The Causes And Effect Of Labour Turnover In Business Organisation (A Case Study Of Okin Biscuits Nig. Ltd, Offa, Kwara State)

Project and Seminar Material for Business Administration and Management BAM

The Causes And Effect Of Labour Turnover In Business Organisation (A Case Study Of Okin Biscuits Nig. Ltd, Offa, Kwara State)


This project title “causes and effect of labour turnover” with particular reference to okin Biscuit Limited, Iyagbo, Kwara State is to recognise the causes and effects of labour turnover in a business organisation and on the business sales volume.

  • The first chapter, which is an intorduction chapter, it contains statement of the problem, objective of the study, scope of the study, the significance of the study, limitation of the study and definition of terms.
  • Chapter two on the other hand deals with literature review, which examines the various definitions and plulosophy of the causes and effects of labour turnover in a business organisaiton. It also contains supervisory behavior and employee turnover, effect of motivation on labour turnover, expectation of management towards labour turnover, calculation of labour turnover.
  • Chapter three describes the research methodology, which examine historical background of the case study, source of data collection, research population, research instrument and techniques. That is it designed of the research and the procedure use.
  • Chapter four, it comprises of analysis of data and data presentation of the various data gathered and the analysis of the hypothesis tested.
  • Chapter five summarise the whole project work, it also contained the summarize the whole project work, it also contained the summary of findings conclusion and recommendation.

Table of Contents

  • Title
  • Certification
  • Dedication
  • Acknowledgement
  • Table of contents
  • Abstract

Chapter One


  • 1.0 Background of the study
  • 1.1 Statement of the problem
  • 1.2 Aims & Objectives of the study
  • 1.3 Scope of the study
  • 1.4 Significance of the study
  • 1.5 Limitations of the study
  • 1.6 Statement of research hypothesis
  • 1.7 Definition of Terms & Concepts

Chapter Two

Literature Review

  • 2.0 Review of Related Literature
  • 2.1 Types of Labur Turnover
  • 2.2 Factors Affecting laboour Turnover
  • 2.3 Productive in organisaiton
  • 2.4 Development employement interest in high
  • 2.5 Productivity meansurements and their significance
  • 2.6 Effects of laboour Turnover or organisaitonal productivity
  • 2.7 Supervisory behaviour and employee Turnover
  • 2.8 Effect of motivation on labour turnover
  • 2.9 Expectation of management towards labour turnover
  • 2.10 Calculation of labour turnover

Chapter Three

Research Methodology

  • 3.0 Methods of data collection
  • 3.1 Population of the study
  • 3.2 Sample size and sampling method
  • 3.3 Administration of the instruments
  • 3.4 Validity and reliability of the research Instruments.
  • 3.5 Historical background of the case study

Chapter Four

Data Presentation

  • 4.1 Data Analysis
  • 4.2 Test of hypothesis
  • 4.3 Data interpretation

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Summary of the major findings
  • 5.2 Conclusion of the study
  • 5.3 Recommendation of the study
  • References

Chapter One


1.0 Background of the Study

There is a vast literature on the causes of voluntary employee turnover dates back to 1950. By developing various factors that combined a number of factors contorting to turn\over. Labour turnover is an outward flow of workers i.e the sailed, unskilled and semi-skilled labour as a result of their own or employer’s decision. This implies that the exist of workers could be voluntary of involuntary. Labour turnover in an organiza\tion becomes problem to the organization, if it does not quicly taken into consideration, this is so especially when an organization does not seek for immediate especially when an organization does not seek for immediate replacement for competent and qualified labour.

Lanbour turnover could be caused by, many factors, madequate wage levels leading to employees moving to competitors, poor morale and low levels of motivation with the work frocas cercruiting and selectinhjng the wron g employees in the first employment.

High labour turnover without adequate replacement causes performance to fall below expectation. Productivity it self cannot be achieved without efficient labour.

Labour turnover does not just create cost, some level of labour turnover is important to bring new ideas, skills andf enthusiasm to the labour force.

The dissatisfied of workers find it difficult top adjust to rigid requirement which will simply result to labour turnover, absentees, work stoppage such as strike and lockout.

1.1 Objective of the Problems

This study will identify various problems that an organization will face with labour turnover and the problems includes the following:

  1. What labour the contribute to labour turnover? Does labour turnover receive enough attention form the organization?
  2. What are the various labour turnover occur in an organization?
  3. From the aforementioned facts labour turnover need to be addressed by paying attention to workers needs because this will go along way to improve productivity of the workers.

1.2 Objectives of the Study

The objective of the study are to examine the effect of labour turnover in an organization.

  1. To examines the effect of reward system on labour turnover this shows whether motivation or reward have negative or positive impact on the workers.
  2. To examine the effect of supervision on labour turnover, the relationship between the supervisdion and workers, will be used as major tool in determining the effectiveness of the organization.

1.3 Scope of the Study

This study is based on labour which is the most important aspect of every organization without labour effective. In the sense that labour is all human efforts both skilled and unskilled directed towards production. When we are talking about labour, also necessary to know what abour likewise it cannot evade the effort. Although, all labours are mobiles, but the ,mobility of the skilled labour is highy noticed in the labour market. This research basically show the problems facting an organization on labour turnover to organizational productivity, improvement in production sections.

1.4 Significance of the Study

This study is aimed at focusing on the causes and effect of labour turnover, in business organization. So there are some of the areas of those who benefit from it.

  1. The organization of the research work and other organization.
  2. The Management students.
  3. We researcher aimed other researchers.
  4. It will be great important to production to minimize labour turnover, in the organization resources.
  5. It will also serves as reference to industrial organization wishing to improve the labour productivity of labour will serves as sing of development for the organization.

1.5 Limitation of the Study

  1. The time allocated for writing this project work fell within a semester along with other academic commitment such as lecture assignment, test e.t.c
  2. There is adequate find constitute problem in the area of traveling to get adequate information no area of data collection.
  3. The researcher could not have opportunity to attend any seminar pertaining to this study.

1.6 Statement of Research Hypothesis

The two hypothesis to be postulated is for clarify and brevity? Which would be tested in chapter for this project. The hypothesis are tested below in which ho is null hypothesis while it is the alternate hypothesis.

  1. Ho: That babour turnover have causes and effects on business organization.
    Hi: That labour turnover, does not have causes and effects on business organization.
  2. Ho: That labour turnover increases organization profitability.
    Hi: That labour turnover, does not increases organization profitability.

1.7 Definition of Terms and Concepts

1. Administrators:

Persons who administer: it also a little used for some managerial position such as the administration of bank.

2. Allocation:

A quality of resources allocated for a particular items in speaking about money, a travel allocation would be an amount of money, set aside for travel.

3. Appraise:

To assess the value of a property, a person’s job performance of other items of value.

4. Bankrupt:

A legal or economic term that means insolvency or in ability to pay one’s department.

5. Effectiveness:

The extent to which the designed result is realized frequently compared with efficiency Employee satisfaction: The degree to which employee need are met a relative measure.

6. Hygiene Factor:

A construct in Herzbery theory of motivation factor that do not motivate positively but that could demotivate if handled poorly.

7. Labour:

This refers to the human of any kingf, physical or mental directed at the production of goods and service.

8. Labour Turnover:

This is the measurement of the number of employee leaving a company.

9. Management:

It is an activity that involve coordination of al the resources of an organization through the process of planning organizing, directing and controlling in order to obtain organization objective effectively efficiently.

10. Organization:

It is a rational coordination of the activities of a number of people for the achievement of some common explicit goal through division of labour function or through hierarchy of authority.

Chapter Five

5.0 Summary, Conclusion and Recommendations

5.1 Summary of the Major Findings

The study has analyzed the causes and effects of labour turnover, on organization production in an Biscuits Nigeria Limited, in particular and also in any other business organization in general. the research was definitely and mainly limited by the non-existence of any documents or record on the effect of labour turnover on productivity. in fact, non-could precisely the basic treatment on this topic.

However, in order to take the data available, the researcher largely depends on the primary and secondary sources of information, the questionnaire were administrated and distributed to those that could read.

By and large, the research revealed the productivity was largely affected by the labor turnover. it was also shown that labour turnover usually lead to shortage of staff, when this occurs, there will be job enlargement, which makes the basic bring and eventually lead to inefficiency of labour. The inefficiency of labour will affect the materials productivity of the firm and subsequently lead to labour turnover.

5.2 Conclusion of the Study

Labour turnover is inevitable because of serial reasons. A high labour turnover indicates that an organization is sick. skilled labour and trained manager are uneasy to come across in development countries like Nigeria in the view of this to have an exodus of these group of employees requires a bold step to be taken against which exodus an examining the whole corporate culture diagnosing the various anti-thesis labeled against it. High labour turnover is wasteful and various with the type of industry examining this may pinpoint the intal information such as indication poor selection techniques, poor placement or poor working condition, a high labour turnover is costly. Because it involves extra recruitment cost, training cost and possibly more accident and failure to mean order on stipulated time. However, reasons for leaving must be analyzed carefully to ascertain their truth through interviews, although employee who leave do not revealed their reasons for leaving.

5.3 Recommendation of the Study

This research would not be sufficiently valid, if it is ended without giving recommendations to organization and interested parties whenever they find themselves in such an unfortunate situation. In view of this, the researcher gives the following recommendations to an Okin Biscuit Nigeria Limited in particular and general public (organization alikene to reduce labour turnover in an organization.

Supervisors should treat other worker in a human way and mosphere where worker can express their view individually worker who in the course of their work are injured should be compensated. The workers in production department should be provided with industrial safely facilities.

All factors that can cause job satisfaction must be provided enhance optimum productivity.

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