Impact of Turnover on Organizational Efficiency: A Case Study of Dawlance Company

Maria Shaikh,Nadeem Juman Shah,Haseeb Haleem Shaikh,Ghazala Benghal,Sumra Shaikh

doi:10.33166/acdmhr.2020.02.003

Maria Shaikh, Nadeem Juman Shah + Show 3 more

Open Access

https://doi.org/10.33166/acdmhr.2020.02.003

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Abstract

The research is conducted to investigate and analyse the impact of employee turnover on organizational effectiveness and employee performance, this study also highlights those factors which makes the employees less comfortable in DS Motors (Unique) Hyderabad Pakistan and provide possible solutions to reduce employee turnover. In this study we examine the increasing ratio of employee’s turnover in DS Motors (Unique) that observed in the last couple of years. High rate of employee turnover negatively affects the organizational efficiency and decreases the productivity of the organization. The cooperative sampling strategy was used to select the participants/respondents. Self-administered survey questionnaires were distributed among 166 employees of DS Motors from which 135 were returned in a useful condition. SPSS (version 20.0) was utilized for statistical data analysis. The study findings suggest that salary is one of the reasons of employee turnover in DS Motors. The results of the study highlight that increasing rate of employee turnover increased workload to present employees of the organization. The evidences found in this study also highlights that high employee turnover reduce the productivity and quality of the product produced in the organization. The findings also highlight that employee turnover may cause customer dissatisfaction and disrupts the delivery of the products and reduce service provisions. Other findings suggested that poor and unhealthy working conditions and lack of advancement opportunities increase employee turnover in the organization. The recommendations highlighted in this study that top management must provide competitive remuneration to the employees of the organization and need to create career development opportunities and develop a communication network between employees and management of the organization. This study concludes with the future direction of the research.

Highlights

Employee turnover has a large impact on the productivity and efficiency of the organization and affects other employee’s performance
The main objective of this study is to investigate and analyse the impact of employee turnover on organizational effectiveness and employee performance in DS Motors (Unique)
In this chapter Section A deals with the demographic factors, Section B deals with the responses related to the organizational effectiveness and employee performance, Section C analyses the impact of employee turnover on organizational efficiency and Section D gives the solution suggested by the employees of the organization

Summary

Introduction

Employee turnover has a large impact on the productivity and efficiency of the organization and affects other employee’s performance. It is for these reasons that it is mandatory for the organization to understand the causes of turnover and identify some solutions. Hyo Sun Jung and Hye Hyun Yoon (2014) asserted that employees are positively associated with emotional dissonance, job stress, and turnover intent. Employees’ emotional dissonance did not have a significant, direct impact on turnover intent. Employees’ job stress was positively associated with turnover intent

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