MEKELLE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

ASSESSMENT OF EMPLOYEE TURNOVER AND ITS EFFECT ON

INSTITUTIONAL PERFORMANCE

(The Case Study of Mekelle University College of Business and Economics)

A Research Proposal Submitted to Department of Management in Partial

Fulfillment of the Requirement for the Award of Bachelor of Arts (BA) Degree in
Management

BY- AREGASH MOLLA

CBE/UR/0372/04

Advisor-Abas Mohammed (MBA)

January, 2014

Mekelle, Ethiopia
TABLE OF CONTENT

CONTENT PAGE

Chapter One

1. Introduction………………………………………………………………………………………1

1.1. Back ground of the study……………………………………………….…….....................................................................1

1.2 Statement of the problem ………………………………………………………………………………………………………2

1.3 Research question………………………………………………………………………………………………………………..3

1.4. Objective of the study……………………………………………………………………………………………………………3

1.4.1. General objective…………………………………………………………………………………………………………

3

1.4.2. Specific objective………………………………………………………..…................................................................3

1.5 Scope and Limitation of the study…………………………………………..……………..............................................4

1.5.1 Scope of the study…………………………………………………………………………………..………………………4

1.5.2 Limitation of the study………………………………………………………………..

………………………………….4

1.6 significance of the study…………………………………………………………………..…….……………………………...4

1.7. Research Methodology……………………………………………………………………………………………………….…4

1.7.1 Datatype and source….………………………………………………………………………………………….…4

1.7.2Sampling technique and sample size…………………………………………….…………………………….5

1.7.3 Data collection and analysis technique……………………………………………………………………..6

1.8 organization of the paper…………………………………………………………………………..……………………….....7

1.9 Table A. Time schedule …………………………………………………………………………………………………………8

Table B. Budget plan………………………………………………………………………………………………………………10

Chapter two

2. Literature review…………………………………………………………………..………………………….11

2.1 Definition and related concept of turnover……………………………………….……………………………………….….11

2.2 Types of employee turnover……………………………………...……………………………12

2.2.1Internal vs. external turnover………………………………………………………………...……………………...…..13

2.2.2Functionalvs. dysfunctional……………………………………………………………………………………………......12

2.2.3. Uncontrollable and controllable turnover……………………….……………………………….….….13

2.2.4 Voluntary and involuntary turnover………………………………….……………………………….…..13

2.3. Cost of employee turnover……………………………………………………………………..........................................13

2.4Effect of employee’s turnover on institutions performance………………….……………….........................14

2.5 Cause of employee turnover……………………………………………………………....…….…………………………15

2.5.1Individual factor contributing to employee turnover…………………….............................................15

2.5.1.1 Demographics………………………………………………………………..………………….…..…..15

2.5.1.2 Professional characteristics………………………………………………………….….………...16

2.5.1.3 Subjective evaluation of the environment…………………………..……..……………......16

2.5.2 Environmental factors contributing to employee turnover……………….........................................16

2.5.2.1Economy…………………………………………………..…………………………………….….……….16

2.5.2.2 The organizational culture………………………..….………………………………………………16

2.5.2.3 The performance of the organization…….…………………………………………...………….17

2.5.2.4 The characteristics of the job………………………………………………………………….……...17

2.5.2.5 Unrealistic expectations……………………….............................................................................17

2.6 How to prevent employee’s turnover……….………………………………….........................................................17

2.7 Controlling and managing staff turnover……………………………………….......................................................18

I. Reference……………………………………………………………………………..….20

CHAPTER ONE

1.Introduction
1.1 Background of the study

It is true that human resource most valuable asset. Without it organizations cannot perform their
activity and nothing can be achieved.(Frech Wendell, HRM, 1998).

Specially educated human resource is precious as diamond for the performance of the
organization and also sustainable development of one country. For instance compared to under
developed nations there is educated human power in the industrialized world.(Frech Wendell,
HRM, 1998 ). On the other hand, it is less likely that a nation developed and achieved good
performance without having educated and skilled human resource. This implies that the root of
organizations performance and success is educated and skilled human power (Frech Wendell,
HRM, 1998).
Employees are the key players in implementation and performance of organizational plan and
employees are the base for the development of educated human power that in turn will be the
base for the development of one country.Successful management of employee is determinant for
the success of organizations and country. While loss of them, will be losing of productive human
power and their product. Hence its consequence is not difficult to guess.

Employee turnover is one of the means of losing well experienced and familiarized with over all
environment of the organization. So organizations better to keep an eye on them for the benefit
and to maximize its organizational performance. University without its employee cannot be
effective and cannot able to achieve its pre-stated objective and goals.
The concept of institutional performance can be regarded as embodying components on two
dimensions;

 Effectiveness, which is concerned with the congruence between outputs and goals or
other criteria.Effectiveness organizational the most important outcome, can be defined as
the extent to which goal are achieved. E.g. in a successful educational institution there is
high quality of education that meets the pre-stated goals established by top management.
 Efficiency which links outputs with inputs.
The efficiency dimension, which has been relatively neglected in attempts to assess
institutional performance, is defined and is relationship to the economic concepts of
efficiency and productivity is examined. The practical difficulties in assessment relate to
the conceptualization and measurement of inputs and outputs in a manner reflecting an
educational institutions purpose and process, and in a form which can be used as
management information.
I.2. Statement of the problem

It has been known that employees leave their organizations and join other organizations which
meet their demand from different angles. This is also for developed, underdeveloped,
governmental and nongovernmental organizations too. Higher educational institution employees
are the most important inputs for the performance of the institution.

Experienced employees turnover enables the institution not to get the required benefit from the
employee.(personal opinion).

And this inturn reduces theoverall performance of the organization. Turnover not only reduces
the performance of an organization but also it adds more and more tasks and costs related to the
tasks. The costs includes separation costs, paper work, vacancy cost, including temporary or over
time employee and replacement cost including advertisement and interview time.(HRM
document ).

The presence of turnover in the college of Business and economics not only adds costs but also
enable to lose well experienced and familiarized employee and in turn it also highly affects the
performance of the college as well as the university.
Thus,this research tries to identify practical problems of turnover in the college through reading
notices related to unavailable employees and by the data the researcher gets from the database
personnel of management department.

1.3. Research question

The research tries to answer the following questions;
 Whatstrategies are followed by the university to retain its employees?
 How much is the magnitude of employee turnover in college of business and
economics?
 What are the causes behind employee turnover in Mekelle University?
 To what extent does employee turnover affects thecollege performance?

1.4. Objective of the study

The study have general and specific objective;-

1.4.1. General objective

The general objective of the study was to assess the effect of employee’s turnover on
institutional performance at Mekelle University College of business and economics.

1.4.2. Specific objective

Specifically the objective of the study was:
 To identify the strategies followed by the university to retain its employees.
 To understand the magnitude of employee turnover in college of business and
economics.
 To identify the cause behind employee turnover in Mekelle university.
 To assess to what extent does employee turnover affects the college performance.
 1.5. Scope and Limitation of the study
1.5.1. Scope of the study
The scope of the study was limited to MekelleUniversity, college of business and
economics.Moreover, even though there might be many problems concerning the overall
activities of the college, the study focuses only on problems related to employee turnover
in Mekelle university, college of business and economics.

1.5.2. Limitation of the study

Since the study is to be conducted only in one of the colleges of the university, the result
may not be generalized to the institution as awhole.

1.6. Significance of the study

The study has the following significances;

 The study helps the college to bring some important strategies to retain their
employees.
 The study helps the researcher to relate theoretical knowledge with what is going in
the real world.
 The study used to establish the base line data for further study by other researcher.

1.7. Research methodology

1.7.1. Data type and data source
The researcher uses both qualitative and quantitative data type and the data’s were collected
from both primary and secondary sources. For the purpose of collecting primary data the
researcher usesquestionnaire data collection instruments. In collecting secondary data
published materials. Previously written documents and notices were used.
 1.7.2. Sampling technique and sample size

The target populations of the study were from employees of Mekelle University, College of
business and economics academic staffs in 2006 E.C. The researcher takes sample from the total
population of academic staff of college of business and economics which is 162.

The researcher uses stratified random sampling to get the required data from the selected
respondents. This is divided in to sub groups or stratum on the basis of department. Each
employee has equal chance to be selected.

By taking in to account the time availability, financial capacity and other resources of the
researcher, the researcher takes 30 respondents (18.52%) from the target population of the study,
which is 162.

 The sample from each department is determined as follows

N
Percentage of sample size to be taken =
n

Where N= number of total population where the sample has taken,

n= sample size

162
Percentage of sample size to be taken =
30

Percentage of sample size to be taken =18.52%

This determined percentage of sample size distributed proportionally to each department as

follows:

 Management department= 54*0.1852=10

 Accounting department= 34*0.1852=6
 Economics department= 33*0.1852=6
 Marketing department=15*0.1852=3
 Cooperative department=26*0.1852=5

Total sample size=30

  Table 1.1 Distribution of employee in relation to their department in 2006 E.C.

S/No Description Number of Sample

employee
1 Management department 54 10
2 Accounting department 34 6
3 Economics department 33 6
4 Marketing department 15 3
5 Cooperative department 26 5
Total 162 30
Source: [each department database personnel]

1.7.3 Data collectionand analysis technique

In collecting primary data the researcher uses questionnaire data collection instruments. The
questionnaire has both open ended and close ended type. Because open ended helps
respondents to express their idea in unlimited way and closed ended provide questions
having alternative answers. The reason why the researcher wants to use questionnaire is due
to the fact that large samples can be used and the respondents can have adequate time to think
over questions. In order to collect secondary data written materials like documents review and
brochures was used.

After the relevant data was collected from different sources the researcher analyzes by using
descriptive statistics like percentage, tabulation and statements. The reason that the researcher
wants to use descriptive method is in order to clarify and describe both qualitative and
quantitative data. This has been done first editing the collected data to avoid some errors
during data collection or responses which were not in parallel to each other. Then the data
were classified according to the relationship and similarity of the collected responses from the
respondents.

1.8. Organization of the paper

This paper is composed of four chapters the first chapter deals with the introduction that include
back ground of the study, statement of the problem, objectives of the study, significance of study
and limitations of the study.

The second chapter deals with review related that consist definition and concept of turnover.
Third chapter deals with the analysis and presentation of data. Finally chapter four deals with the
conclusion and recommendation.
 CHAPTER- TWO

2. Literature Review

2.1. Employees’ turnover definition and related concept

In human resource context, turnover or staff or labor turnover is the rate at which an employer
gains and losses employees. Simple ways to describe of are “how long employees tend to stay
“or “the rate of traffic through the revolving deer” turnover is measured for individual companies
and for their industry as a whole (job opening and labor turnover survey,
2008www.sgma.assessment.system.com).

Turnover is the net result of the exit of some employees and entrance of others. It can be quite
costly to an employer. The cost of employees turnover increased costs for social security and
unemployment compensation, terminal vacation, service pay, under-utilized facilities until
replacement is hired test cost,computer record cost and moving expenses and administration
costs of notification and payroll changes obviously there is also productivity less until the
employee reaches the performance level of the one who left the job.

Turnover refers to the movement in to out of an organization by the work force. This movement
is an index of the stability of that force. An exercises movement is desirable and expensive when
employees leave the firm. (Edwin B,Flippo, 1988 )

Employee turnover is a much studied phenomenon. But there is no standard reason why people
leave organization. Employee turnover refers to the rotation of workers around the labor market;
between firms, jobs and occupations; and between states of employment and unemployment. The
term turnover is defined 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. Frequently, managers refer to turnover as the entire process associated with
filling a vacancy. Each time apposition is vacated, either voluntary or involuntary; a new
employee must be hired and trained.
Many authors write about the concepts of turnover in different human resource management
books but all have relatively the same meanings. However, for the study of this research turnover
is defend as follow. Turnover is the exit of employee from their job. There are many factors that
causes of turnover such as the earning of the hourly rate opportunity for raise, feeling of doing
well and filling of not filling in involuntary termination by the cause of lateness, absenteeism
rule, vocation and over qualification parsing skills in other job categories (Job opening and labor
turnover survey, 2008 www.sigma.assessment.system.com).

2.2. TYPES OF EMPLOYEE TURNOVER

Employee turnover can be classified as;

 Job related –usually relates with factors of employees direct control

 Non job related–mostly associated with personal life.E.g. spouse relocation , family
problem, school returning

According to (Mathias and Jackson, 1984) turnover can be further classified in a number of
different ways, which are not mutually exclusive.

2.2.1 Internal vs. external turnover

Like recruitment, turnover classified as internal or external. Internal turnover involves employees
leaving their current position and taking new position within the same organization. Both
positive, such as increased morale for change of task and supervisor and negative, such as project
/ relational disruption are the effects of this type of turnover.

Effects of internal turnover exit and therefore ,if may equally important to monitor this form of
turnover as it to monitor its external counterpart, internal turnover might be moderated and
controlled by typical human resource mechanisms such as an internal recruitment policy or
formal succession planning.

2.2.2Functional and Dysfunctional turnover

In functional turnover the organization is beneficial as such workers can be less reliable and poor
performing. On the contrary dysfunctional turnover is highly influencer to the organization. This
situation occurs when the key individuals of high performance leave at critical time.

2.2.3 Uncontrollable and controllable turnover

 Uncontrollable turnover; Reasons for such turnover cannot be simply controlled by the
employer. E.g., geographical, discomfort, family distance…
 Controllable turnover. The employers are able to retain the employees if they deal with
the issues of turnover in their institutions.

2.2.4 Voluntary and involuntary turnover

 voluntary turnover; turnover initiated by employees

 Involuntary turnover; turnover initiated by the organization. Practitioners can
differentiate between instances of voluntary turnover, initiated by at the choice of the
employees, and those involuntary instances where the employee has no choice in their
termination, such as long term sickness, death, moving overseas, or employer initiated
termination. (Mathias and Jackson, 1984.)

Typically, the characteristics of employees who engage in involuntary turnover are no different
from job style. However, voluntary turnover can be predicted and controlled by the construct of
turnover intent. From the institutional perspective, voluntary turnover is most likely unwanted
losses.

It is clear that voluntary turnover is a responsive decision that an individual faculty member
under takes when she/he perceives the work environment as persistently dissatisfactory with
respect to one’s specific personal and professional needs and expectations.

2.3Cost of Employee turnover

Analysis of the costs associated with turnover yield surprisingly high estimates. The high cost of
losing of key employees has long been recognized. However, it is important for organizations to
understand that general turnover rates in the work force can also have a serious impact on an
organization profitability, and even survival.
 There are a number of costs incurred as a result of employee turnover. Those costs are derived
from a number of different sources, such as

 Recruitment of replacement; including administrative expenses, advertising, screening, and

interviewing and service associated with selection. Such as security checks, processing of
references and possibly psychological testing.
 Administrating hiring costs.
 Lost productivity associated with the interim period before a replacement can be placed on the
job lost productivity due to the time required for a new worker to get up to speed on job. Lost
productivity associated with the time that coworkers must spend a way from their work to help a
new workers.
 Cost of training including supervisory and coworker time spent of informant training, as well as
the time that the worker in the training must send of the job. Costs associated with the period
prior to voluntary termination when workers tend to be less productive. (www.sigma.assessment.
System.com)
 Communications of proprietary trade secrets, producers and skills to voluntary or involuntary
termination Lost sales costs-in some causes costs associated with the community spending about
the organization.

2.4. Effect of employee’s turnover on institutions performance

High turnover rate always has strong undesirable consequences including lost return on previous
investment disruption of researches and teaching programs, discontinuity in student mentoring,
as well as the monetary cost of recruitment of a placement and the time of other faculty diverted
to the hiring process.

Generally turnover has two phases of consequences. These are negative and positive.

1) Negative consequences – it includes :-

 Recruitment and development costs
 Training and development costs
 Operational disruption
 Demoralization of organizational member ship
2) Positive consequences-includes
 increased performance
 -Reduction of entrenched conflict and increased mobility, morale
 Innovation and adaption
In addition to the above effects turnover also have its own impact on institutions performance in
that it discourages the universities not to achieve its previously set objectives in their pre-
determined schedule. Increasing costs due to turnover also one factors in decreasing the
performance of institutions.

2.5. Cause of employee turnover

The major findings in organizational research have been applied to higher education setting. In
postsecondary faculty turnover, smart (1990) summarized that turnover theories originated from
the perspectives of economics, psychological and sociology, and classified in to three relevant
groups. These are;

A. Individual characteristics that include demographic information. Such as gender and

marital status and human capital measures such as career, age, and educational level.
B. Work factors such as teaching time, research productivity, participation in campus
governances and perceived influence.
C. Contextual variables such as salary, enrollment and organizational decline.

2. 5.1 Individual factor contributing to employee turnover

A) Demographics;

Demographic information related to faculty turnover includes gender, family responsibility and
citizenship status. In a study of faculty at Research University, females were found more likely
to leave a position than males, whereas ethnic minority faculty should low mobility. (Johnsrud
and Heck 1994)
However, using a national sample of university faculty (Barnes et al 1998) conclude that males
were more likely to leave academic entirely. Higher turnover rates have been found in younger
faculty members (Mobbley 1980; smart 1990)

B) Professional characteristics;
The two most important professional factors are:
Human capital measures: it quantifies professional training, job experiences and seniority by
career age, year in position, academic rank and tenure status.
Productivity;it includes teaching loads, research productivity and community services.

C) Subjective evaluation of the environment:

The multi task nature of academic careers and the lack of clear definition of productivity at the
institutional level(JohnsrudandHeck) argued that salary was a critical factor for turnover.
2.5.2 Environmental factors contributing to employee turnover
Environmental factors reflect institutional culture and conditions shared by residential members.
Studies have investigated the impact of physical condition. A positive and nurturing environment
permits the development of a sense of belonging and decrease turnover intention by enhancing
faculty job satisfaction.(Johnsrud and Heck 1994, Rosser 2004)

Generally, there are a number of factors that contribute to employee turnover. Some of them are
clearly listed below.

2.5.2.1 Economy

In exit interviews one of the most common reasons for leaving the availability of higher paying
jobs. Some minimum wage workers report leaving one job for smother that pays only 50 cents an
hour more obviously, in a better economy the availability of alternatives jobs pays arose in
turnover, but this is overstated in exit of interview. (Job opening and labor turnover survey,
2008www.sgma.assessment.system.com).

2.5.2.2The organizational culture

It is sufficient to note here that the reward system, the strengths of leadership, the ability of the
organization to elicit a sense of commitment on part of workers, and its development of a sense
of shared goals, among other factors will influences such as indices of job satisfaction as
turnover intentions and turnover rate.

2.5.2.3The performance of the organization

An organization perceived to be in economic difficulties would also raise the sector of

impending layoffs.

2.5.2.4 The characteristics of the job

Some jobs are intrinsically more attractive than others. A jobs attraction is attached by many
characteristics including its repetitive, challenge, danger and capacity to elicit a sense of
accomplishment.

2.5.2.5 Unrealistic expectations

Another factor is the unrealistic expectation and general lack of knowledge that many job
applicants has about the job at the time that they receive an offer. When these unrealistic
expectations are not realized, the workers become disillusioned and decide to quit.

The person; this includes both personnel and trait factors. Personnel factors include things such
as change in family situation, desire to learn a new skill or trade or unsolicited job offer.

Trait based or personality features that are associated with turnover. Example loafing,
absenteeism, theft, substance abuse in jobs and sabotage of employer’s equipment or
productivity are personality features associated with turnover.

2.6. How to prevent employee’s turnover?

Employees are important in any running of business, without them the business would be
unsuccessful.

Some of important ways of preventing employee’s turnover are listed below.

 Providing a stimulating work place environment which foster happy, motivated and empowered
individuals, Lowes employee turnover and absentee rates.
 Promoting a work environment that fosters personal growth promotes harmony and
encouragement on all levels, so the effects are felt company wide.
 Continual training and reinforcement develops a work force that is competent, consistent,
competitive and effective and efficient.
 Beginning on the first day of work providing the individual with the necessary skills to perform
their job is important.
 Before the first day, it is important the interview and hiring process expose new hires to an
explanation of the company, so individual knows whether the job is their best choice.
 Networking and strategizing within the company provides on going performance management
and helps to build relationship among coworkers.
 Early engagement and engagement along the way, shows employees they are valuable through
information or recognition, rewards, and making them feel include.

2.7 Controlling and managing staff turnover

What exactly is if that makes staff leave? Why do they stay? What would they make happier and
more motivated? These are basic questions answered by the organization to reduce employee’s
turnover. A certain amount of turnover is healthy, but if half the staffs are looking for alternative
employment at any one time you know you have problems.

Contrary to popular belief it is not simple a mother of pay that makes staff scrutinize situation
vacant. The reasons are complex but once you are aware of the factors that affect turnover you
can do a great deal to reduce and control

Different researchers argued that poor pay is the only reason people leave a job but it is certainly
disincentive to stay. Have clear, fair pay system with competitive rates of pay for the business
you are in keep tabs on comparable jobs in the industry and keep up to date. Terms and
conditions in contracts are also very important to encourage loyalty.

 Incentives and other relevant staff benefits are also valuable to staff some business shy away
from offering incentives; because they can appear expensive this is not always the case. For
 example, the cost of providing allows cost health package to every one may work out much
cheaper than constantly replacing workers.
 Employees get formal appraisals will give them an opportunity to discuss their performance and
job prospects. Staffs as privations are important, so make sure you match jobs to people and
make sure they feel valued.
 Training and development also encourage people to stay with a company, so offer when
appropriate.
 Good employee orientation also will help to reduce turn over because new employees are more
likely to leave than employees who have been on the job longer.
 Career planning and internal promotion: it can help an organization keep employees because the
individual get the opportunity of career advancement.

Most researchers argued that salary serve as an index of fairness, personal achievement and
future potential of the individual relative to other people at the same institution. The perceived
equity and level of rewards may have stronger influence on employee turnover.
CHAPTER THREE

3. Result analysis and discussion

This chapter mainly deals with analysis and interpretation of the data collected in
MekelleUniversity College of business and economics concerning employee’s turnover. Mekelle
University College of business and economics has about 162 employees. The findings are made
based up on the responses in the questionnaire filled by employees of the university. 30 copies of
questionnaire were distributed to the employees of college of business and economics in Adi-
haki campus. Out of 30 copies of questionnaire 30(100%) were filled correctly and returned.

3.1, Background of the sample respondents

Table 3 .1; Background information of the respondents

Number Items Responses No of Percentage

respondents (%)

1 Age 20- 30 6 20
31-40 17 57
41-50 7 23
Above 50 - -
Total 30 100
2 Sex Male 27 90
Female 3 10
Total 30 100
3 Educational level BA/BSC degree 14 47
MBA/MSC 16 53
PHD - -
Total 30 100
4 Marital status Married 18 60
Unmarried 12 40
Divorced - -
Widow - -
Total 30 100
5 Salary in Ethiopian birr Below 1000 - -
1000-3000 1 3
3000-5000 18 60
5000-9000 11 37
Above 9000 - -
 Total 30 100
6 years of services in the Below 5 years 20 67
university 6-10 years 10 33
11-15 years - -
16-20 years - -
Total 30 100
Source; questionnaire 2014

As table 3.1 above indicates the majority 57% of the respondents had age ranging between age
31- 40 years, and there are some 23% of the respondents are under the age between 41-50 years
and 20% of respondents are between the age of 20-30 years old. This indicates that, the majority
of staff members in MekelleUniversity College of business and economics are adults. In sex
aspect 90% of the respondents are male and the remaining 10% are females. This proportion of
variation in gender indicates the number of female teachers in the university is at low level.

Moreover, in terms of their educational qualification the researcher find that 47% of the
respondents have BA/BSC degree, and majority of the respondents are MA/MSC holders which
accounts 53%. 40% of the respondents expressed that they are single or unmarried and60% of
them replied that they are married.

Furthermore, in the question asked about how long they served in the university,67% of the
respondents said that they have below 5 year experience,33% of respondents informed us that
they have from 6-10 year experience. Also the question asked about their salary condition in
Ethiopian birr majority of them respond that there salary ranges between 3000-5000 birr which
accounts 60% of the respondents. While 37% of them receive between 5000- 9000 birr and the
rest 3% of the respondents get 1000-3000 birr.

3.2. The cause of employee turnover in the university

Table 3.2; Continuity of employees

Numbers Item Responses number of Percentag

respondents e
(%)
1 Would you like to continue to Yes 13 44
serve Mekelle university college No 17 56
of business and economics? Total 30 100
Source; questionnaire 2014

As indicated in table 3.2 an attempt was made to identify whether the respondents like to
continue to serve in the university or not, 44%of the respondents said ‘’yes’’ and described their
interest to continue in the university while 56% of the respondents they have no interest to
continue in the university. This indicates that there will have turnover of such employees for the
future.
The respondents they respond as they don’t want to serve the university mentioned out their
reasons as follows.

 Because of pursuit of good opportunity

 The need to change life
 To get higher salary
 Locational disadvantage

The respondents they respond as they like to continue to serve the university mentioned out their
reasonsas follows;

 Satisfaction in my profession
 Family case
 Location advantage
 To get further education
 To complete my commitment and contracts.

Table 3.3 cause for staff turnover

Number of
Number Item Responses respondents Percent
age
(%)
1 What do you think the Low salary 9 30
reasons for staff Better opportunity 6 20
turnover at Mekelle
Job challenge and 3 10
university college of
complexity
business and economics?
Lack of further - -
education
Lack of facilities 2 6
Location 2 6
disadvantage
Low salary , Better 8 28
opportunity, Lack of
facilities and Job
challenge and
complexity
Total 30 100
Source; questionnaire 2014
As shown in table 3.3, 30% of the respondents respond that the reasons for employee turnover in
the college are low salary. While 28% of the respondents believes that both Low salary, Better
opportunity Lack of facilities and Job challenge and complexity are the reasons for employee
turnover in the university.

The remaining respondents respond that better opportunity, Job challenge and complexity, Lack
of facilities and Location disadvantage are causes for employee turnover which accounts 20%,
10%, 6% and 6% respectively. From this we can understand that the major causes for turnover is
low salary as most of the respondents respond but there are additional reasons that will
aggravates employees turnover in the university in addition to salary.

Table 3.4 employees working condition

Numbers Item Responses number of Percentag

respondents e
(%)
1 To what extent are you Very good 7 23
comfortable with your working Good 20 67
environment? Bad 3 10
Very bad - -
Total 30 100
2 To what extent is your Very good 15 50
relationship with your Good 10 33
coworker? Fair 5 17
Bad - -
Total 30 100
Source; questionnaire 2014

As indicated in table 3.4 item 1 majority of the respondents respond that they are good with their
working environment which accounts 67%. While 10% of them respond that they are not good
with the working environment. The remaining 23% of the respondents are very good with their
working environment. We can conclude from this that majority of the respondents are not very
good in their working environment and this results turnover of employees in the future and we
can say that the management of the university are not good in maintaining good working
environment for its most crucial resources.

As shown in table 3.4 item 2 half of the respondents are very good in their relationship with their
coworkers which accounts 50% while 33% of the respondents respond that they have good
relationships and the remaining 17% of the respondents replied that they have fair relationship
with coworkers in Mekelle university college of business and economics. From this we can
understand that the respondents have very good relationship with their coworkers which have its
own positive impact in reducing turnover of employees in the college.
Table 3.5 pull factors for employee turnover.

s/ Item Responses number of Percentag

no respondents e
(%)
1 What are the pull Opportunity from other
factors for employee organization 12 40
turnover in your To get suitable working
college? environment 8 27
Non-governmental
organization 6 20
Location advantage 4 13
Total 30 100
Source; questionnaire 2014

As indicated in table 3.5, 40% of the respondents respond the pull factors for employee turnover
in the college are the opportunities employees get from other organizations. While the remaining
responds the need for suitable working environment, nongovernmental organization and location
advantage are the pull factors for employee turnover in college of business and economics
Mekelle University. As majority of the respondents respond the opportunity from other
organization are the pull factors. Accordingly the university is not in creating opportunities that
they will get from other organizations and working environment which fits with the employee
need.

Table 3.6; employee’s rate of their salaryin relation to tasks they expect to accomplish.

Numbers Item Responses number of Percentag

respondents e
(%)
1 To what extent do you rate your High 5 17
salary in relation to the task you Medium 10 33
are expected to accomplish? low 15 50
Total 30 100
Source; questionnaire 2014
As indicated in table 3.6, almost half of the respondents rate their salary low in relation to the
task they are expected to accomplish in the college and 33% of the respondents rate their salary
as medium. While the remaining 17% of the respondents rate their salary as high in relation to
the task the college expects them to accomplish. From this we can generalize that the university
is not in providing a salary as per the task the college expect the employees to accomplish so it
leads to dissatisfaction of employees which in turn results turnover.

3.3;the effects and consequences of employee turnover in the university

It is clear that in any institution employee turnover has an impact in overall situation of
institution. However literature part mentions so many impacts that it has in each organization, the
effect varies like variation of organizational goalsand performance capacity and need of skilled
man power. It is clearly tried to assess here in this section through few questions raised to the
respondents and its result are presented as follows.

Table 3.7 effects and consequences of staff turnover in the university

Number Items Response No of Percentage

respon (%)
dents
1 Does employee turnover Yes 23 77
affect the college No 7 23
performance? Total 30 100
2 To what extent does High 18 60
employee turnover affects Medium 10 33
the college performance? Low 2 7
Total 30 100
Source; questionnaire 2014

As shown in table 3.7 item 1, 77% of the respondents respond that employee turnover affects the
performance of the college in achieving its overall mission while the remaining 235 responds the
university performance is not affected by the turnover of employees. The respondent who said
yes mentioned out their reasons of how it affects the capacity of college of business and
economics in MekelleUniversity, These are;

 Losing of skilled and experienced manpower

 Good will of the organization declines
 Budgeting crisis for training of new staff
  Affect schedule
 Adaptability and quality education will be decline
 Students may not get required lesson
 Students may learned by inexperienced teachers
 Students may lag from learning on time

The next question in table 3.7 is about the extent of employee’s turnover effect in the college
performance. Majority of the respondents replied that employee’s turnover highly affects the
college performance since it leads the college to lose its experienced human capital and other
effects the respondents respondin table 3.7 item 1.

Table 3.8 the time when employees leave and the procedure

Numb Item Response No of Percentage

er respon %
dents
1 When do often staff After their MSC/MBA/PHD 20 67
members leave the
university? After completing their 7 23
commitments
Before they got opportunity of 3 10
further education
Total 30 100
2 To what extent of the Always 5 17
employees follow the Sometimes 9 30
formal procedure Rarely 16 53
during leaving the Total 30 100
university?
Source; questionnaire 2014

As depicted in table 3.8 item 1, The majority67% of the respondents replied that most of the
employee turnover in the college occur after their MSC/MBA/PHD while 23% of the
respondents replied that turnover of employees occur after completing of their commitment and
the remaining 10%of the respondents replied that it occur in all possible condition even before
they got the opportunity of further education.

The last question asked to respondents was the resignation of employees during leave the
university. majority of the respondents 53%replied that the employees follow the formal
procedure of resignation is rarely,30% of the respondents replied that employees follow the
formal procedure rule and regulations is sometimes and 17% of employees always follow
formal procedure of resignation when they leave the university.

3.4. Management role in minimizing employee turnover

Table 3.9 successfulness of the management in retaining of its employees

Numbers Item Responses number of Percentag

respondents e
(%)
1 Do you think the management Yes 8 27
system is successful in retaining No 22 73
employees? Total 30 100
Source; questionnaire 2014

As indicated in table 3.9, majority of the respondents thinks that the management of the college
is not successful in retaining its employees which accounts 73%. While the remaining 27%
thinks the management of the college is successful in retaining its employees. As we can
understand from this the management of the college is not in satisfactory position in retaining its
employees.

Table 3.10 strategies to be followed by the university.

Numbers Item Responses Number of Percentag

respondents e
(%)
1 What strategies Improve quality of 3 10
are to be administration
followed by the Create good working 4 13
university to environment
retain its Avoid poor management 2 7
employees? Enhancing the chance of 3 10
further education
Increase salary 8 26
All 10 34
Total 30 100
Source; questionnaire 2014

As shown in table 3.10, 34% of the respondents recommend that both strategies like Improving
quality of administration, Creating good working environment, Avoiding poor management,
Enhancing the chance of further education and Increasing salary should followed by the
management of the university to retain its employees. 26% of the respondents replied that the
management should increase salary to retain its experienced employees and the remaining
respondents recommend that the management should create good working environment,
enhancing the chance of further education, improve quality of administration and avoid poor
management which accounts 13%, 10%,10% and 7% respectively.
For the question the respondents asked to recommend what thehuman resource management and
organizational practice should do to trade the problem or to retain its human capitals are as
follows;

 Establishing a good management

 Giving high value to human capital
 Positively treating of staffs
 Increasing of salary and incentives
 Training of new and exist staffs
 Establishing a line with foreign universities
 Improve the quality of administration and avoid poor management
 Giving or providing residence for staffs
 Arrange better infrastructure and facility
 Enhancing the chance of further education
 Increasing of salary and payments (like incentives, bonuses, fringe benefits, allowances)
 Crate good working environment
 Arrange better working and living condition with and outside of the university
 The manager must give good attention to staffs
 Finding of the ways that the staffscan get benefits

Chapter-four

4. Summary, Conclusion and Recommendation

4 .1; Summary and conclusion

In the study conducted at Mekelle University college of business and economics on academic
staff turnover, through collecting different information from the staff the researcher come into
certain findings of the study .However, it tried to look all related possible condition for staff
turnover situation in the university staff, of course to day the flow of staff member from college
to college or from university to university exist throughout the country it is not identified to what
extent it is worsen the situation in the day to day function of universities, and also the situation is
something to be considered as normal by the university until they see the effect on their work
burdens.

Generally from what has been said and mentioned in the study, it can be concluded that there is
slightly high level of academic staff turnover in the university. Truly sensing the nature of the
academic staff and their existing difficulties should be undeleted assignment for the top
management of the university. It is better to work on it before it comes into worst condition and
in the long run case of some training provisions. The university should work for holding back the
turnover of its staff through provision of the recommended strategies in the researchers like
better facilities and become the best educational center in theregion , country in Africa and also
in the world.

4 .2, conclusion
In the study conducted at Mekelle University college of business and economics on academic
staff turnover from information collected through questionnaire to interpret and analysis of the
data in the preceding sections come into the following findings.

 According to the respondents view most of the staff members of the university are
adults and their service year is averagely below 5 years.
 The majority of the university staffs are male and only few females are found
 The majority of the staffs are MBA/MSC holders
 The majority of the staffs also are married
 Most of the employees don’t want to continue to serve in the university because of
good opportunity in other organizations, location disadvantage.
 Some of the staff members want to continue to serve in the university as a result of
the Satisfaction intheir profession, Family case,Location advantage,to get further
education.
 The study indicates that majority of the employees of the college rate their salary in
relation to the task the college expects to accomplish them as low.
 The study shows that employee turnover highly affects the college and the university
performance to make real what has been planned and as majority of the respondents
replied the management of the university is not successful in retaining its employees.
 Majority of the respondents are comfortable with the working environment and have
a very good relationship with their co-workers.
 The majority of the employee’s salary ranges from 3000-5000 Ethiopian birr.
 Majority of the respondents leave the university after their MSC/MBA/PHD.
 The major reasons for employee turnover in the college areLow salary, better
opportunity, Lack of facilities and Job challenge and complexity.
  The pull factors also are better opportunity from other organization, suitable working
environment, non-governmental organization and location advantage.
 The study indicates that the extent at which employees follow the formal procedure
of resignation when they leave the university is rarely.
 The study forwarded strategies to handle or to overcome the problems mentioned in
the preceding section. The most consideration given toarrange better facility, create
good working environment, give high value for human capital, enhance the chance
of further education, and providing residence to staffs.

4. 3, Recommendations
Based on the findings of the study and the conclusion made in the previous section here the
researcher would like to suggest something to be improved in the future for the purpose of
minimizing the condition of employee turnover in the Mekelleuniversity college of business and
economics. Improving the quality of life standard and satisfying the need and demand of the
employee is pivotal point for successful continuation of experienced employee and its expansion.
Thus the researcher forwards the following recommendations.

 Giving academic freedom for employee’s for instance free scholarship for first, second
degree and MSC/BSC holders are important.
 There should be some motivating incentive strategies such as salary increment, reward
and upgrading.
 Provision of scholarship opportunities through creating linkage with international
universities.
 The university should also provide additional benefits to academic staffs for instance
housing allowance
 It is advisable that the university management system to check its performance and
service provision in order to maintaining weak or poor administrative problem.
 Better to conduct further study in the area of administrative problems, the harsh
condition in work, how to improve the existing environment with respect to the need of
academic staff.
 The university management should make adjustments on what the employees
recommend that the university should modify in the researchers finding.
 MEKELLE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

QUESTIONNAIRE TO BE FILLED BY EMPLOYEES

TO RESPONDENT

DEAR RESPONDENT,This questioner is designed to collect relevant information requiring the effect of
employees turn over on institutional performance at Meklle College of business and economics.

You are kindly requested to cooperate by giving your response for the following question data used
for academic purpose only.

 General Instruction

Don’t write your name

Put X Mark on the given box that you selected the correct alternatives your answer on the space
provided

You can give more than one answer for each question as necessary.

PART ONE (personal profile)

1. AGE 20-30 years 41-50 years

31-40 years above 50 years

2. SEX Male Female

3. Educational background BA\BSC degree MBA\MSC PHD

4. Marital status Married Divorced

Unmarried Widow

5. Current salary (in Ethiopia birr) Blow 1000 birr 1000-3000birr

3000-5000 birr 5000-9000birr

Above 9000 birr

6. How long have you been serving the university? Below 5 years 6-10 years
 11-15 years 16-20 years

PART TWO WORK RELATED QUESTIONS

1. Would like to continue to serve Mekele University? yes

No

Please specify your reason……………

2.What do you think are the reason for staff turnover at mekele university?

Lack of facility Better opportunity

Low salary Job challenge and complexity

Locational disadvantage

Lack of further education

Please specify …………………………………

3 To what extent are you comfortable with your working environment?

Very good Good Bad Very bad

4. What are the pull factor for academic staff turnover in your college ?

Opportunity of employees by other organization

To get suitable working environment

Nongovernmental organization

Locational advantage

5.To what extent is your relationship with your co-workers?

Very good Good Fair Bad

6. To what extent do you rate your salary in relation to the task you are expected to accomplish?

High Medium Low

7.What strategies are followed by the university to retain its employees ?

Improve the quality of administration Increase salary

Create good working environment

Avoid poor management

Enhancing the chance of further education

8. Do you think the management system is successful in retaining employees?

Yes No

9. Is employee turnover affects the college performance?

Yes No

How it affects the capacity of the college perforformance?

…………………………………………………………………………………………………………………………………………………..

……………………………………………………………………………………………………………………………………………………
…….

10.To what extent does employ turn over affects the college performance?

High Medium Low

11. Whane do often staff members leave the university ?

After their MSC/MBA/PHD

After completing their commitment

Before they got opportunity of further education

12.To what extent of the staff members follow the formal procedure during leaving the
university?

Always Sometimes Rarely

13.whate human resource management(HRM) and organizational practice would you

recommend to trade the problem or retain its human capital?

………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………….
Reference

1) FlippoEdwin.B ( 1988).Personal management first edition

2) Freeh Wendell.(9998) human resource management first edition
3) Job opening and labor turnover survey, labor statics 2008,
www.sigma.assessment.system.com.
4) John surd L,K&Heck R.H 1998) faculty work life ; establishing bench
mark across groups . research in higher education

5) Mathias and Jackson (1984.) human resource management first edition.

6) www.Encyclopodia