Employee Turnover

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THE EFFECTS OF EMPLOYEE TURNOVER ON THE PERFORMANCE OF A COMPANY: A CASE OF GENERAL MOTORS EAST AFRICA LTD

BY

MAANZO PHILIP MALUKI

REG. NO. D61/73087/2009

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF THE UNIVERSITY OF NAIROBI

DATE: APRIL 2010.

Acknowledgement:

May I express my heartfelt appreciation to the Almighty God for giving me good health, strength and a sound mind to accomplish this work. Secondly, I have to thank my lecturers, and very specifically Mr.Mirie Mwangi for his guidance and direction on how to write this paper. My gratitude will also go to my family for their immeasurable support and encouragement, both spiritually and materially, which enabled me to accomplish this work. The Kenya national library and Jomo KenyattaMemorial library also assisted me in such a big way and I thank them greatly allowing me access to their facility as well as the personalized service I got from their staff. Last but not least, I will earnestly thank my colleagues and work mates for their understanding, encouragement and support during my study period. May God bless you all and expand your boundaries to untold limits.

DECLARATION
STUDENT DECLARATION

This research proposed is my original work and has not been presented for degree in any other university or any other award.

Name: Kitetei Eunice Mbithe

D61/73087/2009

Signature …………………….. Date ……………………………

SUPERVISOR’S DECLARATION

This research proposal has been submitted for examination with my approval as a university Supervisor.

Name: Mirie Mwangi

Signature ………………….. Date ……………………

CHAIRMAN’S DECLARATION

This project has been submitted with my approval as the chairman of department of Accounting and Finance.

Name: D. K. Ngaba

Signature ……………… Date …………………….

ABSTRACT

Employee turnover is a constant phenomenon in contemporary organizations. It is very easy for an organization to get itself into a vicious circle of turnover if it does not act to stem a retention problem. Modest turnover rates can rapidly increase as the pressures on remaining staff become greater, leading to serious operational difficulties.

This study seeks to analyze the factors affecting employee turnover rates in an organization. The research will be based on employees of General Motors East Africa Ltd.

The target population will be all the employees in General Motors East Africa Ltd. The company has six departments and a total of 300 employees. A sample of 20% of employees in these departments will be taken for study. A representative group according to Mugenda and Mugenda is one that is at least 10% of the population interest. The above sample is therefore representative.

Data will be collected using structured questionnaire and interview methods. The data collected will be supplemented with available literature review on the subject of study.

The response from cross-functional sample group will be analyzed using descriptive statistical techniques in form of frequency distribution tables, percentages, paretto, and computer packages.

TABLE OF CONTENTS

TITLE PAGE……………………………………………………………....... ……………… i ACKNOWLEDGEMENT…………………………………………………………………… ii DECLARATIONiii
ABSTRACTiv
TABLE OF CONTENTSv
LIST OF TABLESvi
ABBREVIATION AND ACRONYMSviii
OPERATIONAL DEFITIONS OF TERMSix

CHAPTER ONE1
1.0INTRODUCTION1
1.1Background of the Study1
1.2Statement of the Problem2
1.3Objectives of the Study3
1.3.1General Objective3
1.3.2Specific Objectives3
1.4Research Questions3
1.5Significance of the Study3
1.6Scope of the Study4
1.7Study Limitations4

CHAPTER TWO5
2.0LITERATURE REVIEW5
2.1Introduction5
2.2Conceptual Framework6
2.3Past Studies done in the Area6
2.3.1Turnover rates and Trends6
2.4The Impact of Staff Turnover7
2.5Turnover Analysis and Costing10
2.6Critical Review of Major Issue10...
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