Impact of Employee Turnover on Organizational Performance: A Case Study of Asda

This report evaluates the impact of employee turnover on organizational performance in mid-sized grocery retail sector in UK, with a case study of Asda. It analyzes the concepts and significance of employees in retention at the workplace, causes of increasing employee turnover, impacts of employee turnover on Asda's performance, and ways to develop organizational performance.

RESEARCH
METHODOLOGY
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
A measurement of the number of employees who leaves an organization during a specific
period is known as employee turnover. The important task for organization is to retain their
employees for long period of time and getting the work done properly. Employee turnover is the
serious issue that arises while working and affected the organization performance negatively. It
has seen that number of employees are working at the workplace who needs motivation and
inspiration for the purpose of developing the business productivity and profitability. To improve
the knowledge about employee turnover and performance ASDA has been selected that is British
supermarket chain, headquarter in England (Puhakka, Nokelainen, and Pylväs, 2021). The
company was founded in 1949 for the purpose of selling products and services at retail prices
and maintaining higher productivity. The report is based on aim and objectives, literature review,
and research methodology that improve knowledge.
TOPIC: “To evaluating the impact of employee turnover on organizational performance in
mid a-sized grocery retail sector in UK". A case study of Asda.
Aim:
“To evaluating the impact of employee turnover on organizational performance". A
case study of Asda.
Research Objectives
 To analyse the concepts and significance of employees in retention at the workplace.
 To evaluate the causes of increasing employee turnover at the workplace.
 To identify the impacts of employee turnover on Asda's performance.
 To evaluate the different ways could be used by Asda to develop organizational
performance.
Research Questions
 What is the concept and significance of employees in retention at the workplace?
 What are the causes of increasing employee turnover at the workplace?
 What is the impact of employee turnover on Asda's performance?
 What are the different ways could be used by Asda to develop organizational
performance?
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LITERATURE REVIEW
To analyse the concepts and significance of employees in retention at the workplace.
As per opinion of Dwesini (2019), Employees are assets of an organization who contributes
to working and goals decided by management for the purpose of developing organizational
performance. Without the support of employees, it becomes difficult for management to operate
the business and take challenges as no work could be done perfectly. The goal of an organization
is to keep talented employees and reducing turnover by fostering a positive workplace to
promote engagement and attaining competitive benefits. For organization, it is needed to have
skilled and talented employees who show their interest in each function and supports to increase
organizational performance. In relation to ASDA, employee retention is important as it helps to
save a company from productivity losses and managing higher performance. High retention
workplaces tend to employ more engaged workers and getting the work done properly. This also
helps to improve the customer relationships, and teams that have time to be more productive.
The management of selected company decides the goals and follows motivation theory which
can help to keep staff for a long period of time and develop organizational productivity.
To evaluate the causes of increasing employee turnover at the workplace.
According to Ozkeser (2019), In business organization when employees are not satisfied
and feel uncomfortable then decision to leave made by them is considered employee turnover.
The different causes of increasing employee turnover are defined below:
Rude behaviour – In the studies it has seen that indignities hurt productivity where good
employees make decision to quit. Rudeness, backbiting, playing favourites, retaliation, and
fixing blame are the reason of employee turnover that arises while working. In relation to ASDA,
employees feel rudely behaviour and backbiting from the side of employer that affects the
organizational performance and increases employee turnover.
Work life imbalance – When there is economic pressure, company demand those people
who could work of more than two staff that creates work life imbalance. In having work burden,
employees are emphasized to choose between personal life and work life. In relation to ASDA,
having work life imbalance can create the challenges of retaining employees. Thus, employee’s
turnover increases at the workplace in case of work life imbalance.
Lack of training and development – Whenever new technology and services are
launched by management then needs to provide the training and development to staff which can
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help to develop the organizational performance. In case of not providing training to employees
resulting increasing employee turnover. ASDA is facing the issues of employee turnover due to
improper training and development at the workplace that affected the organizational performance
and productivity (Causes of employee turnover 2021).
Lack of motivation – To run a business and managing and keeping employee motivation is
important that can help to regulate the business continuously. If there is lack of motivation
activities, then challenges faced by organization such as employee turnover and low productivity.
Employee turnover issue is facing by ASDA because there is lack of motivation and affects the
organizational productivity.
From the above it can be evaluated that lack of motivation, rude behaviour, work life
imbalance, and rude behaviour are the main causes of employee turnover that affects overall
organization performance and profitability negatively.
To identify the impacts of employee turnover on Asda's performance.
As per opinion of BHATT, and SHARMA, (2019), employee turnover increasing in
organizations that affected business performance negatively. If employees are not motivated and
satisfied, then they decide to switch or change the job that directly impacts on organization. The
impacts of employee turnover over ASDA is explained below:
Lower level of productivity – If employee turnover is increasing at the workplace then it
impacts on organizational productivity resulting decrease. The management is requiring to
understand the needs and wants of organization but unable to describe to employees due to
which no one could not work well and production level of organization decreases.
Increasing training and recruitment cost – This is important for organization to
provide training and development programme to new and old staff which can help to operate the
business by accepting changes. In relation to ASDA, cost of training and recruitment increases
due to employee turnover as it hiring new staff need training that reduce the organizational
performance (AlKahtani, and et.al., 2021).
Low level of commitment – A high level of commitment shows requirement to achieve
goals of their life. Oppositely, low level of commitment created a challenge for organization to
attain their business goals. In relation to ASDA, there is chances of low level of commitment as
number of employees are leaving the organization which created the challenge to operate their
business.
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Loss of experienced and skilled staff – ASDA is the larger size retailing company that
sales different types products and services at retail cost which supports to increase the
organizational sales. Employee turnover is the serious issue that is running in chosen
organization resulting loss of experienced and talented staff that affected organizational
productivity.
From the above it can be analysed that Employee turnover is impacting negatively on
ASDA’s performance as it increases the training cost, low level of commitment, loss of
experienced staff, and lower productivity.
To evaluate the different ways could be used by Asda to develop organizational performance.
As per view point of Yantib, and Untaric (2020), Organizational performance comprises
the actual output and results of company which is measured against intended outputs. If there are
changes occurs at the workplace, then it became challenging to operate their business and
affected business performance. The management is requiring to analysis business performance
and allocate work between employees which can help to develop the organizational productivity.
ASDA can be used different ways to develop the organizational performance that is explained
below:
Motivation – This is important for all employees to be motivated and feel good as it
bring the encourage people to work properly and maintaining retention at the workplace. If staff
are motivated and talented then it will be an opportunity for organization to grow their business
and accomplish business goals. In relation to ASDA, Maslow and other motivation theory is
adopted by management that influence and motivate the employees and make decision to work
for long period of time.
Managing clear and right communication – Communication is the needed at every
place as it used to share the information from one person to another. This suggested to ASDA
company to maintain right communication between employer and employees for the purpose of
sharing information and maintaining higher performance by retaining employees at the
workplace (Stamolampros, Korfiatis, Chalvatzis, and Buhalis, 2019).
Providing training and development programme – Whenever organization introduces
new products and services then it needs to provide training and development programme to their
staff which can help to feel good and perform well. In relation to ASDA, management should
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provide training and development programme to their staff that can help to build the employee
skills and maintaining retention.
Compensation and benefits – When employees are working in organization then it is
important for management to provide compensation and benefits to their staff that can help to
make feel them good and increase performance. In context to ASDA, management needs to
provide the compensation and benefits to their employees which can help to develop the
organizational performance (Guzeller, and Celiker, 2019).
Recruiting and selecting right people – This is good source to increase business
performance as employees are needed to understanding their roles and responsibilities which can
help to fill vacant position. In relation to ASDA, management should be use recruitment and
selection strategy that can help to fill the empty position and develop the understanding and
maintain good performance. This also helps to increase higher productivity and profitability.
From the above it can be explained that ASDA could retain employees for long period of
time by focusing on their needs and providing them various benefits. This can help to develop
the organizational performance by compensating to staff, motivation, managing communication,
and providing training & development programme to their staff which can help to manage each
functions and supports to increase organizational profitability.
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RESEARCH METHODOLOGY
Research philosophy – This is the outmost layer of research methodology uses by
individual to collect the information on the basis of systems, beliefs, and assumptions that shows
how functions are going after collecting data. The considering aspects of philosophy is
positivism and interpretivism that uses for different purpose of managing data.
Justification – The current research is based on employee turnover that directly impacts on
organizational performance. The researcher has decided to use positivism philosophy that can
help to collect right information and managing functions properly (Karande, and Shyamala,
2019).
Research approach – An action which is taken by an individual to develop their
understanding level regarding a particular topic and reach at the conclusion. This shows plan,
procedures, and systems by consisting steps of assumptions in detailing to data collection
method, interpretation, and analysis. This consist inductive and deductive approach that used for
different purpose and managing the all activities (Yang, Guan, and Pu, 2019).
Justification – For each organization it is important to have skilled and talented people
where management should follow motivational theories that uses to retaining people at the
workplace. In relation to current research, deductive approach is being used by researcher that
helps to gather data and attain positive outcomes.
Research strategy – Whenever a task is allocated to individual then there is need to have
proper planning and strategy that used to know how task should be complete which is assigned
by superiors. In other words, research strategy shows step by step plan that shows how activities
are going on and how it managed properly. The considered strategies are survey, case study,
action research, experiment and grounded theory that supports to increase understanding and
knowledge (Belsito, and Reutzel, 2019).
Justification – In relation to current research case study as strategy is being used by
researcher that can help to know about particular topic and improving the performance. This also
provide understanding about how to reduce the employee turnover that increasing in organization
and impacting negatively overall performance (Qingjuan, Rui, and Ailing, 2019).
Choices of method – This methodology is based on selection and chosen methodology
that uses to conduct a research properly and managing performance. The current study states that
choices done on the basis of collected data and information as it brings the changes and reaching
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at the outcomes. The explanation part of choices shows mono method, mixed method, and multi
method that mainly used to collect data properly.
Justification – The basis of current research is increasing employee turnover and
reduction in organizational profits that directly affected the business productivity. This is
important for organization to have proper knowledge and skills as it supports to accomplish
goals. Mono method to choice is selected by researcher as current study based on quantitative
data only that maintains stronger relevance (Rombaut, and Guerry, 2020).
Time Horizon – To complete the allocated task in decided time there is need to have a
framework that is categorised in to cross-sectional, and longitudinal. The management should
have knowledge and skills that can support particular study and managing activities. A person
who is handling all work and function is require to have proper understanding regarding topic
and maintain performance.
Justification – The above explanation is about employee leaves the organization that
directly impacts on business performance as it decreases. In relation to current research
longitudinal time horizon has been selected by researcher that can help to collect the information
and use in upcoming period so that each work would be done perceptively.
Data collection and analysis – This can be explained as tool and technique which uses to
collecting the information and data on regular basis and maintaining performance. This is the
ending layer of research onion which is used by individual to explain different ways and
purposes of conducted research. This involve qualitative and quantitative methods of collecting
data that supports to bring the changes and getting new changes. The quantitative data is used to
taking numerical and practical knowledge which provides relevant data and reliable information.
On the other side, qualitative data is used to gather the theoretical data which collected by
conducting research and managing information properly. This also involve primary and
secondary that used to connect with particular topic and manage information (Qing, and et.al.,
2020).
Justification – Employee turnover is the serious issues which is running in business
environment and affected the performance negatively. In relation to current research quantitative
analysis has been selected as it requires theoretical as well as practical information that can help
to manage the higher performance and productivity. With the help of primary as well as
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secondary data researcher reaches to positive outcomes and maintain higher performance (Wang,
Xu, Zhang, and Li, 2020).
Ethical issues – Research ethics are the set of ethics and policies that states how scientific
and other research is performed in research institution like as universities, education hub and
many more. The ethical issues are improper way of collecting data, unauthorised use of
information, lack of confidential data, illegal ways of collecting data that can create the challenge
for whole organization and researcher to complete their task in certain period respectively.
Limitation of research – This means weak point which arises while conducting a research
and collecting the information. The current research is about employee turnover that arises while
running a business and affected the organizational productivity. Herein, it is important to collect
information as it develop the understanding about particular topic. The limitation of current
project lack of time management, budget, lack of data resources and others that creates
challenges to conduct the research (Adigüzel, and Kuloğlu, 2019).
Timescale – This can be explained as important technique which uses to complete the
research by managing all functions and activities. In relation to current research researcher has
decided the 6 month in which project will be completed.
Sampling – This is process used in statistical analysis for the purpose of determining
number of observations that are taken from a larger population and managing the information.
the researchers have been used randomly sampling method that can help to collecting data on
regular basis (Johansen, and Sowa, 2019).
CONCLUSION
From the report it can be concluded that organization is based on employees who are
working by understanding their roles and responsibilities to perform well. The management is
playing important role as it analysis the needs of employees and provide them various
opportunities to show their talent which can help to develop the organizational productivity and
profitability. When employees are leaving the organization due to lack of motivation, lack of
training and development, and low level of commitment that created the challenges for company
to operate their business. Positivism philosophy, deductive approach and quantitative research
methodology is being used by researcher that can help to collect information from various
sources and manage the work properly.
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REFERENCES
Books and Journal
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MANAGEMENT, RETENTION AND EMPLOYEE SATISFACTION IN THE
IT/ITES COMPANIES IN INDIA. CLEAR International Journal of Research in
Commerce & Management. 10(8).
Qing, K. J., and et.al., 2020. The impact of employee satisfaction, organizational commitment,
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employees in Malaysia. International journal of Tourism and hospitality in Asia Pasific
(IJTHAP), 3(2). pp.48-56.
AlKahtani, N., and et.al., 2021. Impact of employee empowerment on organizational
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Online
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< https://www.iedunote.com/employee-turnover>
Dwesini (2019) Ozkeser (2019) BHATT, and SHARMA, (2019) Yantib, and Untaric (2020),
(Stamolampros, Korfiatis, Chalvatzis, and Buhalis, 2019) (Guzeller, and Celiker, 2019)
(Karande, and Shyamala, 2019) (Yang, Guan, and Pu, 2019) (Qingjuan, Rui, and Ailing, 2019)
(Rombaut, and Guerry, 2020) (Wang, Xu, Zhang, and Li, 2020) (Adigüzel, and Kuloğlu, 2019)
(Johansen, and Sowa, 2019) (Puhakka, Nokelainen, and Pylväs, 2021) (Belsito, and Reutzel,
2019) (Qing, and et.al., 2020) (AlKahtani, and et.al., 2021) (Causes of employee turnover. 2021
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