Impact of Turnover on Organizational Efficiency: A Case Study of Dawlance Company

Abstract

The research is conducted to investigate and analyse the impact of employee turnover on organizational effectiveness and employee performance, this study also highlights those factors which makes the employees less comfortable in DS Motors (Unique) Hyderabad Pakistan and provide possible solutions to reduce employee turnover. In this study we examine the increasing ratio of employee’s turnover in DS Motors (Unique) that observed in the last couple of years. High rate of employee turnover negatively affects the organizational efficiency and decreases the productivity of the organization. The cooperative sampling strategy was used to select the participants/respondents. Self-administered survey questionnaires were distributed among 166 employees of DS Motors from which 135 were returned in a useful condition. SPSS (version 20.0) was utilized for statistical data analysis. The study findings suggest that salary is one of the reasons of employee turnover in DS Motors. The results of the study highlight that increasing rate of employee turnover increased workload to present employees of the organization. The evidences found in this study also highlights that high employee turnover reduce the productivity and quality of the product produced in the organization. The findings also highlight that employee turnover may cause customer dissatisfaction and disrupts the delivery of the products and reduce service provisions. Other findings suggested that poor and unhealthy working conditions and lack of advancement opportunities increase employee turnover in the organization. The recommendations highlighted in this study that top management must provide competitive remuneration to the employees of the organization and need to create career development opportunities and develop a communication network between employees and management of the organization. This study concludes with the future direction of the research.

The Impact of Human Resource Management Practices on Turnover Intention: A Literature Review

“…Despite these differences in definition, the key points of TI remain consistent. Research indicates that TI significantly impacts organizations, with high turnover rates leading to increased direct and indirect costs and negative effects on reputation, customer relationships, and team efficiency (Bai et al, 2022;Matemani, 2019;Hassanpour et al, 2021;Shaikh et al, 2020;Shibru, 2022). This prompts researchers to explore factors influencing employees' TI, involving aspects related to employees, jobs, and organizations.…”

“…High employee turnover rates can result in numerous adverse consequences for organizations, with one direct implication being the incurrence of both direct and indirect costs associated with HRM Practices (Hassanpour et al, 2022;Chakraborty et al, 2021). Shaikh et al (2020) also emphasize the significance of low turnover rates and the potential outcomes of employee turnover for organizations. Employee turnover not only hurts the organization's reputation, customer relations, and interpersonal communication among employees, but it also hinders team efficiency as new employees require training (Shibru, 2022).…”

Assessing the moderating role of organizational culture in the relationship between organizational leadership and organizational efficiency in the banking sector

“…Studies have focused on employee turnover (Shaikh et al, 2020), technologies (Mart ınez and Noriega, 2020), collaborations (Park et al, 2019), manpower development (Mustapha, 2019), social capital and creativity (S€ ozbilir, 2018) as determinants of organizational efficiency. From these recent studies, it is evident that organizational efficiency as a concept is still relevant, especially in a turbulent industry as the Ghana's banking sector.…”

“…Studies have focused on employee turnover (Shaikh et al. , 2020), technologies (Martínez and Noriega, 2020), collaborations (Park et al.…”