THE EFFECT OF LABOUR TURNOVER ON ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1    Background of the Study

In all economic activities human effort is the key. It is the human knowledge transferred into activity that give utilizes or value to all commodities. And that means who cultivates and whether he uses a hoe or tractor. It is the same who saws, weeds, processes, store and sells. It is also man who extracts iron ore, processes it into steel. It postulates that who invents, designs, makes and operates machines is man who creates, transmits and seeks knowledge etc. thus, every human endeavour here one earth has man’s finger print. Thus without human effort which is considered vital for production so many managerial effort would been proved abortive. This effort also is usually called labour. Labour is the most important resources in organization. This is why labour is define as human effort both mental and physical assertion legitimately applied in production of goods and services so as to satisfy human needs for a reward known as wages and salaries. In this sense, labour include all labour, semi skilled labour and unskilled which all gear towards the production of goods and services to earn a living through their wages and salaries.                
1.2    Statement of the Problem
The problem of labour turnover attract a reasonable percentage of attention in an organization because labour represent the life wire of any organization. The rate at which employee have organization is alarming, the types and number of works who are terminated or resigning their various jobs show how effective and efficient is the management in its operation which also determined the level of stability, growth and development of the organization. Although, in some organizations, there, is extent to which mobility of workers is considered acceptable.                
1.3    Objectives of the Study
Purposively, this project is to be educate whoever is concerned in its significance of the study on the following objectives:  
i)       To examine the effects of labour turnover on the performance of Kaduna State Water Board.
ii)      To enumerate the problems of labour turnover and how it can be minimized in Kaduna State Water Board.
iii)     To examine the major causes of labour turnover in an organization using Kaduna State Water Board as a case study.
1.4    Significance of the Study
The study would be of significance to the Kaduna State Water Board in identifying the problems and causes of labour turnover. This study is expected to provide solution the research work is of benefit to the body of knowledge students and other researchers. Other organizations that have similar problems can also benefit from the research work.                  
1.5    Research Questions                
What are the effects of labour turnover on the performance of Kaduna State Water Board?                
What are the problems of labour turnover and how can it be minimized in Kaduna State Water Board?                
What are the major causes of labour turnover in Kaduna State Water Board?                  
1.6    Scope of the Study
The extent of this research covers all concept, the causes, problems, effects and the measures to be taken to tackle the problem of labour turnover that deserves to be minimized. This study will be restricted to the effects of labour turnover on organizational performance in Nigeria.                
1.7     Limitation of the Study
This research is not lastly due to some proposition for any organization. He classified cost of turnover into direct and indirect cost.
Direct Cost This is the cost that associated with the costs of replacing the employees and training the newly hired such as costs of communicating the vacant position cost of administering the recruitment function, cost of screening the applicant interviewing the candidates, administering selection tools tests, meeting hr candidate, concluding background investigation, cost of preparing new employee training materials, conducting training session, giving on the job training and the costs of separating former employee from the firm such as administering paper work/meeting, conducting exit interview paying several pay/packaged, vacation time etc.
Indirect Cost Turnover also brings with indirect cost especially when the employees who are leaving were liked by the organizations client, customer loyally may be affected. Again, as the new employees learn their jobs, the quality of the product and service may suffer. Michael Armstrong, human resources practice page 381 enumerated the following as cost of labour turnover, leaving cost, direct cost of replacement opportunity cost of time spent, direct cost of introducing replacement, loss of input.