Tissue Turnover and Growth. Turnover assessed via source switching experiments.
Emloyees Turnover
-
Upload
sarmad-bhatti -
Category
Documents
-
view
132 -
download
1
Transcript of Emloyees Turnover
Employees Turn Over In PVT. Sector
Introduction:Background of Study:
There is a serious problem of employees’ turnover in private sector
(banks, financial institutions, manufacturing organizations, service industries etc.).
Because of this problem a lot of problems were taking place. E.g. less job
commitment, more cost on recruitment of employees, loss of time, more usage of
the resources of the organization that may be used in other profitable work areas of
business. Many organizations have conducted the research on the topic of
“employees` turnover in private sector. A brief review can be found under the
heading of LITERATURE REVIEW.
Research objectives :
The basic purpose of the study is to reduce the rate of
employees’ turnover and providing the solution of the problem and
recommendations to implement these solutions for all the type of private
organizations for all level of organizations and also for all functional areas of the
organization. By reducing the turnover rate, we can make the employees more loyal
and efficient. We can save our cost and time required for recruitment of the
employees again and again.
We will conduct our research work by keeping in mind the following objectives: to
Identify the basic causes of employees’ turnover
To establish suitable effectiveness criteria for reducing employees’ turnover
To describe the extent to which the effectiveness criteria for controlling
employees’ turnover have been met.
To determine the factors associated with the problem.
To estimate whether some of those factors are more influential than other
factors.
To develop an explanatory theory that associates certain factors.
reduce employees turnover
increase job commitment
Punjab University Gujranwala Campus
1
Employees Turn Over In PVT. Sector
increase job satisfaction
increase the loyalty of employees toward their organization
reduce the cost on recruitment of employees
compete in the market
Save the organization from losses which may be the result of high turnover.
Our planning will be to achieve the above objectives by visiting and investigating the
market (private institutions, manufacturing concerns, service industries etc.).
Significance:
By control over this problem of high turnover in
private sector, organizations can achieve a lot of major benefits or we can say that
there will be more than one benefit the firms can achieve by the findings of our
research work. These benefits are as follow:
Increased productivity
More efficiency
More effectiveness
Strong culture because all the employees are aware of it due to low rate of
turnover
Less utilization of resources and more production due to increased
experience of employees.
High rate of expertise
High quality products and services also due to experience in the field
High profitability due to low costs
Increased Employees loyalty toward organization
High job commitment
More job satisfaction of the employees.
Punjab University Gujranwala Campus
2
Employees Turn Over In PVT. Sector
Literature Review:
We used different types of sources e.g. internet, newspapers and
different economical journals and find the following data about our project.
African Journal of Business Management pp. 049-054, June 2007Available online http://www.academicjournals.org/ajbmISSN 1993-8233 © 2007 Academic Journals
Review
A review of the literature on employee turnover:Henry Ongori
Department of Management, University of Botswana, Botswana. E-mail:
Accepted 22, May 2007
“Employees turnover” as a term is widely used in business
circles. Although several studies have been conducted on this
topic, most of the researchers focus on the causes of employee
turnover but little has been done on the examining the sources of
employee turnover, effects and advising various strategies which
can be used by managers in various organizations to ensure that
there is employee continuity in their organizations to enhance
organizational competitiveness. This paper examines the sources
of employee turnover, effects and forwards some strategies on
how to minimize employee turnover in organizations.
Key words: Employee, turnover, sources, effects, strategies.
Punjab University Gujranwala Campus
3
Employees Turn Over In PVT. Sector
INTRODUCTION:
Organizations invest a lot on their employees in terms of induction and
training, developing, maintaining and retaining them in their organization.
Therefore, managers at all costs must minimize employee’s turnover.
Although, there is no standard framework for understanding the
employees turnover process as whole, a wide range of factors have been
found useful in interpreting employee turnover Kevin et al. (2004).
Therefore, there is need to develop a fuller understanding of the
employee turnover, more especially, the sources- what determines
employee turnover, effects and strategies that managers can put in place
minimize turnover. With globalization which is heightening competition,
organizations must continue to develop tangible products and provide
services which are based on strategies created by employees. These
employees are extremely crucial to the organization since their value to
the organization is essentially intangible and not easily replicated Meghan
et al. (2002). Therefore, managers must recognize that employees as
major contributors to the efficient achievement of the organization’s
success Abbasi et al. (2000). Managers should control employee turnover
for the benefit of the organization success. The literature on employee
turnover is divided into three groupings: sources of employee turnover,
effects of turnover and the strategies to minimize turnover.
Definition:
Employees’ turnover is a much studied phenomenon Shaw et al.
(1998).But there is no standard reason why people leave organization.
Employee turnover is the rotation of workers around the labour market;
between firms, jobs and occupations; and between the states of
employment and unemployment Abassi et al. (2000). The term “turnover”
is defined by Price (1977) as: the ratio of the number of organizational
members who have left during the period being considered divided by the
average number of people in that organization during the period.
Punjab University Gujranwala Campus
4
Employees Turn Over In PVT. Sector
Frequently, managers refer to turnover as the entire process associated
with filling a vacancy: Each time a position is vacated, either voluntarily or
involuntarily, a new employee must be hired and trained. This
replacement cycle is known as turnover Woods, (1995). This term is also
often utilized in efforts to measure relationships of employees in an
organization as they leave, regardless of reason. “Unfolding model” of
voluntary turnover represents a divergence from traditional thinking (Hom
and Griffeth, 1995) by focusing more on the decisional aspect of
employee turnover, in other words, showing instances of voluntary
turnover as decisions to quit. Indeed, the model is based on a theory of
decision making, image theory Beach, (1990). The image theory describes
the process of how individuals process information during decision
making. The underlying premise of the model is that people leave
organizations after they have analyzed the reasons for quitting. Beach
(1990) argues that individuals seldom have the cognitive resources to
systematically evaluate all incoming information, so individuals instead of
simply and quickly compare incoming information to 050 Afr. J. Bus.
Manage. more heuristic-type decision making alternatives.
Sources of employee turnover Job related factors:
Most researchers (Bluedorn, 1982; Kalliath and Beck, 2001; Kramer et al.,
1995; Peters et al., 1981; Saks, 1996) have attempted to answer the
question of what determines people's intention to quit by investigating
possible antecedents of employees’ intentions to quit. To date, there has
been little consistency in findings, which is partly due to the diversity of
employed included by the researchers and the lack of consistency in their
findings. Therefore, there are several reasons why people quit from one
organization to another or why people leave organization. The experience
of job related stress (job stress), the range factors that lead to job related
stress (stressors), lack of commitment in the organization; and job
dissatisfaction make employees to quit Firth et al. (2004). This clearly
Punjab University Gujranwala Campus
5
Employees Turn Over In PVT. Sector
indicates that these are individual decisions which make one to quit. They
are other factors like personal agency refers to concepts such as a sense
of powerlessness, locus of control and personal control. Locus control
refers to the extent to which people believe that the external factors such
as chance and powerful others are in control of the events which influence
their lives Firth et al. (2004). Manu et al. (2004) argue that employees
quit from organization due economic reasons.
Using economic model they showed that people quit from organization
due to economic reasons and these can be used to predict the labor
turnover in the market. Good local labor market conditions improve
organizational stability Schervish (1983). Large organizations can provide
employees with better chances for advancement and higher wages and
hence ensure organizational attachment (Idson and Feaster 1990). Trevor
(2001) argues that local unemployment rates interact with job satisfaction
to predict turnover in the market. Role stressors also lead to employees’
turnover. Role ambiguity refers to the difference between what people
expect of us on the job and what we feel we should do.
This causes uncertainty about what our role should be. It can be a result
of misunderstanding what is expected, how to meet the expectations, or
the employee thinking the job should be different Kahn et al. Muchinsky,
1990. Insufficient information on how to perform the job adequately,
unclear expectations of peers and supervisors, ambiguity of performance
evaluation methods, extensive job pressures, and lack of consensus on
job functions or duties may cause employees to feel less involved and less
satisfied with their jobs and careers, less committed to their
organizations, and eventually display a propensity to leave the
organization (Tor et al., 1997). If roles of employees are not clearly
spelled out by management/ supervisors, this would accelerate the
degree of employees quitting their jobs due to lack of role clarity.
Punjab University Gujranwala Campus
6
Employees Turn Over In PVT. Sector
Voluntarily vs. involuntary turnover:
There are some factors that are, in part, beyond the control of
management, such as the death or incapacity of a member of staff. Other
factors have been classed as involuntary turnover in the past such as the
need to provide care for children or aged relatives. Today such factors
should not be seen as involuntary turnover as both government regulation
and company policies create the chance for such staff to come back to
work, or to continue to work on a more flexible basis Simon et al.
(2007).
Organizational factors:
Organizational instability has been shown to have a high degree of high
turnover. Indications are that employees are more likely to stay when
there is a predictable work environment and vice versa (Zuber, 2001). In
organizations where there was a high level of inefficiency there was also a
high level of staff turnover (Alexander et al., 1994). Therefore, in
situations where organizations are not stable employees tend to quit and
look for stable organizations because with stable organizations they would
be able to predict their career advancement. The imposition of a
quantitative approach to managing the employees led to disenchantment
of staff and hence it leads to labour turnover. Therefore management
should not use quantitative approach in managing its employees.
Adopting a cost oriented approach to employment costs increases labour
turnover Simon et al. (2007). All these approaches should be avoided if
Punjab University Gujranwala Campus
7
Employees Turn Over In PVT. Sector
managers want to minimize employee turnover an increase organizational
competitiveness in this environment of globalization.
Employees have a strong need to be informed. Organization with strong
communication systems enjoyed lower turnover of staff (Labov, 1997).
Employees feel comfortable to stay longer, in positions where they are
involved in some level of the decision-making process. That is employees
should fully understand about issues that affect their working atmosphere
(Manger et al. (1996). But in the absence openness’ in sharing
information, employee empowerment the chances of continuity of
employees are minimal. Costly et al. (1987) points out that a high labour
turnover may mean poor personnel policies, poor recruitment policies,
poor supervisory practices, poor grievance procedures, or lack of
motivation. All these factors contribute to high employee turnover in the
sense that there is no proper management practices and policies on
personnel matters hence employees are not recruited scientifically,
promotions of employees are not based on spelled out policies, no
grievance procedures in place and thus employees decides to quit.
Griffeth et al. (2000) noted that pay and pay-related variables have a
modest effect on turnover. Their analysis also included studies that
examined the relationship between pay, a person’s performance and
turnover. They concluded that when high performers are insufficiently
rewarded, they quit. If jobs provide adequate financial incentives the
more likely employees remain with organization and vice versa. There are
also other factors which make employees to quit from organisations and
these are poor hiring practices, managerial style, lack of recognition, lack
of competitive compensation system in the organisation and toxic
workplace environment Abassi etal. (2000).
Punjab University Gujranwala Campus
8
Employees Turn Over In PVT. Sector
Effects of employee turnover:
Employee turnover is expensive from the view of the organization.
Voluntary quits which represents an exodus of human capital investment
from organizations Fair (1992) and the subsequent replacement process
entails manifold costs to the organizations. These replacement costs
include for example, search of the external labor market for a possible
substitute, selection between competing substitutes, induction of the
chosen substitute, and formal and informal training of the substitute until
he or she attains performance levels equivalent to the individual who quit
John (2000). Addition to these replacement costs, output would be
affected to some extend or output
would be maintained at the cost of overtime payment. The reason so
much attention has been paid to the issue of turnover is because turnover
has some significant effects on organizations (DeMicco and Giridharan,
1987; Dyke and Strike, 1990; Cantrell and Saranakhsh, 1991; Denvir and
Mcmahon, 1992).Many researchers argue that high turnover rates might
have negative effects on the profitability of organizations if not managed
properly (Hogan, 1992; Warmouth and Davis, 1993; Barrows, 1990).
Hogan 1992, nearly twenty years ago the direct and indirect cost of a
single line employee quitting was between $ 1400 and $4000. Turnover
has many hidden or invisible costs Philips (1990) and these invisible costs
are result of incoming employees, co-workers closely associated with
incoming employees, co-workers closely associated with departing
employees and position being filled while vacant. And all these affect the
profitability of the organization. On the other hand turnover affects on
customer service and satisfaction Kemal et al. (2002).
Punjab University Gujranwala Campus
9
Employees Turn Over In PVT. Sector
Catherine (2002) argue that turnover include other costs, such as lost
productivity, lost sales, and management’s time, estimate the turnover
costs of an hourly employee to be $3,000 to $10,000 each. This clearly
demonstrates that turnover affects the profitability of the organization
and if it’s not managed properly it would have the negative effect on the
profit. Research estimates indicate that hiring and training a replacement
worker for a lost employee costs approximately 50 percent of the
worker’s annual salary (Johnson et al., 2000) – but the costs do not stop
there. Each time an employee leaves the firm, we presume that
productivity drops due to the learning curve involved in understanding the
job and the organization. Furthermore, the Ongori 051 loss of intellectual
capital adds to this cost, since not only do organizations lose the human
capital and relational capital of the departing employee, but also
competitors are potentially gaining these assets Meaghan et al. (2002).
Therefore, if employee turnover is not managed properly it would affect
the organization adversely in terms of personnel costs and in the long run
it would affect its liquidity position. However, voluntary turnover incurs
significant cost, both in terms of direct costs (replacement, recruitment
and selection, temporary staff, management time), and also (and perhaps
more significantly) in terms of indirect costs (morale, pressure on
remaining staff, costs of learning, product/service quality, organizational
memory) and the loss of social capital Dess et al. (2001).
Punjab University Gujranwala Campus
10
Employees Turn Over In PVT. Sector
Strategies to minimize employee turnover:
Strategies on how to minimize employee turnover, confronted with
problems of employee turnover, management has several policy options
viz. changing (or improving existing) policies towards recruitment,
selection, induction, training, job design and wage payment. Policy choice,
however, must be appropriate to the precise diagnosis of the problem.
Employee turnover attributable to poor selection procedures, for example,
is unlikely to improve were the policy modification to focus exclusively on
the induction process. Equally, employee turnover
Attributable to wage rates which produce earnings that are not
competitive with other firms in the local labor market is unlikely to
decrease were the policy adjustment merely to enhance the
organization’s provision of on-the job training opportunities. Given that
there is increase in direct and indirect costs of labor turnover, therefore,
management are frequently exhorted to identify the reasons why people
leave organization’s so that appropriate action is taken by the
management. Extensive research has shown that the following categories
of human capital management factors provides a core set of measures
that senior management can use to increase the effectiveness of their
investment in people and improve overall corporate performance of
business: Employee engagement, the organization’s capacity to
engage, retain, and optimize the value of its employees hinges on how
well jobs are designed, how employees' time is used, and the
commitment and support that is shown to employees by the management
would motivate employees to stay in organization’s.. Knowledge
accessibility, the extent of the organization’s “collaborative ness” and its
capacity for making knowledge and ideas widely available to employees,
would make employees to stay in the organization. Sharing of information
should be made at all levels of management. This accessibility of
information would lead to strong performance from the employees and
Punjab University Gujranwala Campus
11
Employees Turn Over In PVT. Sector
creating strong corporate culture Meaghan et al. (2002). Therefore;
information accessibility would make employees feel 052
Afr. J. Bus. Manage. That they are appreciated for their effort and chances
of leaving the organization are minimal. Workforce optimization, the
organization’s success in optimizing the performance of the employees by
establishing essential processes for getting work done, providing good
working conditions, establishing accountability and making good hiring
choices would retain employees in their organization. The importance of
gaining better understanding of the factors related to recruitment,
motivation and retention of employees is further underscored by rising
personnel costs and high rates of employee turnover (Badawy, 1988;
Basta and Johnson, 1989; Garden, 1989; Parden, 1981; Sherman, 1986).
With increased competitiveness on globalizations, managers in many
organizations are experiencing greater pressure from top management to
improve recruitment, selection, training, and retention of good employees
and in the long run would encourage employees to stay in organizations.
Job involvement describes an individual’s ego involvement with work and
indicates the extent to which an individual identifies psychologically with
his/her job (Kanungo, 1982). Involvement in terms of internalizing values
about the goodness or the importance of work made employees not to
quit their jobs and these involvements are related to task characteristics.
Workers who have a greater variety of tasks tend stay in the job. Task
characteristics have been found to be potential determinants of turnover
among employees (Couger, 1988; Couger and Kawasaki, 1980; Garden,
1989; Goldstein and Rockart, 1984). These include the five core job
characteristics identified by Hackman and Oldham (1975, 1980): skill
variety, which refers to the opportunity to utilize a variety of valued skills
and talents on the job; task identity, or the extent to which a job requires
completion of a whole and identifiable piece of work - that is, doing a job
from beginning to end, with visible results; task significance, which
reflects the extent to which the job has a substantial impact on the lives
Punjab University Gujranwala Campus
12
Employees Turn Over In PVT. Sector
or work of other people, whether within or outside the organization; job
autonomy, or the extent to which the job provides freedom,
independence, and discretion in scheduling work and determining
procedures that the job provides; and job feedback, which refers to the
extent to which the job provides information about the effectiveness of
one’s performance (Tor et al., 1997). Involvement would influence job
satisfaction and increase organizational commitment of the employees.
Employees who are more involved in their jobs are more satisfied with
their jobs and more committed to their organization (Blau and Boal, 1989;
Brooke and Price, 1989; Brooke et al., 1988; Kanungo, 1982). Job
involvement has also been found to be negatively related to turnover
intentions (Blat and Boal, 1989). Job satisfaction, career satisfaction, and
organizational commitment reflect a positive attitude towards the
organization, thus having a direct influence on employee turnover
intentions. Job satisfaction, job involvement and organizational
commitment are considered to be related but distinguishable attitudes
(Brooke and Price, 1989). Satisfaction represents an affective response to
specific aspects of the job or career and denotes the pleasurable or
positive emotional state resulting from an appraisal of one’s job or career
(Locke, 1976; Porter et al., 1974; Williams and Hazer, 1986).
Organizational commitment is an affective response to the whole
organization and the degree of attachment or loyalty employees feel
towards the organization. Job involvement represents the extent to which
employees are absorbed in or preoccupied with their jobs and the extent
to which an individual identifies with his/her job (Brooke et al., 1988).The
degree of commitment and loyalty can be achieved if management they
enrich the jobs, empower and compensate employees properly.
Empowerment of employees could help to enhance the continuity of
employees in organizations. Empowered employees where managers
supervise more people than in a traditional hierarchy and delegate more
decisions to their subordinates (Malone, 1997). Managers act like coaches
Punjab University Gujranwala Campus
13
Employees Turn Over In PVT. Sector
and help employees solve problems. Employees, he concludes, have
increased responsibility. Superiors empowering subordinates by
delegating responsibilities to them leads to subordinates who are more
satisfied with their leaders and consider them to be fair and in turn to
perform up to the superior’s expectations (Keller and Dansereau, 1995).
All these makes employees to be committed to the organization and
chances of quitting are minimal.
Conclusions:
Therefore, if the above strategies are taken into account the business would be
able to survive in a dynamic environment by treating their employees as one of
their assets which needs a lot of attention. Employees are the backbone of any
business success and therefore, they need to be motivated and maintained in
organization at all cost to aid the organization to be globally competitive in
terms of providing quality products and services to the society. And in the long-
run the returns on investments on the employees would be achieved.
Management should
Encourage job redesign-task autonomy, task significance and task identity, open
book management, empowerment of employees, recruitment and selection must
be done scientifically with the objective of retaining employees. Managers
should examine the sources of employee turnover and recommend the best
approach to fill the gap of the source, so that they can be in a position to retain
employees in their organization to enhance their competitiveness in the this
world of globalization. Managers must understand that employees in their
organizations must be treated as the most liquid assets of the organization
which would make the organization to withstand the waves of globalization. This
asset needs to be monitored with due care, otherwise their organizations would
cease to exist. Employees should be given challenging work and all managers
should be hired on the basis of know how by following laid down procedures of
the organization and this would make organization to have competent managers
at all levels of management and hence good supervision. Griffeth et al. (2000)
noted pay and pay-related variables have a great effect on employee turnover.
Management must compensate employees adequately. They should pay
employees based on their performance and in addition they should given
Punjab University Gujranwala Campus
14
Employees Turn Over In PVT. Sector
employees incentives like individual bonus, lump sum bonus, sharing of profits
and other benefits. Hence, if these are put in place they would minimize
employee turnover.
Problem Statement:
After the preliminary data collection, we can now develop a statement to explain the basic
problem.
Problem definition is defined as:
“A statement that explains what the real problem is, what types of factors are involved
in this problem and finally what are consequences of a problem.”
After going through interviews and literature review we check the following essential
elements of Problem Definition:
1) Antecedents(Contributing Factors)
2) Real Problem(What is Wrong)
3) Consequences(Results)
The problem under investigation is
Background:
There is a serious problem of employees’ turnover in private sector
(banks, financial institutions, manufacturing organizations, service industries etc.).
Because of this problem a lot of problems were taking place. E.g. less job
commitment, more cost on recruitment of employees, loss of time, more usage of
the resources of the organization that may be used in other profitable work areas of
business.
Problem:
Why the employees turnover is more in private sector. It means that in
public sector, employees’ turnover is less than the private sector. It creates a lot of
other major problem for the organizations
Punjab University Gujranwala Campus
15
Employees Turn Over In PVT. Sector
Diagramatical Presentation:
(Real problem) (Consequences)
(Antecedent)
Punjab University Gujranwala Campus
16
Low Employee commitment Low employee loyalty More cost incurred on
employee recruiting Loss of time More usage of resources
“Employee turnover in private
sector”
Duties of JobTraining and development programOpportunities for promotionSalary TreatmentWorking ConditionsWorking HoursStrict ControlNon competitive wagesSick pay system Unhealthy competitionreward system relationship with new bossmanagement doesn’t display people’s skill
Employees Turn Over In PVT. Sector
ANTECEDENTS:
Antecedents are the contributing factors which are responsible for the real problem.
In our projects Antecedents are as:
Duties of Job
Training and development program
Opportunities for promotion
Salary Treatment
Working Conditions
Working Hours
Strict Control
Better job opportunity
Non competitive wages
Sick pay system
Unhealthy competition
Reward system
Relationship with new boss
Management doesn’t display people’s skill
Low resiliency
Punjab University Gujranwala Campus
17
Employees Turn Over In PVT. Sector
REAL PROBLEM:
Real problem is that situation which results from the antecedents or contributing factors. So
in our project real situation which is created from the contributing factors is:
“Why the employees turnover is more in private sector. It means that in public
sector, employees’ turnover is less than the private sector. It creates a lot of other
major problem for the organizations”.
CONSEQUENCES:
“Consequences are the results or effects of real problem”.
In our project consequence are as follow:
Low Employee commitment Low employee loyalty More cost incurred on employee recruiting Loss of time More usage of resources
Punjab University Gujranwala Campus
18
Employees Turn Over In PVT. Sector
Theoretical Framework:
“It is a logically developed, described and
elaborated network of associations among variables that have been
identified through interviews, observation and literature survey.”
It tells us the issue of why or how we expect certain relationships to
exist and nature and direction of relationship of variables.
Following five basic elements/features should be found in a
Theoretical framework:
1- Variables should be clearly identified.
2- How related are variables with each other.
3- Discuss whether the relationship would be positive or negative in
nature.
4- Clear explanation that why we would expect these relations to exist.
5- A schematic diagram of the framework so that reader can visualize
the relationships.
Punjab University Gujranwala Campus
19
Employees Turn Over In PVT. Sector
Variables:
The identification of key variables, factors or sources is very important in every research
study.
It can be defined as:
“A variable is anything that takes different values according to different people, places
or time.”
Types of Variables :
i. Dependent variable
ii. Independent variable
iii. Moderating variable
iv. Intervening variable
v. Extraneous variable
I. Dependent variable:
“Any variable that will depend on others for its values”
II. Independent variable:
“It is the variable that influences the dependent variable in either positive or negative
way.”
III. Moderating variable:
Punjab University Gujranwala Campus
20
Employees Turn Over In PVT. Sector
It is also called second independent variable. A variable that has strong contingent
affect on the dependent and independent relationship.
IV. Intervening variable:
These are variable which start working when independent variable starts its
functioning they can be observed but not measured
V. Extraneous variable:
These variables are in infinite number of variables which have no or little affect on
the situation. The role of these variables can be ignored very easily.
Variables involved in our problem:
Following variables are involved in our problem.
Dependent variables:
In our problem there is only one dependent variable and that is ”Employees
turnover in private sector”, It depends upon a number of other variables or
factors.
Independent variables:
Following are independent variables in problem under discussion
Duties of Job
Training and development program
Opportunities for promotion
Salary Treatment
Working Conditions
Working Hours
Strict Control
Non competitive wages
Punjab University Gujranwala Campus
21
Employees Turn Over In PVT. Sector
Sick pay system
Unhealthy competition
Reward system
Relationship with new boss
Management doesn’t display people’s skill
Care of children or aged relatives
Non family and friendly work schedule
Instable organizations
Changing work environment
Inefficient private organizations
Employee is not job or culture fit
Moderating variables:
Following are the moderating variables in problem being faced;
1 Role of inflation due to which wages becomes scarce
2 Role of management
3 Role of private sector employee
4 permanent job opportunity
Intervening variables:
Colleague politics
Low resiliency
Extraneous Variable:
Role of public sector employee
Punjab University Gujranwala Campus
22
Employees Turn Over In PVT. Sector
Theoretical Frame Work Diagram
(Dependant Variable) (Intervening Variables) (Independent Variables)
/////////////////////////
Extraneous Variable
Role of public sector employee
Punjab University Gujranwala Campus
23
”Employee turnover in private sector”
Colleague politics
C
o
l
l
e
a
g
u
e
p
o
l
i
t
i
c
s
C
o
l
l
e
a
g
u
e
p
o
l
i
t
i
c
s
C
o
l
l
e
a
g
u
e
p
o
l
i
t
i
c
s
C
o
l
l
e
a
g
u
e
p
o
l
i
t
i
c
s
Du
ties o
f Job
Trainin
g a
nd
de
velo
pm
en
t pro
gram
Op
po
rtun
ities fo
r pro
mo
tion
Sa
lary
Trea
tme
nt
Wo
rkin
g C
on
ditio
ns
Wo
rkin
g H
ou
rsS
trict C
on
trol
Be
tter job
op
po
rtun
ityN
on
co
mp
etitive w
ages
Sick
pa
y syste
m U
nh
ealth
y c
om
pe
tition
rew
ard sy
stem
relatio
ns
hip
with
new
bo
ssm
an
agem
ent d
oes
n’t d
isp
lay p
eo
ple’s
skill
low
resilie
nc
yc
are o
f child
ren
or ag
ed
rela
tives
No
n fa
mily an
d frie
nd
ly wo
rk sch
ed
ule
Op
po
rtun
ity o
f pe
rma
nen
t job
Ins
table o
rgan
izatio
ns
Ch
an
gin
g w
ork
en
viron
men
tIn
efficien
t priv
ate o
rga
nizatio
ns
Em
plo
yee
is n
ot jo
b o
r cultu
re fit
Role of inflationRole of management
Employees Turn Over In PVT. Sector
Hypothesis development:
“A hypothesis is a logically conjectured relationship between two or more variables
expressed in the form of a testable statement.”
OR
“A statement whose validity will be confirm in future by applying different statistical tools”
So, in hypothesis we confirmed the validity of any statement after the experiments or data
collection.
KINDS OF HYPOTHESIS:
1 DESCRIPTIVE
2 RELATIONAL
This can be further classified as…
a. Co relational hypothesis
b. Casual hypothesis.
Casual hypothesis:
“The hypothesis which show cause and effect relationship is called casual hypothesis”.
Co relational Hypothesis:
“When a statement will create relationship among more than two factors or when causes of a
problem are more than one, the hypothesis about such a problem will be called as co relational
hypothesis.”
OR
“When there is only one problem and there are a lot of factors or variables which
Increase the problem is also called Co relational Hypothesis”.
Punjab University Gujranwala Campus
24
Employees Turn Over In PVT. Sector
Duties of the Job:
Ho: If duties of the job are decreased, employee turnover will not be decreased.
H1: If duties of the job are decreased, employee turnover will be minimized.
Training and Development Program:
Ho: If training and development program are increased, employee turnover will not be
decreased.
H1: If training and development program are increased, employee turnover will be
decreased.
Opportunities for Promotion:
Ho: If opportunities for promotion are increased, employee turnover will not be
decreased.
H1: If opportunities for promotion are increased, employee turnover will be decreased.
Increased Salary
Ho: If salary of the employee is increased, employee turnover will not be decreased.
H1: If salary of the employee is increased, employee turnover will be decreased.
Working Conditions:
Ho: If working conditions are made good, employee turnover will not be decreased.
H1: If working conditions are made good, employee turnover will be decreased.
Working Hours:
Ho: If working hours are made appropriate, employee turnover will not be decreased.
H1: If working hours are made appropriate, employee turnover will be decreased.
Type of Control:
Punjab University Gujranwala Campus
25
Employees Turn Over In PVT. Sector
Ho: If control on employee is made carrot, employee turnover will not be decreased.
H1: If control on employee is made carrot, employee turnover will be decreased.
Better Job Opportunity:
Ho: If employee gets a better job opportunity, he will not leave the job.
H1: If employee gets a better job opportunity, he will leave the job.
Competitive Wages:
Ho: If wages are made competitive, employee turnover will not be decreased.
H1: If wages are made competitive, employee turnover will be decreased.
Well Pay System:
Ho: If there is well pay system, employee turnover will not be less.
H1: If there is well pay system, employee turnover will be less.
Role on Job:
Ho: If role on job is clear to the employee, employee turnover will not be less.
H1: If role on job is clear to the employee, employee turnover will be less.
Colleague Politics:
Ho: If colleague politics is reduced, employee turnover will not be decreased.
H1: If colleague politics is reduced, employee turnover will be decreased.
Reward System:
Ho: If there is better reward system, employee turnover will not be less.
H1: If there is better reward system, employee turnover will be less.
Relationship with new Boss:
Ho: If the relationship of the employee with new boss is good, employee turnover will
not be less.
Punjab University Gujranwala Campus
26
Employees Turn Over In PVT. Sector
H1: If the relationship of the employee with new boss is good, employee turnover will be
less.
Management Displays people’s Skill:
Ho: If management displays people skill, there will not be less employee turnover.
H1: If management displays people skill, there will be less employee turnover.
Care of Children and Aged Relatives:
Ho: If company cares the children and aged relatives of the employee, there will not be
less employee turnover.
H1: If company cares the children and aged relatives of the employee, there will be less
employee turnover.
Family and Friendly Schedule:
Ho: If work schedule is made “family and friendly”, employee turnover will not be
decreased.
H1: If work schedule is made “family and friendly”, employee turnover will be
decreased.
Permanent Job Opportunity:
Ho: If job in private sector is made permanent, employee turnover will not be
decreased.
H1: If job in private sector is made permanent, employee turnover will be decreased.
Stable Organization:
Ho: If organization is made stable, there will not be less employee turnover.
H1: If organization is made stable, there will be less employee turnover.
Punjab University Gujranwala Campus
27
Employees Turn Over In PVT. Sector
Predictable Work Environment:
Ho: If work environment is made predictable or stable, employee turnover will not be
decreased.
H1: If work environment is made predictable or stable, employee turnover will be
decreased.
Inefficient Organization:
Ho: If organization is efficient, employee turnover will not be less.
H1: If organization is efficient, employee turnover will be less.
Recruitment Criteria:
Ho: If employee is selected according to the job or culture fit, employee turnover will
not be decreased.
H1: If employee is selected according to the job or culture fit, employee turnover will be
decreased.
“Our hypothesis is of co relational types because we have multiple
Independent factors on which dependent variable depends.”
Punjab University Gujranwala Campus
28
Employees Turn Over In PVT. Sector
Research Design:
Research design is a plan or procedure of investigation to obtain answers to research
questions. It is overall scheme and plan of research which includes an outline of what the
investigator do from developing hypothesis to final analysis of data.
Classification of Research:
There are four types of study.
1. Exploratory
2. Descriptive
3. Hypothesis testing
4. Case study
Punjab University Gujranwala Campus
29
Employees Turn Over In PVT. Sector
1) Exploratory:
Conducted when we don’t know much about the situation or we
Have not much familiar on how similar problems were solved in the past.
2) Descriptive Study:
Focus on accurate description of the variables in the
Problem model. It is done to be able to describe the characteristics of variables in the
situation.
3) Hypothesis Testing:
Explain the nature of certain relationship or establish the
differences among groups or the independence of two or more factors.
4) Case Study:
If the researcher has to explain the current situation in the light of an event
which has already occurred in the past then this purpose is to case study.
“The purpose of our study is descriptive in nature, because the information already
available that the “Employee turnover is greater in the private sector”.
Punjab University Gujranwala Campus
30
Employees Turn Over In PVT. Sector
Data Collection techniques:
There are two types of data collection methods.
1. Primary data collection
a. Structured interviews
b. Unstructured interviews
2. Secondary data collection
a. Questionnaires
Primary data collection:
Structured Interview:
“Structured Interviews are conducted when it is known at the outset
what information is needed. The interviewer has a list of pre-determined questions to be
asked of the respondents either personally, through the telephone, or by sending the main
through electronic mail.”
Un-Structured Interview:
“In case of unstructured interview, the interviewer asks the
questions without any pre-determined sequence. Those questions are asked first which come
in the mind of the interviewer first.”
“So we conducted Structured Interviews with the employees of different selected
organizations. And our method of collecting Primary Data is through Structured
Punjab University Gujranwala Campus
31
Employees Turn Over In PVT. Sector
Interviews and Un-structured Interviews which we have already discussed in
preliminary data collection methods”
Focus Groups:
We went to the private organization to consult about the “employee turnover in the
private sector”.
Panels:
Our group went more than one time to consult with them about the problem so, that
becomes a panel.
Unobtrusive measures:
“It means to trace the measures from a primary source that does not involve
people”.
“We also use this technique just to find the reasons of employee’s turnover in
private sector”.
Secondary data collection:
Questionnaire:
“A questionnaire is a pre formulated written set of questions to which
respondents record their answers, usually within rather closely defined alternatives.”
Questionnaires are an efficient data collection mechanism when the researcher knows exactly
what is required and how to measure the variables of interest.
Questionnaire can be.
1 Personally Administered questionnaire
2 Mailed questionnaire
3 Electronic questionnaire
Punjab University Gujranwala Campus
32
Employees Turn Over In PVT. Sector
“During our research process we made close ended questionnaires, and these are personally
administered. Because we had less time to conduct this research and we need questionnaire
within that limited time to be filled by respondents so we conducted this kind of
questionnaire”
Population:
All the employees of private sector in Gujranwala.
Sampling:
The process of using a small number of items or parts of a large population to
make conclusions about the whole population.
Sampling Design:
Sampling has three parts
1. Sampling Units
2. Sampling Frames
3. Parameters of Investigations
Sampling Units:
Units Peoples (Individuals)
Sample 160
Population Un limited
Population Elements
Availability of financial and technical
resources.
Individuals
Self
Punjab University Gujranwala Campus
33
Employees Turn Over In PVT. Sector
Sampling Frame:
Our Sampling frame is based upon type of organization.
1 Manufacturing
2 Trading
3 Services
4 Telecommunication
5 Others
Parameters of Investigations:
No. Questionnaires 200
Collected Questionnaires 175
Valid Questionnaires 160
Availability of Time 25 Days
Availability of Recourses Approximately Rs-4000
Sampling:
“the process of using a small number of items or parts of a large
population to make conclusions about the whole population”.
Sample:
Punjab University Gujranwala Campus
34
Employees Turn Over In PVT. Sector
“A subset or small part of a large population”.
Types of sampling:
Probability Sampling
Non Probability Sampling
1) Probability sampling:
A sampling design which is based upon the concept of random selection.
OR
A sampling technique where every element of population have known and equal
chances of selection
Types of probability Sampling:
Simple random sampling
In Such types of situation we will use S.R.S;
It must be based on generalized result.
When our population is homogeneous
We have less time and less resources
Population frame is clear
Complex Random Sampling
CRS is used in the following situations;
Population is not homogenous (divided into groups and subgroups).
We are concerned with real generalization.
Population frame is limited.
We have enough time and resources
In case of exploratory research.
Punjab University Gujranwala Campus
35
Employees Turn Over In PVT. Sector
Types of CRS
Systematic sampling
“According to this approach we will select the member of the sample on the basis of a
particular system” e.g. System means selecting every nth element in the population
starting with a randomly chosen element between 1 to N.
Stratified sampling:
This sampling approach is used when our population consists upon the groups having
different characteristics. Stratified sampling is a probability sampling design that first
divides the population into subgroups and then subjects are chosen randomly from
each sub group.
Cluster sampling:
“A probability sampling design in which sample is chosen on the basis of intra- group
heterogeneity and inter-group homogeneity.”
Inter ---- without comparison
Intra ----- with comparison
Area sampling:
It is actually a form of cluster sampling within an area when the research is concerned
to population within identified geographical area such as cities, countries, particular
locality the process of sampling will be called area sampling
Punjab University Gujranwala Campus
36
Employees Turn Over In PVT. Sector
Double sampling:
A process which includes collecting data from a sample using previously defined
techniques based on the information from a sub sample for further analysis.
This plan is used when further information is needed from subset of the group from
which same information has already been collected from the same study.
2) Non probability Sampling:
A sampling design which is based upon the concept of non random selection.
OR
A sampling technique where every member of population have not equal chances of
selection
We use non probability sampling techniques in following situation;
Less concern with generalization
Mostly concern is to feel the situation
We have limited time and need the quick information
When population frame is not clear
Types of Non Probabilities Sampling
I. Convenient sampling
The procedure which refers to the collection of information from members of the
population who are conveniently available is named as convenient sampling.
II. Purposive sampling
Punjab University Gujranwala Campus
37
Employees Turn Over In PVT. Sector
If it is necessary to get or obtain information from some specific target group we
will use purposive sampling.
Here sampling is confined to specific type of people who can provide the desired
information.
Two approaches are used by purposive sampling.
a) Judgment approach
According to this approach we search for appropriate respondents and judge whether
they can provide us the required information or not. So according to this approach our
sample consist of only that respondents who can provide us relevant information.
b) Quota sampling
According to this approach we fix the quota of people for every area to get
information from appropriate respondents.
“In our research we used the purposive sampling and we use the following types of
approaches.
Quota sampling
Because we filled our questionnaire under particular quota like following
20% from customers, 20%from distributors, 20%from traders or wholesalers and 40%
from local manufacturing companies.
Tools of Data Collection:
There are two tools of data collection.
a) Qualitative research technique
b) Quantitative research technique
Punjab University Gujranwala Campus
38
Employees Turn Over In PVT. Sector
We have used quantitative technique in our research as well as qualitative technique.
Data collection, Data Processing and Analysis:
Punjab University Gujranwala Campus
39
Employees Turn Over In PVT. Sector
What is your age?
Frequency Percent Valid PercentCumulative
PercentValid less than 20 years 25 11.0 11.0 11.0
20-30 years 101 44.5 44.5 55.5
30-40 years 74 32.6 32.6 88.1
40-50 years 20 8.8 8.8 96.9
more than 50 years 7 3.1 3.1 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
40
Employees Turn Over In PVT. Sector
what is your age?more than 50 years40-50 years30-40 years20-30 yearsless than 20 years
Per
cen
t
50
40
30
20
10
0
what is your age?
in which type of organization you are employeed now?
Frequency Percent Valid PercentCumulative
PercentValid manufacturing 77 33.9 33.9 33.9
trading 45 19.8 19.8 53.7
services 94 41.4 41.4 95.2
other 11 4.8 4.8 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
41
Employees Turn Over In PVT. Sector
in which type of organization you are employeed now?otherservicestradingmanufacturing
Per
cen
t
50
40
30
20
10
0
in which type of organization you are employeed now?
Gender?
Frequency Percent Valid PercentCumulative
PercentValid male 183 80.6 80.6 80.6
female 44 19.4 19.4 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
42
Employees Turn Over In PVT. Sector
femalemale
Gender?
how much experience of job do you have in the private sector?
Frequency Percent Valid PercentCumulative
PercentValid less than one year 49 21.6 21.6 21.6
1-5 years 100 44.1 44.1 65.6
5-15 years 62 27.3 27.3 93.0
more than 15 years 16 7.0 7.0 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
43
Employees Turn Over In PVT. Sector
how much experience of job doyou have in the private sector?more than 15 years5-15 years1-5 yearsless than one year
Per
cen
t
50
40
30
20
10
0
how much experience of job doyou have in the private sector?
what is your experience in the current job?
Frequency Percent Valid PercentCumulative
PercentValid less than 1 year 74 32.6 32.6 32.6
1-5 years 90 39.6 39.6 72.2
5-10 years 40 17.6 17.6 89.9
more than 10 years 23 10.1 10.1 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
44
Employees Turn Over In PVT. Sector
what is your experience in the current job?more than 10 years5-10 years1-5 yearsless than 1 year
Per
cen
t
40
30
20
10
0
what is your experience in the current job?
Are you satisfied with the "Duties of your job"? If not, will you leave your current job?
Frequency Percent Valid PercentCumulative
PercentValid very satisfied 52 22.9 22.9 22.9
satisfied 108 47.6 47.6 70.5
not satisfied, yes I will leave 49 21.6 21.6 92.1
not satisfied, I will not leave 18 7.9 7.9 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
45
Employees Turn Over In PVT. Sector
Are you satisfied with the "Duties of your job"? If not, will you leave your current job?
not satisfied, I will not leave
not satisfied, yes I will leave
satisfiedvery satisfied
Per
cen
t
50
40
30
20
10
0
Are you satisfied with the "Duties of your job"? If not, will you leave your current job?
Are you satisfied with the "Training and development programs" in the organization you are working? If not satisfied, will you leave your job?
Frequency Percent Valid PercentCumulative
PercentValid very satisfied 38 16.7 16.7 16.7
satisfied 108 47.6 47.6 64.3
not satisfied, yes I will leave 51 22.5 22.5 86.8
not satisfied, I will not leave 30 13.2 13.2 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
46
Employees Turn Over In PVT. Sector
Are you satisfied with the "Training and development programs" in the organization you are working? If not satisfied, will you leave your job?
not satisfied, I will not leave
not satisfied, yes I will leave
satisfiedvery satisfied
Per
cen
t
50
40
30
20
10
0
Are you satisfied with the "Training and development programs" in the organization you are working? If not satisfied, will you leave your job?
Are you satisfied with the "Opportunities for promotion" in your current job? If not satisfied, will you stay in the current organization?
Frequency Percent Valid PercentCumulative
PercentValid very satisfied 43 18.9 18.9 18.9
satisfied 89 39.2 39.2 58.1
not satisfied, no I will not stay 53 23.3 23.3 81.5
not satisfied, yes I will stay 42 18.5 18.5 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
47
Employees Turn Over In PVT. Sector
Are you satisfied with the "Opportunities for promotion" in your current job? If not satisfied, will you stay in the current organization?
not satisfied, yes I will stay
not satisfied, no I will not stay
satisfiedvery satisfied
Per
cen
t
40
30
20
10
0
Are you satisfied with the "Opportunities for promotion" in your current job? If not satisfied, will you stay in the current organization?
What is the "Salary treatment" in the organization you are doing your job? If there is bad salary treatment, will you stay here?
Frequency Percent Valid PercentCumulative
PercentValid very good 35 15.4 15.4 15.4
good 70 30.8 30.8 46.3
normal 82 36.1 36.1 82.4
bad, no I will not stay here 30 13.2 13.2 95.6
bad, yes I will stay 10 4.4 4.4 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
48
Employees Turn Over In PVT. Sector
What is the "Salary treatment" in the organization you are doing your job? If there is bad salary treatment, will you stay here?
bad, yes I will staybad, no I will not stay here
normalgoodvery good
Per
cen
t
40
30
20
10
0
What is the "Salary treatment" in the organization you are doing your job? If there is bad salary treatment, will you stay here?
What is the "Working conditions"? If not healthy, will you quit?
Frequency Percent Valid PercentCumulative
PercentValid healthy 88 38.8 38.8 38.8
normal 104 45.8 45.8 84.6
not healthy, yes I will quit 25 11.0 11.0 95.6
not healthy, I will not quit 10 4.4 4.4 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
49
Employees Turn Over In PVT. Sector
What is the "Working conditions"? If not healthy, will you quit?not healthy, I will not quitnot healthy, yes I will quitnormalhealthy
Per
cen
t
50
40
30
20
10
0
What is the "Working conditions"? If not healthy, will you quit?
Are you satisfied with the Working hours? If not satisfied, will you leave?
Frequency Percent Valid PercentCumulative
PercentValid very satisfied 47 20.7 20.7 20.7
satisfied 124 54.6 54.6 75.3
not satisfied, I will leave 38 16.7 16.7 92.1
not satisfied, I will not leave 18 7.9 7.9 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
50
Employees Turn Over In PVT. Sector
Are you satisfied with the Working hours? If not satisfied, will you leave?
not satisfied, I will not leave
not satisfied, I will leavesatisfiedvery satisfied
Per
cen
t
60
50
40
30
20
10
0
Are you satisfied with the Working hours? If not satisfied, will you leave?
What type of control play an important role in the problem of employees' turnover?
Frequency Percent Valid PercentCumulative
PercentValid strict 129 56.8 56.8 56.8
normal 83 36.6 36.6 93.4
carrot 15 6.6 6.6 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
51
Employees Turn Over In PVT. Sector
What type of control play an important role in the problem of employees' turnover?
carrotnormalstrict
Per
cen
t
60
50
40
30
20
10
0
What type of control play an important role in the problem of employees' turnover?
If you get a better job opportunity, will you leave your current job?
Frequency Percent Valid PercentCumulative
PercentValid yes 196 86.3 86.3 86.3
no 31 13.7 13.7 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
52
Employees Turn Over In PVT. Sector
If you get a better job opportunity, will you leave your current job?noyes
Per
cen
t
100
80
60
40
20
0
If you get a better job opportunity, will you leave your current job?
Is Non competitive wages the cause of employees' turnover?
Frequency Percent Valid PercentCumulative
PercentValid yes 145 63.9 63.9 63.9
no 82 36.1 36.1 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
53
Employees Turn Over In PVT. Sector
Is Non competitive wages the cause of employees' turnover?noyes
Per
cen
t
60
40
20
0
Is Non competitive wages the cause of employees' turnover?
What is the pay system in your organization? Are you satisfied with that?
Frequency Percent Valid PercentCumulative
PercentValid sick pay system,satisfied 32 14.1 14.1 14.1
sick pay system, not satisfied 98 43.2 43.2 57.3
well pay system, satisfied 87 38.3 38.3 95.6
Punjab University Gujranwala Campus
54
Employees Turn Over In PVT. Sector
well pay system, not satisfied 10 4.4 4.4 100.0
Total 227 100.0 100.0
What is the pay system in your organization? Are you satisfied with that?
well pay system, not satisfied
well pay system, satisfied
sick pay system, not satisfied
sick pay system,satisfied
Per
cen
t
50
40
30
20
10
0
What is the pay system in your organization? Are you satisfied with that?
If your role on job is not clear, will you leave the job?
Frequency Percent Valid PercentCumulative
PercentValid yes 158 69.6 69.6 69.6
no 69 30.4 30.4 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
55
Employees Turn Over In PVT. Sector
If your role on job is not clear, will you leave the job?noyes
Per
cen
t
60
40
20
0
If your role on job is not clear, will you leave the job?
What is the role of "colleague politics" (unhealthy competition with other employees) in employees' turnover?
Frequency Percent Valid PercentCumulative
PercentValid important 78 34.4 34.4 34.4
normal 114 50.2 50.2 84.6
lesser important than other factors 35 15.4 15.4 100.0
Punjab University Gujranwala Campus
56
Employees Turn Over In PVT. Sector
Total 227 100.0 100.0
What is the role of "colleague politics" (unhealthy competition with other employees) in employees' turnover?
lesser important than other factors
normalimportant
Per
cen
t
60
50
40
30
20
10
0
What is the role of "colleague politics" (unhealthy competition with other employees) in employees' turnover?
Are you satisfied with your reward system? If not, will you leave?
Frequency Percent Valid PercentCumulative
PercentValid very satisfied 20 8.8 8.8 8.8
satisfied 127 55.9 55.9 64.8
not satisfied, I will leave 53 23.3 23.3 88.1
not satisfied, I will not leave 27 11.9 11.9 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
57
Employees Turn Over In PVT. Sector
Are you satisfied with your reward system? If not, will you leave?
not satisfied, I will not leave
not satisfied, I will leavesatisfiedvery satisfied
Per
cen
t
60
50
40
30
20
10
0
Are you satisfied with your reward system? If not, will you leave?
you are not satisfied with the relationship with your new boss, will you quit your job?
Frequency Percent Valid PercentCumulative
PercentValid yes 150 66.1 66.1 66.1
no 77 33.9 33.9 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
58
Employees Turn Over In PVT. Sector
you are not satisfied with the relationship with your new boss, will you quit your job?
noyes
Per
cen
t
60
40
20
0
you are not satisfied with the relationship with your new boss, will you quit your job?
If your family status changes (marriage, divorce etc.), will you leave your job?
Frequency Percent Valid PercentCumulative
PercentValid yes 78 34.4 34.4 34.4
no 149 65.6 65.6 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
59
Employees Turn Over In PVT. Sector
If your family status changes (marriage, divorce etc.), will you leave your job?noyes
Per
cen
t
60
40
20
0
If your family status changes (marriage, divorce etc.), will you leave your job?
Does the cause "management doesn't display people skills" play an important role in employees` turnover?
Frequency Percent Valid PercentCumulative
PercentValid yes 146 64.3 64.3 64.3
no 81 35.7 35.7 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
60
Employees Turn Over In PVT. Sector
Does the cause "management doesn't display people skills" play an important role in employees` turnover?
noyes
Per
cen
t
60
40
20
0
Does the cause "management doesn't display people skills" play an important role in employees` turnover?
Employee will leave the job if he has
Frequency Percent Valid PercentCumulative
PercentValid low resiliency 165 72.7 72.7 72.7
high resiliency 62 27.3 27.3 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
61
Employees Turn Over In PVT. Sector
Employee will leave the job if he hashigh resiliencylow resiliency
Per
cen
t
80
60
40
20
0
Employee will leave the job if he has
Is care of children or aged relatives also a cause of employees` turnover?
Frequency Percent Valid PercentCumulative
PercentValid yes 126 55.5 55.5 55.5
no 101 44.5 44.5 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
62
Employees Turn Over In PVT. Sector
Is care of children or aged relatives also a cause of employees` turnover?noyes
Per
cen
t
60
50
40
30
20
10
0
Is care of children or aged relatives also a cause of employees` turnover?
Is the "Non family friendly work schedule" basic cause of employees' turnover?
Frequency Percent Valid PercentCumulative
PercentValid yes 139 61.2 61.2 61.2
no 88 38.8 38.8 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
63
Employees Turn Over In PVT. Sector
Is the "Non family friendly work schedule" basic cause of employees' turnover?
noyes
Per
cen
t
60
40
20
0
Is the "Non family friendly work schedule" basic cause of employees' turnover?
If you are offered a permanent public sector job, will you leave your current job?
Frequency Percent Valid PercentCumulative
PercentValid yes 167 73.6 73.6 73.6
no 60 26.4 26.4 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
64
Employees Turn Over In PVT. Sector
If you are offered a permanent public sector job, will you leave your current job?
noyes
Per
cen
t
80
60
40
20
0
If you are offered a permanent public sector job, will you leave your current job?
If organization is instable, would you like to go to that organization which is stable and you can predict your career advancement?
Frequency Percent Valid PercentCumulative
PercentValid yes 179 78.9 78.9 78.9
no 48 21.1 21.1 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
65
Employees Turn Over In PVT. Sector
If organization is instable, would you like to go to that organization which is stable and you can predict your career advancement?
noyes
Per
cen
t
80
60
40
20
0
If organization is instable, would you like to go to that organization which is stable and you can predict your career advancement?
In which organization you will like to stay? Where there is
Frequency Percent Valid PercentCumulative
PercentValid predictable work
environment 47 20.7 20.7 20.7
changing work environment 97 42.7 42.7 63.4
Punjab University Gujranwala Campus
66
Employees Turn Over In PVT. Sector
stable work environment 83 36.6 36.6 100.0
Total 227 100.0 100.0
In which organization you will like to stay? Where there isstable work environmentchanging work environmentpredictable work environment
Per
cen
t
50
40
30
20
10
0
In which organization you will like to stay? Where there is
Is high inefficiency in the organization cause of employees` turnover in private sector?
Frequency Percent Valid PercentCumulative
PercentValid yes 165 72.7 72.7 72.7
no 62 27.3 27.3 100.0
Total 227 100.0 100.0
Punjab University Gujranwala Campus
67
Employees Turn Over In PVT. Sector
Is high inefficiency in the organization cause of employees` turnover in private sector?
noyes
Per
cen
t
80
60
40
20
0
Is high inefficiency in the organization cause of employees` turnover in private sector?
What will be the position of employees' turnover in the organization where the selection of the employee is not according to the Job/Culture Fit?
Frequency Percent Valid PercentCumulative
PercentValid very high 45 19.8 19.8 19.8
high 101 44.5 44.5 64.3
normal 64 28.2 28.2 92.5
low 17 7.5 7.5 100.0
Punjab University Gujranwala Campus
68
Employees Turn Over In PVT. Sector
Total 227 100.0 100.0
What will be the position of employees' turnover in the organization where the selection of the employee is not according to the Job/Culture Fit?
lownormalhighvery high
Per
cen
t
50
40
30
20
10
0
What will be the position of employees' turnover in the organization where the selection of the employee is not according to the Job/Culture Fit?
Findings/ Results:
Punjab University Gujranwala Campus
69
Employees Turn Over In PVT. Sector
We have find out the following results for our research report:
1) Employee turnover is greater in private because of employees’ dissatisfaction towards
their Duties of job.
2) Training and development programs are not enough.
3) Lower opportunities for promotion in private sector.
4) Salary treatment is not good enough in private sector.
5) Poor or unhealthy working conditions in the organizations.
6) More working hours as compared to the public sector.
7) Strict control on employees plays an important role in the private sector.
8) Employee is always attracted to a better job.
9) Non competitive wages discourage the employees in the private organizations.
10) Sick pay system is also a major cause of employee turnover.
11) Role of the employee on job is not clear.
12) Unhealthy competition also contributes towards the employee turnover.
13) Reward system is not good in the sector.
14) Due to bad relations with the new boss is also a cause of this problem.
15) Employee turnover is greater when their skill is not displayed by the management.
16) Low resiliency or less flexibility of the employee is also a cause of employee
turnover.
17) Private organizations are not caring the children or parents of the employees as
compared to the public sector organizations.
18) The employees want to leave that job that doesn’t allow them to spend a little bit time
with their friends and family.
19) Employees always try to have a permanent public sector job.
20) In instable organizations, employees turnover is greater.
21) Employees always like to work in innovative or stable environment.
22) In an inefficient organization, employee turnover will be greater.
23) Employee would like to leave the organization if he is not selected according to the
job or culture of organization.
Recommendations:
Punjab University Gujranwala Campus
70
Employees Turn Over In PVT. Sector
After our research study we have the following recommendations:
1. Private organization should adopt the strategy of well pay system in which
there is a fix limit of the number of leaves in one month. sick pay system
should be avoided.
2. Private organizations should care the parents and children of the employees
just like public sectors. Children of employees should be given scholarships in
educational institutions, free medical allowance or facility should be given to
the parents or children of the employees.
3. Before the selection of the employee, organizations should check the
resiliency or flexibility level of candidates of employment by defining the
resiliency criteria.
4. Employees should be paid competitive wages , by providing high wage rate to
that person who works efficiently and effectively. For example if employees
are paid on working hours base and one employee works for eight hours and
provides output of 200 units, while other employee works for the same hours
and provides output of 250 units, second employee should be rewarded. So,
that both the employees are encouraged.
5. Assigning the right duty to the right person in which he is skillful.
6. Building training and development programs centre where untrained and unskilled
persons should be provided specific training programs.
7. There should be specified criteria for providing opportunities for promotion so that
each person can become aware of promotion stages and can struggle to get
promotion.
8. Salary package should be appropriate to the hardworking of the employees it should
be evaluated with the employee’s hardworking performance and provided outcome.
Punjab University Gujranwala Campus
71
Employees Turn Over In PVT. Sector
9. Working hours should be fixed for all employees and each employee should be
assigned equal time for working and equal work. There should be no burden of work
on employees.
10. Management should have normal or moderate control over employees. It should be
neither too strict nor too polite. Moderate control can be created through providing
friendly attitude and trusting on employees. Better job opportunities should be
provided to employees that can be provided by evaluating the regular high
performance and consistency of hard working of employees and motivating them.
11. Role of employees on job should be clear to them. it can be possible when employees
have prescribed knowledge about the nature of work. While in most of the
organizations employees are also assigned that work which does not include in their
duty schedule.
12. Colleague politics (unhealthy competition among employees) factor should be
decreased. It is possible when equal importance will be given to the employees and
encouraging those employees who are involved in the unhealthy competition with
other employees, it should be known to them that they have only concern with their
own duties, they should not interfere in others work.
13. There should be proper reward system; the employees should be appreciated if they
show extra ordinary performance. The employees should be satisfied with their
reward system; they should be paid at standard wage rate.
14. Good relationships among boss and employees are a sign of commitment and fair
attitude by both. The boss should have some frequent visits to the workplace of
employees and solve their problems and motivate them to work hard then good
relationships among employees and boss will take place.
15. Management should display people skills, if an employee is a seller but he is trained
skill full and experienced as marketer, the management should achieve benefits by
displaying his skills and assign that duty to him which he can perform in better way.
The management should make optimal use of his skills.
Punjab University Gujranwala Campus
72
Employees Turn Over In PVT. Sector
16. Work schedule of employees should be prepared in such a way that they can spend
their same time with their family and friends. It can be possible when working time is
fix and appropriate while in most of the private sectors, the employees only know
their time to enter in their work but do not know the time of going back.
17. There is need to know the causes due to which employees have a great demand of
public sector job. These causes can be known/discovered by making a comparison of
public sector and private sector ,incentive to employees
18. The nature of working environment should be appropriate to the employees demand.
Employees should be assign the work according to there merit and ability of work.
19. Private organization should have efficiency in the working which is possible when all
workers and management are sincere with the organization and work hard to get the
organization to the way of success.
20. Selection of employees should be made according to the job which suits and fits to
the employees’ skill it is possible when work is assigned to the related person on
which he has commanding control.
21. Salaries of employees should be paid intimae because delay in salaries dissatisfied the
employees from the working or the organization and they give up hard working and
willing to leave the organization. Employees are assets of the company. It should take
care of them.
22. Employees should be paid standard wage rate which is fixed by the Government at
least Rs.4600/- per month. When management will be sincere with the employees
they will also show sincerity and stand by the company in ups and downs of business.
Punjab University Gujranwala Campus
73
Employees Turn Over In PVT. Sector
Conclusion:
Employees’ turnover is greater in private sector as compared to public sector. It is a serious
problem for the private organizations. Due to this situation, other many types of problems are
taking place such as unemployment, low job commitment, usage of more resources (financial
and natural) and time. But the private organizations can overcome this problem if they follow
the suggestions made above.
Punjab University Gujranwala Campus
74
Employees Turn Over In PVT. Sector
Reference:
Reference Books:
Sekaran, Uma, Research Methods for Business, Fourth edition.
Bell, Emma, Bryman, Alan. Business research methods by Oxford press.
Choudhary Muhamad Rauf, polymer’s Modern statistics for business and economics,
polymer publications.
Reference websites:
Abassi SM, Hollman KW (2000). "Turnover: the real bottom line", Public
Personnel Management, 2 (3) :333-342.
Alexander J, Bloom J, Nuchols B (1994). "Nursing turnover and hospital
efficiency: an organization-level analysis", Industrial Relations, 33 (4):
505-520.
Barrows C (1990). "Employee turnover: implications for hotel
managers", FIU Hosp. Rev. pp.24-31.
Badawy MK (1988). "What we’ve learned about managing human
resources in R&D in the last fifty years", Res. Technol.Manage. 31
(5): pp.19-35.
Basta N, Johnson E (1989). "ChEs are back in high demand", Chem.
Eng. 96 (8): 22-29.
Beach LR (1990) Image Theory: Decision Making in Personal and
Organizational Contexts, Wiley, Chichester, .pp. 3-10
Blau G, Boal K (1989). "Using job involvement and organizational
commitment interactively to predict turnover", J. Manage. 15 (1): 115-
127.
Bluedorn AC (1982). "A unified model of turnover from organizations",
Hum. Relat. 35: 135-153.
Brooke PP, Price JL (1989). "The determinants of employee
absenteeism: An empirical test of a causal model". J. Occup.
Psychol. 62 :1-19.
Brooke PP, Russell DW, Price JL (1988). "Discuss validation of
measures of job satisfaction, job involvement and organizational
Punjab University Gujranwala Campus
75
Employees Turn Over In PVT. Sector
commitment", J. Appl. Psychol. 73 (2) : 139-145
Catherine M Gustafson (2002). “staff turnover: Retention”.
International j. contemp. Hosp. manage. 14 (3) : 106-110.
Cantrell N, Sarabakhsh M (1991). "Correlates of non-institutional food
service turnover". FIU Hosp. Rev. pp.52-9.
Couger DJ (1988). "Motivators vs. demotivators in the IS environment",
J. Syst. Manage. 39 (6) :36-41.
DeMicco FJ, Giridharan J (1987). "Managing employee turnover in the
hospitality industry", FIU Hosp. Rev. pp.26-32.
Denvir A, McMahon F (1992). “Labour turnover in London hotels and
the cost effectiveness of preventative measures", Int. J. Hosp.
Manage. 11 (2) : 143-54.
Dyke TV, Strick S (1990). “Recruitment, selection and retention of
managers in the hotel and restaurant industry", FIU Hosp. Rev.pp.1-
Dess GD, Shaw JD (2001). “Voluntary turnover, social capital, and
organizational performance", Acad. Manage. Rev. 26 (3): pp 446-56.
Firth L, David J Mellor, Kathleen A Moore, Claude Loquet (2007). How
can managers reduce employee intention to quit?, J. manage.
Psychol. 19 (2): 170-187.
Garden AM (1989). "Correlates of turnover propensity of software
professionals in small high tech companies", R&D Manage. 19 (4):
325-34.
Griffeth RW, Hom PW, Gaertner S (2000). "A meta-analysis of
antecedents and correlates of employee turnover: update, moderator
tests, and research implications for the next millennium", J. Manage.
26 (3): 463-88.
Hackman, JR, Oldham GR (1975). “Development
Punjab University Gujranwala Campus
76