LABOUR TURNOVER AND EMPLOYEE PERFORMANCE: A CASE STUDY OF KISII

BOTTLERS LIMITED COCACOLA COMPANY IN KENYA.

BY

NYAGWOKA SARANGE EUNICE

BHR/20057/82/DF

'RESEARCH DISSERTATION SUBMITTED TO THE SCHOOL OF BUSINESS AND

MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE A WARD OF A BACHELORS DEGREE OF

HUMAN RESOURCE MANAGEMENT OF

KAMPALA INTERNATIONAL

UNIVERSITY

OCT 2011

DECLARATION

I, NYAGWOKA SARANGE EUNICE, hereby declare that this is my original work and has never

been presented to any other educational institution for the award of degree.

Signature .. -~~- ...... Date .. -~~.l. tJI:~oll. .... . NY AGWOKA S.EUNICE

(STUDENT)

APPROVAL

This is to certify that the research ofNyagwoka S Eunice has been under my Supervision and is now

ready for submission to the School of Business and Management for the award of a degree of

Human Resource Management of Kampala International University.

Signature .. . .. .. .. .. .. .. ........ Date .~'61Ul~DlL

MR.RUTEGANDA M CHAEL

:suPERVISOR)

11

DEDICATION

I first thank God the almighty for the strength knowledge and opportunity he gave me to put together

this dissertation and proposal. I dedicate this dissertation to my parents, mr.and mrs.wilfred

nyagwoka for the much needed help they accorded me in te1ms of financial help and encouraging me

throughout in particular during research of this research dissertation.

[ also thank my brothers Dennis, Hesbon and Moffat and my sisters Gladys and Emily for their

mpport and encouragement. May God bless you.

Ill

ACKNOWLEDGEMENT

I thank the employers and employees of Kisii Bottlers Company, especially I thank the managing

director and the Human resource manager Mr. Nyambane and finance manager Mr. Francis and the

processing manager for letting me carry out research in this company.

[ also sincerely thank my supervisor, Mr.Ruteganda for his consistent guidance and help, correction

md approval of this research dissertation and much needed will to accept to supervise me.

IV

ABSRACT

The study set out to investigate the impact of Labour tum over on organization performance at Kisii

bottlers limited. It was guided by a number of objectives which were to determine the level of

employee Labour turn over at Kisii bottlers limited, to evaluate the causes of Labour turn over at

Kisii bottlers limited, to determine the effect of Labour turn over on performance and to establish the

ways that can be devised to reduce Labour turn over in the organization.

fhe study was carried out using a self administered questionnaire and an interview guide and the

·esults were analyzed and presented in tables. figures and on content. The study concluded that there

tre a number of factors leading to Labour tum over at Kisii bottlers limited in Kenya. The ability of

:elf-reliance in workers had started surfacing because no workers who are sure on his/her life in an

)rganization hence all of them had staried looking forward for self -survival. There are still a

mmber of challenges that need to be addressed at all levels of the organization and the ability to

reate report among the respondents so as to create a conducive environment in order to get the

equired information and there is also need to enhance employee remuneration to help them love the

rganization. It is also impoiiant to enhance Communication skills acquired and applied during work

1anagement

he researcher recommended that the organization should use other alternative ways of managing

'ork challenges than encouraging labour turn over, the orga11ization can train their workers

;cording to the organization needs to help them to adopt to new challenges and Management should

ways inform workers in case of need for voluntary turn over rather tha11 to undertake drastic

;tivities of laying off workers. However future study should be done to get more light in this

·oblem

v

TABLE OF CONTENTS

ECLARA TION .................................................................................................................................................................. I

PPROVAL ........................................................................................................................................................................ II

EDICATION .................................................................................................................................................................... III

:KNOWLEDGEMENT ................................................................................................................................................. IV

3SRACT ........................................................................................................................................................................... V

\BLE OF CONTENTS ................................................................................................................................................... VI

STOFTABLES ............................................................................................................................................................. IX

ST OF FIGURES ............................................................................................................................................................. X

1APTER ONE ................................................................................................................................................................. 1

TRODUCTION ................................................................................................................................................................ 1

BACKGROUND OF THE STUDY ............................................................................................................................... 1

: STATEMENT OF THE PROBLEM .............................................................................................................................. 3

. GENERAL OBJECTIVE ............................................................................................................................................. .3

.I SPECIFIC OBJECTIVES ..................... : ..................................................................................................................... .3

SEARCH QUESTIONS .................................................................................................................................................. 3

THE SCOPE OF THE STUDY ..................................................................................................................................... .3

SIGNIFICANCE OF THE STUDY ............................................................................................................................... .4

LIMITATION OF THE STUDY ............................................................................................................................... .4

!APTER TWO ................................................................................................................................................................ 5

VIEW OF LITERATURE ............................................................................................................................................ S

INTRODUCTION .......................................................................................................................................................... 5

THEORETICAL REVIEW ............................................................................................................................................ 5

CONCEPTUAL FRAMEWORK ................................................................................................................................... 8

PLANATION .................................................................................................................................................................. 8

CAUSES OF LABOUR TURNOVER IN ORGANIZATIONS .................................................................................... 9

EFFECTS OF LABOUR TURN OVER IN ORGANIZATIONS ................................................................................ 12

VI

5. WAYS OF REDUCING LABOUR TURN OVER IN ORGANIZATIONS .............................................................. !}

7YPES OF LABOUR TURNOVER ............................................................................................................................... 15

I. I VOLUNTARY TURNOVER ..................................................................................................................................... IS

7.2 INVOLUNTARY TURNOVER ................................................................................................................................ I6

fAPTER THREE .......................................................................................................................................................... !?

ETHODOLOGY ........................................................................................................................................................... 17

I INTRODUCTION ........................................................................................................................................................ 17

RESEARCH DESIGN .................................................................................................................................................. 17

........................................................................................................................................................................................ 17

STUDY POPULATION ................................................................................................................................................ 17

.I SAMPLE SIZE .......................................................................................................................................................... 18

.2 SAMPLING TECHNIQUES AND PROCEDURE ................................................................................................... IS

DATA COLLECTION ................................................................................................................................................. 18

.I DATA COLLECTION METHODS AND INSTRUMENTS .................................................................................... I9

.1.1 QUESTIONNAIRE ................................................................................................................................................ 19

.1.2 INTERVIEWS ...................................................................................................................................................... I9

.1.3 OBSERVATION .................................................................................................................................................... 19

DATA PROCESSING AND ANAL YSIS .................................................................................................................... I9

APTER FOUR ............................................................................................................................................................ 20

ESENTATION, ANALYSIS AND INTERPRETATION OF THE RESULTS ..................................................... 20

INTRODUCTION ........................................................................................................................................................ 20

PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS ARE DONE ......................................... 20

I CAUSES OF LABOUR TURN OVER ..................................................................................................................... 20

2 EFFECT OF LABOUR TURNOVER ON PERFORMANCE .................................................................................. 26

3 WAYS THAT CAN BE DEVISED TO REDUCE LABOUR TURN OVER IN THE ORGANIZATION ............. 28

APTER FIVE .............................................................................................................................................................. 31

vii

JMMARY, CONCLUSIONS AND RECOMMENDATIONS ................................................................................... 31

I INTRODUCTION ........................................................................................................................................................ 3I

1 SUMMARY OF OBJECTIVE ONE: ........................................................................................................................... 31

l OBJECTIVE THREE: .................................................................................................................................................. 34

I OBJECTIVE FOUR: .................................................................................................................................................... 35

I CONCLUSIONS .......................................................................................................................................................... 36

i RECOMMENDATIONS .............................................................................................................................................. 36

iFERENCES ................................................................................................................................................................... 37

'PENDIX I ................................................. .-.................................................................................................................... 40

JESTIONNAIRE ........................................................................................................................................................... .40

:SEARCH BUDGET ...................................................................................................................................................... 44

Vlll

LIST OF TABLES

Table (1): Level of Labour turnover across different years ................................................ 20

Table (2): Whether respondents believe there is a high turnover. ......................................... 2 I

Table (3): Respondent employees who are prone to leaving ............................................... 22

Table ( 4 ): Knowledge on people who have left the organization .......................................... 22

Table (5): Respondents Views on the factors affecting labour turnover and productivity ............. .23

Table (6): Relationship between Employee Remuneration and Labour turnover. ....................... 24

Table (7): There is poor reward system in this organization .............................................. .25

Table (8): Whether many people have actually left ......................................................... 26

fable (9): Whether employees are sacked unfairly ......................................................... 27

fable (1 0): The organization is focused to retaining its employees ....................................... 29

IX

LIST OF FIGURES

Figure (I): Whether employees are aware of the causes of labour turnover ............................ .23

Figure (2): Whether the employee would leave if opportunity opens ..................................... 26

Figure (3): Whether employees are worried of being sacked .............................................. 27

Figure (4): Whether there is voluntary parting with the organization ..................................... 28

Figure (5): Whether Management is not focused to helping employees .................................. 29

Figure (6): Whether the organization has a strategy to reduce turnover .................................. .30

X

CHAPTER ONE

1.0 INTRODUCTION

The study is an investigation, on the relationship between labour turnover and

employee's performance in Kisii Bottlers Limited. Labour turnover is conceived in this

study as independent variable while employee's performance is the dependent variable.

This chapter will present the background of the study, statement of the problem, general

objectives, specific objectives, and research questions, scope of the study, significance of

the study, conceptual framework and limitations of the study.

1.1 BACKGROUND OF THE STUDY

In recent years the British national health serv1ces (NHS) has experienced an acute

shortage of qualified nurses. This has placed issues of recruitment and selection and

retention in the profession high on the political agenda. The impact of labour turnover on

a firm's performance by analyzing the predictions of an extension of the efficiency, wage

model by Salop (1979). It also tries to separate incumbent and newly hired workers in the

production function.

Labour turnover is an impm1ant and pervasive feature of the labour market. In developing

countries, approximately I 0 - 15 % of workers quit their jobs every year, 15% in the

Kenya alone. Labour turnover affects both workers and firms. Workers need to learn new

jobs, specific skills and find different career prospects. The theory used to explain the

impact of labour turn over globally on firms is mostly based on the well known efficiency

wage model of Salop ( 1979) in which firms choose wages so as to minimize the marginal

costs of labour, balancing the marginal effect of higher wages against the marginal

reduction in training costs induced by higher wages.

Over I 0,000 people in the reg10n are dependants on kisii bottlers limited for their

livelihood. The organization is very serious about its responsibilities towards its people

and community. It provides housing, schooling and medical facilities. And also extremely

aware of the potential impact of activities on the local and global environments. It has

tried to retain and maintain competent employees and be of benefit to the whole region

and make it to develop economically.

Kisii Bottlers Limited is a leading beverage bottling franchise of the coca cola company.

It was established in 1965 on the site in Kisii Nyanza province.Kisii bottlers is situated at

Kisii/Keroka road,3 kilometres from the centre.Kisii Bottlers Limited started I st January

1967.The company's land is a contiguous unit to almost 150HA in Kisii,Gusii

County.Kisii Bottlers Limited employs almost 300 permanent staff. Kisii Bottlers

Limited produces four packages of sodas and these are 300mls, 500mls, llitres and

1.5litres and packages of Dasani water. These beverages include fanta orange, sprite,

krest, fanta passion, cocacola, black current, Tangawizi and lime water.

The objective of intentioned Labour turn over programs include to improve the overall

efficiency and performance of the organization as well as encourage private sector to

improve productivity and profitability of a firm to reduce public sector borrowing hence

faster growing of the economy Since 1968 Kisii Bottlers had a lot of organizations and

most of these organizations have had a problem with their workers who are normally

reduced and affect the organization performance due to rotation of workers. The

organization mission is to promote national and international trade worldwide by;

having direct relation with organization users and meet their demands, providing directly

range of services which enables customers to import or export, close negotiations on

concessionary rates, providing efficient operations performance to providing effective

means of communication to customers, commercialization of business activities in future

to competitive trade and Providing conducive environment for privatization.

Despite the fact that Labour turl). over issues has been the major challenge affecting Kisii

Bottlers Company, there is no study that has been carried out to examine its eventual

effect of performance which inspired the researcher to carry out this study.

2

1.2 Statement of the Problem

Despite research measures carried out in Kisii Bottlers Limited it has experienced the

problem of Labour turn over. The source of the problem is the change of new technology

of production organizations, which generates the need for a few workers. Introduction of

computer as well as other modern machines in organizations is more effective and

accurate than having a big number of workers, makes organizations reduce the number of

workers rather than having a big number of workers doing nothing due to reduced

responsibility. It is only unfortunate that though the concept of Labour turnover has taken

root, there is no related study that has been carried out to examine its effect on

performance. It is from this inspiration, that the current study finds its worth.

1.3. General Objective

The general objective of study was to investigate the impact of Labour turn over on

organization performance in Kisii Bottlers Limited.

1.3.1 Specific Objectives

(a) To evaluate the causes of Labour turn over in Kisii Bottlers Limited.

(b) To determine the effect of Labour turn over on performance.

(c) To establish the ways that can be devised to reduce Labour turn over in the

organization.

1.4 Research Questions

(a) What are the causes of Labour turn over in Kisii Bottlers Limited?

(b) Is there an effect exe1ied by Labour tum over on performance?

(c) How can the problem of Labour turnover be reduced in the organization?

3

1.5 The scope of the Study

The study was carried out in Kisii Bottlers Limited in Kisii, Nyanza province in Kenya.

The study will focus on the impact of labour turnover on employee performance within

kisii bottlers Limited.

1.6 Significance of the Study

The following are the significance of the study:-

!. The study will be able to propose the better means of reducing workers m

organizations without affecting their psychological wellbeing.

2. The study will help the researcher to achieve the academic partial fulfillment for

award of course work of bachelor of human resource management.

3. It enables different scholars to access different information about a certain topic

researched that are to say it can help in literature review.

1.7 LIMITATION OF THE STUDY.

The researcher faced some problems while conducting the research. Some of these

were like low literacy levels of the respondents, the environment was also not

conducive thus failed to favor the researcher. The level of security was not sufficient.

Thus the researcher was to ensure that his respondents have sufficient knowledge

on the study and were sure that the security was also adequate enough. For

example the researcher took some questioners to respondents and some of them turned

them back.

4

CHAPTER TWO

REVIEW OF LITERATURE

2.1 Introduction

This chapter presents theoretical review, causes, effects, and ways of reducing labour

turnover and types of labour turnover and the knowledge gap identified. It also aims at

identifying and presenting all relevant sources of information and these are from books,

journals magazines and the internet.

2.2 Theoretical Review

Labour turnover is a deliberate policy to change the overall system of the organizations to

use more capital-intensive technique rather than labor-intensive technique. Performance

is the ability to operate efficiency portability, survival, growth and reaction to

opportunities and threats (stones 1996). Labour turnover is also defined as the rate at

which people leave an organization and is basically concerned with the rate of

replacement of employees ,labor stability on the other hand is a little known topic that

deserves a bit more consideration that it gets labor stability is concerned with an

organization ability to retain its employees.

Kane ( 1996) argues that Employee performance is something that a person leaves behind

and that exist from the purpose. It can also mean system whereby an organization can

achieve the desired goals and objectives through motivation, evaluation and monitoring

performance.

The study is based on the scientific management theory, which basically consists of the

works of Fredrick Taylor, and the organization theory comprising of the work of Taylor's

view on administration (Mullins 1994). Fredrick Taylor started the era of modern

management in the late nineteenth and early twentieth century's; Taylor consistently

sought to overthrow management by rule of thumb and replace it with actual timed

observations leading to the one best practice. He advocated for the systematic training of

workers in the one best practice rather than allowing them personal discretion in their

5

tasks. He fmiher believed that the workload would be evenly distributed between the

workers and management with management performing the science and instruction and

the workers performing the labour, aspect each group doing the work for which it was

best suited.

Taylor's' strongest positive legacy was the concept of breaking a complex task down into

a number of subtasks, and optimizing the performance of the subtasks, hence, his

stopwatch measured time trials. As a result, he proposed four underlying principles of

management

Firstly, there is need to develop a science of work to replace old rule of thumb methods,

pay and other rewards linked to achievement of optimum goals, measures of work

performance and output. Failure to achieve these would in contrast result in loss of

earnings. Second is that workers should be scientifically selected and developed; Training

each to be first class at some specific task. Thirdly, the science of work to be brought

together with scientifically selected and trained people to achieve the best results.

Finally, work and responsibility to be divided equally between workers and management

cooperating together in close interdependence. On the other hand, Fayol's administrative

theory focuses on the personal duties of management at a much granular level. In other

words, his work is more directed at the management layer. Fayol believed that

management had five principle roles; to forecast and plan, to organize, to command, to

co-ordinate, and to control. Forecasting and planning was the act of anticipating the

future and acting accordingly. ·organization was the development of the institution's

actions and process. Co-ordination was the alignment and harmonization of the group's

efforts. Finally, control meant that these above activities were performed in accordance

with appropriate rules and procedures.

Fayol developed fourteen principles of administration to go along with management's

five primary roles. These principles are; specialization/division of labour, authority with

responsibility, discipline, unity of command, unity of direction, subordination of

6

individual interest to the general interest, remuneration of staff, centralization, scalar

chain/line of authority, order, equity, stability of tenure, initiative and esprit de corp.

Fayol clearly believed personal effort and team dynamics were part of an "ideal"

organization. This indicates that perf01mance even in Universities cannot be deviated

from practical management.

Fayol's five principle roles (plan, organize, command, coordinate, and control) of

management are still actively practiced today. The concept of giving appropriate

authority with responsibility is also widely commented on and is well practiced.

Unfortunately, his principles, of "unity of commend" and unity of direction" are

consistently violated in "matrix management", the structure of choice for many oftoday's

companies.

7

2.3 CONCEPTUAL FRAMEWORK

A conceptual framework defines the topic of research through the explanation of the

variables and their relationship within each other. Independent variables determine,

predict influence the dependent variables. Dependent variables are prone to be controlled

by the independent variables. Intervening variables work hand in hand, sometimes with

the independent variables to influence the dependent variables. For purpose of this

research the conceptual framework can be illustrated with the aid of the conceptual model

below:-

Independent variable • Labour turnover

source: Self initiated

EXPLANATION

•

• •

• • •

High rate of recruitment High rate of training Conflicts Delay in completion of work

Bringing of new ideas High commitment Resistance to change

Dependent Variables • Employees

performance

For labour turnover to be reduced then there must be quality recruitment based on job

analysis in order to know what is required in job in terms of job specification and job

description. This ensures that quality skills are brought into the organization that can

perform highly. Training should also be emphasized for employees to be equipped with

8

skills and abilities for them to perform highly and face future challenges in their jobs.

Disagreements between organization member's delays completion of tasks and duties

Hence an organization does not achieve its goals and objectives. Thus with above

measures taken into consideration employees becomes creative and innovative with high

commitment in their work and less resistance to change which variables can be used to

measure high performance.

2.4 Causes of Labour turnover in organizations

Constraints to employees' productivity Collinson (1999) and Weffen and MotTell (2001),

look at lack of adequate training of employees resulting into inadequate skills that limit

the productivity of employees.

Other scholars like Mintzberg (2003), consider work place practices to be the major

factor affecting employee productivity. From the above discussion, he concludes that

constraining factors that constrain employees' productivity are poor pay to workers, poor

motivation by management, poor equipments, employees' poor health and age, lack of

adequate training, poor communication and poor work place practices like employee back

biting.

Braton (2002) notes that lack of adequate skills and knowledge on the side of employees

to do the job expected for example a new recruit, change of duties, new tasks among

others can also cause poor performance. Low morale at workplace and or poor work

environment, personal problem, family problems, health problems all these have a

negative impact on the employee performance.

Technological development is by far the most important factor influencing productivity.

Computerization, technological know-how, raw materials used, plant layout all determine

the level of technological development. Organizations with poor layout, less

mechanization generally have lesser productivity. Research and Development, equipment

design and scientific management techniques used by organizations all influence

productivity levels (Thomas Dohmen Discussion paper (200 I pg 4 ).

9

Amin and Fa!k, (2000, pg 45), connotes that labor is a critical factor in the success of an

organization. People provide dynamism to an organization. Good machines, new

processes, better methods of work cannot on their won improve productivity. Falk was

quoted saying that, "people are key factors, the abilities of people which are determined

by knowledge and their skills acquired through training and experience impact on the

quality of labor force. " People's willingness to work and their individual motivation all

impact on the productivity of an organization. Besides the working environment,

essentially the physical conditions in which people work has an impact on the

productivity levels of the organization.

Supervision takes place almost in all organizations. It's done at every level of

organization structure. Kreitner, ( 1998, pg 22), quoted an employee, "I deserve at least

as much of the supervisor's time as a poor pe1jormer employee who 'goof up or goof off'

always seem to get more time than I do. I want to chew the fat. I want guidance,

information and reasons why things in the organization are done. " This shows that

productivity and supervision go hand in hand. Supervision is vital for the 'good' have to

keep on track and the 'poor' to make good correction. It motivates workers. Some

employees will only perform better when there is somebody to supervise them to do so.

Some employees look at work as a punishment and will therefore not perform better

unless they are forced to do so.

Kreitner (1998, pg 34), also adds that a comfortable working environment is an important

ingredient for high employee productivity. It may be infom1 of management treating their

employees in a friendly manner, and also provision of safety facilities, proper ventilation,

adequate lighting, adequate sanitary conditions, and others which make the employees

feel comfortable at work, and enable work to be undertaken.

Hence, it cannot be denied that staffing an Organization is a key part of the human

resource management. On the other hand, Deordwel eta! (1989) define institutions'

staffing as a search or a process. of obtaining potential job occupants in sufficient quality

and quantity so that the institution can achieve its mission through those people. Indeed,

10

according to him (Deordwel), staffing an institution begins with staff attraction which is a

process of announcing the existence of a vacancy to be filled and the strategies involved

in getting people to register their interest to want to fill such a vacancy. Devis (2002)

presents various ways of communicating the existence of vacancies. He argued that

informing the potential applicants about the jobs can take the following ways: use of print

media, use of counselors or career advertisers, use of electronic media, use of bill boards

and posters, staff meeting, newsletters and bulletin boards.

Referring to the views expressed by Drunker ( !994) that a manager does not handle

people, but he motivates, guides, and organizes people to accomplish their goals, and that

his effectiveness depends on his ability to communicate well with his employees seems to

be significant. For example the results of this study indicate that whenever employees

were briefed and given feedback about their performance, there was a resultant effect in

their performance. However, it should be noted that good communication is not a

complete entity in itself especially on the heads of Organizations but rather a

transactional process across all categories of employees especially when it comes to

information that relates to staffing the Institutions.

Whereas Hannagan (2002) agrees with Drucker's (1994) views when he states that an

appropriate staff recruitment process is important for conveying the organization's

mission, it is also needed to· enable the thoughts and feelings of the prospective

employees to be expressed in equal significance. Its strength can be more emphasized if

we consider Dale's (1995) observation that a staff recruitment process helps in giving

instructions, giving or receiving information, exchanging ideas, announcing plans and

strategies, and communicating about the individual roles and about the structure of the

organization. What is generally true according to Drucker (1994) is what Gareth (2002)

expresses when he notes that staffing is one of the most important processes that take

place in organizations. It has major effects on individual, group and organizational

performance.

II

Bratton (2003) notes that staff attraction and selection has always been critical processes

of organizations. In recent years, he noted that there has been growing evidence that the

formation of a positive psychological contract with employees provides the basis for a

positive outcome in tenns of organizational commitment and motivation. Hence,

according to him, employers need to see the staff attraction and retention of employees as

part of the evolving employment relationship.

2.5 Effects of labour turn over in Organizations

Considering Shackeleton's comment, Bratton (2003) was right when he notes that, the

rest of success of a staffing situation is not just in attracting a sufficient number of people

but also ensuring that the attracted people are motivated and given opportunity to grow.

Staffing is a search to obtaining potential job applicants in sufficient quality and quantity

so that the institution can select the most appropriate person (s) to fill its job needs.

Indeed, staff attraction is a process of announcing the existence of a vacancy to be filled,

and the strategies involved in getting people register interest to want to fill such a

vacancy (Deodwell eta! 1989). In his extension ofDeordwell's view, Maicibi pointed out

that there are different ways of informing candidates of the existence of vacancies. These

include; the print medium such as the newspapers, journals, magazines and other business

printing media and publications. He also points out the use of career advisers; the

electronic media is emphasized to include the radios, television, telephones and the

Internet. The purpose of advertising during the staffing process is to attract sufficient

candidates of the right caliber, thereby securing a reasonable pool from which to choose

the most appropriate candidates (Humphrey, 1997).

Current thinking is based on the opinion that pay should be seen as part of the wider

relationship between management and employees and that the reward system adopted

should act as a medium for the expression of management style and their attempt to

create commitment amongst the workforce (Bratton 1988). Bratton (1988) emphasizes

that organizations view pay as a determinant of employees' work attitudes and behavior.

12

The nature of payment affects an individual's decision to join a company, to work

effectively, to undertake training, to accept additional responsibilities, to stay with the

organization or to join a trade union. However, the issue of use of rewards to stimulate

performance and commitment has proved to be an international issue. Caldwell ( 1981 ),

for example, argues that in Canada, the United States and the United Kingdom, top

management pay is increasingly linked to the achievement of business objectives, and for

their subordinates pay is being geared to individual potential and performance. He

stresses that this is aimed at gaining commitment of hard working individuals.

While writing on welfare practices which is an important element in cost of introduction

situation in Organizations and other organizations, Buwa (1991) noted that, "the quality

of dedication can only be improved if qualified staff stay longer in organizations where

they have been posted and that this can only be achieved if the conditions and terms of

service of teachers are favorable and attractive. Secondly, physical and social facilities

should be good and conclusive so that teachers can stay in the schools without having to

opt for other employment opportunities elsewhere. Though many organizations world

over are striving to achieve organizational stability through an efficient reward practice, it

looks different from the Ports handling Services of today. At the conference it was

observed that Lecturers in Africa work under strain largely because they are poorly

remunerated and have this low production prospects. This has lowered their morale and

leads to high wastage and moving to other occupations. The staffing situation in

Organizations especially Ports is further constrained by the process by which are created.

The majority of the community members they serve have failed to acknowledge their

values.

2.6. Ways of Reducing Labour turn over in Organizations

Remuneration is taken by most managers to be the most important factor that has the

ability to control employee Labour turn over. The idea that remuneration is a strong

motivator is deeply rooted and still controls the first responses of managers who are

having trouble motivating their employees to be more productive. Top management

needs to convey option and send down the line with a message that conveys strength and

13

security, Likert Willy, (1956, pg 8). Employee remuneration has been widely recognized

by several organizations world over, because of their implications on employee

productivity. (Samantha 2003).

Variable remuneration or compensation program IS where payment is based on the

productivity of the company the results of the business unit and individuals'

accomplishment among others, (Dauten, 2002, pg 26) here employees are made to stretch

so that the organization's goals are attained in order to gratify for the remuneration.

Bonuses are remuneration systems that are used to recognize group accomplishments.

Bonus systems are based on corporate productivity at group department or unit levels.

They are short-term motivation and are usually paid at the end of the year. Bonus system

of payment is usually based on company's productivity of the previous year; therefore,

employees may be reluctant to work hard in order to improve productivity. However,

employees argue that such a remuneration system only encourages long stay within the

organization and a legitimate way of remunerating outstanding productivity (Thornburg,

Linda (2004, pg 99).

Stock option remuneration systems, employees are given the opportunity to buy a

specified number of the company's shares at a fixed price for a specified period of time

and only acts as a motivator. This system encourages employees to work hard because

they feel part of the company, therefore whatever actions they take either in sales,

marketing, customer care among others will be geared towards the growth and

development of the organization. Another advantage is that new employees will all tend

to commit themselves to the organization so that they also qualify for the organization's

status, (Weber, !999, pg 66).

Group based remuneration system IS based on the measurement of group I team

productivity with individual remuneration received on the basis of productivity. This

system encourages individual efforts towards common business goals and therefore

provides extra incentive for employees. This system encourages groups to work hard to

14

attain the business goals; this in the long run contributes to the organizational

productivity and growth hence profitability, (Henemann and Courtney (2002, pg 42).

Many organizations have tried several strategies to improve productivity of their

employees through various reward and recognition systems purposely to meet

organizational expectations. on· contrary, several productivity studies have continued to

indicate that remuneration cannot be the major drive to increased employee productivity

as many organizations with good remuneration programs, continue to experience low

level of productivity form their employees (ILO Report, 2004). This therefore, has raised

great concern to the researcher and calls for this study.

2.7YPES OF LABOUR TURNOVER

There are categorized into two voluntary which are initiated by employees. Involuntary

leaves are initiated by employers or management.

2. 7.1 Voluntary tum over

This one occurs when employees decide for personal or professional reasons to end the

relationship with employer. The decisions could be based on employees obtaining better

job, change in career or requiring more time for family or leisure activities. Alternatively

the decision to leave could also be because of poor working conditions, low pay, and bad

relationship with supervisors. There are two types of voluntary leaves namely:

Quits. It occurs when they is dissatisfaction with the job and the number of attractive the

employee have outside the organization.

Retirement. It occurs at the end of individual career or acquiring benefits from the

organization.

15

2. 7.2 Involuntary turnover

It's a leave that occurs when an employer or management decide that it needs to

terminate its relationship with an employee due to economic necessity or a poor fit

between employee and the organization. They can result to very serious, painful impacts

to the organization. They include:

Dismissal .this one occurs when an employee perform poorly and fails to change some of

unacceptable behavior that management have tried repeatedly to conect for example

dishonesty and theft. When one is to be dismissed the appropriate discipline procedure

should be followed.

Lay-offs. Employees lose their jobs because of a change in the company environment or

strategy which forces it to reduce the size of its work force. Global competition, reduction

in products demand changing technology reduces the need for workers and mergers and

acquisition are the primary factors that influence managers to initiate lay-offs.

The researcher identified knowledge gap in the following areas poor performance, poor

motivation system and poor conditions of work due to lack of expe1iise and competence

of employees and analyzed that employees require more training to improve on their

Performance. The researcher also learnt different skills required in research writing and

the relationship that exist in Kisii Bottlers Limited.

16

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter was addressing the research design and data collection methods and

instruments that were used during research. It was also indicating the study population,

sample size, techniques and the procedures of data collection and analysis.

3.1 Research Design

The researcher used a case study research design. It put the focus on Kisii Bottlers

Limited on which detailed explanatory, analytical, quantitative as well as qualitative

research was carried out. It was explaining the problem of Labour turn over in the

organization performance. It was designed to be quantitative and qualitative since both

numerical and non numerical data were used.

3.2study population

The population comprises of all those potential participants that could make up the study

and contribute to the researcher getting more information on the effects of labor turnover

on employee performance. The total population of employees was 300 in five (5)

departments of Kisii Bottlers Limited. The table below shows how the sample will be

distributed among the different categories

17

3.2.1 Sample Size

Departments Population Sample size

Human resource 53 2

Marketing 67 20

Production 70 10

Information technology 60 8

Finance 50 20

Total 300 70

Source: Martin Amin (2005) The sample will include senior managers, supervisors and

non managerial staff.

3.2.2 Sampling techniques and procedure

The researcher used both probability and non probability sampling techniques. Stratified

sampling was used to come up with a representative sample. According to Amin (2005)

tables have been developed which the researcher can rely onto obtain a sample size which

was appropriate for the target population the researcher intends to cany out his research.

In this case therefore the population study was 300 and therefore the sample size will be

70.

3.3 Data collection

The data that was used for the purpose of the study comprised of both primary and

secondary data.

This was obtained directly from the employees and recording staffs.

Questiotmaires and interviews were used for that effect of labour turnover on employee's

performance.

This was collected from already available data literature. Relevant documents and records

were used like journals, government publications and other internal records.

Secondary data was used to supplement the primary data in attempt to answer the

research questions.

18

3.3.1 Data Collection Methods and instruments

3.3.1.1 Questionnaire

These were used with top management and its employees. It contained both open ended

and close ended questions. The researcher used a questionnaire because it helps in

collecting a large amount of data within a very short period of time and involving a large

number of respondents.

3.3.1.2 Interviews

These were used in line with an interview guide to enable the researcher obtain the

supplementary information necessary to reach the conclusions. It was believed that by

using the interviews, the researcher would be in position to get detailed data on all the

aspects concerning Labour turn over.

3.3.1.3 Observation

This was used with an observation checklist to enable the researcher obtain primary data

which could be observed easily and did not require the use of questionnaire and

interviews. Others include papers and pens.

3.4 Data processing and analysis

Data obtained was edited, coded, arranged and thereby analyzed by using percentage and

ratios. The data was analyzed according to objectives in such a way that each objective

was analyzed separately using descriptive statistics and tabulated by use of tables and

graphs.

19

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF THE RESULTS

4.1 Introduction

In this chapter the researcher involves presentations, interpretations and the analysis of

the collected primary data. The presentation is done in tables with illustrations to make

sure that the research biases are eliminated. The study is entirely about analysis of the

relationship between Labour turn over and organization performance focusing Kisii

Bottlers limited. The data was collected across all stakeholders in the Company and the

results are presented expressing both the views of the quantitative nature through

percentages and frequency distributions and the group interviews and documentation

analysis. The characteristics of the participants which helped in putting on board an

understanding of the type of respondents, the researcher dealt with through the study.

4.2 Presentation, analysis and interpretation of t·esults are done under the following

themes.

4.2.1 Causes of Labour turn over

The researcher established the level of labour turn over at the Company. This was

established looking at the periods: 1995· 2009.

Table (1): Level of Iabou1· turn over across different years

Departments 1995 1998 ~002 ~005 2009

Human resource department 25 9 10 2 6

Marketing depatiment II 4 p 3 5

Production depatiment 11 7 9 ~ 4

Finance department II 4 19 3 3

Information technology department 31 II 5 ~ 3

Total 89 35 48 14 21

20

As it can be observed from Table (I) the results indicated that the highest level of

turnover was recorded in 1995 and the second highest was recorded at information

technology department. The order of turn over follows that 2002 it was 48, 1998 it was

35, 2009 was 21 and the lowest recorded in 2005 which was 14.

The researcher inquired from ·the respondents on whether they believe that labour

turnover was really high. The results are indicated in table (2).

Table (2): Whether respondents believe there is high turn over

Category Frequency Percent

Strongly agree 24 29

Agree 17 20

Neutral 41 51

Total 81 100

According to table (2), the majority of the respondents were neutral when the inquiry was

made. That is 41(51%) were neutral, 24(29%) strongly agree when 17 (20%) ofthemjust

agreed.

The researcher wanted to know the type of employees who usually leave the organization

and the results are presented in Table (3).

In this area we are looking for the position of the people who were prone to leaving the

organization. The researcher came out with the 29.3% of the respondents were production

clerk, while missing system is overall of the 70.7% of the respondents. This means that

on the area of the organization were considered.

21

Table (3): Respondent of employees who are prone to leaving

Depa1·tments Frequency Percent

Production dept 36 22.7

Infmmation technology dept 30 18.9

marketing dept 32 20.2

Finance 30 18.9

Human resource 30 18.9

Total 158 100

The researcher came out with the following data. 22.7% were between 1-2 years in the

organization, 18.9% were between 3-4 years experience, 20.2% were on 4-5 years and

18.9% were above I 0. This means that the findings got were from a preventatives

research for all years of experience worker they have were considered.

Table ( 4): Knowledge on people who have left the organization

Response Frequency Percent

Aware 130 78

Not aware 25 12.2

Not sure 14 9.8

Total 169 100

From the above table 78.0% of the people are aware of people, who have left the

organization, 12.2% are not aware while 9.8% are not sure of those who left the

organization. It was revealed during interviews that sometimes employees leave and do

not indicate they left only until when they have spent time without being seen that

employees feel they are not coming back.

The researcher established the level of labour turn over at Kisii Bottlers limited. This was

established looking at the periods: 1995. 1998, 2002. 2005 and 2009.

22

The researcher was particularly interested in the causes of labour turn over at the

Company. These factors were investigated along the following lines which were of

interest.

Figure (1): whether employees are aware of the causes of labour turn over

lEl Agree

1!11 Strongly disagree I

o Neutral '

o Disagree

111 Strongly disagree

Through research questionnaire, the researcher found that 24.4% of the respondents

strongly agree, 31.7% agree, 32.0% neutral, 9.8% disagree and 12.8% strongly disagreed.

Table (5) Respondents Vievvs on the factors affecting labour turn over and

employee's performance

Factors identified Frequency (F) Percentage(%)

Poor remuneration 30 28

Lack of adequate training 30 28

Uncomfortable working environment 22 24

Lack of participation in decision making 15 20

Total 97 100

Source: F1eld findzngs

23

From the table (5) above, there are a number of views which in the face of the

respondents affect their level of performance. However, the most pronounced were; Poor

remuneration and lack of adequate training which were revealed by an equal percentage

of correspondents as the serious factors that affect employee performance

From the above views it can be understood that ensuring a constant high employee

productivity is not always an easy ride and if any organization is to succeed in its

achieving its goals and objectives effectively and efficiently through its employees, it

should not ignore the effects of the remuneration systems it uses as well as not ignoring

other factors that may tend to exist in the organization. There is no specified uniform

remuneration system that can be applied to all organization successfully, but it depends

on the nature of the organization internal and external contextual factors.

The research wanted to establish ways through which labour turn over can be reduced.

From the administered questionnaire respondents were asked if there was any

relationship between employee remuneration and labour turn over where some responses

were descriptively analyzed and later presented in as in the table (6).

Table (6): Relationship between Employee Remuneration and Labour turn ove1·

Response Frequency (F) Percentage(%)

Yes 140 80%

No 20 20%

Total 160 100%

Source: Fzeld findzngs

From table (6) above, the researcher noted that, remuneration really has a tremendous

effect on Labour turn over. From the interviews with respondents, the biggest percentage

of the total number of respondents accepted whereas a negative response came from the

least number of the total number of respondents.

24

An interview with one of the top human resource managers revealed that; the prevailing

efficiency and credibility attached to the organization is highly due to the critically

chosen and implemented remuneration systems. The remuneration systems implemented

help in attracting and retaining experienced and knowledgeable employees as well as

motivating the existing employees to work harder thus increased productivity for the

overall organization.

Table (7): There is poor 1·eward system in this organization

Response Frequency Percent

Agree 59 24.4

Neutral 60 26.8

Disagree 15 19.5

Strong Disagree 18 12.5

Strongly Agree 17 17.1

Total 169 100

For the above table 24.4% strongly agreed that there is poor system in this organization

while 26.8% agree, 19.5% neutral, 12.5% disagree while 17.1% strongly disagreed. This

indicates that there high belief that poor rewarding could be one of the reasons for high

labour turn over in the organizations.

25

Figure (2): whethe1· the employee would leave if opportunity opens

14

12

10

8

6

4

2

0

Agree Strongly disagree

Neutral Disagree Strongly disagree

0 Series 1

As shown in the table above 7% respondents strong agreed the variable that is an

opportunity opens, many workers would leave the organization. While 7% agree, 10%

neutral, 12% disagree and 5% strongly disagree. 4% they fmiher said that they rather go

to other organization where there is no issue of labour turnover and work form there even

if the salary is lower compared to the current organization.

4.2.2 Effect of Labour turnover on performance.

This part of the study wanted to examine the effect of Labour turn over on the

organization as a whole.

Table (8): Whether many people have actually left

Response Frequency Percent

Yes 60 41.5

No 70 58.5

Total 130 100

From the above 41.5% of the total respondents supported for that for the last I 0 years

organization has lost many employees while 58 % did not agree with the hypothesis in

26

the question. The results generally indicate that there have been high rates of labour turn

over.

Figure (3): Whether employees a1·e worried of being sacked

12

10

8

6

4

2

0

Agree Strongly disagree

Neutral Disagree Strongly disagree

· 1'!1 Series 1

The researcher through questions found that 10% are strongly agreed, 7 % agree, 7%

neutral, 8% disagree and 7 % of the respondents strongly disagreed to the statement that

employees are always worried of labour turnover. The results indicate that the employees

are always worried and the major challenge is that there is limited communication on

who is about to be sacked.

Table (9): Whether employees are sacked unfai!'ly

Response Frequency Percent

Strongly agree 16 15

Agree 61 26

Neutral 60 24

Disagree 19 22

Strongly disagree 11 12

Total 167 100

27

Above table shows that 14.6% of the respondents strongly agreed that the employees are

sacked unfairly, 26.8% agree, 24.4% neutral, 22.0% disagree, while 12.2% are strongly

disagree that there is unfairly exercise in reducing the workers in an organization.

Figure ( 4): Whether there is volunta1-y parting with the organization

lEI Agree

111 Strongly disagree

o Neutral

o Disagree

1111 Strongly disagree. ---- ------

The data collected shows that 19.5% strongly disagree on the statement that people are

always opt for voluntary redundancy. 9.87% disagree respondents add that sometimes

there is people who are ready to quit the work but organization did not consider them

since they are looking at very impmiant people in an organization.

4.2.3 Ways that can be devised to reduce Labour turn over in the organization

This part of the study aimed at examining the ways through which labour turn over can

easily be managed and the results are presented as follows;

The researcher hence inquired on whether the organization is focused to retaining its

employees and the results are presented in Table (I 0).

28

Table (10): The organization is focused to retaining its employees

Response Frequency Percent

Yes 87 60.9

No 78 39.1

Total 165 100

The researcher went further and asked the employees about if the organizations are

focused to retaining its employees which makes it 60.9% of the employees. Those who

said No were 39.1 %. The results indicate that the process of retaining employees is not an

easy task and a challenge.

Figm·e (5): whethe1· Management is not focused to helping employees

14

12

10

8

6

4

2

0

Agree Strongly disagree

Neutral

I-+--Series1

Disagree Strongly disagree

According to the research founding 12.2%of the respondents strongly agree, 12.2 %

agree, 19.5 %neutral 24.4% disagree and 29.3% strongly disagree on the statements that

the management is not serious about helping the employees. 14.6% who are strongly

agree go further and said that the management of the organization they just for their own

interest that other workers inter~st.

29

Figure (6): Whether the organization has a strategy to reduce turn over

l!l Series1

According to the above table, the research has revealed that 9% are strongly disagreed, 5

% agree, 13% neutral 5% disagree and 7 % strongly disagree. 9% who are strongly

agreed said that if the organization have good employee relation strategy they could

avoid unnecessary turnover but since they could avoid unnecessary turnover didn't

have it each if there is chance for the worker to perform other activities they prefer

reduce them other than retain them.

30

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter presents conclusions, recommendations derived and drawn from the study

after having presented, analyzed and discussed the finding of chapter four. The focus was

the impact of labour turnover and employee's performance as seen from the research

information data.

5.2 Summary of Objective One: Causes of Labom· turn over at Kisii Bottlers

Limited

It was observed that with the changing economic, political, social and technological in

the world increase the need of turn over since the man power are replaced by machine on

which it can produce more products in efficiency and effective way than man power.

The labour turn over system forms integral part of the employee development process in

an organization success. It reflects the ability of an organization to define goals and

expectations from employee. The main objective was to examine the cmTent level of

turnover in the organization and how it affects performance in Kisii Bottlers Limited, the

way it was executed in relation to universally accepted principles and practices its

contribution towards individuals employees work performance.

From the above table, 29.3% respondents strongly agreed the variable that this is high

level of employee redundancy in the organization 29.3% agree, 17.1% neutral, 14.6%

Disagree and 9.8% strongly disagree that this is high level of employee redundancy in the

organization, 29.3% who strongly agreed explained further that it is almost 31/4 of the

employee have been reduced in an organization living just a Y,. of them in an

31

organization. The researcher found that 22.0% the respondents strongest agree, 19.5%

agree, 22.0% neutral, 17.1% disagree while, 19.5% strongly disagree.

The respondents who are agreed about the research questions concerning the awareness

of the employee about labour turnover said that labour turnover in the organization are

taken as ambush since the employees become aware maybe two weeks before the

Exercise of labour turnover took place. Commitment on the part of the organization

management of Kisii Bottlers limited on the labour turnover process has much to offer to

the success of the methods in respect of the objective result-oriented system.

The findings reveal that the mostly causes of redundancy is the introduction of new

technology which the organization worker cannot matching with it hence organization

management decide to use the method of turnover in order to reduce the number of the

worker who are not doing anything in an organization. Also the workers of the

organization are aware on the whole process of the turnover as well as they are not

participate in that process. Workers also reveal that every time the turnover process takes

place for them it is like turnover process takes place for them it is like surprising

(ambush) While management knows it from long time but they did not inform them as

earlier as possible so as they can be prepared to whatever happens.

Employee involvement in turnover was not according full attention hence create some

doubt from employee on which criteria is used to get those people who are going to be

affected by turnover. Employee go further and explain sometime management reduce the

imp01iant workers and live those who are not capable while sometime there is worker

who for themselves they want to quit the organization but the management is not consider

them for labour turnover.

As can be observed, the researcher interacted with different types of Kisii Bottlers

Company departments. This was done purposely with the aim of ensuring that Labour

turn over variables is examined across different departments. The results indicate that the

majority of the participants were extracted from information technology department.

32

These included 196(72%) of the total respondent. Human resource also attracted the

majority of employees and these were 25(9%) of the total respondents.

In order to get real cause of increasing labour turn over, we have been looking for the

education level of the respondents. What has been discovered is that in the level of

Degree it is 41.5% of the total respondents, level of Diploma 43.9%, and others are

14.6% of the total respondents whose information was got, by means of interviewing

them.

It was also revealed that the kisii bottlers limited did not mind much when people left the

organization. In this research questioning 26.8% of the respondents agreed that the

organization does not mind whether people are fine or not while 26.8% disagreed, 26.8%

were neutral, 9.8% disagreed 9.8% strongly disagree. It is this do not care attitude that

had led to the increased Labour turn over in the Organization and this had substantial

impact on performance.

The study show that 56.0% strongly agreed that labour turnover is canied out as a

punishment, while 26.8% agree also with the same statement. 7.3% were neutral, 7.3 %

disagree and just 2.4% of the respondents disagree with the statement. 56.0% who are

strongly agree together with the 26.8% agree respondents explained further by saying

that even if the worker is competent without discipline organization can include with to

the labour turnover exercise.

Respondents also revealed the problem of poor supervision in the process of performing

their work. This was revealed by 25% of the respondents as compared to 45% of the

respondents who did not believe that poor supervision can affect productivity of

employees. This distribution left 30% not decided on the matter. Discussion with

respondents in face to face interactions revealed that, if supervisors do not give clear

directions on what should be done and if they turn out not to be cooperative and polite

when supervising, employees also lose moral and confidence in executing their tasks to

the desired level of perf01mance.

33

It was also revealed that there is a problem of lack of adequate training among the

employees. As revealed by one personnel manager in the front desk department, that

employees need to be given opportunities through training and development programs in

order to build capacity for promotion and efficient task accomplishment, this was

collaborated by some subordinate's comment on the need for training saying, "we

employees need to have periodical training opportunities in order to improve our skills

and acquire additional knowledge to make us in order to cope up with different changes

around us in the course of performing our tasks. "

Another factor affecting employee productivity as revealed by some respondents was

lack of participation in decision making. Respondents pointed out that for efficient and

effective rendering of services, employees should also be given an opportunity to

pmticipate in the decision making process. Participation can involve representing them in

committees or contacting them physically before making ce1tain decision. Some of the

advantages of participation as pointed out by respondents were; increased commitment to

organizational success and increased ilmovation and autonomy on how to accomplish

their tasks efficiently.

5.3 Objective three: To determine the effect of Labour turn over on performance

The results show that 58.0% of the respondents strongly agreed with the statement that

many employees do not hope to retire in the organization due to the redundancy

procedure carried out every after few days or months. 15.0% disagree while 5%pf the

respondents strongly disagree. According to the above tables 29.3% of the respondents

strongly agree, 26.8% agree,. 22.0% neutral, 14.6% Disagree while 7.3% or the

respondents strongly disagree. The respondents who are strongly agree with those who

agree go fmther and explain that it is difficult to have morale of work while you know

any time you will be out of the organization.

34

According to the results, 65.9% of the respondents say yes that there is a relationship

between employee redundancy and output while 34.1% of the respondents say no there is

no relationship between labour turnover and employee's performance. Those 65.9% who

say yes they go further and explain that since the workers are normally damaged through

labour turnover and employees performance will decrease as well as efficiency of the

worker will decrease too.

The researcher wanted to know if labour turnover can affect the performance and thus

productivity of employees. Majority of the respondents 80% were in agreement as

compared to 20% who did not accept that this is an influencing factor. In the interviews

with the respondents, most of them said that labour turnover had a tremendous effect on

how good or bad employees perform on the job. One respondent was quoted saying,

"If we employees are remunerated fairly, equally and justifzably in relation to the tasks,

duties and responsibilities they hold, we also become motivated to work harder. "

Another respondent commented on the payment of bonuses saying that if bonuses are

given to employees, they will be motivated to work more even if it is out of their working

schedule. That is to say employees will not resist the idea of working overtime.

5.4 Objective four: To establish the ways that can be devised to reduce Labour turn

over in the organization

Both strongly disagree and agree respondents who make almost 34.2% explain further by

saying that there is other alternatives which the organization can come up with such as

train the worker to cope up with the new technology established in an organization other

than reduce their number since they are not coup with the new technology established in

an organization other than reduce their number since they are not cope with the new

technology such as introduction of computer which left many workers outside the

organization of computer which left many workers outside the organization.

35

It was also revealed that also an uncomfortable working environment as a factor affects

the quality of performance of the employees in the organization. This was revealed by

60% of the total number of the respondents as compared to 20 % who did not see it as an

issue. This left 20 % of the respondents neutral on the matter. Discussion with

respondents indicated that some of the conditions that should be ensured to make them

feel comfortable at work are; friendly employer-employer relationship, provision of

safety and other facilities like, security, good ventilation, health facilities, and good

ventilation. This makes employees comfmtable thus enabling them execute their work

willingly.

5.4 Conclusions

The study concluded that there are a number of factors leading to Labour turn over at

kisii bottlers limited. The ability of self-reliance in workers had started surfacing because

no workers who are sure on his/her life in an organization hence all of them had started

looking forward for self -survival.

There are still a number of challenges that need to be addressed at all levels of the

organization and the ability to. create report among the respondents so as to create a

conducive environment in order to get the required information.

There is also need to enhance employee remuneration to help them love the organization.

It is also important to enhance communication skills acquired and applied during work

management.

5.5 Recommendations

The researcher recommends that the organization should use other alternatives way of

managing work challenges than encouraging labour turn over.

36

The organization can train their workers according to the organization needs to help them

adapt to new challenges.

Management should always inform workers in case of need for voluntary turn over rather

than to undertake drastic activities oflaying off workers.

37

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Knowledge-Intensive Firm: The Significance of the People Management Dimension.

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Sease, R. (1995) 'Employment Relations in Small Firms' in P. Edwards (ed). Industrial

Relations: Theory and Practice, Blackwell, Oxford.

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APPENDIX I

QUESTIONNAIRE

Background Information

I am Nyagwoka S Eunice a student of bachelors in human resource management in

Kampala international university. I am canying out research on the relationship between

labour turnover and employee's performance in kisii bottlers limited. The questionnaires

are designed to gather specific information about the said topic. The information is purely

for academic purposely and confidentiality was fully guaranteed

Level of Education

Primary D

Secondary D

Diploma D

Degree D

Others D

SECTION A (ABOUT THE CAUSES OF LABOUR TURNOVER)

1. What is the level of labour turnover?

I) high 2) average 3) minimal 4) none.

2. There is high level labour turnover in the organization.

Strongly agree D Agree D

Neutral D

Disagree D

Strongly disagree D

3. Which department is prone to labour turnover?

Production department

Information department

Human resource depatiment

Finance department

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Marketing department

4. Are you aware of people who left the organization?

Yes No

5. There are many causes of labour turnover in the organization

Strongly agree

Agree

Neutral

Disagree

D D D D

Strongly disagrec:J

6. The following factor contributes to labour turnover and affect their performance.

Poor pay

Poor conditions of work

Poor recruitment

Technology

Yes No

7. Is there relationship between employees remuneration and labour turn over

Yes No

8. The organization has poor reward system.

Strongly agree D Agree D

Neutral D

Disagree D

Strongly disagree D 9. The causes of labour turnover are usually communicated to all the employees

Strongly agree D Agree D

Neutral D

Disagree D

Strongly disagree D

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10. If there is an opening, many workers will go before forced to leave

Strongly agree

Agree

Neutral

Disagree

D D D

D

Strongly disagree D

11. Labour turnover has lead to elimination of competent staff

Strongly agree

Agree

Neutral

D D D

Disagree D

Strongly disagree D

SECTION B (EFFECTS OF LABOUR TURNOVER)

!. Many people have left the organization.

Yes No

2. Employees are worried of being sacked.

Strongly agree D Agree D Neutral D

Disagree D

Strongly disagree D 3. The fired employees are fired unfairly.

Strongly agree D

Agree D

Neutral D D

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Disagree

Strongly disagree D

4. Employees leave willingly from the organization.

Strongly agree D Agree D

Neutral D

Disagree D

Strongly disagree D 5. Labour turnover usually affects performance.

Strongly agree D Agree D

Neutral D

Disagree D

Strongly disagree D

SECTION C. WAYS OF REDUCING LABOUR TURNOVER)

I. Has the organization put in place employees retention strategies?

Yes· No

2. The management and employees work hand in hand.

Strongly agree D Agree D

Neutral D

Disagree D

Strongly disagree D 3. Do you expect the situation to improve in future?

Yes No

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RESEARCH BUDGET

Stationary 20,000/=

Typing and printing 46,000/=

Transport 50,000/=

Data collection 15,000/=

Othe1· expenses 70,000/=

TOTAL 201,000/=

45