Cause effects and impacts of high turnover in transport and logistics companies

Cause effects and impacts of high turnover in
transport and logistics companies case study
of Lussotrans SRL

Table of Contents
1.0 Introduction and Background.................................................................................................4
1.1 Background of company...................................................................................................4
1.2 Research Background.......................................................................................................4
1.3 Problem statement............................................................................................................6
1.4 Aim and Objectives of the research..................................................................................6
1.5 Scope and Importance......................................................................................................7
1.6 The objectives of the research will be..............................................................................7
1.7 Questions to be answered in this research........................................................................8
1.8 Project Limitations...........................................................................................................8
1.9 Summary of chapter one...................................................................................................8
1.10 Looking ahead into the next chapters.............................................................................9
CHAPTER 2..................................................................................................................................11
2.0 Literature review............................................................................................................11
2.1 Introduction to this chapter.............................................................................................11
2.2 Causes that influence the turnover of a transport company along with its impact on human
resource.................................................................................................................................11
2.2 Motivation of the employed staff and the satisfaction of the employees important......15
2.3 Ways that will be essential for an organisation in increasing motivation and satisfaction
among employees and their significance in reduction of high employee turnover..............17
2.4 Content theory................................................................................................................17
2.4.1 Herzberg’s theory:..................................................................................................17
2.4.2 Maslow’s hierarchy of needs..................................................................................18
2.4.3 ERG Theory............................................................................................................20
2.4.4 McClelland Theory:................................................................................................20
2.5 Process Theory...............................................................................................................21

2.5.1 Vroom study on performance.................................................................................21
2.5.2 Adams’ equity theory.............................................................................................22
2.4: Impact of the growth of the turnover of a transport company for the development of entire
sector of the economy...........................................................................................................23
2.5: Maintain the staff motivation for to be active and efficient in a company...................24
Chapter Three.................................................................................................................................26
3.0 Research Methodology...................................................................................................26
3.1 Introduction....................................................................................................................26
3.11 Primary design of the research................................................................................26
3.2 Methods of data collection.............................................................................................26
3.2.1 Primary data............................................................................................................26
3.2.2 Secondary data........................................................................................................27
3.3 Research Philosophy......................................................................................................27
3.4 Research approach..........................................................................................................27
3.5 Research strategy............................................................................................................28
3.6 Research choice..............................................................................................................28
3.6 Research’s tools..............................................................................................................28
3.6.1 Instruments.............................................................................................................28
3.6.2 Time required and type of questions......................................................................29
3.7 Sampling.........................................................................................................................32
3.8 Data analysis...................................................................................................................33
3.9 Ethical considerations.....................................................................................................33
3.10 Limitations of the research...........................................................................................33
Chapter Four..................................................................................................................................34
4.0 Data presentation and analysis.......................................................................................34
4.1 Introduction....................................................................................................................34
4.1.1 Data analysis and presentation of close-ended questions.......................................36
4.1.2 Data analysis and presentation of close-ended questions.......................................41

Introduction and Background
1.1 Background of company
Lussotrans Project SRL is located within Gorban, Romania and is part of the Truckload
Carriers industry. In this project number of total employees is 16 that generates $1.66 million in
sales. There are some functional areas that will be required within the current project including
managers, admin and normal visitors. Lussotrans Project SRL has liner organisation structure. In
this structure, company require to includes staff in their project that will be beneficial for them in
attaining of competitive advantages. Lussotrans Project SRL is Romania based organisation and
its head office is in GORBAN This firm mainly operated in General Freight Trucking industry.
In year 2019, Lussotrans Project SRL reported net sales revenue enhance of 8.32% and total
assets are recorded negative growth of 8.2%.
The main focus of this organisation is to enhance the performance level by hiring the well
qualified and experienced employees at workplace. This company also work on enhancing the
motivation level of staff members by appreciating them, provide them positive working
environment and others. From this, they are focused towards attaining the set objectives and
sustain at workplace for longer time period (Woo, Kwon and Yuen, 2020). On the other hand,
main issue is faced through transport industry is related different freight transport firms apply the
various methodologies in order to calculate transportation cost. Change constantly in tax amount
that the private industry transport agents need to pay state. In regards to this, development of
transport industry in country by enhance on gradually basis enhance number of the economic
agents.
1.2 Research Background
Employees are the main part of company and they play a necessary role in enhancing the
productivity as well as profitability of business. The main focus of an organisation is to hire the
well qualified and well trained employees so that they can perform in better manner by attaining
set objectives. Employee management is process that mainly helps employee to perform at their
best and attain business objectives (Jędrzejczak-Gas and Wyrwa, 2020). This is holistic process
that mostly covers everything concerned to the human resource for an instance payroll
management, new employee recruitment and performance management. Managing the employee
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at workplace is important for business in enhance employee motivation and enhancing
productivity. Employee management is effort to assist the staff members to do best work every
day to attain objectives of firm. It can make or break success of company. Hard-working and
happy employees will be catapult company to success while the lazy will bring down from
inside. Navigating performance and social aspects related to managing staff members can be
daunting task specifically when company have various generations of staff members who have
different views, goals and motivations. Logistics is detailed firm and execution of complex
operation. It is management of flow of the things among origin point to consumption in order to
meet needs of consumers.
The logistic management consists determining distributor as well as supplier’s
perspective an identifying accessibility. In the transport and logistic company, management is
one way to aids turn underperforming the staff members around or prevent in the high
performing staff. This is variety of strategies and procedures which can assists to measure,
monitor and also communicate with workforce that plays big role in organisation. Company
requires proper management of human resource for maintaining HR resources to use properly
and also get better for what they mainly pay (Özdemir, 2018). In context to this, employee’s
requirement to feel that managers should be care regarding wellbeing. Other than this, businesses
are mainly drive the economic growth as well as stability through offering the valuable products
and services which contribute directly towards health of community. They mainly provide the
jobs, strengthening economic health of community where the business is based. In the economic
development, role of the business cannot have overstated. Success in the business translated to
economic wellbeing of an organisation and employees through job creation. The transport and
logistics business provide the better job opportunities to the business that helps in enhance the
sales along with gather the more taxes that translate towards better offerings.
The main rationale behind conducting present investigation is that it examined the
existing barriers and need and propose strategies in employee management for the economic
development of the company. Employee management is helpful in enhancing the profitability as
well as development of business (Grabara, Dabylova and Alibekova, 2020). The present
investigation helps a learner in personal and professional context. In the personal context, the
understanding of a learner enhanced about employee management that helps in economic
development of an organisation. This will examine the issues regarding the employee
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management and in which manner it impacts on the productivity of an organisation. It also
helpful in the professional context as enhancing the skills as well as core competencies of a
learner. This helps in providing the proper guidance regarding performing the research related
activities in a detailed manner. Conducting proper investigation helps in providing the better or
positive outcomes in a significant
1.3 Problem statement
High employee turnover is a major issue faced by logistic and transport organisation. Main
purpose of conducting this dissertation is to overcome the issue of high employee turnover
within a workplace of transportation and logistics companies. This is a biggest issue because it
has negative impact over business performance and productivity of company. This will also
impact on company by reducing its brand image and sales. High turnover of employees at
workplace is not good for company because it develops their negative impact in marketplace that
result in decreased sales, reduced brand image, decreased customer base, decreased employee’s
satisfaction, reduced motivation etc. These are major and negative impact of high employee
turnover for logistic and transport organisation. In order to overcome this issue, present
dissertation will be conducted in systematic and effective manner.
1.4 Aim and Objectives of the research
Research aim
The main focus of research project is expresses in context of aim and objectives.
Research aim mainly shows intention or aspiration of study of an investigation. The research
aim provides the answer to research question. This generally summarises in single sentence what
need to be attain at research project end. It is necessary that aim should be clear, specific and also
phrase in such a manner that this is possible to determine what need to be attained. Other than
this, research aim expresses an intention of research study. This summary in single sentence what
need to be accomplish at end of research project.
The main aim of this research is “To identify the existing barriers and need and propose
strategies in employee management for the economic development of the company.”
Research Objectives
Research objectives are generally divide the research aim in to the different parts and
then address every part separately (Tan, Yan and Chan, 2020). This specifies what requires to be
studied and the research objectives are comprise steps that address how to attain research aim. In
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regards to this, research objectives explain in concise manner what an investigation is trying to
be attain. They mainly summarise accomplishments an investigator wishes to attain by project
and gives proper direction to study.
 Analysis of the aspects that influence the turnover within a transport company.
 Determining the role of employees on decreasing the company's turnover.
 Identify the elements that influence motivation and equally trigger employee
dissatisfaction and the subsequent turnover.
 To evaluate the mechanisms that trigger turnover and the subsequent steps to improve
employee loyalty.
 To analyse how motivation can influence performance and employee retention.
1.5 Scope and Importance
The present investigation is based on identify the existing barriers and need and propose
strategies in employee management for the economic development of the company. Managing
the staff members at workplace is helpful in work effectively and attain the set objectives.
Company mainly use the employee management system that assist in maintain details of staff
members in a proper manner and also workforce process of company. The scope of conducting
present investigation is wider because this provides the better understanding regarding existing
barriers and need and propose strategies in employee management for the economic development
of the company in a detailed manner (Lakshmi and Swapna, 2019). Managing the staff members
at workplace is helpful in provide them the satisfactory services at workplace and also enhance
their motivation level. This study helps in enhancing the understanding as well as knowledge
regarding workplace management and in which manner it mainly contributes towards economic
development of business. This is helpful in enhancing the organisational productivity and sustain
the staff members at workplace for longer time period.
1.6 The objectives of the research will be
There are some objectives that will be attained in successful manner. These objectives will
be defined as below:
 To improve the business performance by decreasing high employee turnover at
workplace.
 To increase motivation and satisfaction among employees, with purpose of attaining
competitive advantages.
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 To attract larger customer base by increasing employee retention for longer time.
1.7 Questions to be answered in this research
Research question mainly formulate research issue that researcher want to be investigate.
Scope of questions is to informed through research aim and objectives. The better research
question is necessary to guide research project. Thus pinpoints what need to find out and
provides work clear purpose and focus. it is necessary that all the research questions should be
properly focused on single issue.
 What are the causes that influence the turnover of a transport company along with its
impact on human resource?
 Why is the motivation of the employed staff and the satisfaction of the employees
important?
 What are the ways that will be essential for an organisation in increasing motivation and
satisfaction among employees and their significance in reduction of high employee
turnover?
 What is the impact of the growth of the turnover of a transport company for the
development of the entire sector of the economy?
 How we maintain the staff motivation for to be active and efficient in a company?
1.8 Project Limitations
There are different limitations of the current project such as lack of time period,
insufficient amount of capital, un-ethical behaviour of the respondents, secondary data not
accurate and out of data etc. These are major limitations that have negative effect over
performance of researcher while carrying out present investigation. Apart from this, there are
different methods that will be used for overcoming all limitations in systemic manner. For
example: Gantt chart will be applied for reducing the issue of time, following all principles of
research ethics etc. These ways or sources helps investigator in reducing the all limitations in
systematic manners
1.9 Summary of chapter one
Introduction chapter is a first and main chapter of starting the dissertation in systematic
manner. This chapter help investigator by providing accurate information about the aim,
objectives, scope, questions, limitation etc. of the research. This will be beneficial in carrying out
next chapters in systematic and accurate manner.
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