Impact of high staff turnover on organisational performance: Study based on Hotel Sofitel Auckland
Added on 2021-04-19
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Running head: MANAGEMENT RESEARCH PROJECTManagement Research ProjectImpact of high staff turnover on organisational performance: Study based on Hotel SofitelAucklandThe Course name and number:Student’s name and number:Name of the university:The name of the tutor: Author’s note:
1MANAGEMENT RESEARCH PROJECTAcknowledgementI am extremely grateful to all the individuals who have been a constant support to complete myreport based on the topic of the impact of high staff turnover on organisational performance. Thesubject of the topic is based on hospitality organisation Sofitel hotel in Auckland. I am obliged tomy friends and family who provided me support and help. I also want to acknowledge the help ofmy professor who shared us knowledge regarding the subject area. I am extremely grateful to allthe staff who agreed to provide the responses to the survey questionnaire. I am pleased tocomplete this report. Thank you.
2MANAGEMENT RESEARCH PROJECTTable of ContentsSection 1: Abstract and Introduction...............................................................................................4Introduction......................................................................................................................................41.1 Background of the study........................................................................................................41.2 Problem statement.................................................................................................................51.3 Aim and objectives................................................................................................................51.4 Research questions.................................................................................................................61.5 Scope of the study..................................................................................................................61.6 Theoretical framework...........................................................................................................6Section 2: Literature review.............................................................................................................62.1 Concept of high staff turnover and organisational performance...........................................62.2 Theoretical concept of staff turnover and organisational performance within theorganisations................................................................................................................................72.3 Impact of high staff turnover on organisational performance...............................................8Section 3: Method and Findings and Results..................................................................................83.1 Method...................................................................................................................................83.1.1. Data collection procedure..............................................................................................83.1.2 Sampling.........................................................................................................................93.1.3 Data analysis...................................................................................................................93.2 Findings and results...............................................................................................................9Section 4: Discussion.....................................................................................................................17Section 5: Conclusions..................................................................................................................19Section 6: Recommendations........................................................................................................19Reference List................................................................................................................................22Appendix........................................................................................................................................24
3MANAGEMENT RESEARCH PROJECTSection 1: Abstract and Introduction AbstractThis report highlights the high staff turnover on organisational performance on thehospitality sector. In New Zealand, the staff turnover touched the figure of 18% in the hospitalitysector. Therefore, the employees in the hospitality industry are leaving the organisation as theydo not feel enough urge to work for a long time. In this report, the main focus has been set on theSofitel Hotel and Resorts in Auckland. The theoretical understanding of this staff turnover andorganisational performance has been reviewed in the literature review section. In addition,Herzberg's Two Factor theory and Join Stay and Leave model of employee turnover have beendiscussed. To conduct the research, the researcher has conducted the survey to the staff of Sofitelhotel. The survey data has been analysed using the quantitative data analysis. It is proved that theemployees do not wish to work in the Sofitel hotel as the work stress is higher and payment, aswell as motivation, is less. Therefore, the recommendations have been made in the hiringprocess, flexible working hours, fringe benefits of the employees and employee engagement.Introduction 1.1 Background of the study The ultimate result of high staff turnover is disastrous for the organisations and theperformance of the organisation can be affected by the staff turnover. As stated by Au & Tse(2015), today's organisations mostly focus on the high organisational performance that can meetthe objectives of the organisations in a highly competitive environment. The organisations aretaking the strategies that could improve the performance of the organisations reducing the staffturnover. Brown, Thomas & Bosselman (2015), supported this by saying staff turnover andorganisational performance are intertwined and it is evident that high staff turnover negativelyimpacts on organisational financial performance. The productivity, efficiency and effectivenessof the firms are influenced by well experienced and competent workforce. In the hospitalityindustry, the staff turnover is high as the employees leave the organisations for lack of jobsecurity and job satisfaction (Guilding, Lamminmaki & McManus, 2016). The employees who
4MANAGEMENT RESEARCH PROJECTwork within the organisation face the low morale and poor performance. Therefore, theincreasing pressure on firms to gain the high levels of performance to meet the changingconsumer needs necessitates special focus on the role played by the human workforce tofacilitate the high performance.1.2 Problem statementIn New Zealand, hospitality industry gives almost 5% of GDP and in the year 2017,approximately 3.7 million travellers visited New Zealand (Kelsey, 2017). The hospitalityindustry is mainly based on a guest-service industry where the service to the guests is the mainfactor. The staffs can play the major role to provide satisfaction to the guests. However, in thehospitality industry, the employee turnover in New Zealand reached 18% in the year 2017(Kelsey, 2017). The management has been failing to fill the gap by recruiting new staffs. Thelack of staffs within the Sofitel leads to low employee morale and low customer service. The HRdepartment of the Sofitel Hotel cannot ensure the employee retention and the management isfacing the issue of high attrition are and turnover of talents (Sofitel.com, 2017). This research has strived to identify the possible reasons behind the high staff turnover atSofitel Auckland and poor organisational performance due to the high staff turnover.1.3 Aim and objectives The aim of the research is to explore the impact of high staff turnover on organisational performance in Sofitel Hotel, Auckland.The objectives of the research are: To find out the reasons behind high staff turnover rate in the hospitality industry in NewZealandTo identify the strategies taken by Sofitel hotel in Auckland to accelerate organisationalperformance To establish a relationship between high staff turnover and organisational performance To recommend some possible solutions to Sofitel hotel in Auckland to reduce high staffturnover rate
5MANAGEMENT RESEARCH PROJECT1.4 Research questions Primary research questionWhat is the impact of high staff turnover on organisational performance in the hospitality industry in New Zealand?Secondary research questions What are the reasons behind high staff turnover rate in the hospitality industry in NewZealand?What are the strategies taken by the management of Sofitel hotel in Auckland toaccelerate organisational performance?What could be the possible recommendations for possible solutions of Sofitel hotel inAuckland to reduce high staff turnover rate and increase organisational performance?1.5 Scope of the study This study would try to highlight the hospitality management practice that can contributethe staffs’ development and employees’ retention in New Zealand. In the hospitality industry, themanagement must identify the employees who like to work in hospitality sector. The research isbased on primary data. The research has highlighted the theoretical framework of the research.The limitation of the study is to lack of funds to continue the research as credible secondary datacost high, lack of time and lack of participants in the research.
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