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SCHOOL OF MANAGEMENT

TO

Andrew Bolton

LABOUR TURNOVER AND ITS EFFECTS ON COCOA INDUSTRY IN
THE BIA DISTRICT

This paper is submitted in the partial fulfillment of Business Research course

By

FRANCES GRACEY DADZIE

February 2013

The issue of labour turnover in Ghana has been a difficult one, though organized labour unions over the years have tried to find ways of reducing its seemingly alarming rates. This trend cuts across industry; agriculture, banking, academia and other sectors of the economy. For this reason, cocoa industry being the highest (about 64%) employer in the Bia District also has labour turnover rates which tend to be alarming. As a result, young graduates as well as other job seekers are employed in the cocoa industry in the Bia District only to either leave or lose their jobs after a short stint. For instance, according to Bia District Assembly Socio-economic Data (2012); at the end of the 2009/10 cocoa season, three (3) Sector Managers, five (5) District Managers, three (3) Accounts Officers, two (2) Depot Keepers and as many as 17 Purchasing Clerks lost their jobs, while by the close of the 2011/12 season three (3) District Managers, one Accounts Officers and 11 Purchasing Clerks had their appointments terminated Ideally, it is expected that employees will stay on their jobs for a considerable number of years, but the above statistics of the LBCs over the five year period present a nagging situation to all stakeholders including employers, the government, employees, financial institutions, the community etc in the Bia District. The situation therefore needs urgent attention hence, the quest to undertake this study. Objectives of the study

The main objective of this study is to examine the causes, effects and corrective measures of labour turnover in the cocoa industry in the Bia District. The specific objectives of the study are to

• Ascertain the background characteristics of employees of LBCs in the Bia, and whether there is a link between these and labour turnover. • Determine the underlying reasons of labour turnover among the LBCs (License Buying Companies) operating in the District. • Assess the effects of labour turnover on the operations of the LBCs • Suggest measures to reducing labour turnover among the LBCs Research questions

• What are the background characteristics and the working conditions of the employees of the LBCs in the Bia District? • What factors account for labour turnover among the LBCs in Bia? • What effects does labour turnover have on the LBCs operations? • What measures can help reduce labour turnover among the LBCs in Bia? Significance of the study

The study laid bare the reasons for labour turnover rates which tend to be alarming among the LBCs, and their effects on the socio-economic development of the Bia District. Also, this study has ascertained the rates of labour turnover of the LBCs operating in the Bia District, and suggested measures to mitigate them. Finally, this research would serve as a guide for the Managements of the various LBCs operating in the Bia District toward their human resource (HR) policy formulation and implementation as far as their effort to hire, train and retain employees is concerned.

Scope of the study
This study was carried out in the Bia District in the Western Region of Ghana on labour turnover among the LBCs The focus was on labour turnover among Area/Sector Managers, District Managers, Account Officers, Depot Keepers and Purchasing Clerks of the LBCs in the Bia District. Therefore, using statistical tools such as cross-tabulations, chi-square and frequency tables, prominent issues delved into included; relationship between labour turnover and background characteristics of employees such as age, sex, educational qualifications and marital status. Further, other relevant subjects looked at were causes of labour turnover, length of service, level of salary and fringe benefits, study...
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