Employee Turnover and Organization Performance: The Case of Shintes ETB Garment PLC
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Date
2018-09-05
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Addis Ababa University
Abstract
This study focuses on variable such as turnover and organizational performance and the possible interaction between them. More specifically, the main purpose of this study was to assess the relationship between turnover of employees and organizational performance at Shintes ETP Garment Plc which is found in Addis Ababa Bole Lemi Industrial Park and owned by Korean investors. The study adopted a descriptive survey research design. In the course of the study, the researcher selected a sample of 205 employees of the factory from the total of 4019 employee population working in it using a stratified and systematic random sampling techniques to all employees except the corporate managers, who were selected in a census approach, in a way that it provides equal chance for all the employees to be selected for the study in which case generalization of the findings to the overall organization were possible. Consequently, the data gathering tools prepared for the study were employed i.e. semi-structured interview items to corporate managers and questionnaires to all other employees. The data collected were then presented, analyzed and interpreted both qualitatively and quantitatively. More specifically, the study indicated the existence of high level of turnover in the industry and its strong influence on organizational performance was also justified by both the qualitative and quantitative analysis. Therefore, the study found out that low pay and benefit packages, employee-organization relationship, repetitive nature of the job, absence of job rotation, motivation, incompatibility of working culture between the owner and majority of employees, poor recruitment and selection procedures as the major causes for turnover. On the other hand, the influence of turnover was manifested in high cost of recruitment, training, productivity and quality of production. The company is attempting to put into place strategy like free lunch service to reduce turnover but it didn’t bring the desired outcome. Besides, the company is planning to build up dormitories for the employees’ with the intent of retaining them which still seems restrictive when it comes to the privacy and choice of employees
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Keywords
Turnover, Implications of Turnover, Performance