Mahmud
Mahmud
DD ETHIOPIA
Acknowledgment
First of all I would like to express full thanks to '' God '' for all his support in all my life
and also for his support in letting me to finish this research paper. Also I would like to
thanks my family who support me financially and morally.
My special thanks also go to my advisor Mr. Ismail for his ultimate guidance, advice and
for his important support throughout the study.
Finally I would like to thank for all employees of DD textile factory especially for those
who took voluntary and interested in answering the question which has been used as a
valuable source data in the study.
Table of content
Page
Acknowledgment .................................................................................................................i
Table of content ..................................................................................................................ii
List of table ........................................................................................................................iv
Acronyms ...........................................................................................................................v
Abstract ..............................................................................................................................vi
CHAPTER ONE
1. Introduction.....................................................................................................................1
1.1. Back ground of the study..............................................................................................1
1.2. Statement of the problem..............................................................................................2
1.3. Objective of the study...................................................................................................3
1.4. Scope of the study.........................................................................................................3
1.5. Limitation of the study..................................................................................................3
1.6. Significant of the study.................................................................................................3
1.7. Methodology.................................................................................................................4
1.7.1. Research design..........................................................................................4
1.7.2. Sampling Method........................................................................................4
1.7.3. Data sources................................................................................................4
1.7.4. Method of data Analysis. ...........................................................................4
CHAPTER TWO
2. LITRATURE REVIEW...................................................................................................5
................................................................................................................................................
2.1. Introduction...................................................................................................................5
2.2. Concept of Absenteeism...............................................................................................5
2.3. Perceived stress.............................................................................................................7
2.4. Job satisfaction..............................................................................................................7
2.5. Adverse effect of Absenteeism.....................................................................................8
2.6. Supervisor and coworker..............................................................................................9
2.7. Controlling absenteeism................................................................................................9
2.8. Concept of turn over...................................................................................................10
2.9. Types of turn over ......................................................................................................12
2.9.1 Involuntary turn over................................................................................................12
2.9.2 Voluntary turn over...................................................................................................12
2.10 Measurement of employee turnover..........................................................................14
CHAPTER THREE
3. Data presentation and Analysis. ....................................................................................16
3.1. Introduction.................................................................................................................16
3.2. Personal information ..................................................................................................16
3.2.1. Service year distribution in the organization .............................................18
3.3. The respondent of professional and non-professional in
the work unit decision...............................................................................................19
Graph 3.2.1. How long have you been in Dire Dawa textile factory ................................18
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Table 3.3. The respondent of professional and non profession in the work unit decision.19
Table 3.5. How for you specialized the specific job you engaged in ...............................20
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Table 3.6. The chance that doing the some thing that make use to your ability ...............21
Table 3.7. Have you freedom to use you own judgment based
Acronyms
HRM – Human resource Management
OB – Organizational behavior
PM – Personal management
Abstract
The study was conducted on the topic of the causes of employee turn over and
Absenteeism in Dire Dawa textile factory. The reason for under taking this study was that
due to the existence of high employee turn over and Absenteeism in the organization.
The study was conducted using primary data. The collected data have also been
processed and analyzed using graphs, table, percentage and the like. The respondents of
the study were chosen using simple random sampling.
The study can potentially benefit the organization from different perspective in terms of
reducing the prevailing turnover and also in taking an appropriate measure to overcome
the problem.
As the finding of the study indicated, employees are not satisfied with the compensation
system of the organization which greatly affected the motivation of the employees. More
than half of the respondents are not able to get an opportunity for improved payment.
Majority of the respondents said that they are unsatisfied with their job because of poor
payment, in efficiency in the management body and poor leadership style.
Job dissatisfaction and unavailability of conducive working condition also a major cause
for employees’ dissatisfaction and turn over.
Same manager assume that high turn over is a mark of an effective organization
this view is same what controversial because of high quit rate means more expense for an
organization. However, same organizations are benefit, it descriptive and low
performance quite. thus, the issue of turn over need to focuses on the frequency and who
is leaving. (Organization behavior. john M. Ivancevic 2005: P.223).
Absenteeism is caused by many factors in the organization It can be caused by job
dissatisfaction, personal factor, work environment, home condition , economic factors,
Regional factor , organizational factor, social factor, illness, dispute with manager and
transportation organization one of the problem will behavior work load, the organization
also likely to negative affected productive may be lower (HRM.Roymond.ANae Nae
2003.p.319)
The manager can take stage to remove the case of absenteeism on the positive side
manager must create work environment which are make employee realize, that it make to
work in the factor rather than staying at the home and waste their time (organization
behavior kinick, Kreitner P.168).
How ever, appear to be least partial with in organization control positively reward
for good attendance such as bonuses, recognition time off for absenteeism can lead to
improve attendance. ( organization behavior mgt, Konopaske P. 233) .
Turn over is caused by many factors the major influences are employee perception of the
ease of movement and desirability pf movement. case movement depends largely on
personal character stic of the employee economic condition. (HRM> John R.hollenbeck
2ooo P.309).
1.7 METHODOLOGY
1.7.1 Research design
The study tried to understand and assessed absenteeism and employees turnover in the
organization. For this purpose, both primary and secondary data source were used. The
analysis came across a simplified table, percentage and the like.
1.7.2 Sampling method
The study employed simple random sampling to select the respondents. The respondents
consist of both managerial and non managerial employees. The above classification helps
to researcher to get data from employee who works on different level of managerial
positions. The sample size of the study is 40 which consist of 30 non managerial and 10
managerial employees.
Absenteeism is undesirable because of its cost and operating problems , it causes cost to
the organization include the cost of benefits which continue even when workers are
absent, so, benefit cost is higher per unit of output, over time pay also may be necessary
for the workers who is design the job for missing workers, facility may be under utilized
and productive may be drop because of reduced out put due to under satisfying /
Ivanccevich. 1998 P. 623/.
Absenteeism, for what ever reason is costly and disruptive problem facing manager. it is
costly because be modified. It is estimated that absenteeism in the united states results in
the loss of more than 500 million worker per year about 5 day per employee or $ 600 per
employee..Employee 90 to work because they are motivated to do so the level of
motivation will remain high it an individual feels that attendance will lead to more value
rewards and fewer negative consequences than alternative behaviors. (John M.
Ivancevich, Rober Knopask OB P.223).
Managers appear to have same influence over attendance behavior they have to ability to
punish. Establish bonus system and allow employee participation in developing plan.
Whether these or other approach will reduce absenteeism is determined by the value of
the rewards perceived by employees the amount of the reward and whether employees
perceive the relationship between attendance and rewards. (OB/organization behavior
matteson P.223).
2.3. Perceived Stress
Stress can have very negative effect on the organization behavior and an individual
health. Stress is positively related to absenteeism. Turn over coronary heart daises and
viral infection.(Organization behavior Robert Kreitner P.169).
Absenteeism is costly and manager are constantly on the look out for ways to reduce it.
One recommendation has been to increase job satisfaction is a valid recommendation.
There should be strong negative relation ship or negative correlation between satisfaction
and absenteeism in other work, as satisfaction increases. Absenteeism should be
decreases (Angelo kinicki, Rober Kreitner. P. 168)
2.4. Job Satisfaction
Job satisfaction is an employee general attitude to words the job. The organization to
rewards system of ten has a significant impact on the level of employee job satisfaction.
In addition to their direct impact the manner in which the intrinsic rewards are dispersed
affect the enteric reward and satisfaction of the receiver. Raymon ( 1998 . N. P.9.314).
The five major components of job satisfactions are
- Attitude to ward the work group
- General working condition
- Money benefit
- Attitude forwards the benefit
Other components toward the employee's rate of mind other worker it self and life in
general. /Barry Gerhort P.325/.
Absence is the failure of a worker to report for work when he is scheduled to work. A
worker is to be considered as scheduled to work when the employer has work available
for him and the worker is aware of its. A worker is to be treated absent for purpose of
these absenteeism statistics even when the does not turn up for work after obtaining poor
permission. Any worker who reports for duty even for a part of the day or shift should not
be counted among absenteeism (personal management and human resources Jain .
Saakshi ( 2005. P.315-316).
The statistics relate to only voluntary absenteeism defined as absence due to reasons
which are personal to the individual, concerned. As such absence of a worker on account
of strike or lock -out or lay off that is involuntary absence is not considered as absence
for purpose of these Absenteeism statistics (personal mgt and HRM. Saakshi (P.316).
More promising results came from organizations that have experimented with the use
of positive rewards for good attendance, such as cash bonus. recognition or time of
with pay, Although not always successful such policies often reduce Absenteeism.
Another approach so called not fault absenteeism recognized the inherent difficulties
in distinguishing between voluntary and involuntary Absenteeism.
Organizations using this approach recognize that same absenteeism is inevitable and
permit a certain amount each year with out penalty (perhaps three to five occurrences)
the make no attempt to determine whether the absenteeism was voluntary or
involuntary. or involuntary. Claimed advantages include reduced supervisory time
trying to determine whether an absence was legitimate placing responsibility for
attendance squarely o n employees and improved attendance.
Some organizations are also taking second looking at traditional paid-sick leave
policies-Increasingly managers believe that sick leave plans that provide payment for
a fixed number of days leave each year actually encourage absenteeism. Employees
see sick leaves as a benefit to be used whether needed or not. Recommendations to
reduce the use of sick plants that is improved attendance typically involve same
positive rewards if sick days are accumulated rather than taken. (HRN L.Note P.130).
In summary attendance is contingent on many factors same of there are outside the
control of the individual and hence are essentially outside management’s ability to
influence others, however, appear to be at least partially with in the organizations
control. Positive rewards for good attendance such as cash bonuses recognition or
time -off with pay perhaps combined with negative sanctions for absenteeism can
lead to improve attendance (HRM L.Note P.130).
They support for the views that attitude to wards the job are extremely important in the
decision to leave an organization. This research indicates that the intention to quitting.
Mobley's theory of the importance of attitudes has been tested and cross validated
with workers in various occupations clerical, nursing and manufacturing. (HRM
Dessler. 1994 P,64 )
Various sources published average turn over rates quarterly or yearly. These include
agencies such as government, labor department, the administration management
department-society and braeu of national affairs who is publish quarterly turn over
and absenteeism (Ivalanceevich P.623 )
Employee turnover is a measure of the extent to which old employees leave and new
employees enter the service of the concern. In its sociological aspect employee
turnover is understood to mean a process of change in the size of the work force. (PM
and HRM saakshi P. 311)
In general the organizations try to ovoid the need of involuntary turn over and to
minimize voluntary turnover. Especially among top performers. Both kinds of turn
over are costly. As summarized in the below table. Replacing workers is expensive
and new employees need time to learn their jobs.
In addition people today are more ready to sue a former employer. If the feel weer un
fairly discharged. The prospect of workplace violence also raises the risk associated
with discharging employees. Effective human resource management can help the
organization minimize both kinds of turn over, as well as carry it out effectively when
necessary. (HRM.Noe , hollen beck.P 310)
Despite a company's best efforts at personal selection training and compensation same
employee will fail to meet performance requirements or will violate camp any
policies. when this happens. Organization need to apply a discipline program that
could ultimately lead to discharging the individual (HRM.Noe. Holl enbeck.P 310).
How to reduce employee over the following action may be taken to reduce employee
turn over.
a. Pay problem s 1. Increasing pay levels to meet competition
2. Improving pay structures to remove inequality
3. Altering pay systems to reduce excessive fluctuation and
4. Introducing procedure for relating rewards more explicitly to
effort or performance
b. employees leaving Due to conflict
1. Introducing more effective producers for consultation participation and handling
grievances.
2. Improving communications by such means as briefing groups.
3. Using the conflict resolution and teem-building techniques of organization
development
4. Reorganizing work and arrangement offices or workshops to increases group
cohesiveness
5. Educating and training management in approaches to improving their relation ships
with employees.
c. the induction crisis
1. Improving recruitment and selection procedures to ensure that job requirement are
specified accurately and that people who are selected fit the specification
2. ensuring that candidate are given a realistic picture of the job pay and working
conditions
3. Developing better induction and initial training programs (Pm. Saakshi. P. 315)
2.2.3. MEASUREMENT OF EMPLOYEE TURNOVER
Turn over can be computed for each type of movement in and out of the cam pony. the
following formula are generally used to measure the extent of employee turnover.
I. Accession formula:- employee turnover ratio according to this formula is arrived at by
driving the total accessions of unit during the specified period by the average
employee force of that unit during the same period . Total accessions are all
permanent and temporary additions to employment roll. Whether new or retired
employees. Transfer other establishments of the company are also counted; the
average employee force of specified period may be calculated by dividing the total
number of employees on the payroll at the beginning and at the end of the period
under consideration by two. (pm ad HRM saakshi P.312)
II. Separation formula:- in this formula total separation and not total accessions) during a
specified period are taken into account. total separation means all the terminations of
employment of person who have quit or have been taken off the rolls for reasons such
as layoff, discharge, retirement, death , physical disability etc. . . (Pm , HRM saaksi
p.312.)
III. Compromise formula:-This means minimizing cyclical effects upon turnover
calculation, same company average the accessions and successions figures and then
divided by the average working force (pm. HRM seakshi p.313)
IV. Replacement formula:- Also as '' net turnover rate '' or wastage rate this formula uses
the total accession or the total separation whichever is lower, based up on the formula
turn over in our e.g. would be the same as given by the separation formula.
(PM.HRM. P 312)
CHAPETER THREE
Data Presentation and analysis
3.1. Introduction
This part discusses the data presentation and analysis part of the study. The totals of 40
questionnaires were distributed to employees of the organization that consist both
professional and non-professional staff. 32 questionnaires were returned out of 40
questionnaires. The response rate of the data collection is 80%. The response rate is
relatively enough to make the analysis.
3.1 Personal in formation
No of despondent percentage
NO Item
professional non-professionals non-professionals professional non-profe
1 Age under 25 years 0 3 - 37.5%
25-40 7 3 58.3% 37.5%
41-50 4 1 33.3% 12.5%
51 and above 1 1 8.3% 12.5%
Total 12 8 100% 100%
2 Sex male 8 4 66.7% 50%
Female 4 4 33.3% 50%
Total 12 8 0 12.5%
3. Education primary 0 1 16.7% 12.5%
secondary 2 7 16.7% 87.5%
Diploma 6 0 50% 0
Degree 3 0 25% 0
Master 1 0 8.3% 0
Total 12 8 100% 100%
5 Income level 300-400 0 2 0 25%
of 401-800 4 2 33% 25%
distribution
801-1000 2 3 16.7% 37.5%
1001 and above 6 1 50% 12.5%
Total 12 8 100% 100%
Item 1 as the above table 3.1 data in dictate more than half of the respondents are found
between the ages of 25-40. The present age of those employees available between the
ages of 41-50 is 33.3% who belong to professional staff. There is no professional under
25 years. But in the non-professional under 25 years is 37.5% and also 25-40 is 37.5%
this shows the age of professionals in the organization is higher than non-professional.
item 2 the above table 3.1 indicates the sex of male is 66.7% and female 33.3% is
professional and similar to male and female in non-professional. This show that the
number of male greater than number of female in the organization.
item 3 in the above table 3.1 show that more than half of non-professional employees
(87.5%) are at secondary school level and remaining are at the primary level. In the
professional 50% is diploma holder. While 25% first degrees, 16.7% secondary level and
8% is master.
Item 4 of the above table 3.1 show that 33.3% of professional to other part of the work
and half of the respondent work in technical position of non-professional.
Items as we can see from the above table 3.1 indicates 50% of professional employee
have the largest share of the highest in came level. Inversely, non-professionals have the
smallest share of this highest level of professional is highest than non-professional.
According to the above graph 75% of non-professional employees of the organization has
more than 12 years. and also 50% professional has long in above 12 years but less than
non-professional at the end the least share professional and non-professional are 12 and
above .
have you freedom to use your own judgment based on the rule of organization.
item No. respondent Percentage
Chapter Four
Conclusion and Recommendation
4.1 Conclusions
Based on the major findings of the study, the following conclusions are drawn.
More than half of employees of the organization have not got an opportunity for
higher payment affect the morale and initiative of the employees.
More than half of the sampling population in the respondent level shows that
high turnover because of no satisfaction with salary. This is a good indicator
predictor to turnover intention by the employees which could have bad
consequence for the organization.
The existence of training and development in the organization is not adequate.
This practice is possibly resulted in low performer employees.
The organization doesn’t provide adequate fringe benefit to the employees which
could have a great effect in decreasing the morale and motivation of the
employees.
4.2. Recommendations
On the basis of the conclusion the findings of the study, the following possible
recommendations are given.
The organization is supposed to adjust the salary system which caters to the
needs of the employees
The compensation system should be adjusted in a way that can build the morale
and capacity of the employees.
The organization should arrange different training and development programs
that can build the capacity of the employees.
Adequate fringe benefits must exist in order to boost the morale of the
employees.
BIBLIOGRAPHY
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Appendix
Dira dawa university
Stream of management
Dear respondents the objective of this questionnaire is collect data for preparing
research paper on the title of major cause of absenteeism and employee turn over on
dire dawa textile factory. the data collected through these questioners will be used for the
achievement of the above objective .
Pleas indicate your answer personal information by putting< √ >mark in the
boxes provided for each question
finance
Technical service
Operational clerical
part two question related with the cause of absenteeism and employee
turnover
8 are you satisfied with pay your receive for your job
agree disagree
9 does the way handled around here make it worth for person to work especially unclear?
yes no
satisfied neutral
neutral
very satisfied
agree disagree
Agree disagree
17 are you will likely activity looking for new job in the next year