Proposal (Second Draft) 08-03-2012

7/31/2019 Proposal (Second Draft) 08-03-2012

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Allama Iqbal Open University Research Proposal

Business research management

Business Research Management

Research Proposal

A STUDY OF THE FACTORS,

AFFECTING HIGH TURNOVER IN AN

ORGANIZATION

By

Muhammad Arsalan

AD-593621

Submission for Approval

_________________________________

Professor Zia Ud Din

Lecturer

Allama Iqbal Open University

Ambitious Group Page 1 of 21


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Table of Contents

Chapter 1 .............................................................................................................. 3

Introduction .......................................................................................................... 3

Chapter 2 .............................................................................................................. 6

Literature Overview .............................................................................................. 6

CHAPTER 3 ........................................................................................................... 8

Methodology ......................................................................................................... 8

3.1 Methodology ................................................................................................ 8

3.2 Research Design .......................................................................................... 9

3.3 Population Size and Sampling: ..................................................................... 9

3.4 Research Tools / Instruments: .................................................................... 10

Chapter 4 ............................................................................................................ 10

Theoretical Foundation ....................................................................................... 10

4.1 Turnover .................................................................................................... 10

Conceptual Frame Work ................................................................................... 11

4.2 Turnover and Recognition & Reward .......................................................... 12

4.3 Turnover and Performance Management System .......................................12

4.4 Turnover and Leadership Management ...................................................... 13

4.5 Turnover and Career Development ............................................................ 13

4.6 Turnover and Work Contents ..................................................................... 14

CHAPTER 5 .......................................................................................................... 14

Finding, Conclusions and Recommendations .......................................................14

References .......................................................................................................... 15



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CHAPTER 1

IntroductionHuman Resource department has one of its core responsibilities of hiring and firing in an

organization. Unfortunately in last two years the cases of retrenchment and resignation were more

than the cases of recruitment & selection. As far as the banking sector is concerned then the factor

that affect turnover intensively is Job Security.

Organization is established and structured to pursue certain goals. The most important of these

goals is to increase productivity in terms of quality of service delivered. Besides, both workers and

employers who interact with one another within an organization are aware that they are pursuing

this corporate goal. Thus, the efficiency of an organization is usually measured on the basis of this

theory. While there have been a multitude of studies examining whyemployees choose to leave an

organization, Research findings from organizational theory and business literature suggest that the

negative impacts of turnover include a loss of organizational productivity, a decrease in quality of

service and an increase in direct economic and other intangible costs.

The variables that were judged in perspective of Turnover Intensions are: Recognition & Reward,

Leadership & Management, Performance Management System, Work Contents and Career

Development. These could be enough to judge the turnover intensions among bankers. This

research will more explore the key problem areas in banks at very functional level and provide

recommendations to organizational leadership on how to manage employee turnover and motivate

the existing ones.

1.1 Purpose Statement

The purpose of this study is to determine the factors that most significantly influence employees

decisions to remain employed at a particular organization and possible reasons for choosing to

leave. In addition, the study sought to describe the importance of retaining critical employees anddeveloping strategies to enhance employee retention practices. Furthermore the intend of this

research study is to find out whether there is any correlation exits between the Turnover Intensions

and Recognition & Reward, Leadership & Management, Performance Management System, Work

Contents and Career Development. Main focal point of this study is the banking sector of Pakistan.

After having the in depth analysis of the findings many recommendations and Suggestions are also



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Business research managementa part of this study. This is also a point to be note this study is in particularly focusing and

analyzing the current financial crunch in Pakistan.

1.2 Objectives of the Study

Objectives of this research study are listed down:

To explore the association between Turnover Intensions with Recognition & Reward,


Development.

To scrutinize the factors that is mainly increasing the Turnover Intensions among the

employees of Banking Sector in Pakistan.

To offer Suggestions to the Authorities to prevent their business from the loss of precious

Human Resource by giving attention to concluded remarks.

This study will also be a healthy guide for the professionals because the other industries are

also having the turnover problems.

1.3 Significance of the Study

Employee turnover has both positive and negative consequences for organizational performance.

Turnover stemming from the dismissal of low performers is desirable because it removes them and

may encourage other employees to do better. When an organization loses a critical employee, there

is negative impact on organizational productivity. In the shape of Turnover the organization losses

the most precious asset / resource of the company and that is Human Resource. Organizations

invest most of his resources to retain this resource of the company. This study compiles number of

observations and recommendations for every organization to cope up the retentions issue in most

efficient way.

1.4 Research Question

This research study will investigates the following research questions:

Is there any association / relationship between Employee Turnover Intensions and

Recognition & Reward?



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Business research management Is there any association between Employee Turnover Intensions and Leadership &

Management.

Whether there is any association between Employee Turnover Intensions and Performance

Management System.

Whether there is any association between Employee Turnover Intensions and Work

Contents.

Whether there is any association between Employee Turnover Intensions and Career

Development.

1.5 Key Terms Definitions

Key terms that are used in research study as variables are given as under:

1.5.1 Turnover Intensions

Turnover, in a human resources context refers to the characteristic of a given company or industry,

relative to rate at which an employer gains and loses staff.

1.5.2 Recognition & Reward

Every employee works for some benefits, it could be both: monetary and non monetary. Rewards

are some excessive out of the normal what an employee can get by giving some special

performance. There are two aspects to employee recognition. The first aspect is to actually see,

identify or realize an opportunity to praise someone. Secondly, because employee recognition has a

huge communication component! Recognizing people for their good work sends an extremely

powerful message to the recipient, their work team and other employees through the grapevine and

formal communication channels.

1.5.3 Leadership & Management

These are two different terms but strongly associated with each other. Management refers to

getting the maximum output from limited resources. These resources may be any one it could be

Financial, Technological, Informational or Human Resource. Leadership is a very broader term it

is an identity which leads the all resources by keeping the motivational and satisfaction level up to

date.



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1.5.4 Performance Management System

Performance management system highlight critical gaps in your workforce; it also gives you the

potential to identify employees who have the capacity to be the future leaders in your organization.

Starting that grooming process early can have a two-fold effect of both retaining and strengthening

your workforce. And besides being cost-effective, promoting from within also helps reduce

employee churn, which in itself has a high cost to an organization.

1.5.5 Work Contents

The term work content refers to the Job Description of employee. It shows what the main duties of

employees are? Employee must be satisfied with its work contents. These can be disturbed via

stress of work, work rotation or excessive work.

1.5.6 Career Development

The term career development comprises many development factors of employees. It could be the

behavioral development, technical development, and growth in the same company. Everybody

wants to grow in specific field & wants to develop his career. This could also be a major reason of

Employee turnover. Sometimes a company has no strength to boost the career (to promote) his

employee. So ultimately employee leaves for better opportunity.

CHAPTER 2

Literature OverviewLiterature Overview:

This is not a new problem in the current business world. Financial difficulty and

organizational changes has been the historical initiator of involuntary as well as

voluntary turnover.



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Business research management1) Each year U.S. businesses spend billions of dollars recruiting and replacing

their employees. Employees quit for many reasons but, in general, there are

five important areas1 that motivate people to leave their jobs.

Poor match between the person and the job

Poor fit with the organizational climate and culture

Poor alignment between pay and performance

Poor connections between the individual, their coworkers, and the supervisor

Poor opportunities for growth and advancement

These five P's can be addressed successfully.

2) The management must determine what motivates specific individuals and

accommodate those needs within limits of reason and fairness to all

employees. Guidelines2 to prevent turnover:

Show an attitude that employees are expected to stay.

Invest in the employee.

Be pre-occupied with being the best.

3) Workers are stressed to epidemic proportions. Forty-four percent of employees

surveyed said their jobs were more stressful today than a year ago. As a result,

45% said they've either considered leaving their jobs in the last year, have lefta job, or plan to do so soon3. Many people mistakenly believe that employees

leave jobs primarily for better wages, benefits, or both. The cause is more

likely to be one of the following:

Understaffing

Lack of communication

Poor job fit

4) Employers have to understand the damages resulting from high performance employees

leaving, and the benefits resulting from poor performance employees leaving4.

1Sir Gregory P. Smith @ Business know how magazine

2F. Leigh Branham August 11 2005 in Article Keeping the People Who Keep You in Business

3By Laura Stack, contributing editor for APOM (Broadway Books, 2004)4(Dalton & Todor, 1982 as cited in Hong & Chao 2007, p. 216)



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Business research management5) The negative relationship between performance and turnover appears to be the major

conclusive finding, indicating that high performance employees would be less likely to

leave than lower performance ones5.

6) For many nurses, the decision to leave will not just be a cause of anxiety and

uncertainty; it will also be a consequence of stress and dissatisfaction6.

CHAPTER 3

Methodology

3.1 Methodology

In this study we have chosen six variables,

1. Employee Turnover as Dependent variable,

2. Recognition & Reward,

3. Leadership & Management,4. Performance Management System,

5. Work Contents, and

6. Career Development as Independent variables.

5(Hong & Chao, 2007 p.217)

6(Kemery, Dedeian, Mossholder, and Touliatos 1985 as cited in Morrell, et al. 2004 p.335)



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Business research managementAge and Gender were also playing the role of silent independent variables for giving

the more in depth knowledge of our study. These independent variables constrain

towards the two more variables that are:

1. Employee Motivation

2. Employee Satisfaction,

which ultimately intend a person whether to quit or retain.

3.2 Research Design

A comprehensive questionnaire has developed for the collection of data for the above

said variables. This study will look into the reasons of turnover intensions in the

current banking setup.

3.3 Population Size and Sampling:

A sample of 150 respondents has been used, 200 questionnaires were distributed

among the bankers of private and Governments Banks, out of which 150 responded.

Data of 127 respondents was valid and reliable. In these respondents 101 (80%) were

male and 26 (20%) were female. Out of total 55 (43%) employees were having the

age of 18-25 years and 72 (57%) employees were of the age of 26-35 years. Data

which were collected from the closed ended questionnaire is then put into SPSS for

the analysis of the respondents data.

Our questionnaire contains 29 questions in all. Q3 to Q6 investigates Recognition &

Reward for us, the questions which were asked in this category was taken from the

study conducted by (Mathews 1985). Q7 to Q12 investigates variable i.e. Leadership

& Management, the questions which were asked in this category was taken from the

study conducted by (Ali 2008). Q13 to Q15 investigates variable i.e. Performance

Management system, the questions which were asked in this category was taken

from the study conducted by (Elling 1997) Q16 to Q17 investigates variable i.e. Work

Contents, the questions which were asked in this category was taken from the studyconducted by (Marrie 1989) Q18 to Q21 investigates variable i.e. Career

Development, the questions which were asked in this category was taken from the

study conducted by (Sibert 2009). Q22 to Q24 investigates variable i.e. Employee

Turnover Intensions, the questions which were asked in this category was taken from



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Business research managementthe study conducted by (Mathews 1985). All questions were on 5-scale that starts

from Strong Agree to Strongly Disagree.

3.4 Research Tools / Instruments:

Data related to the causes of employee turnover and the techniques of employee

retention will be collected from the HR specialists working in the leading industries of

Pakistan through Questionnaires. Then we will make quantitative analysis on this data

with the help of SPSS.

The options were Strongly Disagree, Disagree, Neutral, and Strongly Agree. The

rating scale is administrated to the respondent and is scored to the following

scheme.

Response Rate

Strongly Agree 1

Agree 2

Neutral 3

Disagree 4

Strongly Disagree 5

CHAPTER 4

Theoretical Foundation

4.1 Turnover

Turnover, in a human resources context refers to the characteristic of a given company or industry,

relative to rate at which an employer gains and loses staff. While there have been a multitude of

studies examining why employees choose to leave an organization, Research findings from

organizational theory and business literature suggest that the negative impacts of turnover include

a loss of organizational productivity, a decrease in quality of service and an increase in direct

economic and other intangible costs.



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4.2 Turnover and Recognition & Reward

Appreciation is a fundamental human need. Employees respond to appreciation expressed through

recognition of their good work because it confirms their work is valued. When employees and their

work are valued, their satisfaction and productivity rises, and they are motivated to maintain or

improve their good work. Praise and recognition are essential to an outstanding workplace. People

want to be respected and valued for their contribution. Everyone feels the need to be recognized as

an individual or member of a group and to feel a sense of achievement for work well done or even

for a valiant effort. Everyone wants a pat on the back to make them feel good. In the absence ofsuch acts its become impossible for HR manager to retain competent staff.

There are two aspects to employee recognition. The first aspect is to actually see, identify or

realize an opportunity to praise someone. If you are not in a receptive frame of mind you can easily

pass over many such opportunities. Secondly, because employee recognition has a huge

communication component! Recognizing people for their good work sends an extremely powerful

message to the recipient, their work team and other employees through the grapevine and formal

communication channels. Employee recognition is therefore a potent communication technique.

4.3 Turnover and Performance Management System

Performance management system highlight critical gaps in your workforce; it also gives you the

potential to identify employees who have the capacity to be the future leaders in your organization.

Starting that grooming process early can have a two-fold effect of both retaining and strengthening

your workforce. And besides being cost-effective, promoting from within also helps reduce

employee churn, which in itself has a high cost to an organization. This system must design in way

that gives a clear cut picture of performance gap of employees and ends with Justice.

It has been suggested that a firm's performance is enhanced by the degree that the human resource

management strategies support each other but also fit with its external strategies (Huselid, 1995,

p. 649).



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4.4 Turnover and Leadership Management

Leadership from top Management is considered to be the big determinant of employee turnover. If

the employee is not satisfied with his Manager then it means he feels injustice in the appraisals,

distribution of work or any other act. In this category mangers could fail to motivate his

subordinate or subordinate could expect beyond the limits of his Manager. In both cases the moral

of the employee is low and will not stay in organization.

In his recent study carried out, Rad (2006) found that employees job satisfaction significantly

correlated with and was affected by leadership style of managers involved. Leadership support can

be referred to as being the extent to which a person perceives that he is getting due consideration

from his or her immediate superior.

4.5 Turnover and Career Development

Everybody wants to grow in specific field & wants to develop his career. This could also be a

major reason of Employee turnover. Sometimes a company has no strength to boost the career (to

promote) his employee. So ultimately employee leaves for better opportunity. Training and

development can promote greater job satisfaction while lessening the likelihood of unwanted

turnover.

Huselid (1995) suggested that progressive HR practices that embrace career-related practices could

improve knowledge, skills and the abilities of an organizations current and potential employees,

and enhance the retention of quality employees. Eisenberger (2002) suggested training and

exposure may imply a high level of concern for organizations to extend employees potential in the

organization. Employees who receive such developmental opportunities would boost their

motivation and confidence in their work. Subsequently, employees who receive such opportunities

might repay their organization with the likeliness of extending their self-fulfillment, leading to

reduced turnover intention.



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4.6 Turnover and Work Contents

The term work content refers to the Job Description of employee. It shows what the main duties of

employees are? Employee must be satisfied with its work contents. These can be disturbed via

stress of work, work rotation or excessive work.

Work stress experienced at particular types of jobs can also create turnover. For example Childcare

workers watching over constantly crying children, waiters dealing with demanding dinnertime

customers, police officers in high-crime areas, and truck drivers facing long hours and heavy

traffic are all in job categories experiencing high levels of turnover. There are three aspects of

work: attainment of values, attitudes, and moods. It was hypothesized and found that the

relationship between job satisfaction and turnover intentions is jointly moderated by value

attainment and positive mood.

CHAPTER 5

Finding, Conclusions and

Recommendations

The result of the study analysis will present in this chapter. This analysis will comprises of two

portions. In the first i.e. descriptive analysis is used to describe the data by using descriptive

summary. In the second phase i.e. inferential analysis, will used to describe the relation between

variables, and to see the nature of relationship between variables. In inferential portion of this

study we will test the relationship between Employee Turnover, Recognition & Reward,


Development.



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References

1. Ali, Nazim and Buksh, Qadar (2008), impact of job satisfaction on turnover intentions,

Journal of Managerial Sciences,Volume II, Number 1, pp. 24-41.

2. Samuel, Michael and Chipunza, Crispen (2009), retention and turnover: Using motivational

variables as a panacea, African Journal of Business Management Vol.3 (8), pp. 410-415.

3. Chen, Shun and Chen Li (2008), contract workers and turnover intentions in Taiwan,

Commercial Career Journal, Vol. 147, pp. 53-60.

4. Amin, Rahul Zaman, Ahmad and Amin Nafeez (2002), employee turnover in the small

business,Journal Of Business & Economics Research Volume 2, Number 2 pp. 61-70.

5. Bhiwajee, Lukea Naidoo and Munhurrun, Ramseook (2008) factors influencing job satisfaction

and intention to quit,Journal of Applied Psychology, vol. 70, pp. 469-480



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6. Bodla, Mahmood and Hameed Abdul (2008) controllable vs. uncontrollable factors of employee

turnover intentions,Academy of management best papers proceedings, pp.342-346

7. Borstorff, Patricia and Marker, Michael (2007) turnover drivers and retention factors affecting

hourly workers,Management Review: An International JournalVolume 2, Number 1, Pages: 14-27

8. Ramlall, Sunil (2003), managing employee retention as a strategy for increasing organizational

competitiveness,Applied H.R.M. Research, 2003, Volume 8, Number 2, pages 63-72

9. Siebert, Stanley & Zubanov, Nikolay (2009) worked on searching for the optimal level of

employee turnover,Academy of Management Journal 2009, Vol. 52, No. 2, 294313.

10. Elling, Richard (1997) worked on employee turnover in American state bureaucracies, Review of

Public Personnel Administration 5: 68-75.

11. Abdullah, Moha Shuib, Munir Zikri Khalid, Hassan Nor, Norizan & Jauhar, Junaimah (2007)

employee organizational commitment in SMEs,International Review of Business Research Papers

Vol.3 No.2 June 2007, Pp. 12 26

12. Du, Jianjian Song, Yu Liu, Chunlu & Picken, David (2008), variance analyses of job satisfaction

and organizational commitment vs demographic variables a study on construction managers in

Wuhan, The International Journal of Human Resource Management, 6(1): pp. 103-125.

13. Betts, Stephen (2006), the decision to moonlight or quit: incorporating multiple jobholding into a

model of turnover,Journal of Organizational Culture, Communications and Conflict, Volume 10,

No. 1, 2006 pp.63-78



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23. Amin, Rahul, & Zaman, Ahmad (2004), the employee turnover in the small business,

Journal of Business & Economic Research in Vol. 2 & Number 2 p. 15-17

24. Gene,Glass (2004), teacher turnover in urban elementary schools, journal of Education Policy

Analysis Archives Volume 12 Number 42 p 28-35

25. John, Levine & Richard, Moreland (2005), personnel turnover and team performance Journal of

Human Relations, Vol.37, 1984, p.681-692

26. Ongori, Hengry (2007), factors leads to turnover, African Journal of Business Management pp.

049-054

27. Hope, Jhon & Patrick, Mackin (2007), Relationship of Employee Turnover & Employee

Compensation in small Business Concerns,Journal of Applied Psychology, Vol.63, p.391-407

28. Appelbaum, Steven Mitraud, Andrew Gailleur, Jean Gailleur, & Ivanova, Marcello (2008), impact

of organizational change, structure and leadership on employee turnover,Journal of Business Case

Studies January 2008 Volume 4, Number 1

29. Lyness, Karan, & Judiesch, K. Michle (2001), the relationships of gender, promotions, and family

leaves of absence to voluntary turnover,Journal of Applied Psychology 2001, Vol. 86. No. 6.

1167-1178

30. Hung, Wen Lee & Ching-Hsiang Liu (2007) International Journal of Manpower Vol 28 (2) P

128-134



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Business research management31. J. Vera C (2006), missing workforce: some personality correlates of turnover, Journal of

Personality, Vol.60, p.329-361

APPENDIX

QUESTIONNIRE

Dear Colleagues/Fellows

I, student of Master of Business Administration MBA, Allama Iqbal Open

University am conducting research on the topic Factors That Affecting Turnover

Intentions in Banking Sector of Pakistan. You are requested to provide your

opinion on this questionnaire which would be kept strictly confidential. I shall be

thankful to you for your cooperation in the completion of this study.

Thanking you.

Muhammad Arsalan

Instruction:

Keeping in view your work situation, please encircle the most

appropriate response option in front of every given below where

SA= Strongly agree, A= Agree, N= Neutral, D= Disagree, &

SD= Strongly disagree



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Employees' Turnover Questionnaire

Please take a few minutes to fill this questionnaire. Your specific answers will be completely anonymous, but

your views, in combination with those of others, are extremely important, results will be used to develop

indicators of Turnover Intensions.

Tick the letter that best describes how you feel about the statement:

( SA = Strongly agreed, A = Agreed, N = Neutral, D = Disagreed and for SD = Strongly Disagreed )

1 What is your gender? (1) Male (2) Female

2 What category describes your age? (1) 18 to 25 (2) 26 to 35 (3) 36 to 45 (4) 45 above

Recognition & Reward

3 The reward system practiced in your Organization communicated to all employees SA A N D S

4 Policy for the selecting employees for reward is constructive SA A N D S

5 Good performers are awarded in front of whole staff SA A N D S

6 You are fully satisfied with your compensation & Benefit system SA A N D S

Leadership & Management

7 Your manager/supervisor encourages high achievement by reducing fear of failure SA A N D S

8 Your manager/supervisor takes responsibility for shaping up your attitudes SA A N D S

9 Your manager/supervisor provides you feedback to help in achievement of goals SA A N D S

1

0 You have lack of leadership down the chain of command SA A N D S



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1

1 You feel you can voice your opinion without fear SA A N D S

Performance Management System

1

2 Talent is fully identified & Job Descriptions are updated accordingly SA A N D S

1

3 You get fair recognition and appreciation for your performance SA A N D S

1

4 You have the culture of favoritism SA A N D S

15 Quality & Quantity of work you are asked to perform is achievable SA A N D S

1

6 You have found that the promotion decisions are made on merit SA A N D S

Work Contents

1

7 you have great understanding of system of your departments SA A N D S

1

8 You have found dynamic growth rate in your organization SA A N D S

1

9 Does your qualification matches your Job description SA A N D S

2

0 You are satesfied with the work distribution in your department SA A N D S

2

1 You feel personal grooming in your Current Job Description SA A N D S

Career Development

2

2 Employees have high level of satisfaction towards provided training facilities SA A N D S

2

3 You have opportunities to learn and grow in this company SA A N D S

2

4 You feel there is adequate possibility that you move to a better job SA A N D S

25 You probably look for a new job in the next year SA A N D S

2

6 Reason to move the job is because of that you want to switch from Industry SA A N D S

Proposal (Second Draft) 08-03-2012

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Transcript of Proposal (Second Draft) 08-03-2012