Effects Of Labour Turnover On Organizational Performance (A Comparative Study Of Unilever And Pz Nigeria Pls)

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Effects Of Labour Turnover On Organizational Performance (A Comparative Study Of Unilever And Pz Nigeria Pls)


The study has delved comprehensively on the effect of labour turn over on employees’ productivity in the manufacturing industry with UNILEVER and PZ Nigeria Plc as a case studies. The objective of this study is to examine whether better working condition has effect on labour turnover reduction in the manufacturing sector. The study follows some logical step to generalize the findings of the study. The survey research design was employed in this study and the questionnaire was the major research instrument used to collect information from the respondents in the manufacturing sector. Various statistical tools were employed in this study. Tools such as simple percentage analysis and chi-square test were used to provide answers to the research problems, research questions and the research hypothesis. “Thus, conclusion was drawn from the result of’ the analysis. The result of the statistical inference revealed that employees were very pleased with this system which has not only improved productivity but also encouraged employees to stay on the job and it was recommended that Training and re­training of’ staff should be encouraged and practiced to meet the modern techniques production and service of goods and also in personnel management. This will help to curtain labour turnover because staff feels happier when they are learning new thing to improve their knowledge and skills. The recognition of the above recommendation at all times will help the management to pursue its goals and objectives in the. most effective and efficient.




1.1 Background of the Study

1.2 Statement of Problem

1.3 Objectives of the Study

1.4 Research Questions

1.5 Research Hypotheses

1.6 Significance of the Study

1.7 Scope and Limitation of the Study

1.8 Research Methodology

1.9 Definition of Terms




2.1 Introduction

2.2 Employer and Employees Relationship

2.3 Theories of Labor Turnover

2.4 Causes of Labor Turnover

2.5 Function of Human Resource Management

2.6 The Employers Reaction to the Job

2.7 Performance

2.8 Theoretical Work by Edward L. Deci

2.9 Performance Determinant

2.10 Potential of Performance Pay In Policy Reforms

2.11 Wages and Salary Policy In Nigeria



3.2 Research Design

3.1 Introduction

3.3 Restatement of Research Questions

3.4 Restatement of Research Hypotheses

3.5 Characteristics of the Studied Population

3.6 Sampling Design and Procedures

3.7 Data Collection Instrument

3.8 Administration of the Data Collection Instrument

3J.9 Procedure for Analyzing Collected Data

3.10 Limitations of the Research Methodology



4.1 Introduction

4.2 Analysis of Personal Data

4.3 Analysis of Variables



5.1 Summary

5.2 Findings

5.3 Conclusion

5.4 Recommendations

5.5 Suggestions for Further Research




Labour turnover can be defined as the flow of manpower into and out of an organization. In this definition, one could deduce the flow of manpower to mean (replacement and new hire) while outflow to mean (separation, lay off, discharge, quits, retirement, leave, absence or death etc.). This inflow and outflow will continue to attract the attention of human resource practitioners on finding the cause: and possible solution for an organization. Since personnel/human resource managers are the custodians of the entire workforce in any organization. The role they perform determine to a great extent the inflow and outflow of workers in an organization.

According to Tadeyi (1999), labour turnover occurs when an employee: leaves the service of an organization. Therefore, the resultant effect of the movement of workers/labour from one place to another in search of comfort is tagged “labour turnover”. Thus, the fund of human resource management is one of the most dynamic and challenging areas for managers across the globe in the turbulent business climate, caused by increased global price competitiveness, changing technologic, changing employment legislation, and changing workforce composition is challenging managers to utilize their employees more effective to gain competitive; advantage. In recent years there has been significant practical development with increasing numbers of private and public sector organizations adopting Human Resource management in order to retain the best hands in their organization, thus reducing labour turnover. Therefore, there is a need for a study of this nature.


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:

v Organizations are practically run by men.

v 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

v 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, programmes, and practices that can ensure optimal acquisition, utilization and reduction of labour turnover in business enterprises.

Labour turnover today in the manufacturing sector in Nigeria has led to a greater extent brain drain and this has lead to many economic crisis in which the nation find her self. Therefore, a high rate of labour 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 incencant change of jobs by personnel. ‘thus, there is a need for a study of this nature.


The main objective of this study is to examine the effect of’ labour turnover on organizational performance.

Hence in order to achieve the objective stated above, the following specific objectives shall be our guide:

v To examine whether labour turnover have effect on organization efficiency.

v To examine whether labour turnover have effect on organizational efficiency.

v To examine the effect of labour turnover on organization image.

v To examine whether labour turnover help to lay off unproductive workers.

v To examine whether better working condition has effect on labour turnover reduction in the manufacturing sector


In order to achieve the objectives of the study identify above, the following are the research questions of this study.

v Does labour turnover have effect on organizational effectiveness in the manufacturing industry?

v Does labour turnover have effect on organization efficiency?

v Does labour turnover have effect on organization image?

v Does a better working condition have effect on labour turnover reduction in the manufacturing sector?

v Does labour turnover have positive effect on lay off unproductive workers?


Ho: Labour turnover does not have effect on organizational efficiency in the manufacturing industry.

Hi: Labour turnover has effect on organizational efficiency in the manufacturing industry.

Ho: Better working conditions do not have effect on labour turnover reduction in the manufacturing; sector

Hi: Better working conditions have effect on labour turnover reduction in the manufacturing sector.


This study provides a basis for closer scrutiny of the causes of labour turnover in the manufacturing industry. hence, the study will provide answers to issue; regarding contemporary application of labour turnover, and it relative importance with respect to employee’s productivity.

This study will be useful to all organizations in different industries, (public or private) and entrepreneurs who are looking for the way to retain and attract the best hands in their organization to achieve fundamental goals. Also, government organizations and individuals concerned with labour issue will benefits from this study.

Finally, this study is expected to stimulate research interests in other aspects of manufacturing. industry in general and human resources management.


The basic premise on which the study is based is the effect of’ labour turnover on organizational performance in the manufacturing industry. This study concentrates on the staffs of UNILEVER and PZ Plc. Hence, staff of this institution was sampled and data relating to labour turnover was collected from them.


The level of accuracy of this study depends on the amount of’ data or information supplied by the respondents. Also, there can be some elements of bias in information supplied, which will hinder the generality of the findings of this study.

Finance and time are other constraints that rob this study of its perfection and understanding a research study is a Herculean task that takes intellectual stamina to the limit.


Communication: This refers to as passing and receiving information from one human to another. This can either be directly through writing, speaking or non-verbal language or indirectly through technology, telephone, television, radio, telex, internet etc.


Alienation: This refers to as a situation in which an individual working in an organisation feels cut-off from organisation itself or non-involvement of works in the activities involving them in their working places.

Frustration: State that occurs when an individual is presented by some obstacle from reaching a goal, which may result in aggressive behaviiour.

Grievance: is a complaint by an employee against the company based on an alleged misinterpretation or non application of the terms and conditions of employment.

Induction: It is a form of training the new employee with general organisation system and its environment.

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