WOLAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF PUBLIC ADMINISTRATION AND DEVELOPMENT

MANAGEMENT

THE ASSESSMENT OF THE CAUSES AND CONSEQUENCES OF

EMPLYEE TURNOVER ON ORGANIZATIONAL PERFORMANCE (A
CASE SODO TWON EDUCATION BUREAU)

BY

MIHRETU MELESE

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT

OFTHE REQUIREMENTS FOR THE BACHELOR OF ARTS DEGREE
(BA) IN PUBLIC ADMINISTRATION AND DEVELOPMENT
MANAGEMENT

ADVISOR: TATASHA TAKAYE KASITO

JANUARY, 2018

WOLAITA SODO, ETHIOPIA

Table of Contents
CHAPTER ONE..........................................................................................................................................4
INTRODUCTION.......................................................................................................................................4
1.1. Background of the Study.............................................................................................................4
1.2. Statement of the Problem.............................................................................................................5
1.3. Objective of the study..................................................................................................................6
1.3.1. General objective.................................................................................................................6
1.3.2. Specific objectives...............................................................................................................6
1.4. Research Question.......................................................................................................................6
1.5. Significance of the study..............................................................................................................6
1.6. Scope of Study.............................................................................................................................6
1.7. Limitation of the study.................................................................................................................6
1.8. Definition of terminologies ....................................................................................................7
1.9. Organization of the Research Paper.............................................................................................7
Chapter Two................................................................................................................................................7
Literature Review........................................................................................................................................7
Human Resource Management Defined..................................................................................................7
2.1.1. The matching model of Human Resource Management.......................................................8
1.10. The Recruitment and Selection Process...................................................................................9
1.11. The employees Turnover: Definition and concepts..................................................................9
1.12. Why people leave an organization.........................................................................................11
1.13. Benefit of employee turnover.................................................................................................13
2.2.1. Reduced labor costs...........................................................................................................13
2.2.2. Replacement of poor performer.........................................................................................13
1.14. Strategies for reducing employee turnover.............................................................................14
2.2.5. Hire right strategy..............................................................................................................14
2.2.6. Design the best compensation package strategy.................................................................14
2.2.7. Effective communication and moral strategy.....................................................................14
Chapter Three............................................................................................................................................16
Research Methodology..............................................................................................................................16
1.15. Description of Study Area......................................................................................................16
1.16. Research approach.................................................................................................................16
1.17. Research Design....................................................................................................................17
1.18. Types and Sources of Data,....................................................................................................17
1.19. Target population...................................................................................................................17
 1.20. Sample Size and Sample Technique......................................................................................17
3.1.1. Sample size........................................................................................................................17
3.1.2. Sample Technique..............................................................................................................19
1.21. Data Collection Tools and Procedures...................................................................................20
APPENDINDIX-I: Time Plan...................................................................................................................24
APPENDINDIX-II: Budget plan...............................................................................................................25
REFERENCES..........................................................................................................................................26
 CHAPTER ONE

INTRODUCTION
1.1. Background of the Study
In human resource the term employee turnover is a measurement of how long your employee
stays with your company; how often you have to replace them. It has some significant effects on
organizations; new employees must be hired and trained, also need to consider the time required
for a new employee to be effectively productive. Staff turnover is a warning sign of low morale
and it is the amount of movement in and out of employees in an organization. Employees either
leave their jobs voluntarily by their own decision or forced to leave by the decision of the
employer. Employee turnover is one of the factors which affects the organization’s productivity;
which is considered to be one of the challenging issues in business nowadays (Aman.2008).
The impact of turnover has received considerable attention by senior management, human
resources professionals and industrial psychologists. It has proven to be one of the most costly
and seemingly intractable human resource challenges confronted by several organizations
globally. Turnover of employees consists of both voluntary and involuntary. Voluntary turnover
is a major problem for organizations in many countries (Aman, 2008; Syrett, 2003). (Aman,
2008; Porter and Steers (2001) suggested that the issue of meeting expectations was central to
the individual’s decisions to leave an organization. Each employee has his or her own set of
expectations upon entering an organization. Should these expectations not met, the individual
will become dissatisfied and leave. Aman, 2oo8; Mobley, (2oo4) suggested that a negative
evaluation of the present job leads to job dissatisfaction, thoughts of quitting, and an evaluation
of job seeking expectation utility and cost of quitting.
In today’s competitive business world, it is considered to be an important task to manage
employee turnover for any organization. Managing turnover has successfully been an essential to
achieve the organizational overhead goals. The significant amount of research has been
undertaken to understand the major causes of employee turnover and retentions mechanisms that
organizations should develop. Most of these studies were carried out by developed countries and
a few developing countries. Studies in the Ethiopian context indicated that every aspect of
organizations is employees because the turnover of employee leads to incurring of costs. High
turnover has become a problem for both private and governmental organizations. For instance,
Solomon has conducted his research on Ethiopian Rod Authority (ERA) in 2007 and concluded
that the turnover is affecting the organization in terms of productivity, money and time. Another
researcher, Yared conducted his study on an International rescue committee (IRC) and concluded
that the causes of turnover are a combination of factors which includes family problems, poor
leadership, dissatisfaction with the job, better opportunity in external markets, and dissatisfaction
with the work place.
Nevertheless , even though few studies conducted on ERA and IRC shows about turnover of
employees, there is no empirical studies conducted on public organizations employee turnover
that were supported by formal and published research. Therefore, the present study is to be done
on Sodo town education bureau (STEB) because of employee turnover is a big issue with the
organization. Currently, younger employees are leaving the organization due to unknown
reasons. Hence, this study will clearly identify identified the causes of emplyee turnover and
assesses its impact on organizational performance.

1.2. Statement of the Problem

Employee turnover is aserious problem of many organization in the world and it is the headache
of many private and public organization in Ethiopia. But when we came to our study area in
wolaita sodo town education buearu also have aproblems of employee turn over in the
organization. In this organization there are high rate of tuen over per year there are about five
employees leave from the organization. Due to high rate of turn over there has a great impact on
the organization.The study might insight different view of public enterprise in the
context.importance of coordinating and using human resources of the bureau has great value in
context of its work.. However, turnover of the employees recognized as one of the factors that
are affecting the business of the bureau. Well experienced and qualified experts leave positions
that they held in Organizations (STEB, 2013).

The organization became in compatible with other organization because of its disables and
failure to achive its objectives in profitable way. There foreunderstandingthe real problem with
regard to employee turn over is important issues.discussing the issue in the context of this
organization could insight the reader important lesson. Frequent turnover of employees, could
costing the bureau in terms of performance, money and time. Accordingly, this study primarily
focuses the problem that leads to employee turnover in the bureau. some study was conducted
with regarding to problems of employee to leave the organization before 3 years ago for example
biruk study was conducted only the cause of employee turn over and its mitigation to reduce rate
of employee turn over in the organization but this study is not sufficintbecauses the consequence
of employee turn over is not recommended .from this perspective the study initiates to conduct
this reaserch in wolaita sodo town education buearu due to high rates of employee turn over it
will asses the problem within the organization.

1.3. Objective of the study

1.3.1. General objective

The main objective of this study will be to investigate the cause and effects of employee turnover
in the Sodo town education bureau.

1.3.2. Specific objectives

 To identify and evaluate the actual reason for which employee turnover is prevailing in
the organization of the study
 To analyze the impact of employee turnover on the organizational performance
 To determine the possible mitigation strategies to reduce employee turnover in the
organization

1.4. Research Question

 What factors push the employee to leave the organization?
 What is the consequence of the employee turnover on the performance of the organization?
 What measures should be taken to reduce turnover?

1.5. Significance of the study

The finding of the study will render full understanding about turnover and its consequence of
employee, office management and the organization. It will be vital for the officials of the Sodo
town education bureau to further investigate the problem of employee turnover and design
mechanisms to manage turnover. It would add shreds of knowledge to an already existing
knowledge body of the subject. The researcher will get an ample experience in the course of
conducting this study. Potential researcher of the same field might use the finding of the study as
a source for their studies.
1.6. Scope of Study
Geographically the study will be delimited to sodo. The main concern of this study will revolve
around the cause and effect of employee turnover in the Sodo town education bureau.
Methodologically the study will be delimited to specific sampling techniques and data collection
tools as it is delineated in the third chapter.

1.7. Limitation of the study

The result of the study would only be interpreted to the Sodo town education bureau; could not
be referred to another place. The data of the study would be a cross-sectional data collected in
the year 2010 E.C, so that the results would be conferred to this corresponding year; can not be
presented backward or forward to other years. The concerned personnels of the organization may
decline to provide responses in detail for any question, which would reduce the response rate.
The cross-sectional data nature would obscure an attempt to see the time dynamics of the
turnover impact on the organizational performance.

1.8. Definition of terminologies

Employee turnover; is the measurement of how long your employee stays with your company how often
you to replace them

Turn over; is the withdrawal of employee from their working place

Compensation; is what employee received exchange with their work

1.9. Organization of the Research Paper

The research paper will be organized into five chapters. The first chapter constitutes the
introduction parts; background of the study, a statement of the problem, research objectives,
research questions, significance of the study, scope of the study, limitations of the study and
definition of terminology. The second chapter will be literature review; both empirical and
theoretical. The third chapter will delineate research methodology. The fourth chapter will make
up data presentation and interpretation. The last but not the least chapter five will set down the
summary, conclusions and recommendations of the study.
 CHAPTER TWO

LITERATURE REVIEW

2.1. Human Resource Management Defined

Human resource management is defined as a strategic and coherent approach to the management
of an organization has most valued assets the people working there who individually and
collectively contribute to the achievement of its objectives (Armstrong, 2006).
John Storey (1989) cited in Armstrong, 2006), believes that Human resource management can be
regarded as a ‘set of interrelated policies with an ideological and philosophical underpinning’.
He suggests four aspects that constitute the meaningful version of human resource management:
 A particular constellation of beliefs and assumptions;
 A strategic thrust informing decisions about people management;
 The central involvement of line managers;
 Reliance upon a set of ‘levers’ to shape the employment relationship

2.1.1. The matching model of Human Resource Management

One of the first explicit statements of the HRM concept was made by the Michigan School
(Fombrunet al 1984 cited in Armstrong, 2006). They held that HR systems and the organization
structure should be managed in a way that is congruent with organizational strategy (hence the
name ‘matching model’). They further explained that there is a human resource cycle which
consists of four generic processes or functions that are performed in all organizations. These are:
 Selection: matching available human resources to jobs;
 Appraisal (performance management);
 Rewards : ‘the reward system is one of the most under-utilized and mishandled
managerial tools for driving organizational performance’; it must reward short as well as
long term achievements, bearing in mind that ‘business must perform in the present to
succeed in the future’;
  Development: developing high-quality employees.

1.10. The Recruitment and Selection Process

The overall aim of the recruitment and selection process should be to obtain at minimum cost the
number and quality of employees required to satisfy the human resource needs of the company.
The three stages of recruitment and selection dealt with in this chapter are:
1. Defining requirements: preparing job descriptions and specifications; deciding terms and
conditions of employment;
2. Attracting candidates: reviewing and evaluating alternative sources of applicants, inside
and outside the company, advertising, using agencies and consultants;
3. Selecting candidates: sifting applications, interviewing, testing, assessing candidates,
assessment centers, offering employment, obtaining references; preparing contracts of
employment.

1.11. The employees Turnover: Definition and concepts

Turnover refers to retirement, resignation and redundancy. Employee turnover is considered to

be one of the persisting problems in organizations (Armstrong, 2009 cited in Hana and Lucie,
2011). The turnover means that another organization may gain a new knowledge employee who
can become its competitive advantage. The loss of knowledge thus is a threat for the former
organization, which increases the significance of knowledge continuity (Hana and Lucie, 2011).
Internal factors such as facilities in the organization and external factors (attractive factors such
as salary and other benefit packages in external market) should be taken in account to reduce the
turnover rate. More specifically, the following points stated as causes of turnover. Ineffective
communication about job expectations, inability to listen well and ask the right questions
respectfully, wage problems, under-utilization of skills, adverse working conditions, and lack of
opportunity for advancement through seniority, lack of well-organized training program
(Pertrillose, 1998).
Surline adds other factors such as corporate culture and workers involvement in the decision
making process. He argues that as the labor market gets smaller, companies.
Become more competitive in their compensation structure making corporate culture more
important than ever. Employees are less loyal to their organizations, they want more involvement
in decision making and they see in their work a realization of themselves and this is a
fundamental reason for their leave in case their job doesn’t satisfy them (Surline, 1999).
Employee turnover is the replacement cycle each time a position is vacated either voluntarily or
involuntarily (Woods, 2006). The term “turnover” is defined by Price (1977) as: the ratio of the
number of organizational members who have left during the period being considered divided by
the average number of people in that organization during the period. Voluntary turnover is when
an employee chooses to quit their job. When the company ends the working relationship through
either layoff or discharge, this is an involuntary turnover. Not all employee turnovers can be
controlled by the company, but the rate of voluntary turnover can and should be a priority for
managers.
Griffeth and Hom (2001) offer to focus on the part of turnover that is of real concern to an
organization by differentiating between voluntary and involuntary turnover. In other words, did
the employee choose to leave the job or was it a decision made by the employer? Then, voluntary
resignations are further distinguished between functional (exit of substandard performers) and
dysfunctional (exit of effective performers). Finally, unavoidable resignations over which the
employer has no influence are also left aside (family move, childbirth, serious illness or death).
This leaves the group of avoidable resignations as the key focus. It also implies that to allow an
informed decision, turnover rates have to be calculated down to department level, to identify
which areas are most problematic. Based on this issues employee turnover may be classified into
five categories:
A. Functional Vs Dysfunctional Turnover:
Functional turnover can be defined as “A turnover in which poor performers leave” while
Dysfunctional turnover can be defined as “A turnover in which good performers leave” (cited in
Wikipedia).
B. Avoidable Vs Unavoidable Turnover:
A turnover that happens in avoidable circumstances is called ‘Avoidable Turnover’, where as “A
turnover that happens in unavoidable circumstances is called ‘Unavoidable.
Turnover’ (cited in Wikipedia).
C. Voluntary v/s Involuntary Turnover:
Voluntary turnover can be defined as “The turnover in which employee has own choice to quit or
instances of turnover initiated at the choice of employees” where involuntary turnover can be
defined as “The turnover in which employees have no choice in their termination e.g. sickness,
death, moving abroad or employer’s initiated termination” (cited in Wikipedia).
D. Internal Vs External Turnover:
Turnover can be classified as ‘internal turnover’ or ‘external turnover’ (cited in Wikipedia).
Internal turnover happens when employees send-off their current position and getting a new
position within the same organization. It is related with the internal recruitment where
organizations filling the vacant position by their employee or recruiting within the organization.
E. Skilled Vs Unskilled Turnover
Untrained, uneducated and unskilled positions often face high turnover rate. Without the
organization or business incurring any loss of performance, employees can generally be replaced.
On the other hand skilled and educated positions may create a risk to the organization while
leaving. Therefore turnover for skilled and educated professionals incur replacement costs as
well as competitive disadvantage of the business.

1.12. Why people leave an organization

Many reasons describe why employees withdraw from an organization especially in an economy
where skills are relatively scarce and recruitment is costly, or where it takes several months to
fill vacant positions as the present situation in the Ethiopian public sector. Employees voluntarily
resign their appointments in organizations for various reasons which can be divided into two:
pull and push factors.
2.2. Causes and Influencing Factors for Turnover
Turnover arises from the unhappiness from job place for individual employee. But being
unhappy in a job is not the only reason why people leave one company for another. If the skills
that they possess are in demand, they may be lured away by higher pay, better 11 ,
Benefits or better job growth potential. That's why it is important to know and recognize the
difference between employees who leave the job because they are unhappy and those who leave
for other reasons. There are number of factors that contribute to employee turnover. We explore
some of these factors in more detail below:
i. The economy- One of the most common reasons given for leaving the job is the availability of
higher paying jobs. Some minimum wage workers reported for leaving one job to another that
pays only 50 cents an hour more. Obviously, in a better economy the availability of alternative
jobs plays a role in turnover, but this tends to be overstated in exit interviews.

ii. The characteristics of the job- some jobs are intrinsically more attractive than others. A
job's attractiveness will be affected by many characteristics, including its repetitiveness,
challenges, danger, perceived importance and capacity to elicit a sense of accomplishment.

iii. Demographics -empirical studies have demonstrated that turnover is associated in particular
situations with demographic and biographical characteristics of workers.
iv. The person- In addition to the factors listed above; there are also factors specific to the
individual that can influence turnover rates. These include both personal and trait-based factors.
Personal factors include things such as changes in family situation, a desire to learn a new skill
or trade or an unsolicited job offer. In addition to these personal factors, there are also trait-based
or personality features that are associated with turnover.

v. A bad match between the employee's skills and the job−Employees who are placed in jobs
that are too difficult for them or whose skills are under-utilized may become discouraged and
quit the job. vi. Substandard equipment, tools or facilities −If working conditions are
substandard or the workplace lacks important facilities such as proper lighting, furniture,
restrooms and other health and safety provisions, employees will not be willing to put up with
the inconvenience for long time. vii. Lack of opportunity for advancement or growth – If the
job is basically a dead- end proposition, this should be explained before hiring so as not to
mislead the 12employee. The job should be described precisely, without raising false hopes for
growth and advancement in the position.viii. Feelings of not being appreciated −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.
ix. Inadequate or lackluster supervision and training −Employees need guidance and
direction. New employees may need extra help in learning an unfamiliar job. Similarly, the
absence of a training program may cause workers to fall behind in their level of performance and
feel that their abilities are lacking. Unequal or substandard wage structures −Inequity in pay
structures or low pay is great causes of dissatisfaction and can drive some employees to quit.
Again, a new worker may wonder why the person next to him is receiving a higher wage for
what is perceived to be the same work.

1.13. Benefit of employee turnover

Although many people see turnover negatively, they have several benefit when turnover rates are
too low, few new employees have been hired and opportunities for promotion are sharply
curtailed. a persistently low truck over rate may have a negative effective effect on performance
if the work force becomes complacent and fails to generate innovative ideas. A certain level of
employee turnover is good and necessary part of doing business, and the benefits of employee
turnover to the organization include the following. Labor cost are reduced poor performance are
replaced. Innovation is increased and opportunity for greater diversity is enhance, employs may
receive some potential benefits from turnover too. An individual may escape from an unpleasant
work situation and eventual find one satisfaction (encyclopedia of business, (2011) 2nd edition).

Employee turnover have its own benefits: -

2.2.1. Reduced labor costs

An organization can reduce its total labor costs by reducing the size of its work force. Although
turnover costs in layoff can be considerable, the salary saving results from the elevation of some
jobs can easily outweigh the turnover pay and other expenditures associated with the layoff.

2.2.2. Replacement of poor performer

An integral part of management is identifying poor performance’s and helping them improve
their performance it can employees does not respond to coaching or feedback, it may be best to
terminating him or her so that a new employee can be brought in the separation of poor
performance created opportunities to hire employee for high performing in their place.
 2.2.3. Increased innovation
Turnover creates opportunities to hire employees for performing individual. They also open up
entry level positions as employees are promoted from within an importance source of innovation
in companies is new people hired from the outside who can offer a fresh perspective such
individuals may be entry level college graduates armed or engineer hired from leading research
education. ‘

2.2.4. The opportunity for greater diversity

Turnover creates opportunity to hire employees from diverse backgrounds and to redistribute the
cultural and gender compensation of the work force. Increasing its work force diversity allows an
organization to take advantage of adverse work force (gomer, meji W: R, 2001:182).

1.14. Strategies for reducing employee turnover

Employee turnover is costly and disruptive to any organization while no business can
realistically expect to zero employee attribution, there are strategies that your company can
implement to retain the best employees and reduce the livelihood of your employees joining the
proverbial revolving door.

2.2.5. Hire right strategy

Much like a divorce the best time to avoid turnover is before engagement. Use an employee
survey designed to help accurately identify skill gaps workloads, and implement your
recruitment plan. Accordingly, some of the components of hiring right include: -

• Behavior based testing

• Competency screening

• Background checking

• Organizational fit

• Capacity for learning

• Motivation

• Future goals
You need to discover whether the employee has the right skills, competency, and character are
they are good fit your organization and culture? Do they have a sufficient degree of motivating
do they have a capacity to keep learning in the role? What are this long term career goals?

2.2.6. Design the best compensation package strategy

Tailor compensation packages individually where possible (especially for line manager and
executive positions, and review at least annually, keep up to date with market salary rates or
make sure the human resource department is up to speed. Not surprising is a clear relationship
between benefits and turnover rates.

2.2.7. Effective communication and moral strategy

As the owner or manager, you set the tone for employee morale. Don’t set up repetitive meetings
unless they are truly productive and you are open to suggestions from your employees for
maximum employee engage ensure that communication is not a one-way cycle in your company
more an effective to listen to feed back through an employee satisfaction survey and be ready to
act on the feedback you receive. Employee engagement can be a long term goals and necessary
achieved overnight.

2.2.8. Provide a great environment strategy

Provide an attractive, healthy and safe work environment for your employees. Make sure
furniture and equipment observe occupational health and safety requirements and set up
amenities and reset spaces where employees can take out. Make your office a pleasant place to
be.
 Chapter Three

Research Methodology
1.15. Description of Study Area
This study will be conducted on Sodo town education bureau . Sodo is the administrative center of
Wolaita zone in south nation, nationalities and peoples region; located 6054’ North latitude and 37045’
East longitudewith an elevation between temple convert above sea level . It was part of the former Sodo
woreda. Sodo is also the set of the roman catholic apostolic Vicariate of sodo-hosaena.

1.16. Research approach

The study will adopt both quantitative and qualitative approaches. The causes of employee turnover will
be identified and delineated in liaison to the push factors for turnover in the organization itself and its
coincidence with established bodies of literature. To that end, descriptive information from the
organization’s database, rules and regulations, incentive schemes, management systems, work
environment and overall employee handling precepts would be cooked to explain the subject of the study.
On the other side of the study, correlations, multiple regression model and other inferential statistical
paraphernalias would be used to quantify and delineate the effect of the employee turnover on the
organizational performance.

The usage of both quantitative and qualitative research approach is justified by the recognition of the fact
that every method in each approach has its limitations and that the use of both methods can be
complementary to each other.

1.17. Research Design

The study will employ descriptive research design to enlighten the causal factors behind the employee
turnover in the study’s organization and describe the subsequent effect on the organizational performance.
The choice of this design is justified by the nature of the study as it will look into both qualitative and
quantitative data. Thus, survey questions would be used to drive the data for description.

1.18. Types and Sources of Data,

In this study both qualitative and quantitative data will be used. The integration of the two data types
would permit a more complete and synergistic utilization of data than do separate quantitative and
qualitative data collection and analysis. The data will be obtained from both primary and secondary
sources. Employees and current reports of the study’s organization will serve as the primary data sources
while books, journals, internet sites and others will account for secondary data sources for this study.
1.19. Target population
The target population of the study encompasses the employees of Sodo town education bureau from
among which sample will be taken in accordance with sampling techniques delineated below. According
to the data from the Sodo town education office there are total of 177 employees, among which 105 are
males and 72 are females.

1.20. Sample Size and Sample Technique

3.1.1. Sample size

Given the total target population of the study, 177 the research will take samples out of them. This is due
to the difficulty of conducting census considering different factors as such as time and resource
constraints. The Confidence level is deemed to be 95%. Hence, the sample size is determined using the
Cochran equation as follows:

z 2 pq
n=
e2

where n is sample ¿ ¿

z is the abscissa of the normal curve that cutoff an area α at the tails

1−α equals thedesire confidence level , 95 %∈our case

e is the error margin

p is an estimated proportionof an atribute that is present ∈the population

q is 1− p are t h e estimate of variance

T h e value for z is found ∈the statistical tables which contains the areaunder the normal curve

z=1.96 for the confidence level of 95 %

Therefore,

1.96 2∗0.95∗0.05
n=
0.052

¿ 73
 3.1.2. Sample Technique
Given the above calculated number of samples from the target population, 73, a multistage sampling
technique will be adopted to draw representatives from the population. In the first stage, the total
employees of the organization would be sorted into three strata; top management, middle level
management and operational staffs. The number of employees in each stratum would be indicated. In the
second stage, proportional to size sampling technique would be adopted whereby each stratum will have
representative participants in the study depending upon their total number of employees. At this stage the
number of samples from each stratum will be therefore be determined. Finally, the simple random
sampling technique would be employed to select actual representatives. To that end, the names of all
employees across the stratum would be written on a piece of paper. The researcher will then blindly pick
and choose the required number of participants from each stratum. It is therefore those, finally picked
employees who will be approached to fill the survey questionnaire developed for the study purpose. The
proportional to size sample from each stratum is shown in the below table.

No Stratum Total staffs Proportional sample size

1 Top management staffs 30
2 Middle level management staffs 47
3 Operational staffs 100
Total 177 73

1.21. Data Collection Tools and Procedures

To collect the data from the bureau standardized and structured survey questionnaire will be used as a
principal tool. The structured questionnaire is preferred to assist in maintaining uniformity of the
questions for all respondents. It will also save time and resource relative to other possible data collection
tools. The questionnaire will be prepared in both close and open-ended formats. It will be prepared in
English language and latter be changed into Amharic. This is to ensure the clear comprehension of the
questions by the participants of the study. The data would be collected by the trained enumerators who
will approach the respondents and hand over the questionnaire schedules to be filled.

3.2. Data analysis

The data collected would be subjected to a rigorous analytical task, involving both quantitative and
qualitative flair. Firstly the data would be processed manually using both field and in-house editing. Then
categorizing the data under respective specific objective and coding would be done. Categorized and
coded data would be entered into a statistical package for social science (SPSS).

Subsequently, various mathematical and statistical analysis will be employed to conduct univariate,
bivariate and multivariate analysis. The uni-variate analysis will include frequency tables for the
categorical data, measures of central tendency and dispersion for the ratio and interval data. Bivariate
analysis will use Pearson’s correlation to determine the association between employee turnover rates and
organizational performance. Multiple regression model will be used to determine the relationship (linear
and non-linear) between turnover rate and organizational performance, the number of significant
variables, the size and the significance of the slope parameters of the variables. Hence, multiple linear and
non-linear regression will be used to identify the best model and significant independent variables that
predict the dependent variable.

Simultaneously, further analysis will be undertaken to test the validity of the model and data
characteristics, assumptions and include model structure, multicolinearty, residual patterns as well as the
effect of outliers.

Analytical Specifications

In the first instance, literature identified conventional reasons for employee turnover would be evaluated
against the employee turnover causes in the study organization. This will enable to sort the rationales for
employee turnover in the organization. The following table depicts an identified reasons of turnover to be
evaluated in the course of the study.

N Reasons
o
1 Retention strategy
2 Employee motivation
3 Career development
4 Work load
5 Work environment
6 Incentive schemes
7 Pay level
8 Management system
9 Other challenges

Modeling correlation and multiple regression

An identified performance indicators would be analyzed in liaison to how they are impacted due to the
existence of the employee turnover in the organization. Hence, on one hand the result would reveal the
correlation between the employee turnover and the performance indicators identified. On the other hand,
the study will reveal how the overall organization’s performance is impacted by the effect of employee
turnover on each indicator of organizational performance. Thus, organizational performance would be the
dependent variable whose outcome is to be estimated from the multiple regression model. The
performance indicators will make up the independent variables. It is therefore from the effect of employee
turnover on these performance indicators that the magnitude of overall organizational performance is to
be estimated.

N Major category Specific Indicators

o
Customer metrics Customer satisfaction
Customer complaints
Work process flows metrics Plan irregularities
Service quality
Inefficiency and errors
Resource and time metrics The Cost of recruiting and engaging
new staffs
Waste of time
Present employee satisfaction Workload
Staff morale
Internal conflict
Organizational endurance metrics Replacement of poor performance
Innovation
Diversity

Mathematically the multiple regression model can be expressed as

Yi= α+ β1X1+ β2X2+ β3X3+ β4X4+β5X5+Ԑ0
Where Y is the dependent variable, Organizational performance
α is the constant, represents the value of the dependent variable in case all the independent
variables assume zero value
β1, β2, β3, β4 β5 represents the unknown coefficient to be estimated from the model outcomes
X 1 = Customer metrics
X 2 = Work process flow metrics
X 3 = Resource and time metrics
X 4 = Present employee satisfaction
X 5¿ Organizational endurance metrics
Ԑ 0= Error term, which is normally assumed to be normally distributed
 The final section of the analysis would be the mitigating strategies to combat or reduce the
employee turnover in the organization. Literature filtered employee turnover reduction strategies
would be used to unearth which mitigating strategy best fits into the status quo of the
organization to reduce the trend of the turnover. The following table depicts the employee
turnover reduction strategies that will be evaluated for their fit into reducing the employee
turnover reduction in the organization. Therefore, at the end of the day it will answer “which
one…?” question from among the mentioned mitigation strategies.

No Mitigation strategies
1 Adopt winning retention strategies
2 Motivate employees
3 Administer training and development
4 Establishing favourable working environment
5 Improve management system
6 Improve pay level and incentice schems

APPENDINDIX-I: Time Plan

NO ACTIVITY Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun.

1 Title selection xxx

2 Proposal development Xxx xxx
3 Proposal submission
4 Proposal presentation
5 Data collection xxx
6 Data analysis and presentation xxx
7 Report writing xxx
8 Report presentation xxx
 APPENDINDIX-II: Budget plan

NO ITEM QUANTITY BIRR CENT TOTAL

1 Paper 1 package 12o 00 120
2 Secretary(printing) 44 page 220 00 220
3 Binder 2 60 00 60
4 Pen 5 piece 25 00 25
5 Pencil 1 piece 2 00 2
6 Flash disc 1(8GB) 200 00 200
7 Transportation _ 350 00 350
Total 927 00 927
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