C A U S E S O F E M P L O Y E E T U R N O V E R I N T H E

T E L E C O M M U N I C A T I O N I N D U S T R Y

B Y

P A M E L A .A. O L O O

U N I T E D S T A T E S I N T E R N A T I O N A L U N I V E R S I T Y

F A L L 2012

i

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<^CAUSES O F E M P L O Y E E T U R N O V E R IN T H E

T E L E C O M M U N I C A T I O N I N D U S T R Y

B Y

P A M E L A A W U O R O L O O

A Project Report Submitted to the Chandaria School of Business in

Partial Fulfillment of the Requirement for the Degree of Masters in

Business Administration (MBA)

U N I T E D S T A T E S I N T E R N A T I O N A L U N I V E R S I T Y

USIU-A III

600000058166

F A L L 2012

ii

D E C L A R A T I O N

I , the undersigned, declare that this is my original work and has not been submitted to any

other college, institution or university other than United States International University in

Nairobi for academic credit.

Signed: 1 3

Date: / /, [v^cv ,̂̂ <^^^ i ^

Pamela Awuor Oloo (625279)

This project report has been presented for examination with my approval as the appointed

supervisor.

Signed: A t T ^

Prof J.W.Tony-Nasirembe

Date: 12"̂ November. 2012

Signed:

Dean, School of Business

Date: ] /1 3^ / I 3^

Signed:

Deputy Vice Chancellor, Academic Affairs

iii

C O P Y R I G H T

©Copyright by Pamela Awuor Oloo, 2012

A l l rights reserved. No part of this project report may be reproduced or transmitted in any

form or by any means, electronic or mechanical, including photocopying, recording or any

information storage without prior permission from the author.

iv

A B S T R A C T

The purpose of this study was to determine factors that contribute to employee turnover at

Safaricom Limited. The three research questions used in this study were: what are the job

related factors that lead to employee turnover; what are the organizational structure issues

that impact employee turnover and what are the other factors that overwhelm employees to

leave prematurely.

The researcher used descriptive research methodology in this study. A stratified random

sampling technique was adopted to select the sample in which thirty respondents from a

population of one hundred Safaricom employees in the business development functions

were chosen. Primary data was collected using a questionnaire which was completed by

the respondents. One research assistant, who was trained on communication and

interviewing respondents using the questionnaire tool, was used to administer the

questionnaire. The primary data obtained was tabulated in absolute values, percentages

then subsequently descriptive pie charts, bar graphs and frequency tables were generated

using Statistical Package for Social Sciences (SPSS) .

Major findings revealed that majority of the respondents (66%) were of the opinion that

lack of clarity on their roles and responsibilities, lack of ability to complete major jobs

(72%), failure by the firm to integrate employees into teams (72%) and fair appraisal and

clear career development (88%) were factors that the firm need to look at in terms of job

related factors that lead to employee turnover. In regard to organizational structure issues

that impact employee turnover, the study revealed that majority of the respondents 72%

agreed that firm instability, wage level of the industry 92% and work situation 96% were

contributing factors on employee turnover.

The study recommended that the firm should conduct fair and formal appraisal, and

provide ample and clear career development to the workers. It should also encourage

sharing of information at all levels of management. Easy accessibility of information

would reduce ambiguity of performance evaluation methods and enhance clarity on roles

and responsibilities.

A C K N O W L E D G E M E N T

My sincere thanks and appreciation goes to my Supervisor Professor Tony Nasirembe

without whose guidance and support, this work would not have been successfully

accomplished. He demanded excellence at every step of this study and without him the

concept would not have grown to become a project.

I am also grateful to my friends for their constant support and encouragement.

Finally I thank all classmates, colleagues who in one way or another supported my cause

May you all be richly blessed.

vi

D E D I C A T I O N

This project is dedicated to:

Almighty God: Father you have humbled me, you have shown grace upon me several

times over. When I wanted to give up, Lord, you gave me strength to keep going.

My husband Eng. Charles Kodi whose support never wavered and who encouraged me to

sustain the struggle. There is no doubt in my mind that without your support materially,

emotionally and spiritually, I would not have managed to complete my M B A .

To the memory of my parents, Antony Owuor and Margaret Owuor, who passed on a love

of reading and respect for education.

vii

Table of Content

1.0 INTRODUCTION 1

1.1 BACKGROUND OF T H E P R O B L E M 1

1.2 PROBLEM STATEMENT 5

1.3 PURPOSE OF THE STUDY 5

1.4 R E S E A R C H QUESTIONS 5

1.5 SIGNIFICANCE OF THE STUDY 6

1.5.1 The firm 6

1.5.2 Employees 6

1.5.3 Shareholders 6

1.6 SCOPE OF THE STUDY 6

1.7 TERMINOLOGIES 6

1.8 CHAPTER SUMMARY 7

2.0 L I T E R A T U R E R E V I E W 8

2.1 INTRODUCTION 8

2.2 JOB R E L A T E D FACTORS THAT L E A D TO E M P L O Y E E TURNOVER 8

2.2.1 Job Satisfaction 8

2.2.2 Job Stress 9

2.2.3 Role Ambiguity 10

2.2.4 Workload 10

2.2.4 Job Alignment 11

2.3 ORGANIZATIONAL STRUCTURE ISSUES THAT IMPACT E M P L O Y E E TURNOVER 1 2

2.3.1 Firm Stability 12

2.3.2 Industry 14

2.3.3. Work situation 14

2.4 OTHER FACTORS THAT OVERWHELM E M P L O Y E E S TO L E A V E P R E M A T U R E L Y 1 6

2.4.1 Voluntary Factors 16

2.4.2 Involuntary Factors 20

2.5 CHAPTER SUMMERY 20

3.0 R E S E A R C H M E T H O D O L O G Y 21

3.1 INTRODUCTION 2 1

3.2 R E S E A R C H DESIGN 2 1

3.3 POPULATION AND SAMPLING DESIGN 22

3.3.1 Population 22

3.3.2 Sampling Design 22

3.3.2.1 Sampling Frame 22

3.3.2.2 Sampling Technique 23

3.3.2.3 Sample Size 23

3.4 D A T A C O L L E C T I O N METHOD 24

3.5 R E S E A R C H PROCEDURES 25

3.6 DATA A N A L Y S I S METHODS 26

3.7 CHAPTER SUMMARY 26

viii

4.0 R E S U L T S AND FINDINGS 27

4.1 INTRODUCTION 27

4.2 G E N E R A L INFORMATION 27

4.2.1 Gender of Employees 2 7

4.2.2 Age 27

4.2.3 Educational Level 28

4.3 JOB R E L A T E D FACTORS THAT L E A D TO E M P L O Y E E TURNOVER 29

4.3.1 Job Stress 29

4.3.2 Clarity of Roles and Responsibility 29

4.3.3 Lack of information on how to perform the Job adequately 30

4.3.4 Team Work 31

4.3.5 Fair Appraisal and Clear Career Development 31

4.3.6 Lack of Ability to Complete Major Jobs 32

4.3.7 Too Many Responsibilities or Tasks in a Defined Period 33

4.3.8 Insufficient time to complete assigned work 33

4.3.9 Unclear Expectations of Peers and supervisors 34

4.3.10 Ambiguity of Performance Evaluation Methods 35

4.4 ORGANIZATIONAL STRUCTURE ISSUES THAT IMPACT E M P L O Y E E TURNOVER 35

4.4.1 Firm Stability 35

4.4.2 Wage Level of the Industry 36

4.4.3 Work situation such as lack of promotion, benefits, job security etc 37

4.4.4 Lack of Enough Opportunities in the Organization to Learn and grow 37

4.4.5 Lack of Sufficient Basic Amenities at the Workplace 38

4.4.6 Lack of Strong Communication System within the Firm 39

4.4.7 Lack of Monetary incentives such as higher pay and better fringe benefits 39

4.5 OTHER FACTORS THAT OVERWHELM E M P L O Y E E S TO L E A V E PREMATURELY 40

4.5.1 Transfer of spouse 40

4.5.2 Attractive Offer 41

4.5.3 Lack of Benefits 42

4.5.4 Violation of Company Policy 42

4.5.5 Employee Poor Performance 43

4.5.6 Retirement 44

4.5.8 Theft of the Company Property 45

4.5.9 Insubordination 46

4.5.10 Relocation to another Area 46

4.6 CHAPTER SUMMARY 47

5.0 DISCUSSION, CONCLUSION AND RECOMMENDATIONS 48

5.1 INTRODUCTION 48

5.2 SUMMARY 48

5.3 DISCUSSIONS 49

5.3.1 Job Related Factors that Lead to Employee Turnover 49

5.3.2 Organizational Structure Issues that Impact Employee Turnover 5 1

5.3.3 Other Factors that Overwhelm Employees to Leave Prematurely 5 2

ix

5.4 CONCLUSION 53

5.4.1 Job Related Factors that Lead to Employee Turnover 53

5.4.2 Organizational Structure Issues that Impact Employee Turnover 53

5.4.3 Other Factors that Overwhelm Employees to Leave Prematurely 53

5.5 RECOMMENDATIONS 54

5.5.1 RECOMMENDATION FOR IMPROVEMENT 54

5.5. LI Job Related Factors that Lead to Employee Turnover 54

5.5.1.2 Organizational Structure Issues that Impact Employee Turnover 54

5.5.1.3 Other Factors that Overwhelm Employees to Leave Prematurely 54

5.5.2 Recommendation for Further Research 55

6.0 R E F E R E N C E S 55

X

L I S T O F T A B L E S

Table 4.2.1 27

Table 4.2.2 28

Table 4.2.3 28

Table 4.2.4 32

Table 4.3.1 32

Table 4.3.2 35

Table 4.4.1 39

Table 4.4.2 40

Table 4.5.1 44

Table 4.5.2 45

Table 4.5.3 46

Table 4.5.4 46

xi

L I S T O F F I G U R E S

Figure 4.3.1 29

Figure 4.3.2 29

Figure 4.3.3 30

Figure 4.3.4 31

Figure 4.3.5 32

Figure 4.3.6 33

Figure 4.3.7 34

Figure 4.3.8 34

Figure 4.4.1 36

Figure 4.4.2 36

Figure 4.4.3 37

Figure 4.4.4 38

Figure 4.4.5 38

Figure 4.5.1 40

Figure 4.5.2 41

Figure 4.5.3 42

Figure 4.5.4 43

Figure 4.5.5 43

Figure 4.5.6 44

xii

C H A P T E R O N E

1.0 I N T R O D U C T I O N

1.1 Background of the Problem

Employee turnover is a worldwide phenomenon. In the 21^' century, where economic

growth is rapid, socioeconomic factors are continually changing, labor markets are

dynamic and macro-envirormiental factors are hyperactive, almost all the organizations

face the problem of employee turnover. In this competitive environment no business can

enjoy monopoly of success and sustain the success before effectively and efficiently

addressing the employee turnover challenges. In the near past, the competition among the

business sectors has been immense which has increased the need to engage professional

human resource managers.

Telecom companies are very cautious about the human resources policies and there is a

great emphasis on optimizing talent value with a view to increasing productivity as wel l as

gain competitive advantage. Employees are considered as the basic operating unit of an

organization, when organizations invest heavily to attract, recruit and then train key

employees. It does not make business sense after all the efforts to lose key employees. It

would present a great loss of investment to the organizations. Therefore, there is a great

need to first identify the factors that cause the employees to leave the organizations (Rana,

Salaria,& Herani 2009).

Organizations invest a lot on their employees in terms of orientation, induction training,

developing, maintaining and retaining them in their organization. Therefore, managers at

all costs must minimize employee's turnover. Although, there is no standard framework

for understanding why employees leave organizations in general, a wide range of factors

have been found useful in interpreting employee turnover Kev in et al. (2004).

1

In Pakistan the past few years have been the most threatening period for the Telecom

sector in retaining their employees. The turnover has been characterized by lack of career

development opportunities, lack of supervisor support, poor work environment, lack of

proper reward system and lack of proper work-life policy in place (Freyermuth, 2004).

According to Agrusa & Lema (2007) call centre industry workers are much happy with

monetary rewards since their salaries are much higher than other sectors but staff turnover

is high due to less career advancement. They pointed out that the beginning of the twenty

first century was characterized by a big boom in telecommunication sector in Pakistan.

The telecommunication firm, Mobilink had captured more than 50% customers and

providing services at higher price when U-fone and Warid came into competition later on

than Mobilink face considerable staff turnover during that specific period. Other firms in

the sector offered better salary packages together with fringe benefits. The authors added

that Government owned telecommunication companies are known to offer lesser salary

packages with greater job security and many other benefits like medical facility or pension

and provident fund. They further stated that state owned organizations has low turnover on

an average.

Abdullah (2006) stated that employee turnover has become a very critical problem in

Pakistan's Telecom industry and is the case with many others in various countries.

Employees are believed to exploit the labor market conditions and shortage of skillful

workers in the industry. Large number of job opportunities, ease of job switching,

attractive salaries and huge demand of skilled workers are some of the highlighted reasons

of this problem. According to company annual report (2006), Telecom Namibia operates in

a fluid industry which continues to present challenges to the company in the area of human

resources management. The main challenges experienced are in the area of skills

development, reward and recognition as wel l as the continuous need to ensure that the

company has at its disposal a committed, competent and motivated workforce. During the

period under review a total of 50 permanent employees terminated their employment with

2

the company, which constitutes a turnover rate of five per cent according to the company

data.

The information technology ( IT) sector is no exception, it has also experienced high rate of

employee turnover in some parts of the globe. For example, in the United States, total annual

turnover of information technology professionals in terms of hiring and separation is as high as

30% (Bureau of Labor Statistics 2007). Being the main source of IT skills and competencies,

turnover of IT personnel is dysfunctional to organizations, causing increased cost in personnel

training, work disruption, and delay in critical information system projects (Irani and Love 2000).

These are typically a lack of an interesting and challenging work environment, the absence

of effective two-way communication, the scarcity of opportunities to grow, and the lack of

appropriate payment and compensation (Fheil i , 2007), Chartered Institute of Personnel and

Development (C IPD) (2006) revealed that the turnover of skilled employees can be

problematic because recruitment is often costly as it can take several weeks to f i l l the

available position.

Zografos (2006) stated that, there are a host of issues focusing on employee turnover, good

and bad. Actually, some turnover is good. New employees do bring in new ideas, attitudes

and keep the organization fresh and current. Also, money is not the only motivator. As

long as employees are being paid comparably to what other franchisees are paying then

other factors comes into play—work environment, respect, responsibility and camaraderie

play a huge role in keeping an employee. In fact, i f your employee turnover is low and

your goals are met, you can focus on why employees stay with your company and continue

to strengthen and improve them.

He further stated that either way, the turnover statistic is a valuable piece of information.

The franchisor or franchisee organizations that achieve the lowest turnover statistic and

maintain those levels are usually the ones that make it a priority.

3

According to Nugent (2009) offering voluntary benefits can help further important

objectives for both employers and employees. Voluntary benefits—such as dental, long-

term care and life insurance—can improve employers' employee retention and cost control

objectives, while also addressing employees' growing concerns about a variety of financial

issues.

Pires, (2009) stated that there are nine steps an organization can take to reduce employee

turnover. These include: (1) Hiring employees with the right "fit" ensures compatibility

which is critical to retention. Behavioral based interviewing and competency screening

goes a long way in determining personality, work style and potential match and success

within the company. (2) Consider hiring older candidates who are seeking stability. Older

applicants may not be looking for the development opportimities that their younger

counterparts may be in need o f (3) Make sure you describe the job as accurately as

possible so candidates w i l l know what is expected of them.

He pointed out that misconceptions regarding the job responsibilities and work

environment are one of the major causes of employee turnover. (4) Develop competitive

compensation and benefit packages. Understand and research market pay ranges in your

area and consider the value of benefits and employee perks; offering such extras to your

workforce may be the key to your retention efforts. (5) Challenge your employees.

Employees want to be challenged in the job they are performing to feel like they are

growing both personally and professionally when challenged with attainable assignments.

(6) Provide excellent supervision. Incompetent supervisors are often one of the first issues

linked to employee turnover.

He added that no one wants to work for a manager who carmot adequately complete the

tasks of his or her job, who is not passionate about the work being done, and who fails to

provide regular feedback. Providing better employee supervision as wel l as enhanced

communication helps decrease employee turnover. (7) Recognize employee success. It is

important to let your employees know that their work does not go unnoticed.

4

1.2 Problem Statement

Human Resource Management function was for a long time seen as a job that did not play

a significant role in the main business of the firm and many organizations still v iew it that

way. However, it now immerging among leading organizations who have realized that

Human Resource Management plays a major role in the achievement of the organization's

business objectives. However, a number of the Human Resource Managers are still

fighting the battle for recognition and contribution to desired business results. Most

organizations in Kenya either do not have Human Resource department or have it under

Finance and Administration department.

Although the Institute of Human Resource Management ( K ) has been driving the concept

of H R function being of vital importance in organizational performance, but still much has

yet to be achieved to gain necessary buy-in by most organization leaders.

A lot of research has been done on employee turnover in various sectors, but not much has

been done on employee turnover in telecommunication industry.

1.3 Purpose of the Study

The purpose of this study was to determine factors that contribute to employee turnover at

Safaricom Limited.

1.4 Research Questions

This study w i l l be guided by the following research questions formulated to aid in

gathering the information regarding the research topic.

1.4.1 What are the job related factors that lead to employee turnover?

1.4.2 What are the organizational structure related factors?

1.4.3 What are the other factors that overwhelm employees to leave prematurely?

5

1.5 Significance of the Study

1.5.1 The firm

The result of this research wi l l help the organization to know exactly the root cause of its

problem. It w i l l also help the firm to know how to retain its staff and hence be more

profitable.

1.5.2 Employees

Employees w i l l feel valued and motivated after their problems have been aired and ironed

by the management. This w i l l make them work hard toward attaining the firm's objectives.

1.5.3 Shareholders

The owners of the firm wi l l benefit from high dividend since employees w i l l become more

involved and more productive towards achieving the firm's objectives hence quality

products to its customers.

1.6 Scope of the Study

The scope of this study was employees of Safaricom within Nairobi area.

The sampling frame for this study was employees of Safaricom in business development

functions

1.7 Terminologies

1.7.1 Employee turnover

Employee turnover is the rotation of workers around the labor market; between firms, jobs and occupations; and between the states of employment and unemployment Abassi et al. (2000).

1.7.2 I H R M

I H R M - Institute of Human Resource Management

6

1.8 Chapter Summary

This chapter tallced about the background and the statement of the problem. 11 also talked

about the purpose of this study, research questions, its importance, scope and definition of

terms. The next chapter w i l l be about literature review and methodology to be used in

regard to this study.

7

C H A P T E R T W O

2.0 L I T E R A T U R E R E V I E W

2.1 Introduction

This chapter w i l l consider literature from other publications and from empirical work

relevant to this study. It w i l l be divided into three main areas according to the research

questions. These areas wi l l be job related factors that lead to employee turnover,

organizational related factors and voluntary and involuntary related factors that lead to

employee turnover.

This chapter w i l l cover literature review based on job, organizational and voluntary and

involuntary related factors that lead to employee turnover.

2.2 Job Related Factors that Lead to Employee Turnover

2.2.1 Job Satisfaction

Job satisfaction is more about happiness on the work place. It creates interest in the job.

Spector (2005) define job satisfaction as a pleasurable or positive emotional state resulting

from the appraisal of one's job or job experiences. He stated that job satisfaction is widely

accepted phenomenon that it has negative relation with employee turnover in an

organization.

According to (Byrd et al., 2004; Jurik & Winn, 2005; Mitchell et a l , 2000) it generates a

negative impact on both turnover intent and turnover itself Job satisfaction is an important

variable to understand employees' intent to leave the organization. A dissatisfied employee

has more intention to leave the job. Employees can be dissatisfied through different factors

like bad work environment, supervisor's negative behavior, less chances for growth or less

monetary rewards (Dennis, 2004; Jurik & Winn, 2005; Robinson et al., 2007; 2005, 1993).

8

According to Cranny, Smitli & Stone (2007), job dissatisfaction sometimes result in

psychological frustration and lower individual productivity. Individual job satisfaction

plays an important role in attracting, retaining and appreciably denoting the employee's

ability to work in an organization this means that employees with higher satisfaction

towards their job would have healthy physical and psychological record which w i l l have a

positive impact on the employee's attitude resulting in higher productivity and

effectiveness in their job performances and long time stay in organization.

Cranny, Smith & Stone also added that factors such as work life conflict, job security,

compensation plan, working environment and opportunities in an organization for an

employee is always related to job satisfaction of an individual that when disrupted or

having mistrust does have an impact on job turnover rate of an organization.

2.2.2 Job Stress

Firth et al. (2007) stated that the experience of job related stress, the range factors that lead

to job related stress, lack of commitment in the organization; and job dissatisfaction make

employees to leave the firm. This clearly shows that these are personal decisions which

make one to quit. The authors further noted that there are other factors such as personal

agency which refers to concepts such as a sense of powerlessness, locus of control and

personal control. Locus of control is the extent to which people believe that the external

factors such as chance and powerful others are in control of the events that influence their

lives. Manu et al. (2004) added economic reasons are also factors that contribute to

employee turnover.

Using economic model the authors showed that people quit from organization due to

economic reasons and these can be used to predict the labor turnover in the market.

According to Schervish (2007) good local labor market conditions improve organizational

stability. Idson & Feaster 2006 also added that large organizations can provide employees

with better chances for advancement and higher wages and hence ensure organizational

9

attachment. Trevor (2007) stated that local unemployment rates normally interact with job

satisfaction to predict turnover in the market.

2.2.3 Role Ambiguity

Another factor which leads to employees' turnover is role stressors. Role ambiguity is the

difference between what people expect of us on the job and what we feel we should do.

This causes uncertainty about what our role should be. It can be a result of

misunderstanding of what is expected, how to meet the expectations, or the employee

thinking the job should be different (Kahn et al. Muchinsky, 2005).

According to Tor et al., (2005) insufficient information on how to perform the job

adequately, unclear expectations of peers and supervisors, ambiguity of performance

evaluation methods, extensive job pressures, and lack of consensus on job fvmctions or

duties may cause employees to feel less involved and less satisfied with their jobs and

careers, less committed to their organizations, and eventually display a propensity to quit

the organization. The authors also pointed out that i f roles of employees are not clearly

spelled out by management/ supervisors, this would accelerate the degree of employees

quitting the job.

2.2.4 Work load

Cardenas and Bemas (2005) has pointed out that work overload is another facet of work

environment and defined as a stressor when the employees feel that they have too many

responsibilities or tasks in a defined period. Overload results from an interaction between

the employee and his/her environment. One employee may feel that the workload is

reasonable whereas another may perceived it as over burdening. Work overload is

therefore very subjective in nature.

They further stated that overload may be of two different types: quantitative or qualitative.

When employees perceive that they have too much work to do, too many different things

10

to do, or insufficient time to complete assigned work; in these situations it is said that a

condition of quantitative overload exists. Alternatively, qualitative overload occurs when

employees feel that they lack the ability to complete their jobs or that performance

standards are too high, or they just have too much to do regardless of how much time they

have. Therefore, an overburdening workload w i l l require an increase in time and energy to

fulfill the job requirements.

According to Campion (2006) work overload contributes to employees' strain, tension, job

dissatisfaction and decreasing turnover. High workloads have been shown as lead for

negative outcomes; for example absenteeism, and low job satisfaction.

2.2.4 Job Alignment

A bad match according to Handelsman (2009) between the employee's skil ls and the job

can also be a reason for an employee to leave an organization. Employees who are placed

in jobs that are too difficult for them or whose skills are underutilized may become

discouraged and leave the firm. He further stated that inadequate information about ski l l

requirements that are needed to f i l l a job may result in the hiring of either under skilled or

overqualified workers. According to Walker (2006) high staff turnover occurs during

induction period. He stated that this happens when new employees feel that they have not

been integrated into teams and they have just been left to sink or swim without sufficient

support. He pointed out that this happens due to poor recruitment or poor induction

program. The new employees feel they have not been enabled to build strong relationships

with their supervisor or workers. Ambitious people w i l l often be looking to improve their

career prospects and wi l l be motivated to move about to gain more experience and

responsibility elsewhere. He further argued that i f there are good employment conditions

and realistic opportunities for advancement, employees are l ikely to remain in the firm

even i f their pay may be low. Hemdi (2006) suggested that to enhance worker's trust in

the firm and to lower turnover, the organizations need to continuously provide training and

development programs, conduct fair and formal appraisals, and provide ample and clear

career development to their workers. He also pointed out that Human resource

11

management practices i f adopted w i l l lead to increased trust in the firm. Hemdi &

Nasurdin (2006) stated that the extent to which workers believe that the firm is concerned

about their well-being has a significant impact on their work-related attitudes and

behaviors.

Herzberg the author of Motivation-Hygiene Theory pointed out that the nature of a job the

employee performs has the capacity to gratify needs like achievement, competency, status,

personal growth, and self-realization which lead to a happy and satisfied employee.

2.3 Organizational Structure Issues that Impact Employee Turnover

Studies indicate that Organizational factors are associated with the job turnover rate of an

organization as it has a major influence on employees personal satisfaction level related to

its job and attitude towards organizations aims and objectives.

Organizational commitment plays an important role in restricting an individual's mind toward

quitting the job. Employees who are committed stay for long period of time in an organization

as compared with non-committed employees (Kline & Peters 2003; Mowday et al. 2003;

Somers 2006). Other factors are in fact attached with organizational commitment that helps

employee's intent to leave the job. Some related factors that lead to employee turnover include

work related behaviors like absenteeism, job dissatisfaction, lack of employee involvement,

performance and supervisor behavior (Eby et al. 2005; Finegan 2004).

Below are the organizational factors that are most likely considered to affect job turnover

rate of an organization:

2.3.1 F irm Stability

Sign of firm being stable or instable is one of the many factors responsible for the intensity

of job turnover by echelon of satisfaction of an employee. The stability of the firm shows

that there is an indication that employees can remain in the organization for a long time

and i f the organization is not stable or inconsistent in achieving its aims and objectives the

12

same can act repellent as wel l (Zuber,2005). Zuber further noted that organizational

instability has been shown to have a high degree of high labor turnover. Indications are

that employees are more likely to stay when there is a predictable work environment where

they can advance themselves. Alexander et al., (2006) also pointed out that those

organizations where there is a high level of inefficiency there is also a high level of staff

turnover. Therefore, in situations where organizations are not stable employees tend to

leave the firm and look for stable organizations because with stable organizations

employees would be able to predict their career advancement.

Organizations that are experiencing an elevated level of incompetence or unsteadiness can

be found with high job turnover rate of employees. Therefore organizations which are not

steady regardless of their mass is expected to incident high labor turnover, and that the

employees always look forward to working with an organization that is beneficial to them

in the long run. Employees who work with stable companies are said to have a better stable

industrial value (Alexander, Bloom & Nuchols, 2007).

According to Labov (2008) stable companies always have a well-built information system

because employees always want them to be honored with the concerned information. He

noted that organizations that have a strong communication system have a low job turnover

rate of employees. Employees sense ease and comfort while working in a position where

they are occupied in some level of decision making, engagement etc and the same help

them to comprehend the tribulations which they may have with the work.

Employee turnover according to Magner, Welker & Johnson (2009) may also mean poor

personnel policies, poor hiring policies and poor policy practices which actually are quite

apparent in unstable organizations as compared to the established ones and therefore the

rate of labor turnover in these organizations is much more than stable organizations.

13

2.3.2 Industry

The culture developed in the industry itself is one of the causes of high job turnover rate in

organizations. Several researches have been conducted discussing various factors such as

the market deliberation, economic indicators related to that industry and long term future

facet of the industry.

A study conducted by Taplin, Winterton (2006) on Brit ish telecommunication industry

concluded that the factors that had an impact on the job turnover rate of the firm were

those that were directly related to the industry. The researchers further found that there

were two factors which were the most momentous reasons for the job turnover, one was

the wages level of the industry and the second was the employees dread with the long term

future of the industry.

The authors further pointed out that industry possess phases with respect to various factors

related to industry and relying on those factors, firm can practice a job turnover rate due to

the disconcerting satisfaction of employees, as the employee himself/herself is very much

concerned with his/her own future aspect of work life.

2.3.3. Work situation

Employment status is one of the most recognized factors which are considered to be the

primary reason for the employee turnover. According to the belief of some practitioners,

the most imperative manipulate on staff satisfaction related to work is the nature of work

itself The nature of the work is also called the intrinsic characteristic of work since it is

one of the most crucial facets of the monetary executing life of an individual (Judge &

Watanabe 2009).

French (2007) stated that the nature of the job does have a brunt on the personal

contentment level of an employee, helping him/her to make a decision for enduring his/her

job or must be looking further to job turnover. However, there are copiousness programs

14

that have been introduced in many organizations for providing a serene and constructive

work circumstances so that the job turnover rate of an organization could be minimized.

He further specify that programs such as, emotional intelligence trainings and effective

employee's opinion about the work nature of the job are playing an important role in

getting the preferred results. The individual's personal satisfaction related to the nature of

job highlights some of the factors such as job challenge, variety of work, aims scope of

work and other ground factors like job retention that eventually varies from employee to

employee depending upon their approach and environment.

Wi l l iam (2006) identified by relative comparison of all the important factors such salary,

benefits, working conditions, chance for promotion plan as involved in retention of

employee's compensation. He also stated that salary is most useful for attracting entry-

level employees of Telecom industry. He further discovered that monetary incentives such

as higher pay and better fringe benefits could positively influence the employee's decision

to stay on the current job because it would increase job satisfaction. Griffeth (2005) have

explored key occupational, organizational (firm size, family-friendly atmosphere), and

individual (pay scale, fringe benefits, bonus, job security, advancement opportunity)

variables for their potential influence on Telecom employee turnover.

Blau (2006) also stated that rewards can be tangible, such as income; and intangible, such

as being treated with respect, dignity, and fairness. This reciprocal exchange is grounded in

social exchange theory and the mutual transaction of benefits to each party shapes the

social interactions. He argued that it is reasonable to assume that employees are more

likely to respond favorably to fair treatment than to unfair treatment. Indeed psychological

theory states that the importance of fairness is a basic need for the wel l being and

satisfaction of employees.

Lack of opportunity for advancement or growth can cause a high turnover rate for any

organization. I f the job is basically a dead-end proposition, this should be explained before

15

hiring so as not to mislead the employee. The job should be described precisely, without

raising false hopes for growth and advancement in the position. Since employees generally

want to do a good job, it follows that they also want to be appreciated and recognized for

their works. Even the most seasoned employee needs to be told what he or she is doing

right once in a while (Shamsuzzoha, 2007).

According to Dawson (2005) working condition plays a very crucial role to reduce job

satisfaction and employee turnover. The work environment refers to factors or features that

have all work conditions and situations for employees. Agrusa & Lema (2007) pointed out

that training investment is very important in a firm, especially i f the firm belongs to a

service sector because inexperienced, poorly trained employees can turn customers away,

these customers then may talk about their experience to other people discrediting the firm.

2.4 Other Factors that Overwhelm Employees to Leave Prematurely

2.4.1 Voluntary Factors

Voluntary turnover gained much interest and has been researched quite wel l by

organizational psychologist. Many of the existing models of voluntary turnover are based

on March and Simon theories. March and Simon (1958) in Morell et a l , 2005) explain the

reason to quit as a function of perceived ease of movement and perceived desire of

movement. Trevor (2007) replaced the term desire by job satisfaction and ease of

movement by opportunity.

Mobley (2003) further strengthens this theory by forwarding additional variables to fit in

between job satisfaction and intention to quit. He suggested that the intention to quit is the

last step before quitting and described the decision process as a sequence of cognitive

stages starting with an individual evaluation of his/her job status. Evaluation is followed by

satisfaction and dissatisfaction emotional status. Dissatisfaction w i l l lead to the intention to

search for different job alternatives, an active search and evaluation of alternatives, then an

expressed intention to quit and ultimate job termination.

16

Mobley further stated that i f finding an alternative is costly or the probability of finding is

low, then the employee may abandon the idea of quitting and engage in another withdrawal

process such as absenteeism, passive job behavior or totally abandon his thought of

dissatisfaction. He further identifies that the decision to search for alternatives can be

initiated by non job related factors such as transfer of spouse or a very attractive offer or

alternatives may initiate the evaluation of the alternative.

Beside job satisfaction other emotional response such as commitment and job involvement

toward the job and organization are described by other authors (Lee & Mowday,2002,

Mayer, 2005, Naumann, 2007) to predict the behavioral intention to quit. Job

characteristics, organization characteristics and individual characteristics are identified as

the main independent factors that influence intention to quit by influencing the emotional

status toward work and the organization.

According to Holtom et al. (2008) academic interest in voluntary turnover results from the

fact that organizations have less control over employee initiated turnover than company-

initiated discharge. Trevor (2001) also added that high performing employees are thought

to have access to more external employment opportunities than poor performers and are

therefore more likely to quit. Glebbeck& Bax (2004) added that voluntary turnover is

particularly harmful for organizational performance.

Rampur (2009) pointed out that the most common reason for employee turnover rate being

so high in telecommunication industry is the salary scale because employees are usually in

search of jobs that pay wel l . Those who are desperate for a job may take the first one that

comes along to carry them through while searching for better paying employment. He also

added that employees tend to leave the firm because of unsatisfactory performance

appraisals. Low pay is good reason as to why an employee may be lacking in performance.

According to Handelsman (2009) unequal or substandard wage structures fall under this

category as well . When two or more employees perform similar work and have similar

responsibilities, differences in pay rate can drive lower paid employees to quit. In a like

17

vein, i f you pay less than other employers for similar work, employees are l ikely to jump

ship for higher pay, i f other factors are relatively equal.

Laser (1980) stated that most people feel that the major cause of employee turnover is the

issue of salary. While there is some support for this view, its importance has been greatly

exaggerated; it is widely held because individuals frequently cite salary as their excuse for

leaving, making the organization and its pay scale a convenient target for employee

frustrations. He further noted that this is largely due to the fact that few workers want to

give more personal reasons for leaving and thereby risk the possibility of not receiving a

good reference at a later date. Another major misconception is that today's turnover is the

direct result of a decline in our nation's work ethic.

While it is true that worker attitudes have changed dramatically in the last thirty years, the

problem of turnover goes beyond this shift in values. Instead, the real causes of turnover

seem to be linked to problems within the organization and not really attributable to

attitudes carried by the influx of new employees. The unwillingness on the part of

employers to look inward has served both to perpetuate and accelerate the turnover

problem.

Another reason for voluntary turnover in telecommunication industry is the lack of benefits

available to them through the company in which they work. High employee turnover could

also be due to no potential opportunity for advancements or promotions. Employees prefer

other companies which may provide them with higher posts and increased compensation

packages. (Rampur, 2009).

Some employees jump from company to company because they prefer a working

environment that is suitable for them. I f working conditions are substandard or the

workplace lacks important facilities, such as proper lighting, furniture, clean restrooms,

and other health and safety provisions, employees won't be wil l ing to put up with the

inconvenience for long. I f an employee finds an appropriate work environment which is

18

suitable for them in a specific company, they may work in that same organization for

several years. (Handelsman, 2009).

Another reason that employees may leave an organization is due to the lack of projects or

assignments that do not require their full potential. Employees would certainly leave i f

they don't get experience and are just placed on the 'bench'. There are many more causes

which contribute to employee turnover; such as lack of employee motivation, work

pressure, job stress, partiality and favoritism, employee egos and attitudes, poor employee

management (Rampur, 2009). The study shows that employee's age also contributes

towards the decision to stay or quit the job. It is said that age has a positive relation with

organizational commitment and job satisfaction. A young person has less confidence and

patience on the work place compared to a mature person.

Wright & Hamilton (2003) stated that with increase in age a person has greater level of

prestige and confidence. They pointed out that as a worker gets older he is suppose to be

more committed with the organization. Weiner (2003) pointed out that the positive relation

between age and organizational commitment shows the personal growth or development of

an employee as identification with an organization. Older employee has more chance to

stay longer than a younger employee. This is because aged workers are more l ikely to have

financial and familiar compulsions that dictate to continue employment (Huczynski &

Fitzpatrick, 2004). Young workers are free from these responsibilities so they are always

ready to take risk.

According to Becker (2005) employment tenure is time period that a person spent on the

job in an organization. He stated that it has a negative relation with voluntary employee

turnover because as an employee gets older in a company and promoted on senior

designation then he/she has less willingness to quit the job. He further added that

employees who have great relationship with colleagues and emotional attachment with

company, have too much to lose while leaving the organization.

19

2.4.2 Involuntary Factors

Involuntary employee turnover occurs when an organization fires employees by itself It

can happen when the employee retires or when organization needs to cut cost, restructure

or downsizing. The firm can also decide to fire low performers from the job or dismissals

through gross misconduct by employees.

Involuntary turnover generally results from terminations due to poor performance,

violations of policy, job restructurings and layoffs. Best practice means constantly

evaluating standards of acceptable performance and seeking out opportunities to improve;

this w i l l inevitably lead to involuntary terminations, as not all staff are able to rise to the

challenge.

Hemdi & Nasurdin (2006) pointed out that it is important to understand the phenomenon of staff

turnover to make a distinction between turnover intention and turnover itself. They further argued

that turnover intention refers to employee's perceived probability of staying or leaving the firm

while actual staff turnover is the movement of the firm's members across the boundary of an

organization. Hemdi (2006) added that voluntary tumover can be explained by worker's intention

to leave the firm for instance, i f the worker does not understand how to perform his duty

effectively, this will increase frustration level and the employee wil l always think of quitting at the

earliest opportunity.

2.5 Chapter Summery

This chapter dealt with the review of literature on related factors that lead to employee

tumover such as job, organizational and voluntary and involuntary related factors. Through

the literature the researcher discovered that age and employment tenure also contributes to

employee turnover. The next chapter w i l l cover the methodology that w i l l be used in

carrying out the research.

20

C H A P T E R T H R E E

3.0 R E S E A R C H M E T H O D O L O G Y

3.1 Introduction

This chapter discussed the research methodology that was used in this study. It discussed

the research design especially with respect to the choice of the design. It also discussed the

population of the study, sample and sampling techniques, data collection methods as well

as data analysis and data presentation methods that were employed in this study.

3.2 Research Design

A research design is a blue print for the collection, measurement and analysis of data. It is

the plan and structure of investigation so conceived as to obtain the answers to the research

questions (Cooper & Schindler, 2003).

The research design was a descriptive one. Descriptive study is concerned with finding

answers to questions such as who, what, where, when, or how much. According to Pervez

& K je l l (2000) the key characteristics of descriptive research are structure, precise rules

and procedures. Cooper & Schindler (2000) also stated that descriptive study is versatile

across disciplines and is popular in business research. A descriptive research is a process of

collecting data in order to test hypotheses or answer questions concerning the current status

of the subjects in the study (Bowman, 2004). He said that the purpose of a descriptive

research is to determine and report the way things are done. The design is appropriate as it

enables the researcher to collect in depth information about the population being studied.

Descriptive research is also recommended for use in describing data in ways that are easy

to capture information of the study; it also attempts to describe such things as possible

behavior, attitudes, values and characteristics (Phill ips, 1997).

The researcher developed a questionnaire which helped in collecting data for this study.

The researcher introduced herself to the respondents through an introductory letter which

21

was scanned together with the questionnaire and emailed to the respondents email

addresses. The researcher also used the drop and pick method since al l the respondents

were based in Nairobi and this according to Ngugi (2009) ensured a high response rate.

3.3 Population and Sampling Design

3.3.1 Population

Population according to Cooper and Schindler (2000) is the total collection of elements

about which the researcher wishes to make some inferences. Coll is and Hussey (2003)

define a population as any precisely defined set of people or collection of times which is

under consideration.

The human resource capacity of employees at Safaricom Limited as at May, 2012 was one

thousand with approximately 100 of the employees in business development functions.

Therefore the target population for this study was one hundred (100) Safaricom employees.

It is cheaper to carry out the research from a sample rather than from the entire

organization due to the logistical aspects of such a large sample.

3.3.2 Sampling Design

3.3.2.1 Sampling Frame

Sampling frame is a list of all elements from which the sample is actually drawn and is

closely related to the population (Cooper & Schindler, 2000). Saunders et al (2003),

defines sampling frame as a complete list of all the cases in the population from which the

sample is drawn. Denscombe (1998) stated that the core value of statistical methodology is

its ability to assist one in making inferences about a large group (a population) based on

observations of a smaller subset of that group (a sample). In order of this to work correctly,

a couple of things have to be true: the sample must be similar to the target population in all

relevant aspects; and certain aspects of the measured variables must conform to

22

assumptions which underUe the statistical procedures to be applied. The sampling frame

for this study was employees of Safaricom in business development functions.

3.3.2.2 Sampling Technique

The researcher used probability sampling to ensure fair representation and generalization

of the finding to the general population. In this case the researcher chose the stratified

sampling technique.

Stratified random sampling technique was used to select the sample. This method allows

the researcher to divide the sample into appropriate strata that are mutually exclusive.

Stratified sampling according to Coopers and Schindler (2000) gives statistical efficiency

increase on a sample, and provides adequate data for analyzing the various sub-populations

and enables different research methods and procedures to be used in different strata.

According to Bowman (2006) stratified sampling is commonly used probability method

that is superior to random sampling because it reduces sampling error. He continued by

saying that a stratum is a subset of the population that share at least one common

characteristics.

3.3.2.3 Sample Size

Out of a target population of 100 employees, a sample size of 30 was selected. Names of

the employees at the business function were listed alphabetically.

A sample is a finite part of a statistical population whose properties are studied to gain

information about the whole (Merriam-Webster, 2003). Denscombe (1998) also stated that

the sample must be carefully selected to be representative of the population and the

researcher also needs to ensure that the subdivisions entailed in the analysis are accurately

catered for.

23

Table 1: Sample Size

Listed alphabetically Population Sample

From A to D 15 5

From E to H 15 7

From I to L 20 8

From M to P 50 10

Total 100 30

3.4 Data Collection Method

Primary and secondary data collection methods were used in this study. Primary data was

collected using questionnaires that were developed by the researcher on the basis of the

research questions. Bryman and Bel l (2003) stated that this method is relatively easy,

cheaper and quicker to administer and is also convenient for respondents. They are

relatively low in cost, geographically flexible, and can reach a large sample

simultaneously. Further, questionnaires tend to be more valid because they permit leisurely

and thoughtful response, and respondents may divulge confidential information i f they can

remain anonymous. No research technique has been used more than questionnaires

(Walonick, 1993). The secondary data was collected using literature review. The

respondents were guided by the researcher and this was to ensure that the respondents

understood the questions and therefore respond suitably.

24

3.5 Research Procedures

The questionnaires were developed by the researcher to answer the research questions. The

researcher first sought permission to conduct the research from the respondents themselves

by use of an introductory letter. In the introductory letter the researcher confirmed to the

respondents that the confidentiality of information provided would be highly prioritized

according to the demands of academic research. The cover letter was scanned and emailed

to the respondents together with the questionnaire.

The pretesting was conducted using pilot testing to detect weaknesses in the design. This

helped to ensure that the questiormaires were reliable and valid. Bryman and Be l l (2003)

stated that it is highly desirable to pilot a research instrument so as to carry out preliminary

analysis of issues such as whether respondents tend to answer in identical ways to a

question or whether any question was omitted. It also ensures research instrument

functions wel l and helps to enhance clarity.

Pilot testing also assists to reduce on wastage due to missing information. It also helps to

identify questions with similar answers, those not easily understood, questions not

answered because of confusing or threatening phrasing, poorly worded instructions or

confusing positioning of the questions. Pilot testing also helps determine adequacy of

instructions to respondents and to see the flow of questions.

The final copies of the revised questiormaires were then emailed and some were hand

delivered to ensure that all sample size is covered. The use of e-mail prove quite useful and

efficient medium of sending questionnaires as most respondents find it a friendlier way to

respond.

The respondents took a period of four weeks to answer the questionnaires after which the

questionnaires were collected by the researcher. One research assistant was trained on

communication and interviewing respondents using questionnaire tool. She administered

the questionnaire and also helped in data entry.

25

3.6 Data Analysis Methods

The study used a questionnaire to obtain the primary data. To ensure easy analysis, the

questiormaire was coded according to each variable of the study to ensure the margin of

error is minimized and to assure accuracy during analysis. Denscombe (1998) stated that

descriptive statistics involves a process of transforming a mass of raw data into tables,

charts, with frequency distribution and percentages which are a vital part of making sense

of the data.

Data was analyzed using SPSS which is a data analysis tool. Analysis w i l l be carried out

under different headings grouped according to the research questions. Coll is and Hussey

(2003) stated that this can be done through presenting frequencies such as cross

tabulations, graphical forms and scatter diagrams. Statistic texts draw a distinction

between exploratory analysis and descriptive statistics which is used to summarize or

display quantitative data and confirmatory data analysis or inferential statistics which

involves using quantitative data collected from a sample to draw conclusions about a

complete population.

Data was then presented using tables, graphs and pie charts to give a clear picture of the

research findings at a glance.

3.7 Chapter Summary

This chapter has described the methodology that was used to carry out the research. The

chapter outlined research design, the population, study sample, sampling design that the

researcher used. It also outlined the data collection method that was used-a questionnaire to

collect primary data. The data analysis method used for analysis being mentioned as

descriptive statistics using SPSS.

26

C H A P T E R F O U R

4.0 R E S U L T S AND F I N D I N G S

4.1 Introduction

This chapter represents the results of the findings of this research project. The data and

analysis is based on the information provided by respondents in the completed

questionnaires and is presented and analyzed according to the research questions. Results

are presented in graphs, charts and tables.

4.2 General Information

4.2.1 Gender of Employees

The study sought to find out the gender of the respondents. From the findings presented in

Table 4.2.1, majority of the respondents (60%) were male while 40% were female.

Table 4.2.1: Gender

Gender Frequency Rating

Female 10 40.0 Male 15 60.0

Total 25 100.0

4.2.2 Age

The study further sought to find out the particular age bracket for the selected respondents.

Table 4.2.2, shows that majority of the respondents (48%) were in the age bracket of 30-40

years, 40% were in the age bracket of 20-30 years, 8% of the respondents were in the age

bracket of 40-50 years, and 4% were in the age bracket of 50 years and above.

27

Table 4.2.2: Age

Age Frequency Rating

20-30 10 40.0

30-40 12 48.0

40-50 2 8.0

above 50 1 4.0

Total 25 100.0

4.2.3 Educational Level

The study sought to determine the highest education level of the employees in the business

function at Safaricom limited. From the findings presented in Table 4.2.3, majority of the

respondents 64% indicated undergraduate and postgraduate as their highest education level

while 24% and 12% indicated higher diploma and diploma respectively.

Table 4.2.3 Educational Level

Level of Education Frequency Rating

Diploma 6 24.0

Higher Diploma 3 12.0

Undergraduate 8 32.0

Postgraduate 8 32.0

Total 25 100.0

28

4.3 Job Related Factors that Lead to Employee Turnover

4.3.1 Job Stress

The study sought to determine i f job stress has an impact on employee tumover

0%-' s trongly A g r e e A g r e e

J o b S t r e s s

D i s a g r e e

Figure 4.3.1 Job Stress

The study investigated whether job stress led respondents to leave their jobs. From the

findings in figure 4.3.1, 67% and 29% of the respondents agreed and strongly agreed

respectively that job stress is one of the factors that lead to employee turnover however

4% of the respondents disagreed.

4.3.2 Clarity of Roles and Responsibility

The respondents were required to state i f lack of clarity on their roles and responsibilities

would lead them to look for jobs elsewhere.

29

Indicators from Figure 4.3.2 show that 44% and 20% of the respondents agreed and

strongly agreed respectively. 36% disagreed with the notion that lack of clarity on their

roles and responsibilities would lead them to leave their firms.

4.3.3 Lack of information on how to perform the job adequately

The study sought to find out i f lack of information on how to perform the job adequately

would lead employees to quit the organization.

Figure 4.3.3 L a c k of information

30

From the findings analyzed in Figure 4.3.3 48% of the respondents reported that lack of

information on how to perform their job adequately would lead them to quit the firm while

52% of the respondents were not of the opinion.

4.3.4 Team Work

The study required respondents to state whether failure by the firm to integrate them into

teams would lead them to quit the organization.

Agree 52%

Figure 4.3.4 Team Work

Figure 4.3.4 clearly shows that 52% and 20% of the respondents agreed and strongly

agreed that lack of teamwork would lead them to quit their firm while 20% and 4%

disagreed and strongly disagreed respectively. Four percent of the respondents were not

sure whether lack of team work would lead them to leave their firm.

4.3.5 Fair Appraisal and Clear Career Development

The study further sought to establish i f lack of fair appraisal and clear career development

would make employees to search for greener pastures elsewhere.

31

strongly A g r e e Di sagree A g r e e Strongly D i s a g r e e

F a i r a p p r a i s a l

Figure 4.3.5 Fair appraisal and clear career development

From the findings analyzed in figure 4.3.5, majority of the respondents (88%) were of the

opinion that lack of fair appraisal and clear career development would lead them to look

for jobs elsewhere however, 8% and 4% of the respondents disagree and strongly disagree

respectively.

4.3.6 L a c k of Ability to Complete Major Jobs

The study explored whether lack of ability to complete major jobs or high performance

standards would encourage employees to leave their firm.

Table 4.3.1: Distribution of Findings Regarding Whether L a c k of Ability to

complete Major Jobs or High Performance Standard would Lead to Employee

Turnover.

Perception Frequency Rating

Strongly Agree 2 8.0

Agree 9 36.0

Disagree 10 40.0

Strongly Disagree 2 8.0

Neither Agree nor Disagree 2 8.0

Total 25 100.0

32

Table 4 .3T, shows that 40% of the respondents disagreed to this while 36% of the

respondents agreed. Another 8% of the respondents were neutral on this notion while 8%

strongly disagreed. However 8% of the respondents strongly agreed that lack of ability to

complete major jobs or high performance standard would lead them to quit their firm.

4.3.7 Too Many Responsibilities or Tasks in a Defined Period

3 0 % -

2 0 % -

1 0 % -

0%-^ S t r o n g l y / ^ r e e D i s a g r e e

Agree N e i t h e r A g r e e n o r D i s a g r e e

M a n y r e s p o n s i b i l i t i e s

Figure 4.3.6: Too many responsibilities or tasks in a defined period

According to figure 4.3.6, 72% of the respondents felt that too many responsibilities or

tasks in a defined period would encourage them to look for jobs elsewhere. However, an

equivalent number of respondents 24% disagreed and 4% were not sure.

4.3.8 Insufficient time to complete assigned work

The respondents were to state whether too much work to do, too many different things to

do, or insufficient time to complete assigned work would lead to employee tumover.

33

4 0 %

3 0 % -

20%o

1 0 % . n

S t r o n g l y A g r e e D i s a g r e e A ^ r e e

Much Work

Figure 4.3.7: Insufficient time to complete assigned work

According to figure 4.3.7, 64% of tlie respondents felt that too much work, too many

different things to do, or insufficient time to complete assigned work would lead them to

quit the organization while 36% of the respondents disagreed to the this statement.

4.3.9 Unclear Expectations of Peers and supervisors

The respondents were to rate how unclear expectations of peers and supervisors would

influence them to look for jobs in other firms.

r

I

28%

Agree 52*!

Figure 4.3.8: Unclear expectations of peers and supervisors

34

Figure 4.3.8 indicates that 80% of the respondents are of the opinion that unclear

expectations of peers and supervisors would lead them to quit their firm while 28% of the

respondents do not think so.

4.3.10 Ambiguity of Performance Evaluation Methods

The study sought to find out i f the existence of ambiguity of performance evaluation

methods in a firm may influence employees to leave the organization.

Table 4.3.2 Ambiguity of performance evaluation methods

Perception Frequency Rating

Strongly Agree 12 48.0 Agree 8 32.0 Disagree 5 20.0 Total 25 100.0

From the table above 32% and 48%) of the respondents agree and strongly agree

respectively that ambiguity of performance evaluation methods is one of the causes of

employee tumover while 20%) disagreed.

4.4 Organizational Structure Issues that Impact Employee Turnover

4.4.1 F irm Stability

The study sought to find out i f instability of the firm would lead to labor tumover.

35

Figure 4.4.1 Firm stability

From the findings analyzed in the figure above, 24% and 48%) of the respondents agreed

and strongly agreed respectively that instability of the firm is a factor that can lead to labor

turnover while 20% and 8% of the respondents disagreed and strongly disagreed

respectively.

4.4.2 Wage Level of the Industry

The study investigated i f wage level of the industry is a factor that can lead to employee tumover

I I I

S t r o n g l y / s g r e e D i s a g r e e Aq r e e

Industry Wage Level

Figure 4.4.2 Industry wage level

3 6

The findings in figure 4.4.2 indicate that 48% and 44% of the respondents agreed and

strongly agreed that wage level of the industry is a factor that contributes to employee

tumover while 8% of the respondents disagreed.

4.4.3 Work situation such as lack of promotion, benefits, job security etc

The respondents were required to state whether work situation such as lack of promotion,

benefits, job security etc would lead them to quit their firm.

6 0 % -

4 0 % -

2 0 %

o% s t r o n g l y A g r e e D i s a g r e e

A g r e e Work Situation

Figure 4.4.3 Work Situation

Figure 4.4.3 shows that 96% of the respondents hold the opinion that work situation such

as lack of promotion, benefits, job security would encourage them to quit their firm while

4%) disagreed.

4.4.4 L a c k of Enough Opportunities in the Organization to Learn and grow

The study investigated whether lack of enough opportunities in the organization to learn

and grow would influence employees to search for jobs in other organizations.

37

strongly Agree 40%

Figure 4.4.4 L a c k of opportunities to learn and grow

According to figure 4.4.4, majority of respondents 40% and 40%) of the respondents

strongly agreed and agreed respectively that lack of opportunities to learn and grow would

lead them to quit their firm. However, 8% and 8% of the respondents disagreed and

strongly disagreed respectively while 4% was neutral.

4.4.5 L a c k of Sufficient Basic Amenities at the Work Place

The respondents were asked to state whether lack of sufficient basic amenities at the work

place would contribute to employee turnover.

Figure 4.4.5 L a c k of sufficient basic amenities

Figure 4.4.5 illustrates that 36% and 28%) of the respondents agreed and strongly agreed

respectively that lack of sufficient basic amenities would encourage them to look for jobs

38

elsewhere with 8% of the respondents being neutral. However, 24% and 4% of the

respondents disagreed and strongly disagreed respectively.

4.4.6 L a c k of Strong Communication System within the F i rm

The study explored whether lack of strong communication system within the firm would

influence employees to quit their firm.

Table 4.4.1 L a c k of strong communication system within the firm

Perception Frequency Rating

Strongly Agree 6 24.0 Agree 10 40.0

Disagree 7 28.0

Neither Agree nor Disagree 2 8.0

Total 25 100.0

The findings illustrated by table 4.4.1 above show that 40% and 24% of the respondents

agreed and strongly agreed respectively that they would quit their firm i f lack of strong

communication system within the firm existed. However, 28% of the respondents

disagreed while 8% remained neutral.

4.4.7 L a c k of Monetary incentives such as higher pay and better fringe benefits

The study sought to find out whether lack of monetary incentives such as higher pay and

better fringe benefits could influence employees decision to move from the current firm.

39

Table 4.4.2 L a c k of monetary incentives

Perception Frequency Rating

Strongly Agree Agree Disagree Total

17

5

3

25

68.0

20.0

12.0

100.0

Table 4.4.2 illustrates that majority of the respondents 68% strongly agreed that lack of

monetary incentives such as higher pay and better fringe benefits could influence their

decision to move from their current firm, while 12% of the respondents disagreed and 20%

agreed.

4.5 Other Factors that Overwhelm Employees to Leave Prematurely

4.5.1 Transfer of spouse

The study sought to find out i f the respondents would be encouraged to voluntarily quit the

firm due to transfer of spouse.

0 % — - ^ ^ ^ ^ J s t r o n g l y A g r e e 2 D i s a g r e e Nei ther A g r e e nor D i s a g r e e

A g r e e S t rong ly D i s a g r e e Transfer of S p o u s e

Figure 4.5.1 Transfer of spouse

40

From the findings in the figure above,68% and 8% of the respondents agreed and strongly

agreed respectively that transfer of spouse would lead them to quit the firm and may be to

join the spouse where he /she has been transferred to. However, 4% of the respondents

were neutral on this statement while 16% and 4% of the respondents disagreed and

strongly disagreed respectively.

4.5.2 Attractive Offer

The researcher sought to find out whether lack of attractive offer would influence

employees to leave their current organization.

7 5 % -

^ 5 0 % -<u o a>

2 5 % -

0 % S t r o n g l y A g r e e D i s a g r e e

A g r e e

A t t r a c t i v e O f f e r

Figure 4.5.2 Attractive offer

From the findings analyzed in the figure above, majority of the respondents 80%) and 16%

strongly agreed and strongly agreed that lack of attractive offer would influence their

decision to leave their current organization. However, 4% of the respondents disagreed.

41

4.5.3 L a c k of Benefits

The study sought to estabhsh whether lack of benefits could influence employees'

decisions to leave the organization.

S t r o n g l y A g r e e S t r o n g l y D i s a g r e e Aq r e e

l_ack of Benefits

Figure 4.5.3 L a c k of benefits

According to the findings in figure 4.5.3 above 96% of the respondents were of the opinion

that lack of benefits in their firm would lead them to look for jobs in other organizations

while 4% of the respondents disagreed with the notion.

4.5.4 Violation of Company Policy

The study investigated whether violation of company policy by employees would force the

firm to terminate their services.

United States internat;c-ai University

Africa • Library

s t r o n g l y D i s a g r e e 4 % S t r o n g l y A g r e e 8 %

D i s a g r e e 2 8 %

g r e e 6 0 %

Figure 4.5.4 Violation of company policy

From the findings in the above figure, 60% and 8% of the respondents agreed and strongly

agreed that violation of the company policy is a serious offence which might force the firm

to terminate the services of its employees. However, 28% and 4% of the respondents

disagreed and strongly disagreed respectively.

4.5.5 Employee Poor Performance

The study sought to establish whether employee's poor performance may lead to

termination of his/her services by the firm.

S t r o n g l y D i s a g r e e 4 % S t r o n g l y A g r e e 8 %

D i s a g r e e 2 8 % 1

A g r e e 6 0 %

Figure 4.5.5 Employee poor performance

43

Figure 4.5.5 shows that 60% of the respondents and another S% of the respondents agreed

and strongly agreed respectively. However, 28% and 4% of the respondents disagreed and

strongly disagreed respectively that poor performance may lead them to involuntary leave

the organization.

4.5.6 Retirement

The researcher investigated whether retirement would involuntary lead employees to quit

their firm.

Figure 4.5.6 Retirement

The above figure shows that 48% and another 24% of the respondents agreed and strongly

agreed respectively. However, 24% of the respondents disagreed while 4% took a neutral

stand on whether retirement would lead them to involuntary leave their firm.

4.5.7 Layoffs

The study explored whether layoffs by the firm would influence employees' decisions to

leave the firm.

44

Table 4.5.1 Layoffs

Perception Frequency Rating

Strongly Agree 12 48.0

Agree 9 36.0

Disagree 4 16.0

Total 25 100.0

According to table 4.5.1, majority of the respondents 48% and 36%) strongly agreed and

agreed respectively that layoffs by the firm would force them to leave their firm. However,

16%) of the respondents objected to this.

4.5.8 Theft of the Company Property

The researcher sought to determine whether theft of company property may involuntary

force the employee to quit the firm.

Table 4.5.2 Theft of company property

Perception Frequency Rating

Strongly Agree 4 16.0

Agree 14 56.0

Disagree 4 16.0

Strongly Disagree 1 4.0

Neither Agree nor Disagree 2 8.0

Total 25 100.0

From the findings in table 4.5.2, 56% and 16%) of the respondents agreed and strongly

agreed respectively that theft of the company property would lead them to involuntary

leave their firm. However, 16% and 4% of the respondents disagreed and strongly

disagreed respectively while 8% of the respondents were neutral.

45

4.5.9 Insubordination

The researcher sought to determine i f insubordination may lead to employee turnover.

Table 4.5.3 Insubordination

Perception Frequency Rating

Strongly Agree 3 12.0

Agree 11 44.0

Disagree 9 36.0

Strongly Disagree 1 4.0

Neither Agree nor Disagree 1 4.0

Total 25 100.0

From the findings in table 4.5.3 above, 4% of the respondents were neutral, 44% and 12%)

of the respondents agreed and strongly agreed respectively while 36% and 4% of the

respondents disagreed and strongly disagreed with the notion that insubordination would

lead them to quit their current organization.

4.5.10 Relocation to another Area

The researcher further investigated whether relocation of the firm to another area would

influence employees' decision to leave the organization.

Table 4.5.4 Relocation to another area

Perception Frequency Rating

Strongly Agree 4 16.0

Agree 13 52.0

Disagree 5 20.0

Strongly Disagree 1 4.0

Neither Agree nor Disagree 2 8.0

Total 25 100.0

Table 4.5.4 clearly shows that majority of the respondents 52% and 16%) agreed and

strongly agreed respectively that relocation of the firm to another area would influence

46

their decision to quit the firm, 20% and 4% of the respondents disagreed and strongly

disagreed respectively while 8%) of the respondents remained neutral.

4.6 Chapter Summary

This chapter presented the results and findings of this study in relation to the research

questions and the literature review in chapter two. The respondents were the employees of

Safaricom in the business development functions. The findings were presented using

tables, charts, and graphs. The next chapter w i l l present discussion of the findings,

conclusion and recommendation for further study.

47

C H A P T E R F I V E

5.0 D I S C U S S I O N , C O N C L U S I O N AND R E C O M M E N D A T I O N S

5.1 Introduction

This chapter provides a discussion of the findings of the study, the conclusions derived

from the findings, the recommendations for improvement and recommendations for further

research. The discussions correspond to the research questions in the study.

5.2 Summary

The purpose to this study was to determine factors that contribute to employee tumover at

Safaricom Limited. The research attempted to answer the following research questions:

• What are the job related factors that lead to employee tumover?

• What are the organizational structure related factors?

• What are the other factors that overwhelm employees to leave prematurely

The study employed descriptive research design. The target population was one hundred

employees at Safaricom limited working in the business development function. Their

names were listed alphabetically and a sample of 30 employees was selected using

stratified random sampling. Questiormaires were used as the primary data collection

method in this study. Questionnaires were tested using pilot testing process and thereafter

were distributed to the respondents. The data was coded and entered in Statistical Package

for the Social Sciences (SPSS) . The results were presented in bar graphs, pie charts and

frequency tables for clarity and ease of understanding.

The study revealed 10 factors that i f successfully implemented may lead to employee

retention. These factors include; clarity of roles and responsibilities, free flow of

48

information on how to perform the job adequately, integration of employees into teams,

fair and formal appraisal, achievable performance standards which are aligned to

employee's skil ls and the firms goals and objecfives, clear career development, clear

expectations of peers and supervisors, there should be no ambiguity in performance

evaluation methods and there should be sufficient time to complete assigned work.

5,3 Discussions

This section provides a discussion based on the findings of the factors as outlined by the

research questions. The focus was on the job related factors, organizational structure and

other factors that overwhelm employees to leave the firm prematurely.

5.3.1 Job Related Factors that Lead to Employee Turnover

The study found out that majority of the respondents who gave their views on this

question, 96% agreed that job stress is a contributing factor on employee turnover. Firth et

al. (2007) stated that lack of commitment in the organization and job dissatisfaction make

employee feel stressed and eventually to leave the firm. Nasurdin (2006) also stated that

once the employees believe that the firm is concerned about their well-being, this

contribute significantly on their work related attitudes and behaviors

The research findings further showed that 66%) of the respondents agreed that clarity of

roles and responsibility is crucial for the organization to maintain its tumover rate.

According to Tor et a l , (2005) i f roles of employees are not clearly stated by management

or supervisors, this would accelerate the degree of employees quitting the job.

In this study it was established that 52% of the respondents disagreed that lack of

information on how to perform the job adequately would lead them to quit their firms,

while only 48%) of the respondents agreed to this statement. Majority of the respondents

disagreed with statement. According to Tor et al., (2005) lack of information on how to

perform the job adequately may cause employees to feel less involved and less satisfied

with their jobs which eventually lead them to quit the firm. Majority of the respondents in 49

this study were not of the same opinion. Handelsman (2009) stated that inadequate

information on ski l l requirements may result in either hiring of under skilled or

overqualified workers.

The findings of this study indicated that 72% of the respondents agreed that failure by the

firm to integrate them into teams would lead them to quit their current jobs, while 24%

disagreed with this statement and 4% were not sure. Walker (2006) stated that integrating

employees into teams is very important during induction period to enable them build

strong relationships with their supervisors and workers.

In this study 88%) of the respondents agreed with the question that the presence of fair

appraisal and clear career development result in low employee tumover. This finding is

supported by Hemdi (2006) who stated that a worker's tmst is enhanced when organization

continuously provide training and development programs, conduct fair and formal

appraisals, and provide clear career development. He also added that Human Resource

Management Practices i f adopted result in increased trust in the firm. Walker (2006) also

added that good employment conditions and realistic opportunities for advancement may

influence employees to remain in the firm even i f their pay may be low.

The research findings showed that 44%) of the respondents agreed that lack of ability to

complete major jobs may influence them to quit the firm while 48%) of the respondents

were not of the same opinion. The study further revealed that 72% of the respondents felt

that too many responsibilities or tasks in a defined period would lead them to look for jobs

elsewhere. Cardenas and Bemas (2005) pointed out that work overload is of two kinds:

quantitative and qualitative. Quantitative occurs when employees feel that they have too

much work to do, too many different things to do or insufficient time to complete assigned

work. Qualitative on the other hand occurs when employees feel that they lack the ability

to complete their assigned task or that performance standards are too high. Champion

(2006) stated that work overload contributes to employees' strain, tension and job

dissatisfaction.

50

5.3.2 Organizational Structure Issues that Impact Employee Turnover

Research findings of this study established that 72% of the respondents who were the

majority agreed that firm instability contributes to employee tumover in an organization.

Zuber (2005) found that instability of the firm has been shown to have a high degree of

employee turnover. Alexander et a l , (2006) added that organizations with high level of

inefficiency experience high level of staff turnover. This is because in situations where

firms are not stable employees tend to leave the firm to look for stable organizations since

in stable organizations employees would be able to predict their career advancement.

According to Labov (2008) stable firms normally have a well-built information system

because employees always want to be honored with the concemed information. He further

noted that firms with strong communication system have low job tumover rate of

employees.

Taplin & Winterton (2006) conducted a research on Brit ish telecommunication industry

and concluded that factors that had an impact on the job turnover rate of the organization

were those that directly related to the industry. They found these factors to be the wage

level of the industry and the employees dread with the long term future of the industry.

This is in agreement with the observation of this study that 92%o of the respondents agreed

that wage level of the industry is a factor that contributes to employee tumover.

The study also showed that 80% of the respondents agreed that lack of enough

opportunities in the firm to leam and grow would influence them to search for jobs in other

organization. Shamsuzzoha (2007) found that lack of opportunities for advancement can

cause high tumover rate in any organization. He stated that jobs should be precisely

described without raising false hopes for growth and advancement. Agrusa & Lema (2007)

also added that investment in training is very important to the firm since inexperienced,

poorly trained employees can turn customers away hence discrediting the firm. French

(2007 added that emotional intelligence training and effective employees' opinion about

the nature of the job are very important in getting the required results.

51

The study found that majority of the respondents, 64% agreed that laclc of sufficient basic

amenities at the work place would contribute to employee tumover. 88% also agreed that

lack of monetary incentives such as higher pay and better fringe benefits could influence

employees' decision to move from their current firm. Wi l l iam (2006) pointed out that

salary is most important in attracting entry level employees. He also added that monetary

incentives such as higher pay and better fringe benefits could positively influence the

employee's decision to stay on the current job. B lau (2006) found that rewards can be both

tangible such as income; and intangible such as being treated with respect, dignity and

faimess.

5.3.3 Other Factors that Overwhelm Employees to Leave Prematurely

The study established that majority of the respondents, 76% agreed that transfer of spouse

contribute to voluntary employee tumover. Results of this study also indicated that 96% of

the respondents agreed that attractive offer in other organizations influenced employees to

quit voluntary. Mobley (2003) pointed out that search for altematives may be initiated by

non job related factors such as transfer of spouse or a very attractive offer.

Rampur (2009) observed that the common reason why there is high employee tumover rate

in telecommunication industry is salary scale. This is because employees are in search of

jobs that pay wel l . He added that those who are desperate may take the first job that comes

along to carry them through while searching for better ones. He further added that lack of

benefits within the firm could also contribute to high tumover. Handlesman (2009) also

pointed out that when two or more employees perform similar work and have similar

responsibilities, differences in pay rate can drive lower paid employees to quit. This

supports the findings of this study where majority of the respondents, 96% agreed that lack

of benefits could encourage them to leave the organization.

The study also established that 68% of the respondents agreed that violation of the

company policy by employees would force the firm to terminate their services. The study

further revealed that 68% of the respondents agreed that poor performance would lead

52

them to involuntary leave the firm. The study also showed that 72% of the respondents

agreed that theft of the company property may force the firm terminated their services.

5.4 Conclusion

The purpose of this study was to determine factors that contribute to employee tumover at

Safaricom Limited. The following conclusions were derived based on the findings and

discussions of the study.

5.4.1 Job Related Factors that Lead to Employee Turnover

This study established that job related factors such as insufficient information on how to

perform the job adequately, unclear expectations of peers and supervisors, ambiguity of

performance evaluation methods, extensive job pressures may lead to employees feeling

less involved with their jobs, less committed to the organization and eventually decide to

leave the organization.

5.4.2 Organizational Structure Issues that Impact Employee Turnover

The study concluded that high employee tumover is due to poor personnel policies, lack of

proper recmitment policies, poor supervisory practices, lack of proper grievance

procedures, or lack of proper motivational tools. These factors contribute to labor tumover

because there are no proper policies and management practices in the firm on persormel

matters and therefore employees decide to quit.

5.4.3 Other Factors that Overwhelm Employees to Leave Prematurely

The research study also found out that employees also leave the firm due to lack of project

or assignments which do not require their full potential, lack of proper working condition

that is suitable for them, lack of benefits or organization pay scale. Voluntary tumover

incurs huge cost to the firm in terms of direct costs such as replacement, recmitment and

selection, temporary staff and management time. It also makes the firm to incur costs in

53

terms of employee morale, pressure on remaining staff, costs of learning, product or

service quality etc.

5.5 Recommendations

5.5.1 Recommended Improvement Intervention Initiative

5.5.1.1 Job Related Factors that Lead to Employee Turnover

In view of the findings of the study, it is recommended that the following be undertaken to

minimize job related factors that lead to employee tumover in business development

functions at Safaricom limited. There is need to conduct fair and formal appraisal, and

provide ample and clear career development to the workers. Sharing of information should

be made at all levels of management. Easy accessibility of information would reduce

ambiguity of performance evaluation methods and enhance clarity on roles and

responsibilities which lead to strong employees' performance and strong corporate culture.

5.5.1.2 Organizational Structure Issues that Impact Employee Turnover

The firm should optimize the performance of its employees by establishing essential

processes for getting work done, providing good working conditions and making good

hiring choices. The firm's capacity to engage, retain, and optimize the value of employees

would motivate them to stay in the firm.

5.5.1.3 Other Factors that Overwhelm Employees to Leave Prematurely

The firm should empower employees to make decisions which affect themselves and the

firm as a whole. Commitment and loyalty of employees can be achieved i f the firm enrich

the jobs, empower and compensate employees properly.

54

5,5.2 Recommendation for Further Research

This research was limited in scope to Safaricom employees within Nairobi. In addition the

research was only focused on the business development functions employees within

Nairobi. Therefore a comprehensive research which incorporates the insights from all the

branches in Kenya should be carried out.

55

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59

Appendix 1: I M P L E M E N T A T I O N S C H E D U L E

Activity Dates Duration

1 Proposal Development May-Augusts 3 Months

2 Pilot testing of questionnaires September 2 weeks

3 Data collection Mid September-Mid October 1 Month

4 Data Analysis Mid October-Mid November 1 Month

5 Recommendation and Finalization November 2 Weeks

Total Duration May-November 6 Months

Appendix 2: B U D G E T

Activity Amounts in Kshs.

1 Printing costs 2,000

2 Data collection 15,000

3 Data Entry 5,000

4 Stationary costs 2,000

5 Total costs 24,000

60

A P E N D I X 3 : C O V E R L E T T E R

Pamela A Oloo Business School United States Intemational University P.O Box 14634-00800 Nairobi

Dear Respondent,

I am undertaking a research on employee tumover in Telecommunication Industry. This is a partial fulfillment of the requirement of the Master of Business Administration ( M B A ) degree program at the United States Intemational University.

The results of the study w i l l be used to improve on the employee retention in the Telecommunication Industry.

I would be grateful i f you could spare sometime to provide the information on the attached questionnaire. Your response wi l l be treated in strict confidence.

Your kind assistance is highly appreciated.

Thanking you in advance.

Yours sincerely.

Pamela Awuor Oloo Student No.625279

61

A P P E N D I X 4: Q U E S T I O N N A I R E

Please answer the questions by writing in the spaces provided. Where there are choices

please tick against the appropriate answer.

P E R S O N A L D A T A

1. Sex

Male Female

2. Age Bracket

20-30 years

40-50 years

3 0 - 4 0 years

Over 50 years

3. Education Qualification

Diploma

Undergraduate

Higher Diploma

Postgraduate

Years of service in present organization

Less than one year

4-5 years

1-3 years

over 5 years

62

R E S E A R C H Q U E S T I O N N A I R E

S E C T I O N A - J O B R E L A T E D F A C T O R S T H A T L E A D T O E M P L O Y E E T U R N O V E R

Please indicate the extent to which you agree or disagree with the following statements

Strongly Agree

Agree Disagree Strongly Disagree

Neither Agree nor Disagree

1 Job Stress 2 You have clarity on your roles

and responsibilities 3 Lack of information on how to

perform the job adequately 4 Employees feel that they have

not been integrated into teams and they have just been left to sink or swim without sufficient support

5 The firm needs to conduct fair and formal appraisal, and provide ample and clear career development to their workers

6 Do you feel that you lack the ability to complete your major jobs or that performance standards are to high

7 Employee feels that he has too many responsibilities or tasks in a defined period

8 Employees perceive that they have too much work to do, too many different things to do, or insufficient time to complete assigned work

9 Unclear expectations of peers and supervisors

10 Ambiguity of performance evaluation methods

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S E C T I O N B - O R G A N I Z A T I O N A L S T R U C T U R E I S S U E S T H A T I M P A C T E M P L O Y E E T U R N O V E R

Please indicate the extent to which you agree or disagree with the following statements

Strongly Agree

Agree Disagree Strongly Disagree

Neither Agree nor Disagree

1 Fi rm stability

2 Wage level of the industry

3 Work situation such as lack of promotion, benefits, job security etc

4 Lack of enough opportunities in the organization to leam and grow

5 Lack of sufficient basic amenities at the work place

6 Lack of strong communication system within the firm

7 Monetary incentives such as higher pay and better fringe benefits could influence the employee's decision to stay on the current job

8 Communication system within the firm

9 Personnel policies 10 Engagement of

workers

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S E C T I O N C - O T H E R F A C T O R S T H A T O V E R W H E L M E M P L O Y E E S T O L E A V E P R E M A T U R E L Y

Please indicate the extent to which you agree or disagree with the following statements

Strongly Agree

Agree Disagree Strongly Disagree

Neither Agree nor Disagree

1 Transfer of spouse

2 Attractive offer

3 Lack of benefits 4 Violation of

company policy

5 Retirement 6 Employee poor

performance

7 Layoffs

8 Theft of company property

9 Insubordination

10 Relocation to another area

...MB'

65