The Effect Of Job Rotation On Employees Performance

The Effect Of Job Rotation On Employees Performance

Abstract

This project tests three possible explanations for why firms adopt job rotation: employee learning (rotation makes employees more versatile), employer learning (through rotation, employers learn more about individual workers’ strengths), and employee motivation (rotation mitigates boredom). Whereas previous studies have examined either establishment characteristics or a single firm’s personnel records, this study merges information from a detailed survey of Danish private sector firms with linked employer-employee panel data, allowing firm characteristics, work force characteristics, and firms’ human resource management practices to be included as explanatory variables.

The results reject the employee motivation hypothesis, but support the employee learning and, especially, the employer learning hypotheses. Firms allocating more resources to training were more likely to rotate workers; rotation schemes were more common in less hierarchical firms and in firms with shorter average employee tenure; and both firm growth rates and firms’ use of nation-wide recruitment were positively associated with rotation schemes.

Chapter One

Introduction

1.1 Background of the Study

Over the years reward and compensation have been a bone of contention both in the private and public organization on employees. This has generated a lot of argument, discussion and interest to an extent that it has became a highly sensitive topic.

It is very obvious that employees can only put in their best at work when such employee is provided with a conducive working atmosphere conditions and job rotational activities which serve as stimulus to stir them (employees) to achieve organization set target goals and objective efficiently and effectively.

The essence of effect of job rotation is to provide a good platform for equity and fairness. They provide a challenging environment and increase employee and employee performance. Extrinsic needs of workers at all levels are the effect of job rotation which ensures that both the intrinsic are adequately provided for. This is because it develops organizations integrated policy, procedure and practice. Thus, it is an important signal of organization culture and valve so it’s important to the successful recruitment and retention of high caliber work force with adequate knowledge, skill and ability that supports the organization strategic goals and rotation employees in accordance to their contributions skills, competence and market worth.

Based on the definition of employees performance which cannot clearly be defined without going or under standing what reward and compensation do on an employee. when an employee’s reward or compensations which could come in farm of incautious like assurance etc with all these put in place, the employees would be motivated to work and put in all their best there by meeting the goals and targets of the organization. Therefore the success of an organization is based on good effect of job rotation in other to increase organization, productivity.

1.2 Historical Background of Consolidated Breweries Plc Awo-Nmamma

Consolidated Breweries Plc, Nigeria’s third largest brewery and the producers of the quality brands “33” Export Lager Beer, Turbo King Dark Ale, Hi-Malt Non Alcoholic Malt Drink and Maltex Non Alcoholic Malt Drink. These brands have a wide distribution foot print and have a great consumer following across Nigeria. Heineken International became the majority shareholder in 2005.

In 2000 Consolidated Breweries entered into a Technical Services Agreement with Heineken International and Heineken acquired minority shareholding. In 2005 Heineken International became the majority shareholder. In 2009 Consolidated Breweries Plc. acquired a majority shareholding in DIL/Maltex Nigeria Plc, makers of the famous Maltex brand.

We are currently operating at four different locations. Our Head Office is located at Iddo House, Iddo, Lagos, our breweries are located in Ijebu-Ode, Ogun State and Awo-Omamma in Imo State and we have a factory in Agbara, Ogun State, and on August 1st, 2011, Consolidated Breweries plc acquired majority shareholding in Benue Brewery Limited following the formal approval given by the Securities and Exchange Commission (SEC). Furthermore we have many depots spread across the country.

1.3 Statement of Problem

The subject matter for this work was chosen in order that the great attention being accorded to the issue of efficiency vis – a -vis productivity may be brought to the fore for an enhanced understanding.

1. The administration of consolidated Breweries PLC Awo-Nmanma requires a knowledge of the performance of their workers in order to be able to measure operational efficiency. Some common areas of problems noted during the research include:
2. Non-challant attitude towards work employees are know to exhibit an “I don’t care” approach in the discharge of their duties. This is much so where they feel they have nothing in stake. There fore this affects their out-put and has a negative impact on the organization.
3. The employees are faced with a lot of operational hazards and this affects mostly the junior workers and when they feel or they find no fulfillment or joy in the work, they tend to back out which increases labour turnover.
4. The employees tend to compare their job rotation packages with other organization and when they feel theirs is little, they tend to put up a lazy attitude towards work.

However, in any organization the availability of adequate effect of job rotation would increase the performance of employees, which would reduce labour turnover in the organization.

1.4 Objectives of the Study

The aims and objectives of this study included to ascertain the possible effect of effect of job rotation on the performance of employees In an organisation and critically examine it’s impact on employees performance.

Reducing Monotony of the Job:

The first and foremost objective of job rotation is to reduce the monotony and repetitiveness involved in a job. It allows employees to experience different type of jobs and motivates them to perform well at each stage of job replacement.

Succession Planning:

The concept of succession planning is ‘Who will replace whom’. Its main function of job rotation is to develop a pool of employees who can be placed at a senior level when someone gets retired or leaves the organization. The idea is to create an immediate replacement of a high-worth employee from within the organization.

Creating Right-Employee Job Fit:

The success of an organization depends on the on-job productivity of its employees. If they’re rightly placed, they will be able to give the maximum output. In case, they are not assigned the job that they are good at, it creates a real big problem for both employee as well as organization. Therefore, fitting a right person in right vacancy is one of the main objectives of job rotation.

Exposing Workers to All Verticals of the Company:

Another main function of job rotation process is to exposing workers to all verticals or operations of the organization in order to make them aware how company operates and how tasks are performed. It gives them a chance to understand the working of the organization and different issues that crop up while working.

Testing Employee Skills and Competencies:

Testing and analyzing employee skills and competencies and then assigning them the work that they excel at is one of the major functions of job rotation process. It is done by moving them to different jobs and assignments and determining their proficiency and aptitude. Placing them what they are best at increases their on-job productivity.

Developing a Wider Range of Work Experience:

Employees, usually don’t want to change their area of operations. Once they start performing a specific task, they don’t want to shift from their comfort zone. Through job rotation, managers prepare them in advance to have a wider range of work experience and develop different skills and competencies. It is necessary for an overall development of an individual. Along with this, they understand the problems of various departments and try to adjust or adapt accordingly.

1.5 Significance of the Study

1. To enable the consolidated Breweries PLC Awo-Nmanma understand the impact of effect of job rotation on employees.
2. It will assist the government to develop requisite policies for rewarding employees and to increase employees performance
3. It will integrate the Plight and interest of employees with organizational policy therefore ensuring that their welfare is concerned thereby making them more efficient and effective in their duties.
4. It will provide analysis and would also serve as a data bank for future researchers who will make further research into this topic.

1.6 Hypotheses

• H1; Job rotation has a significant relationship with employee motivation.
• H2; Job rotation has a significant relationship with employee commitment.
• H3; Job rotation has a significant relationship with job involvement

1.7 Research Question

The basic research question for this work are:

1. How do employees and workers perceive effect of job rotation in the organization?
2. What factors influences employees performance?
3. What roles and functions have the management played in putting up a good effect of job rotation in the organization?
4. Does organization effect of job rotation have positive impact on employee performance?
5. Do you think poor job rotation packages would lead to labour turnover in the organization?

1.8 Delimitations (Scope) of the Study

This research work is centered on the on employee performance and it is limited to consolidated Breweries PLC Awo-Nmanma headquarters. This research work is also confronted with similar problems because no establishment or organization can stand out today and say it never encountered any pitfalls. Pitfalls in an establishment or in an organization would give the management a tore bight on how to handle any problem that comes by.

1.9 Limitations (Constraints) of Study

Firstly, due to limited time, the availability of required data or information from the organization was not an easy task due to the fact that it’s a big establishment and due procedures has to be followed the researcher finds it difficult to access meaningful data as regards to current organisation rotation policy, but had no choice than to use the limited information available. More over, the researcher had a limited time frame, combined with other academic activities to carry out the research.

Finally, though it is quite interesting and necessary to have a comprehensive research on the topic: (the impact of reward system and compensation on employee performance).the researcher may not be able to treat the topic absolutely due to time constraint, finance constrain, stress on the part of the researcher and lack of adequate data.

1.10 Definition of Terms

Reward:

Reward can be defined as the care facet in employment. It constitutes an economic exchange or relationship or the comprehensive organizational compensation and incentive package plus indirect benefits and incentives.

Organizational Productivity:

Organisational productivity refers to the output by the discharge of duties by the employees. It can also be referred to as the effectiveness and efficiency of an employee.

Reward Strategy:

This is the intention of an organisation on how it’s reward policies and process should be developed to meet business requirement.

Management:

Management is the creation of enabling environment whereby people working together can achieve group goals and objectives.

Organisation:

Organisation can be described as a legal entity deliberately constructed and re-constructed in order to achieve organizational objective.

Chapter Five

Summary of Findings, Conclusion and Recommendation

In this chapter, efforts will be made to present the finding of this study, draw some conclusions and finally make some necessary recommendations.

5.1 Summary of Findings

This study was conducted to highlight the importance of the job rotation as a training method and to access its impact on the employee motivation, commitment and job involvement. The study documented a weak and positive impact of job rotation on employee commitment and job involvement and a weak negative impact of job rotation on employee motivation. Previous research on this topic also provide evidence of a positive impact of the job rotation on the employee commitment and loyalty with the organization (Zigarelli, 2004; Leat, 2007; Ho et al., 2009), same findings are put forward for the variable of job involvement (Pruden, 1973; London, 1983; Near, 1985). But the relationship with the employee motivation do not match with the available literature (Adomi, 2006) but some researchers suggested other consequences of job rotational activities such like Eriksson and Ortega (2006) who postulated that job rotation is used frequently in the organization with low promotion opportunities but the final outcome of a training initiative is promotion and if the expectations of the employee are not satisfied he might become unmotivated. Moreover, Yinhua (1994) also provided that rotational activities might have some negative influence on the employees of the organization because people working on a task do not want to hand over it to others with a fear to lose mastery over it and there is also seen a decrease in the quality of output and productivity of the employee being rotated that might also have some consequences. In the banking sector of Nigeria, the reason for this negative relationship might be the excessive pressure which is inherent in the banking industry and the fact that when some employee get rotated he not only copes up with his new responsibilities but also partially perform his old duties due to managers belief that he is proficient in what he was doing before and the employee replacing him is not that proficient yet. Moreover, a positive but weak interrelation between all three independent variables that is, employee motivation, employee commitment and job involvement was also found. Moreover, the research on the topic is mostly done in the developed countries where human resource (HR) department is very active in job rotational activities and look after each issue regarding the trainability and pressure handling of employee with regard to his new duties, but we targeted the banking sector of a developing economy that is, Nigeria. This could also be a reason of this negative relationship. The correlation, however, is also weak as indicated by a small correlation coefficient vale. This issue however, needs special attention and in-depth investigation in this particular phenomenon which would be more fact revealing.

5.2 Conclusion and Recommendations

Findings of this research indicates that employee commitment and job involvement could be slightly increased by boosting up job rotational activities in banking sector of Nigeria while the issue of employee motivation is still debatable and we call for more research in this area to understand the phenomenon in more accurate and appropriate way. This research is important in several ways; first the impact of overall training of employees has widely been studied in management research areas but individual impact of various training methods particularly, on the job training methods are somewhat neglected area of attention from researcher around the word, this study is the first attempt to highlight the importance of the tainting methods as on separate bases. Second, developing countries lack sufficient evidence with regard to different aspects of work life and work related behaviors and Nigeria particularly is deficient in many aspects of understanding regarding the organization related research. So, it is useful to look into the phenomenon to probe into the yet unanswered questions and provide explanations which are relevant particularly in the scope of a particular sector of a particular economy and rechecking the finding on different sectors by applying and researching the phenomenon in detail. Third, the usefulness of this research has practical implications as it provides managers the explanation of the employee behavior in the specific context of job rotation that could be useful or dangerous to their organization apart from the traditional benefits such as a technique for skill building and enhanced exposure and drawbacks.

So, the duty of HR managers in this sense is to incorporate the planned rotational activities in the overall training program of the bankers in order to realign the efforts of the employees in the direction of the shared goals and vision of the organization. It is not only the demand of this competitive era but also a key to equip employees with diverse skills and expertise.

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