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Submitted By Ghayur Khalid M.com 2 B. 2011
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Topic:Causes Of
PERSONNEL
TURNOVER
From A Workplace.
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The Introduction
The failure to retain professionals can have a negative impact on an entire
system. Employee turnover occurs for a lot of reasons, including the lack
of job satisfaction, organizational commitment. Problems related to job
turnover can be so serious that the Extension Committee on Organization
and Policy's leadership advisory council identified person retention as a
national challenge. Hidden costs and workload responsibilities, can
causes lose of employees voluntarily. At the core of this problem is job
satisfaction, which is often tied to the employee's belief in their ability to
do a job well.
Voluntary personnel turnover occurs for a lot of reasons, including the
lack of job satisfaction, organizational commitment, and lack of proper
training. Loss of personnel can be costly both economically and in termsof human capital. Retention of professionals can be improved through
proper training or strategic techniques designed to increase employee
critical competencies, socialization, and job satisfaction.
In this study I have suggested that competencies should increase the
performance of professionals. Therefore skills and competencies are
often learned through professional development after the hire. The
overall goal for an organization should be to retain employees. Turnover
is highest among new employees in most organizations.
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The Purpose Statement.
The purpose statement of this study includes exploring and understanding
the employee problems and their views about employee retention and
performances in the company Further the purpose of the study is to
explore the organizational factors that support the performances among
the employees. Motivating and keeping employees requires effective
management practices and strong leadership skills. A good operating
system and reasonable training are essential. Your people need the proper
tools and support to do the job. A performance-based compensation plan
should be designed very carefully to ensure that your employees are
encouraged to build the business and are rewarded for their contributions,
and provide as many extra benefits as possible. A positive corporate
culture and a pleasant work environment are more important than money
to most good employees. Employees should be trusted, included and
empowered to make decisions. They also need to be part of a team
working for the mutual benefit of the clients, the company and
themselves. Ultimately, management and leadership skills and efforts
will determine the success in providing an atmosphere where employees
will be motivated to be effective and will remain in the company with
loyalty.
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The Significance.
According to my study design retaining employees has a great challenge
for a company. The company should make the strategies for theemployees to remain with them and not to leave them.
The significance of this study can be seen by the role of Supportive
Human Resource Practices that are found in the performance of
employees it can be significant in a way that the manager of the company
can lead the employee towards the development of job satisfaction and
organizational commitment & how an employee performance affects on
an organization. Successful managers and business owners remain those
questions in their mind.
High turnover often leaves customers, employees and departing
employees take a lot of knowledge with them. This lack will makesit hard to meet organizations goals and serve customers well.
Replacing employees costs money. The cost of replacing an
employee is estimated at up to twice the individuals annual salary
and this doesnt even include the cost of lost knowledge.
Recruiting employees consumes a lot of time, effort and job
searchers make decisions based on more than the sum of salary andbenefits.
Bringing employees up to speed takes even more time.
To keep employees and keep satisfaction high, we need to
implement each of the respect, recognition, and rewards.
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The Objectives.
To improve the retention of employees, it must better understand the
needs of new faculty through organizational socialization during hire.
This includes reviewing existing training programs and modules, and
basing them on a competency model and time frame that provides the
optimum learning at the most crucial stage. To accomplish this aim,
administrators and others involved in developing socialization strategies
and improving retention should take into consideration the following
points.
Building a community network.
To achieve SMART objectives.
Working with a practical approach.
Get involved.
Managing advisory communities.
Effective communications.
Time management.
Team-building.
Leadership.
Evaluation plan.
Job satisfaction.
Employee retention.
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Methodology
The methodology used in this study to check the validity, reliability and testing thevariables or hypothesis is mixed method approach through Questionnaires andInterviews both. Further information is given below:
No. Sample size Respondents Area1. 10 HR Departments. Lahore2. 10 Govt. Employees Lahore
3.10 Graduation Students Superior university.
4. 10 Masters Students Superior university.5. 5 M.Phil Students Superior university.6. 5 Teachers. Superior university.
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Literature Review
There are several studies organizations that discuss the high cost of
turnover and costs associated with hiring a new employee. These costs
vary greatly depending on what is included in the analysis. Here we are
reviewing ten literatures about our topic as a reference and further
studies.
Costs may actually be much higher when the value of human capital isincluded. In Extension, where public loyalty is based on the building of
long-term grass-roots level relationships, there is also loss of human and
social capital that accompanies an employee's resignation. The concept of
human capital and knowledge management is that people possess skills,
experience and knowledge, and therefore have economic value. Human
capital increases productivity as well as projecting an increased value forthe stakeholder. Retention of well-trained employees provides more than
just the traditional economic value Retention of employees, therefore, is
critical to the continued growth and health of the organization. (Ramlall,
2004).
Retention has been studied from two different perspectives. The first is
employee turnover, and the second focuses on organizational
socialization. A great deal of literature exists on the subject of job
turnover. However, very little of it relates specifically to the retention of
faculty. Turnover research can be divided into voluntary and involuntary
turnover. Voluntary turnover is defined as those employees who initiate
separation from an organization. Research related to voluntary turnover
suggests there are certain competencies and expectations that are critical
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to new employee success and to their tenure within the organization.
(Louis, 1980).
Socialization is defined as a successful conversion from outsider to aneffective member of the entry organization. Indicators of effective social
embeddedness through proper socialization include "organizational
attachment and commitment, job satisfaction, social integration, role
clarity, tasks & values." Socialization appears to play a major role
through interaction and networking skills among an organization's
membership. Failure can be costly. ((Allen, 2006).
As with turnover, there is little information published on organizational
socialization. However, there is some research that addresses
competencies needed for new hires that are related to socialization and
have been shown to reduce job dissatisfaction and employee turnover.
There is also some recent research in the area of competency-based
education curriculum in college course work. A competency is theapplication of knowledge, technical skills, and personal characteristics
that lead to outstanding performance. ((Harder, 2010).)
In this study I have suggested that competencies should be used as a
foundation for improved performance of professionals. Unfortunately,
many Extension hires do not come with college credits that include
Extension-subject-matter- or competency-based Extension education
curriculum. This is often learned through professional development
training after hire . (Bieber, (1997) ).
Competency models are frequently used to identify core skills and
characteristics that are essential in successful extension work and
personal job satisfaction. Many universities have developed Core
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competency models but the difficulty in these models are not consistent
"like" competencies & not does there appear to be any research related to
the proper time frame for introducing each competency during the
training period. ((Stone & Coppernoll, 2004), 1994).)
Because many competencies required are specific to the organization,
much of the content of competencies must be addressed within the
organizational socialization concept (role clarity, co-worker support,
politics, organizational goals and values). One of the most important
issues regarding developing orientation and training is determining the
skill set and competency needs of professionals in the field. This
continues to be an issue. (Gamon, (1992),)
Besides state-specific needs, it is agreed that professionals have a very
diverse set of job duties and the number of competencies Extension
agents should possess has increased This competency category includes
understanding the mission and scope of retaining. Both of these aspectsrelate to role clarity or performance proficiency within the organizational
socialization concept. He also conducted research on the training needs
of existing faculty and identified necessary competencies. ((Beeman,
1979). ).
I would suggested that effective strategies should be implemented in
order to promote retention. One of these areas is training, which includes
both skills and competencies. The study reported here attempted to add
some support as to which competencies and skills have the most value to
newly hired county professionals and at what point during their first 3
years each skill and competency should be taught and mastered. (Owen,
(2010) ).
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Theoretical Model
Hypothesis:
From above discussion, I come to know that PERSONNEL TURNOVER is caused
by larger competencies, job dissatisfaction & unaware of professional trainings. So,
further I am developing and testing my hypothesis to check whether it has an effect
or not.
H1: Competencies, Job Satisfaction & Professional Training has an effect on PERSONEL TRAINING.
H 0: Competencies, Job Satisfaction & Professional Training has no effect on PERSONEL TRAINING.
Now our model becomes:
Personnel Turnover = a + b (Competencies) + c (Job Satisfaction) + d (Professional Training) + e
Personnel Turnover
Com etencies
Professional Training
Job Satisfaction
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Ethical Consideration
This study will include the ethical considerations as well. In this
the particular respondents will be asked for permission for
interviewing them, taking their consent for the research, assuring
them that their information will be kept confidential and the
information will be used only for the purpose of research only. A
written consent will be signed so that no issues arise later on.
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ANALYSIS
DESCRIPTIVE
INFERENTIAL
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Descriptive:
Descriptive Statistics
N Minimum Maximum MeanStd.
Deviation
gender 40 1.00 2.00 1.3750 .49029
age 40 1.00 5.00 2.9250 1.32795
education 40 1.00 5.00 3.3500 1.14466
occupation 40 1.00 5.00 3.1750 1.12973
Job satisfaction 40 2.00 5.00 3.8000 .75786
competencies 40 2.00 5.00 3.9250 .99711
Professional training 40 1.00 5.00 3.1750 1.12973
Personnel turnover 40 3.00 5.00 3.8250 .63599
Valid N (list wise) 40
The maximum & minimum in descriptive statistics for my problem using samplesize of 40 along questionnaires are 1.32795 for age and 0.49029 for gender.
Graph
Above graph shows scatter matrix for all variables on dependent variable.Scatter dots clearly shows that similar trend for both axis which means each
variable have the similar effect whether that is independent or dependentvariable.
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Regression:
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .128 a .016 -.010 .63903
Interpretation:
R is the coefficient of correlation equals to .128 which shows 1% dependentvariable are associated with independent variable.
R2 = 0.016 which means 0.1% variation in the dependent variable is due to theindependent variable & remaining 99.9% is due to citreous Paribas.
ANOVA b
Model Sum of Squares df Mean Square F Sig.
1 Regression .257 1 .257 .630 .432 a
Residual 15.518 38 .408
Total 15.775 39
Hypothesis:
H*: Model is not good fit.
H1: Model is good fit.
As our calculated value of F is 0.630 & significance level is .432 which is less than0.05 which means model is good fit.
Coefficients
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 4.232 .523 8.093 .000
Job satisfaction -.107 .135 -.128 -.794 .432
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Hypothesis :
H*: Job satisfaction has no significant effect on Personnel Turnover.
H1: Job satisfaction has significant effect on Personnel Turnover.
Personnel Turnover = a + b (Job Satisfaction) + e
Personnel Turnover = 4.232 + (.107) job satisfaction.
Interpretation:
The value of t is 0.794 & significance level is .432 which is less than 0.05 so weaccept H1 which means there is significant effect.
Graph
Interpretation:
The difference between R2 quadratic & R2 linear is 0.002is less than 0.05 whichmeans our independent variable attitude is not valid for measuring. We can check it
by CRONE BASH ALPHA for reliability & validity.
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Regression: Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .062 a .004 -.022 .64308
Interpretation:
R is the coefficient of correlation equals to .062 which shows 1% dependentvariable are associated with independent variable.
R2 = 0.004 which means 0% variation in the dependent variable is due to theindependent variable & remaining 100% is due to citreous Paribas.
ANOVA b
Model Sum of Squares df Mean Square F Sig.
1 Regression .060 1 .060 .145 .705 a
Residual 15.715 38 .414
Total 15.775 39
Hypothesis:
H*: Model is not good fit.
H1: Model is good fit.
As our calculated value of F is .145 & significance level is .705 which is greater than 0.05 which means model is not good fit.
Coefficients
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 3.979 .418 9.522 .000
competencies -.039 .103 -.062 -.381 .705
Hypothesis :
H*: Competencies has no significant effect on Personnel Turnover.
H1: Competencies has no significant effect on Personnel Turnover.
Personnel Turnover = a + b (Competencies) + e
Personnel Turnover = 3.979 + (.039) Competencies.
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Interpretation:
The value of t is 0.381& significance level is .705 which is greater than 0.05 so weaccept H* which means there is no significant effect.
Graph
Interpretation:
The difference between R2 quadratic & R2 linear is 0.019 is less than 0.05 whichmeans our independent variable attitude is not valid for measuring. We can check it
by CRONE BASH ALPHA for reliability & validity.
Regression:
Interpretation:
R is the coefficient of correlation equals to .151 which shows 1% dependentvariable are associated with independent variable.
R2 = 0.004 which means 0% variation in the dependent variable is due to theindependent variable & remaining 100% is due to citreous Paribas.
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .151 a .023 -.003 .63694
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ANOVA b
Model Sum of Squares df Mean Square F Sig.
1 Regression .359 1 .359 .884 .353 a
Residual 15.416 38 .406
Total 15.775 39
Hypothesis:
H*: Model is not good fit.
H1: Model is good fit.
As our calculated value of F is .884 & significance level is .353 which is greater than 0.05 which means model is not good fit.
Coefficients
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 3.555 .304 11.703 .000
Professional training .085 .090 .151 .940 .353
Hypothesis :
H*: Professional Training has no significant effect on Personnel Turnover.
H1: Professional Training has significant effect on Personnel Turnover.
Personnel Turnover = a + b (Competencies) + e
Personnel Turnover = 3.555 + (.085) Competencies.
Interpretation:
The value of t is 0.904 & significance level is .353 which is greater than 0.05 so weaccept H* which means there is no significant effect.
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Graph
Interpretation:
The difference between R2 quadratic & R2 linear is 0.000 is less than 0.05 which
means our independent variable attitude is not valid for measuring. We can check itby CRONE BASH ALPHA for reliability & validity.
Correlations
Correlations
Job satisfaction competencies
Professional
training
Personnel
turnover
Job satisfaction Pearson Correlation 1 .251 .311 -.128
Sig. (2-tailed) .118 .050 .432
N 40 40 40 40
competencies Pearson Correlation .251 1 .399 * -.062
Sig. (2-tailed) .118 .011 .705
N 40 40 40 40
Professional training Pearson Correlation .311 .399 * 1 .151
Sig. (2-tailed) .050 .011 .353
N 40 40 40 40
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Personnel turnover Pearson Correlation -.128 -.062 .151 1
Sig. (2-tailed) .432 .705 .353
N 40 40 40 40
INTERPRETATIONS:
The value of Pearson Rank Correlation for JOB SATISFACTION is 1 which
means their exists positive relation.
The value of Pearson Rank Correlation for COMPETENCIES is .251 which
means their exists POSITIVE & weak relationship.
The value of Pearson Rank Correlation for PROFESSIONAL TRAINING is
.311 which means their exists positive relation & NORMAL relationship.
The value of Pearson Rank Correlation for sales is -.128 which means their
exists NEGATIVE relation & weak relationship.
Graph:
Interpretation:
The above graph shows that on x-axis we put personnel turnover and on y-axis we put jobsatisfaction then run in SPSS histogram graph. Here we come to know that the frequency of
our 3 rd option is greater and there we see a normal curve.
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Interpretation:
The above graph shows that on x-axis we put personnel turnover and on y-axis we putcompetencies then run in SPSS histogram graph. Here we come to know that the frequency of
our 3 rd option is greater and there we see a normal curve.
Interpretation:
The above graph shows that on x-axis we put personnel turnover and on y-axis we putprofessional training then run in SPSS histogram graph. Here we come to know that the
frequency of our 3 rd option is greater and there we see a almost straight curve.
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Discussion Guideand Proposal.
The study reported here provided competency and skilldata that can be compared to findings in our studies toprovide support in identifying the most crucial
competencies that can lead to job success and jobsatisfaction. These results also reinforce some previousstudies in areas of organizational socialization.
Of significance to the study was the finding that certaincompetencies change in definition depending on the timeframe in which they are incorporated into the trainingprocess. It also becomes clear from the study that not onlymust the skills and competencies be clearly defined as thetime frames change.
Bibliography(Allen. ( 2006). , p. 238). .
(Beeman, C. M. (1979). ).
(Harder, P. &. (2010).).
(Stone & Coppernoll, a. K. (2004), 1994).).
Bieber, S. a. ( (1997) ).
Gamon, M. a. ((1992),).
Louis. (1980).
Owen, S. a. ((2010) ).
Ramlall. (2004). 53.