Theoretical Rationale And Justification For The Investigation Commerce Essay


In the 21st century, globalisation has increased the competitiveness of today's business world. For an organisation to be one of the best, productivity is very important. Employee turnover is one of the factors that affect productivity and has since been a challenging issue to today's organisation (Shumon 2007). Thus, it is considered important for an organisation to manage employee turnover. As quoted by Ongori (2007), Prince (2007) defined turnover 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."

In simpler terms, employee turnover is the action of employee quitting its current job and being replaced by others. Hence, there is a need for management to develop a greater understanding of employee turnover. This proposal aims to understand the causes - what causes employee turnover, effects of turnover on an organisation and retention strategies that managers can implement to minimize employee turnover. In addition, this proposal aims to address the underlining reasons to some employees remaining in the organisation despite colleagues leaving.

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The phenomenon of employee turnover have been proven by several to be one of the most significant, potentially costly, relatively clear cut and challenging issues for human resource management of an organisation and have been an interest to numerous organisations and theorist (Shumon 2007; ). Shumon further argues that, the goal of 'effective management of turnover' dictates that a high level of sophistication needs to be achieved by organizations in order to selectively influence the turnover process. However, he also added stating that the phenomenon has not so far proved amenable to predictions. Therefore, this research topic is worthy for research as there are still uncertainty about employee turnover in the society especially in an ever-changing envirnonment where change is inevitable and unpredictable, causing managers to understand the reasons to employee turnover in their organization.

In fact, employees are by far the most important shareholder to any organisation and they are an assets to the organisation. Organisations rely heavily on their employees in achieving success for their business. The success of an organisation is argued to be dependent on the calibre of its employees as well as how effectively they are managed that aid the organisation in achieving its mission and objectives (Cheng and Brown 1998, p.136). This is supported by Ongori (2007), who argues that "[e]mployees are the backbone of any business success and therefore, they need to be motivated and maintained in organization at all cost to aid the organization to be globally competitive in terms of providing quality products and services to the society". Thus, organization has put in tremendous time and effort on their employees through inductions, socialise and standard operating procedure (SOP) training etcetera, to develop their employees (Jha "Determinants of Employee Turnover Intentions: A Review"; Ongori 2007). As a result of endless effort place forward, most managers would ultimately want to retain trained skilful employees, minimizing employee turnover as they are seen as a valuable assets to the company.

On top of that, most academic researcher assumes that salary is the primary causes of employee turnover in an organization. Bowden (1952) introduces what he calls a simple solution to the turnover problem, that being to pay employees more than your competitor for comparable job scopes will decrease the likelihood of employee quitting. Ongori (2007) supported by concluding in his article, that pay and pay-related variables have a great effect on employee turnover (Griffeth et al. 2000). Although perceived by most that the main cause of turnover deals with salary issues, there are still a considerably amount of different views to this issue (Cintrón 2006), which draws the researcher's attention to research the true primary causes of employee turnover.

Employee leaving an organisation for several reasons, yet some employee chooses to continue contributing to the organisation's success. Most researchers have discussed the issue of why employees leave an organisation that affects turnover. However, little have they researched on the reasons of some employees remaining in the organisation despite the high turnover level. The researcher hence will be examining the various reasons to employees continuing serving the organisation.

Research aim and objectives

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The overall purpose of this research proposal is to study the constraints of employee turnover: the causes of employee turnover and the various retention strategies used by the organization to retain knowledgeable and skilful employees.

The 4 main objectives to be achieved in this research proposal are as follows:

To identify and examine the various factors causing employee turnover in an organization

To explore the reasons behind some employees not quitting

To identify and examine different retention strategies used by organizations in retaining their highly productive employees

To investigate the positive and negative effects of turnover on productivity and efficiency of an organization

Academic context

As quoted by Ongori (2007), Prince (2007) defined turnover 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."

Generally, employee turnover had been classified into 2 broad categories, voluntary and involuntary turnover. Voluntary turnover refers to

Nevertheless, involuntary turnover are sometimes unavoidable by the organisation such as retirement, illness and death. Thus, in today's society, it is impossible to control employee turnover but organisations can implement preventive measures to minimise high turnover.


Why retention is a serious problem (

Causes of employee turnover (, Rene Cinton (2006)

Why some employees do not quit?

Strategies to retain employee (

Research Methods

Research method use for this research proposal would be qualitative - interview and focus group as well as quantitative - survey questionnaires.