Impact Of Employee Turnover On Organizational Performance: A Case Study Of Australian Motor Industries

Literature Review

The key purpose of this research is to address the impact of employee turnover on the organizational performance-A case of Australian Motor Industries.

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The Founder of Australian Motor industries is J.F Crosby who decided to invest in the eclipse motors Pty Ltd of Melbourne. This organization makes cars for their consumers. The Australian industry has its subsidiary organizations that are accountable for the association of firm goods and services. Additionally, it is also evaluated that the yearly income of Australian Motor Industries is often decreased that would directly impact on the annual earnings of the company. It is also analyzed that company was not capable to make appropriate order caused of lack demand of consumers (Mowday, et al., 2013). In addition, it is also analyzed that the employee turnover rate of the organization has been decreased frequently due to the lack of employee satisfaction at the working place. In addition, it is also analyzed lack of employee turnover could create complexity for the organization to complete their specified task in limited time.  Hence, the organization has needed to gain their understanding about motivational tools for gaining the employee satisfaction as it would decline the employee turnover from the working place (Jensen, et al., 2013).  

The employee turnover could be determined as the number of the employee who left the company and is replaced by the fresh workforce. It is also analyzed that evaluation of employee turnover could be effective to determine the cause of turnover and estimate the expenses or budget for hiring an employee (Park and Shaw, 2013).  In addition, it is also stated that organization has needed to understand different factors like employee behavior with their superior, employee absenteeism, and employee punctuality. It could demonstrate lack of employee satisfaction that could create possibilities of employee turnover at the working place (Kehoe and Wright, 2013).       

Introduction 

The literature review could be effective for gaining the conceptual understanding towards research concern. It could also support the research scholar to critically analyze current research concern. There are certain sources that could enable the researcher to obtain theoretical data like an academic journal, book, and magazines, company web, online and offline & online sources (Cascio, 2018). It could support to gain the conceptual understanding towards the employee turnover. This section also enables to understand the factors that could affect employee turnover. It could also support to understand the strategies that could be effective for eliminating issues of employee turnover from the organization.         

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Employee Turnover: Definition and Causes

To explore the meaning and concept of ‘employees’ turnover- A case of Australian Motor Industries

Hausknecht and Holwerda, (2013) argued that employee turnover is determined as a number of staff who left their job and replaced by new workforce at the working place. It could be an act of human resource of the company in which management department is eager to complain of the employee. There are certain kinds of employee turnover that could be raised in the working place like voluntary turnover, involuntary turnover, desirable, and undesirable turnover, and turnover calculation.

In support of this, Shaw et al. (2013) explained that it is also analyzed that organization has needed to concentrate on such kinds of turnover to improve the organizational performance. Moreover, it is also analyzed that the major cause of employee turnover is a lower investment of organization on the employee development. In addition, it is also analyzed that organization could face employee turnover issue caused of many causes like lack of training and development, workflow, reimbursement planning, and lack of reimbursement plan.                   

To analyze the factors that could impact on employee turnover- A case of Australian Motor Industries

DiPaola and Tschannen-Moran, 2014) examined that employee turnover often occurs caused by the dependency of employees on the( organizational atmosphere. There are different factors that could create employee turnover at the working place like rude behavior, lack of work-life balance, lack of skills, lack of decision making capability, organizational instability, faith and confidence, and growth opportunities. Hence, the organization has needed to understand such factors for retaining the employees in long-term. Apart from this, there are also different factors that create the employee turnover in the organization like firm stability, working situation, industry, training supervisions, compensation level, and supervision training. Thus, it is analyzed that organization should comprehend the employee turnover and enhance their organizational performance.       

To recommend strategies for decline the employee turnover and improve organizational performance- A case of Australian Motor Industries 

Juhdi et al. (2013) recommend that organization should use many methods to improve employee satisfaction level at the working place and decline the possibilities of employee turnover from the working place. These strategies are appropriate compensation level, health policy, and appropriate training and development method. The organization should also use a reward system to positively motivate the employees towards their work. Through this, the organization would also be capable to encourage gratitude of employee towards employee at the working place.

Strategies for Reducing Employee Turnover

Chang et al. (2013) suggested that organization should imply performance appraisal structure could positively motivate workforce for completing their task as it would decline the employee turnover. Consequently, the organization would be capable to retain their workforces and gain their productivity in the working place. Furthermore, the organization should execute the training and development method to eliminate the skills of employees and gain their productivity for long-term. It will also enable the organization to retain the workforces and obtain a reliable outcome.            

Introduction

The research methodology chapter enables the company to comprehend different tools and techniques that could be effective in obtaining a reliable outcome. These are research approach, strategy, research design, construction conceptual understanding, data collection method, and data analysis methods (Kwon, and Rupp, 2013).  These research techniques are discussed as below:        

Research Approach

This technique supports to present the data in a methodological way. Research approach could consider certain factors like inductive and deductive approach. It could enable the researcher to justify the application of data collection technique for appropriately conduct the research concern (Arshadi and Damiri, 2013).  For this, it is significant for the research scholar to obtain the reliable understanding about the research techniques. The indicative approach facilitates to obtain theoretical information in the context of research matter. The deductive approach facilitates the research scholar to make research hypothesis and reject or accept the hypothesis on behalf of current research matter. Research scholar will execute the inductive approach to conduct their research than the deductive approach. The inductive approach could be suitable because the current research is current research concern (Karatepe, 2013).   

Research Design

Research design enables the research scholar to choose suitable technique of the data collection method to perform the research concern. Research design could consider certain methods for considering many methods such as descriptive, exploratory, and explanatory research design. In addition, it is also analyzed that exploratory research is practiced for discovering the innovative ideas towards research matter (Jiang and Liu, 2015). Apart from this, the descriptive research design supports to evaluate the depth understanding about research issue. It could also support to examine the causal relationship between two and more variables.        The researcher will use the descriptive research design enable research scholar to examine the relationship between employee turnover and organizational performance. It is also analyzed that descriptive design support to enhance the knowledge towards features of employees. The researcher will also be capable to obtain views, perception, and thoughts of research participants for towards cause of employee’s turnover rate (Hunter, et al., 2013).       

Research Methodology

Research Strategy

The research strategy could also be imperative for the researcher to investigate about the research concern by responding research questions. The investigator could get the feasible information and examine such information to make a reliable conclusion by executing the research strategy in the research study (AlBattat and Som, 2013).  There are certain research strategies that could be considered by the research scholar such as literature review, survey through a questionnaire, case study, focused group, experiment, interview, and observation method. It could support the company to attain the aim and objectives of current research concern. The investigator will use survey through questionnaire and literature review methods to accomplish the specified task in the least time (Dhar, 2015).  The survey through questionnaire method will enable the research scholar to collect the opinion and views of research contestant towards the research issue. Apart from this, literature review method could assist the research scholar to collect theoretical information about employee turnover rate. It would support to decline employee turnover rate. Through these strategies, the organization would be capable to improve the image of the company in the least time and cost. It could support the researcher to get reliable and valid information in the context of current research concern (Fu and Deshpande, 2014).     

Conceptualisation and measurement

There are certain methods that are considered in the measurement of research variables like an independent variable, dependent variable, and controllable variable. It could directly influence the quality of research outcome. The independent variable could not be influenced by any other factors while the depended factors could directly influence by the independent variables. In this research, it is analyzed that organizational performance could be dependent factors while the employee turnover rate could be independent factors (Irefin and Mechanic, 2014).        

Data Collection Method

The data collection technique could enable research scholar to choose the reliable techniques with respect to the current research matter. The appropriate data collection technique enables the researcher to develop suitable knowledge about research concern. It will support research scholar to get a valid conclusion in the context of current research issue. There are many techniques that could involve in the research like secondary data collection and primary data collection method (Karatepe, 2013). Moreover, it is also analyzed that the primary data collection method could support meet innovative idea towards the current research matter. There are different sources that could be included by research scholar to get valid outcomes such as observation, survey, and interview method. Apart from this, the secondary data collection method is practiced for obtaining conceptual understanding about current research matter. There are different secondary data collection sources such as books, magazines, company sites, academic journal, and online sources. In this, the researcher will use the primary and secondary data collection method to conduct their research concern. It will support the research scholar to obtain views and opinion of the participants towards the research matter. It will also help to get innovative ideas towards research concern (Saeed, et al, 2014). The research scholar will collect opinion and views towards the employee turnover rate and organizational performance. Apart from this, the secondary data collection could enable the researcher to collect conceptual understanding towards the role of employee turnover on the organizational performance. It could support the researcher to meet the organizational task in less time as it would also support to obtain reliable outcome (Bal, et al., 2013).

Sampling Method

Sampling technique could also be imperative to choose the appropriate sample size in the context of current research concern. The research participants could be selected for collecting responses towards the current research matter. It aids the researcher to get a positive response. There are two kinds of sampling methods that could be used by the research scholar to perform the research and get reliable outcome (Saeed, et al, 2014).  These sampling methods are probability sampling and non-probability sampling method. The method could assist the research scholar to obtain a valid and reliable outcome in the context of research issue. The probability sampling method could aid researcher to select the research contributors for conducting the research and get a reliable result in the context of current research concern. This technique could enable researchers to conduct their study and obtain a positive outcome. From the application of the non-probability sampling method, research scholar would be mandated to select research contributors on the basis of exercise, income level, race,  education, age, and gender. For performing this study, researchers will choose the probability sampling method to get views and opinion about current research concern (Bal, et al., 2013). Through probability sampling method, research could choose to obtain the responses of research candidates towards the research issue. The researcher will select 100 employees of Australian Motor Industries to conduct their research matter.       

Data Analysis Method

It could be imperative for the researcher to examine the gathered information by involving reliable information towards the research matter. It could be effective for collecting the feasible outcome with respect to the current research concern. There are many data evaluation techniques that could be involved in the data analysis method such as statistical analysis, disclosure analysis, thematic/content analysis, and conversational analysis as it could be supportive for collecting a reliable conclusion about research matter (Karatepe, 2013). The statistical data analysis method will be used by the researcher to examine the collected information. For this, research scholar will be able to discuss the descriptive statistics of the data. In this, the research scholar will use MS-Excel software to examine collected information and complete the research concern. In addition, it is also analyzed that Ms-Excel software could consider different sources like a graph, charts, and bar graph, and column chart. It would also support to the reliable and valid outcome (Bal, et al., 2013).                    

Research Limitations

The research scholar could consider many methods because it could decline quality of research outcome. These factors are resources, time, and cost. Furthermore, the estimated time could force to the research scholar for completing their task in minimum time and cost. Further, it is also analyzed that secondary data collection research activity could take cost while the primary data gathering activity could take time. Hence, it can be said that the data collection method could take both time and cost as it would influence the quality of research outcome (Fu and Deshpande, 2014).   

Ethical Consideration

Ethics refers to conducting the whole process of investigation inappropriate manner. The research scholar is used the university guanidine to eliminate the issues of ethics in the research. This technique could also help the researcher to choose suitable behavior in order to attain the aim and objectives of current investigation (Saeedet al., 2014). This research could face many ethical issues related to the plagiarism, data manipulation, and copyright act’s violation. These issues could be declined by giving the actual value to the author. Herrin, the researcher will provide the citation of the information to make valid research. In this, the author is practiced simple language to interoperate the collected data as it could be supportive for the eliminating the probabilities of research study similarity. In the research study, the researcher will collect the personal information of the research participants to appropriately conduct the research. In this, research scholar is used the ethical norms to keep the information reliability. Apart from this, the researcher will be capable to secure the confidential information of the research participants as it could support to make robust relation with them. It could also be effective to obtain accurate outcome (Bal, et al., 2013).         

Time Frame

The following table demonstrates the time frame for accomplishing each activity of research:

Activity name

Start Day

Last Day

Duration (Days)

Proposal of investigation

25-05-2018

30-06-2018

30

Literature Review

01-07-2018

01-09-2018

60

pooling of facts and figures

02-09-2018

02-11-2018

60

Assessment of data

03-11-2018

04-12-2018

31

Final submission of report

04-12-2018

08-01-2019

34

Research scholar has estimated AUD 5000 to attain the specified aim and objectives of research concern. The following activities will be completed by the researcher to meet research aim and objectives:   

  • The investigator will invest approx. AUD 2000 to complete the literature review activity. There are many sources that could be involved by the research scholar like book, magazine, academic journal, and online and offline web. The primary data collection method could be time-consuming as compared to other research activity.           
  • For accomplishing data collection method, AUD 2000 could be invested by research scholar.   
  • The researcher will spend AUD 1000 to attain the data analysis research activity.

In synopsis,

Research Purpose

Projected Amount

Development of Literature Review

2000 AUD

Data collection method design

2000 AUD

Data Analysis method

1000 AUD

Sum of a financial plan

                        5000 AUD

References

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Arshadi, N. and Damiri, H., 2013. The relationship of job stress with turnover intention and job performance: the Moderating role of OBSE. Procedia-Social and Behavioral Sciences, 84, pp.706-710.

Bal, P.M., De Cooman, R. and Mol, S.T., 2013. Dynamics of psychological contracts with work engagement and turnover intention: The influence of organizational tenure. European Journal of Work and Organizational Psychology, 22(1), pp.107-122.

Cascio, W., 2018. Managing human resources. USA: McGraw-Hill Education.

Chang, W.J.A., Wang, Y.S. and Huang, T.C., 2013. Work design–related antecedents of turnover intention: A multilevel approach. Human Resource Management, 52(1), pp.1-26.

Dhar, R.L., 2015. Service quality and the training of employees: The mediating role of organizational commitment. Tourism Management, 46, pp.419-430.

DiPaola, M. and Tschannen-Moran, M., 2014. Organizational citizenship behavior in schools and its relationship to school climate. Journal of School Leadership, 11(5), pp.424-447.

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Hausknecht, J.P. and Holwerda, J.A., 2013. When does employee turnover matter? Dynamic member configurations, productive capacity, and collective performance. Organization Science, 24(1), pp.210-225.

Hunter, E.M., Neubert, M.J., Perry, S.J., Witt, L.A., Penney, L.M., and Weinberger, E., 2013. Servant leaders inspire servant followers: Antecedents and outcomes for employees and the organization. The Leadership Quarterly, 24(2), pp.316-331.

Irefin, P. and Mechanic, M.A., 2014. Effect of employee commitment on organizational performance in Coca-Cola Nigeria Limited Maiduguri, Borno state. Journal of Humanities and Social Science, pp.33-41.

Jensen, J.M., Patel, P.C. and Messersmith, J.G., 2013. High-performance work systems and job control: Consequences for anxiety, role overload, and turnover intentions. Journal of Management, 39(6), pp.1699-1724.

Jiang, J.Y. and Liu, C.W., 2015. High-performance work systems and organizational effectiveness: The mediating role of social capital. Human Resource Management Review, 25(1), pp.126-137.

Juhdi, N., Pa’wan, F. and Hansaram, R.M.K., 2013. HR practices and turnover intention: the mediating roles of organizational commitment and organizational engagement in a selected region in Malaysia. The International Journal of Human Resource Management, 24(15), pp.3002-3019.

Karatepe, O.M., 2013. High-performance work practices and hotel employee performance: The mediation of work engagement. International Journal of Hospitality Management, 32, pp.132-140.

Karatepe, O.M., 2013. High-performance work practices, work social support and their effects on job embeddedness and turnover intentions. International Journal of Contemporary Hospitality Management, 25(6), pp.903-921.

Kehoe, R.R., and Wright, P.M., 2013. The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of management, 39(2), pp.366-391.

Kwon, K. and Rupp, D.E., 2013. High?performer turnover and firm performance: The moderating role of human capital investment and firm reputation. Journal of Organizational Behavior, 34(1), pp.129-150.

Mowday, R.T., Porter, L.W. and Steers, R.M., 2013. Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. USA: Academic Press.

Park, T.Y. and Shaw, J.D., 2013. Turnover rates and organizational performance: A meta-analysis. Journal of applied psychology, 98(2), p.268.

Saeed, I., Waseem, M., Sikander, S. and Rizwan, M., 2014. The relationship of turnover intention with job satisfaction, job performance, leader-member exchange, emotional intelligence and organizational commitment. International Journal of Learning and Development, 4(2), pp.242-256.

Shaw, J.D., Park, T.Y. and Kim, E., 2013. A resource?based perspective on human capital losses, HRM investments, and organizational performance. Strategic management journal, 34(5), pp.572-589