determinants of labour turnover in organisations.

Topics: Employment, Maslow's hierarchy of needs, Labour economics Pages: 21 (5440 words) Published: May 26, 2014
DETERMINANTS OF LABOR TURNOVER IN LAKE VICTORIA SERENA HOTEL MUTUNGO KIGO WAKISO DISTRICT

BY

SIMON BAWONGA
11/U/10715/EKE/PE

A RESEARCH PROPOSAL SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND STATISTICS IN PARTIAL FULFILMENT OF THE REQUIREMENT OF A BACHELORS DEGREE OF ARTS IN ECONOMICS
OF KYAMBOGO UNIVERSITY

APRIL 2014
CHAPTER ONE
1.0 Introduction
The study has considerable interests in investigating the determinants of labour turnover in Lake Victoria Serena Hotel Mutungo, Wakiso district. This chapter presents the introduction, the background to the study, statement of the problem, purpose of the study research questions, objectives, significance of the study, scope of the study and operational definitions.

1.1Background of the study
Labour turnover refers to the rate at which people come and leave the organization which reduces the performance of the organization. Analysis of the numbers of people leaving the organizations provides data for us in fore casting so that research can be made on a number of people lost who may have to be replaced. More importantly however, the analysis of the numbers of leaves and reasons why they leave provides information that will indicate whether any action is required to improve retention rates at lake Victoria Serena. This can prompt further investigations to establish underlying causes and identify remedies for better performance at Lake Victoria Serena.

Although there’s no standards framework for understanding employee turnover process as whole, a wide range of factors have been found useful in interpreting employee turnover. The sources and what determines employee’s turnover enables the Lake Victoria Serena manager to come up with employee benefits to minimize the labor turnover. Employee benefits include; medical insurance, employee engagement housing fees, transport etc, whereby the lake Victoria Serena capacity to engage, retain and optimize the value of its employee hinges on having well jobs are designed, how employees time is used and the commitment shown to employees by the management hence motivating employees to stay in lake Victoria Serena.

Incase labor turnover in lake Victoria Serena is not managed properly, it will affect the organization adversely in terms of personnel costs and in the long run it will affect its liquidity position, however voluntary turnover incurs significant costs both in terms of direct costs lie replacement, recruitment and selection, temporary staff management time and also in terms of direct cost morale, pressure on remaining staff, costs of learning product/services quantity, organizational memory and the loss of social capital.

Labour turnover is expensive from the view of lake Victoria Serena whereby the voluntary quits represent an exodus of human capital investment of the organization fair and subsequent replacement process which entails manifold costs to the organizations for example replacement costs may include search of the external labor market for a possible substitute, selection between competition substitutes, induction of the chosen substitute until he or she attains performance levels equivalent to the individuals who cut from lake Victoria Serena.

According to Abassi, et’al (2008), employee turnover is the rotation of workers around the labor market between firms, jobs and occupation and between the states of employment and unemployment. Employees are the back bone of any business success and therefore they need to be motivated and maintained in organization at all costs to aid it to be globally competitive in terms of providing quality products and services to the society. Therefore empowerment of employees could help to enhance the continuity of employees in an organization. Empowered employees where managers supervise more people than in at traditional hierarchy and delegating responsibilities to them leads to subordinates who are more satisfied with their leaders, and...

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