pay may be less than that of man, requiring parallel education, training, skills, and responsibility. The level of performance or the ability of work done by the staff will only be achieved if the employees satisfied by the internal environment of an organization. Employee turnover in organization is one of the main issues that extensively affect the overall performance of an organization. It is often suggested that organization should be adopt the clear Standard Operation Procedures (SOP’s) that decrease the gap among the top management and the middle management in order to identify and resolve the issue of employee turnover in the organization. Employee turnover in organizations has received substantial attention from both academics and managers. Much of this attention has been focused on understanding its causes. Implicit in this approach is the assumption that turnover is driven by certain identifiable characteristics of workers, tasks, firms, and markets, and that, by developing policies to address these characteristics, managers might reduce the occurrence of turnover in their respective organizations. As noted by several

Observers, however, the consequences of turnover have received significantly less attention from researchers (Staw 1980, Mobley 1982, Glebbeek and Bax 2004). This lack of academic attention is particularly surprising given that industry studies have estimated the cost of turning over one employee earning $8 per hour at $3,500 to $25,000 (Zeynep, 2008).

According to Prefer and Sutton (2009) managerial concern on employee turnover has suddenly become heightened. This concern is further exacerbated as a result of the growing cost of replacing employees, or other general costs typically associated with

Employee’s like recruitment and training (Collins and Smith, 2006).

Some of the specific concerns of managers and other concerned stakeholders are the negative consequences of high employee turnovers which are often reflected in product and service quality, consistency and stability of services exchanged for money with Clients and customers in general (Trevor and Nyberg, 2008).

Other consequences of unchecked growing rate of employee turnover could also be an increase in the client’s level of dissatisfaction with products and services being offered by such organization (Lin and Chang, 2005). Other related costs that emanate from an increase in the rate of employee turnover are described as the costs of voluntary turnover by Morrell et al (2004).

Moreover, Morell et al (2004) identifies direct and indirect costs of voluntary turnover as replacement, recruitment and selection, temporary staff, management time, morale, pressure on remaining staffs, costs of learning, product or service quality, organizational memory, and the loss of social capital (Dess and Shaw, 2001). Anders and Bard (2010) proposed the development of processes intrinsically motivate employees as a potential solution to the unusual high turnover rates recorded globally, while Zimmerman and Darnold (2009) relate job performance with employee turnover rate. Zimmerman and Darnold (2009) are particularly of the opinion that employees who leave their jobs might have done so in either an environment so poor to induce a high level of job performance, or they might have quit their job when there is a consistent poor level of job performance over a period of time. Indeed, Zimmerman and Darnold (2009) are strongly of the opinion that an assessment of employee turnover that precludes a study of job performance might be referred as a huge oversight on the part of the management of such organization. Within this context the study of employee turnover as well as its attendant problems, costs and consequences has been comprehensively studied (Shaw et al, 1998), and a recent empirical and meta-analysis study of the phenomenon observed its influence in 800 different cases (Iverson, 1999). But within the scope discussed above the impact of employee turnover on the rate of knowledge diffusion in organizations has received very little research focus (Madsen et al, 2002). Madsen and McKelvey (1996) argue that management research interests should however been shifted to the balance between a firm’s variation and its retention activities. Retention here refers to the ability of the firm to drastically reduce the turnover rates of its knowledge workers as they are largely responsible for the distribution of tacit knowledge and skills, or human capital across space and time (Almeida and Kogut, 1999 cited in Madsen et al, 2002). This situation is particularly crucial since the knowledge production mechanism of any firm us closely connected to the tacit knowledge and skill held by a firm’s members whether they are new members of established members (Madsen et al, 2002).

Finally, 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 includes all labour, semi-skilled labour and unskilled labour 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 management of human resource is crucial to the survival, growth and development of any organization, particularly, in the contemporary period of 21st, century where there is unhealthy rivalry in the global market, and competitiveness. The reasons for this are many, but the most important ones are that:

Organizations are practically run by men, Human resource is the most difficult resource to manage, in the sense that they have facilities of reasoning and the ability to respond or resist to stimuli, and Human beings are dynamic, complex and unpredictable.

With the foregoing, effective managers of human resource; is fundamental to the survival of any organization. Therefore, it is very important for any organization that desires to survive, to put in place, policies, programs, and practices that can ensure optimal acquisition, utilization and reduction of employee turnover in business enterprises.

Employee turnover today in the manufacturing sector in Nigeria has led to a greater extent brain drain and this has led to many economic crisis in which the nation find herself. Therefore, a high rate of employee turnover is costly, not only in terms of recruitment, advertising, selection, training of new employees, waste, reduced production and loss of sales, but frequently has serious effects on general efficiency and staff morale and on the organization image at large.

With the aforementioned, labour are very important in the manufacturing sector in order to identify reasons for any change of jobs by personnel. Thus, there is a need for a study of this nature. This study intends to investigate the impacts of employee turnover, causes of the high rate of employee turnover and proposes strategies to reduce the high rate of employee turnover or recommendations for improving organizational performance.

1.3 Research Questions

The study was guided by the following research questions;

1. What effect does employee turnover have on unproductive workers?
2. What effect does better working condition have on employee turnover reduction in the manufacturing sector?
3. What effect does employee turnover have on organization efficiency?
4. Does employee turnover have effect on organizational effectiveness in the manufacturing industry

1.4 Research Objectives

The main objective of the study will be to

1. To examine the effects of employee turnover on the performance of CDC plantation Cameroon.
2. The following specific objectives will also be developed in order to help accomplished the main objective.
3. To enumerate the effect of employee turnover on unproductive workers in CDC plantation
4. To examine the effect better working condition have on employee turnover in an organization using CDC as a case study
5. To assess the effect of employee turnover on organizational effectiveness and efficiency
6. To provide necessary recommendations.

1.5 Hypothesis

H01:  Employee turnover does not have an impact on organizational performance in the manufacturing industry (CDC).

H1: Employee turnover has an impact on organizational performance in the manufacturing industry (CDC).

H02: Employee turnover does not have an effect on unproductive workers in CDC

H2: Employee turnover has an effect on unproductive workers in CDC

H03: Employee turnover does not have an effect on organizational effectiveness and efficiency in CDC

H3: Employee turnover has an effect on organizational effectiveness and efficiency in CDC