ABSTRACT
Human resource management is one of the most important
practices which help to ensure retention of staffs in organisations. The
National Disaster Management Organisation (NADMO) in Ghana has been under
intense pressure by citizens to revamp their workforce in order to achieve high
performances. However, the institution has failed to be proactive in its
responses to disaster management in the country. This study therefore examines
the effect of employee turnover on performance of NADMO.
Descriptive design of the quantitative method of research
was employed for the study. The simple random sampling method was used in
selecting respondents. Questionnaire was the main data collection instrument
and a sample size of 221 employees was used. Frequencies, tables, and
percentages were also used to present the data. The research found that
employee turnover in NADMO is at a high rate. It was also revealed that the
institution is highly under resourced with human personnel and logistics and
staffs are poorly paid attributing to the high employee turnover. The study
also showed a negative relationship between employee turnover and performance.
It is recommended that management should provide improved remunerations to
staffs and make available logistics in carrying out the duties of the
organization. It is therefore concluded that inadequate logistics and resources
and high turnover affect the organisation which lead to a lower productivity
and performance.
CHAPTER ONE
INTRODUCTION
Background to the study
Retaining highly skilled employees is the most important
human resource activity in every organization all over the world. Globally,
rating agencies have adopted turnover rate ratios as an indicator in rating
companies (Dockel, 2013). This provides for the basis that employee retention
is an essential tool towards the success of an organization. Although in Ghana
company ratings are difficult to be carried out, employee retention remains an
important determinant in the successes of organizations (Armstrong, 2010). In
Ghana, the market movers or high market performing companies are the ones known
to have high employee retention rate. These organisations are able to control
the market with different strategies because of the relevance they place on
keeping their employees. Companies develop and remain competitive when they are
able to have low employee turnover.
In the developed nations, employee turnover rate continue to
be high (Martin, 2015). In South Africa, employee turnover is at its greater
heights costing the state an estimated 40 billion rands a year; annually in the
United States, employee turnover is estimated to cost the country $40 billion;
in Canada it is estimated to cost $12 billion and in Germany €60 billion
(Oregon, 2014). Frederick (2010) also estimates the cost of each employee
turnover in the United States of America to be between $3,500 and $25,000. This
loss is enough to depress any human resource manager and the organization. High
employee turnover causes delay of service delivery while waiting for a
replacement of staff to arrive (Harrie, 2012). She also says that in addition,
there might be production losses while assigning and employing replacement
staff.
Also, organizations with high turnover experience a waste of
time due to inexperienced replacement of staff. Management and other staff
spend valuable time not doing their own job but trying to orient the
replacement staff. In the opinion of Armstrong (2010) employee turnover is the
rate at which an employer gains and loses employee, how long the employee tend
to leave and join the organization. Duncan (2008) also explain employee
turnover as a percentage which shows the rate at which employees move in and
out of an organization. Edward (2010) is of the view that employee turnover is
a costly undertaken which is of great concern to most companies. According to
him, these costs may include advertising expense, human resource management
expense, loss of time and efficiency, work imbalance, training and recruiting
expense for new employees and many others.
Saeed, Waseem, Sikander and Rizwan (2014), posits that
turnover is a very difficult issue to contend with in this competitive world.
Saeed, et al stated that most organisations aim at reducing their turnover
ratio, thereby saving turnover cost which consists of hiring, recruiting and
selecting the right employees. Baker (2007) explains employee turnover as the
number of permanent employees leaving the company within a specific period to
the actual employees working on the last day of the period. The popular
suggestion according to Tariq, Ramzari and Riaz (2013) is that, organisations
should adopt standard operation procedures (SOPs) that reduce the gap among the top
management and the middle management in order to identify and resolve employee
turnover in the organization.
Employee turnover can be controlled if companies put in place
the required retention strategies to keep employees for a longer period
(Donald, 2011). These retention strategies may include training and
development, good working conditions, higher salaries, efficient organizational
environment, good leadership, performance based incentives and many others.
Dessler (2009) asserts that the effective implementation of these strategies
helps to reduce turnover of employees. Therefore, it is important for companies
to calculate turnover rate frequently in order to reduce high turnovers. If a
company determines the most common causes of employee turnover, it is able to
take the necessary steps to reduce the problem and retain well skilled staff.
A review of the literature has shown that employee turnover
has some significant relationship with organisation performance. When
managements do not take measures to control employee turnover it tends to
affect the performance of the organization through high costs. Companies
operate to make profit; as such they need well performing employees to achieve
their goals in ensuring the organization attain a higher performance. According
to Farris (2010) organisational performance is the attained outcomes of
companies through effective employee performances. Armstrong (2010) also
explains organizational performance in the contexts of profitability,
productivity, outcomes, quality of service delivery, efficiency, and
effectiveness. Organisational performance is measured against the performance standards set by the
organization (Hayward, 2015).
Dessler (2009) describes organizational performance as the
sum total of employee performances. Okoyo and Ezejofor (2013) also posit that
inefficient employee performance will result in negative consequences for the
organization since it is accompanied with lower productivity, profitability and
weakening of total organizational effectiveness. Ocran (2010) views motivation
of employees as necessary to generate some level of commitment for a particular
objective in an organization. Ocran stated that changing activities that
employees perform, reducing the levels of hierarchy and not involving many
employees in the motivation process are substantial enough to affect the levels
of trust and commitment necessary for employees to perform their work
requirements.
Muchhal (2014) claims that performance is important as the
success of a business depend on employee performance and the accomplishment of
tasks by individual results in individual satisfaction. Job performance is
considered by Bevan (2012) as a very important factor that affects how
profitable an organization becomes. According to Boles, Pelletier and Lynch
(2004), when the physical and emotional desires of employees to work receives a
boost their performance outcomes also increases. Ajang (2008) argues that to
boost the performance of human resources and that of a business, attention
needs to be given to the nature of the human resource. Gareth (2008) is also of
the opinion that organisational performance is the result of patterns of
actions carried out to satisfy an objective according to set standards.
Duncan (2008) argues that the employee’s turnover has a
positive relationship with the organisation inefficiency. The conclusion he
made was that there is an insignificant negative relationship between employee
turnover and organisation performance. Tariq, Ramzan, Riaz (2013) claim that
employee turnover is a key phenomenon in an organisation and widely affect the
performance of an organisation. Various studies have established a negative
relationship between employee turnover and overall efficiency of the
organisation. Therefore high organisational performance is a critical component
to determining the successes of companies and so in order for a company to
perform better, employee turnover needs to be controlled.
A low level of attention has been given to the problem of
high turnover by management in the National Disaster Management Organisation
(NADMO) and this is surprising because high levels of turnover indicate a
significant problem with low employee morale (Abraham, 2009). When an employee
leaves an organization, management needs to spend money and time to recruit new
hires to fill vacant positions. Most organisations including NADMO need to
recruit well trained and motivated employees. The organisation equally has to
retain its employees to help accomplish the mandate for which the organisation
was established. Over the years, the organisation has been bedeviled with high
turnover. There is limited research on this issue. It is worth investigating
turnover and to examine factors that influence employees to quit the
organisation and propose a solution.
Statement of the problem
High employee turnover is something no organisation wants.
Having put enough investment in people by means of training and development,
organisations expect returns from such people. When employees leave, the
investment made in employees goes to waste since no benefit is accrued to the
organisation. In recent years, NADMO has experienced increasing rate of
employee turnover which has affected the efficiency and effectiveness of the
institution. According to Bratton (2013), high employee turnover problems
continue to exist in the public institution which has made the situation more
worrying to management. A low level of attention has been given to the problem
of high turnover by management in NADMO and this is surprising because high
levels of turnover indicate a significant problem with low employee morale
(Abraham, 2009).
The institution has failed to be proactive in its response to
disaster management in the country (Mensah, 2006). However, many have suggested
that NADMO’s failure to be proactive is as a result of poor skilled staff and
inadequate resources to the institution. This assertion may be true because in
recent years, NADMO has experienced increasing rate of employee turnover which
has affected the efficiency and effectiveness of the institution.
In previous years, NADMO has experienced increasing rate of
staff turnover and the problem continue to persist. Despite the problem of high
turnover in the organization, management has failed to offer practical
solutions on how the turnover problem has to be managed in order to ensure high
operational efficiency and improve upon organizational performance. Hence, this
has created a research gap in determining the influence of employee
turnover on organisational performance. This study therefore sought to obtain
the causes of the problem of high turnover and provide appropriate
recommendations on how management should reduce turnover rates in NADMO.
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