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THE IMPACT OF LABOUR ON ORGANIZATION EFFECTIVENESS

CHAPTER ONE

INTRODUCTION

BACKGROUKD TO THE STUDY

The success of any organization depends to a large extent on effective utilization of human resources. This is mostly influenced by the organization's objectives coupled with the skill, satisfaction and enthusiasm of the employees. The organization must constantly work towards recruiting qualified hands, trail and also make efforts to retain them, and one good way of maintaining the survival of the organization, -is to see that employees derive satisfaction from the jobs done by them. One major recurrent problem in industries nowadays is the increase in "LABOUR TURN-OVER" that is, the avoidable separation of workers from organization. This is the problem, which the study tends to examine with the aim of reducing the rate of "Labour Turnover". Dissatisfaction among workers can manifest that are itself in the form of serious industrial conflicts that are detrimental to the achievement of the organizational goal such as absence from work, low performance and gross indiscipline.

Labour turnover cannot be discussed fully in isolation without mentioning personnel management, as labour management is part of personnel functions. The definition of personnel management by Thomas G. Spates is "a code of the way of organizing and treating individuals at work so that they will each get the greatest possible realization of their intrinsic abilities, thus attaining maximum efficiency for themselves and their group and thereby giving to the enterprise of which they are a part, its determining competitive advantage and its optimum results". The second emphasy is that of a good personnel administration, which helps individuals to utilize their capabilities to the full and to attain not only maximum individual satisfaction as part of the work group. The assumption above is that, if people are treated both as responsible individuals and co-operative group members, they will respond by giving their best work to the organization of which they are on essential part.

The sources of pressure for change are numerous, but perhaps, the most common is the perception by management of an opportunity for greater efficiency. Management may wish to take advantage of developments offering greater manufacturing flexibility, it may perceive the possibility of increased motivation and productivity, or again, it may react to growing dissatisfaction on the part of workers as expressed by a rise in absenteeism and labour turnover. This last case is an example of pressure for improvements coming indirectly from the workers themselves, but workers and their trade unions may also take the initiative by submitting suggestions or making specific demands m collective bargaining negotiations. Many governments are adopting a more active approach to the promotion of improvements m work organizations. Either by funding research, or even by legislation. Work organization standards and models are important means of promoting work organization improvement in promoting work organization improvements in centrally planned economy.

In order to improve the organization at work, many pitfalls must be avoided if efficiency, effectiveness, and employees' satisfaction are to be increased. The first basis point is that even small and seemingly simple organizations have a variety of "sub-systems" which help to assure their continuing operation. Among those most relevant to work organization and the improvement of job content are: - Task-oriented system: - equipment design and layout, standards work methods; Human resources system: - personnel selection, training and assignment; System of formal rules: - contractual obligations; work norms or quotas, work rules and established practices;

Reward and sanctioning systems: - payment or allocation of privileges by results, career systems based on performance, rate setting; disciplinary actions; and Persuasive systems: - leadership, emulation, and promotional activities. All these sub- systems have critical impact on workers, that is, change in work organization which conflict with these sub­systems may generate considerable problems. Therefore, collective agreements are particularly suitable for laying down requirements with respect to working conditions and environment m a particular organization. Negotiations between employers and employees representatives can review and resolve problems which if neglected or overlooked, may be aggravated by time and lead to conflicts or management and production problems that are even more difficult to settle (absenteeism, labour turnover, low product or service quality, alls in output e.t.c.). As in the collective bargaining.

Convention, 1981, pg. 154).

STATEMENT THE PROBLEM

The problem of this study is centered on finding the remote and. immediate causes of labour turnover and its impact on organization effectiveness. It is also to be studied in this research of what effect remuneration has on labour turnover in an organization. Also, the problem this research will look into is the pay increase mechanism as a tool to reduce turnover in an organization. An attempt will be made in this research work to look into rate of turnover in each range of level of personnel ranging from rank and file to the executive cadre. Job satisfaction as a tool to control labour turnover shall be looked into under this the effect of provision of necessary working environment for employee by the organization this shall be examined to see the effect on labour turnover. Also sectorial labour turn-over will be enlightened. It will be examined in sectorial level to see the glut or disparity of movement within banking sector.

PURPOSE OF THE STUDY

The purpose of this study is to examine the following:

i.  To identify the causes of labour turn-over and what impact it has on organizational effectiveness.

ii.  To determine the classified area with the highest rate of turn- over.

iii. To determine the effect of high labour turn-over rate on any organization.

iv. Making suggestions to the management for proper and effective control of labour turn-over.

For the problem of labour turn-over to be brought under control, if workers recruited and trained are not retained, the expenses incurred in. the process will not be justified. Therefore, policy recommendations should be made on ways of improving the organizational effectiveness in industries in order to enhance their contributions towards the growth of Nigerian economy.

RESEARCH HYPOTHESIS

The following statements show the variables and areas within which the study is based. They are: -

Ho:-Labour turn-over is not significantly related to organizational effectiveness

H1:- Labour turn-over is significantly related to organization effectiveness -

SIGNIFICANCE OF THE STUDY

WEMA Bank Plc and its branches in Nigeria will be viewed to identify and determine: -

To which extent workers leave the organization.

To study workers' expectations as regards needs satisfaction and its relationship to job satisfaction.

To provide an insight into the aims, objectives, roles, modes of operation and opportunities of labour turnover on organizational effectiveness in Nigeria.

This would serve as a guideline to further research studies and would bring to light, to the management of WEMA Bank Plc, the area of checks and corrections.

Hence, it would make a significant contribution to knowledge.

SCOPE AND LIMITATION OF STUDY

The study provides the descriptive view on labour turnover and its relationship to the variables highlighted in the study's hypothesis. The study will cut across mainly, on the banking industries, where it is believed that issues of labours turnover is well pronounced. However, a nation-wide survey of the banking industries would have given a more comprehensive appraisal of the study, but due to time and money constraints, this could not be achieved. Therefore, the study will only be limited to WEMA Bank Plc (which is the case study of the research), and since the industry has a large number of branches in the country, the researcher will only be limited to two particular branches to which the respondents will be interviewed through the use of questionnaires and then will be chosen at random.

DEFINITION OF TERMS

For a study of this nature, it is important to clarify and explain the basic key words used in the study, so that a better understanding of the topic will be achieved.

They are as follows: -

v LABOUR TURNOVER: - This refers to the degree of movement, in and out of an organization within a given period of time (say, a month or year). It could also mean the movement of people, men or women out of an employment.

v CODE:- A set of techniques or rules and regulation used :in supervising people at work .

v PERSONNEL DEVELOPMENT:- Aids acquired by individuals to utilize their capacities to the full towards the attainments of individual satisfaction and co-operate satisfaction .

v WORK FORCE: - The required manpower strength of an organization

v VOLUNTARY SEPARATION: - This refers to when an individual or employee decides to leave or resign his employment on his personal reasons.

v AVOIDABLE SEPARATION: - This refers to an employee leaving his employment on the grounds of or reasons within the employer competent, issues like severe discipline or bad working conditions, unnecessary redundancy e.t.c .

v UNAVOIDABLE SEPARATION: This refers to where the cause of leaving an employment is beyond the control of the employer or even the employee, e.g. death, illness, marriage or retirement.

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