Employee Turnover and Aldi's Performance

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This assignment delves into the critical issue of employee turnover within the retail giant Aldi. It presents a series of questions designed to assess your understanding of the factors contributing to employee turnover, its impact on organizational performance, and potential strategies for mitigating it. The assignment requires you to analyze Aldi's specific context and evaluate the effectiveness of their current approaches to employee retention.
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Dissertation
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ACKNOWLEDGEMENT
First of all, I would like to thank my mentor who provided me with an opportunity to do
this dissertation. Further, without his support and guidelines, it was not possible for me to
complete the dissertation and achieve its objectives. Along with this, I am also thankful to my
colleagues and friends who have supported me in data collection and analysis.
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ABSTRACT
The main purpose behind carrying out this research is to find out the impact of
international employee turnover on business performance of an organization. In the present era
high employee turnover has emerged as the major issue in front of businesses. Further, there are
several reasons because of which employees feel that they should no longer serve the
organization. The present study is based on Aldi which is one of the leading global chains of
supermarkets which provides different types of discounts to its customers. With the help of
present study, researcher has witnessed the areas which are affected because of international
employee turnover
In the present study, information has been collected with the help of various primary and
secondary sources. In order to collect primary data, questionnaire is used by the scholar. Further,
the data is collected from 25 managers of Aldi with the help of purposive sampling method.
After carrying out this study, it has been concluded that overall business performance or
organization is negatively affected by high rate of employee turnover. It is recommended that in
order to lower down rate of employee turnover management of workload and providing various
family benefits to employees can be used.
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TABLE OF CONTENTS
Abstract............................................................................................................................................3
CHAPTER 1: INTRODUCTION ...................................................................................................6
1.1 Background ...........................................................................................................................6
1.2 Rationale................................................................................................................................8
1.3 Research aim .........................................................................................................................8
1.4 Objectives: ............................................................................................................................8
1.5 Questions ...............................................................................................................................9
Chapter 2: Literature review..........................................................................................................10
2.1 Introduction .........................................................................................................................10
2.2 Reason behind employee turnover.......................................................................................10
2.3 Link between employee turnover and business performance..............................................14
2.4 Strategies to lower down the rate of employee turnover ....................................................16
Chapter 3 Research Methodologies ..............................................................................................21
3.1 Introduction..........................................................................................................................21
3.2 Research philosophy ...........................................................................................................21
3.3 Research approach...............................................................................................................22
3.4 Research purpose ................................................................................................................22
3.5 Research strategy ................................................................................................................23
3.6 Research methods................................................................................................................23
3.7 Data collection ....................................................................................................................23
3.8 Sample selection .................................................................................................................24
3.9 Data analysis........................................................................................................................25
3.10 Limitations ........................................................................................................................26
3.11 Ethical consideration .........................................................................................................26
Chapter 4: Results analysis and discussion ...................................................................................27
4.1 Introduction..........................................................................................................................27
4.2 Presentation of findings.......................................................................................................27
4.3 Analysis ...............................................................................................................................40
Chapter -5 CONCLUSION and recommendation ........................................................................50
5.1 Conclusion...........................................................................................................................50
5.2 Recommendation.................................................................................................................52
5.3 Limitations and future research ..........................................................................................53
REFERENCES..............................................................................................................................54
Appendix .......................................................................................................................................58
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CHAPTER 1: INTRODUCTION
1.1 Background
In the present scenario, employees are considered as one of the crucial and important
assets of businesses. Furthermore, issues such as lack of skilled and competent human resources
are faced by the entities. Now-a-days, businesses have started using different kind of tools and
techniques through which they can enhance skills and performance of workers. This includes
employee motivation, performance appraisals, reward and recognition etc. All these techniques
are very helpful in creating satisfaction among workers and encouraging them to give their best.
It can be also stated that the organizations which invest large amount of human and financial
resources in development of their workers are able to gain advantage over other market players
as well (Ton and Huckman, 2008). The overall performance of businesses relies on how they
treat their human resources and value the same. It can be also stated that the competition among
companies in almost every sector is getting more and more intense along with the passage of
time. In order to maintain its customer base and market share, organization needs to retain its
qualified, effective and competent human resources for long run. Human resources are the one
which helps businesses in achieving high degree of customer satisfaction. This further assists
them to have better opportunities for growth and development in the future.
Now-a-days, employee turnover is an issue faced by most of the firms. It becomes very
difficult for firms to achieve higher profits and sales in situations where employee turnover rate
is high. In simpler terms, employee turnover rate helps the firms in deciding the potential of their
respective workforce. It is the situations when employees start voluntary leaving their job.
Further, such situations clearly highlight the fact that businesses have failed in selecting right
employees and providing a motivated working environment to employees. The reason behind
leaving organization differs from employee to employees (Zimmerman and Darnold, 2009).
However, it can be explained that some common reason includes inadequate pay, working
timings, zero motivation and inappropriate working environment. Other than this, it can be also
stated that there are various kinds of consequences which are faced by organization when
talented personnel quite their job. Due to increasing competition, the demand of highly skilled
and effective individuals is very high.
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Businesses need to ensure the fact that their employees stay with themselves for long
period. This will support them in carrying out their operations in more effective manner. In the
current scenario, organizations are required to become aware of consequences related to high rate
of employee turnover. Along with this, they must have knowledge about different tools and their
usage in retaining workers. There are several reasons which clearly highlights the fact that why
high rate of employee turnover is not good for companies.
One of the major among those is that hiring of people is very complicated and difficult
process. The process selection begins with short listing of individual from a very large pool of
candidates. In addition to this, interviews at different levels are conducted to hire the best and
most talented. Therefore, it can be argued that the entire process of selection is costly as-well-as
time consuming. It is a great loss of organization; if selected candidates leave organization after
investing such amount of time and resources. There are total four types of employee turnover
where companies are required to become aware about all of them. Voluntary, involuntary,
functional and dysfunctional are the common forms of employee turnover. Dysfunctional
turnover is the one in which individuals leave organization by themselves (Allen, 2008). On the
other side of this, in functional turnover type business forces people to resign from their
designation. The workers, who are really performing low, leave organization and this is termed
as functional turnover whereas in situations where high performing workers leave their job, it is
defined as dysfunctional turnover. All the above stated types have their own reasons as-well-as
consequences. Companies are required to ensure that high performing employee’s stays for long
term and measures should be taken to improve performance of people which are not giving their
best. In case of high or increasing rate of employee turnover, firms are required to adopt
necessary actions so that reasons behind their dissatisfaction can be discovered.
In order to analyze the effect of turnover on the performance of company, Aldi has been
selected as an organization. It has helped in getting aware of the fact that whether the
organization has positive or negative impact on its overall performance. It can be also stated that
with the help of this study, Aldi will become aware about the main reasons behind high rate of
employee turnover. Other than this, this study will also support the organisation in developing
effective strategies through which it can retain its employees. It can also be argued that when
employees’ leave organization, firm’s entire sales and profitability gets affected to a great extent.
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1.2 Rationale
In the current era, many businesses in the retail supermarket sector are facing problems of
rising turnover of their workers. Furthermore, the problem is that organizations are not able to
determine whether their overall performance is getting affected by this or not. This research is
conducted to analyze the overall impact of employee turnover on the performance of Aldi. It
means that the organization will become aware of the fact that whether employee’s turnover is
one of the major factors which has lower down its overall performance or not. In order to grow
and survive in long run, Aldi is required to retain all its staff members. The organization is facing
high degree of competition from other market players such as Aldi and Wal-Mart store.
Therefore, it has become very important for the brand to perform outstanding in marketplace.
This can be done by hiring and retaining skilled, effective and talented pool of employees within
the organization. Another reason behind carrying out this study is to determine some effective
strategies which can be used to lower down the rate of employee turnover within businesses.
With the help of this study, the researcher will gain knowledge about the fact that whether high
rate of turnover affects Aldi in negative terms or not.
1.3 Research aim
“Analyzing the impact of international employee turnover on business performance of
company”- A study on Aldi UK.
1.4 Objectives
To identify the reasons behind employee's turnover.
To assess the link between employee turnover and performance of businesses.
To determine strategies that can support in lowering down the rate of employee turnover
within Aldi.
To recommend the ways through which Aldi can enhance their performance by lowering
down employee turnover rate.
1.5 Questions
What are the main reasons behind employee's turnover?
Determine the relationship between employee turnover and business performance?
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What are the strategies which can support in lowering down the rate of employee
turnover?
Determine the ways through which businesses can enhance their performance?
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is the most important chapter among all the sections. It significantly
highlights the opinions and views of different scholars related to the subject. The researcher has
been able to gain different prospects about the present study after using various sources of
information regarding the impact of high turnover of workers on the performance of business
organization. The section of literature review has also helped the scholar in getting aware of the
main the reason behind employee turnover in businesses. In addition to this, the researcher has
taken various books, journals and online sources so that more in-depth information can be
gained.
2.2 Reason behind employee turnover
Employee turnover can be regarded as the number of workers who leave organization. It
can be stated that businesses are required to hire new employees in order to the fill the vacant
position. As per the view of Allen, (2008) in the modern era, employee turnover has emerged as
one of the most serious issue in front of companies. Further, it directly affects the culture and
structure of organizations (Allen, 2008). Now the days have been gone when employees used to
serve businesses for several years. As per the modern trend, workers do not prefer to work for a
particular company for a period of more than five years. It can be stated that nowadays people in
employees seeks for better opportunities in terms of growth and development in organization.
When they are not able to find adequate opportunities, they decide to quite their job and work for
other organization. On the other side of this, they have also started demanding for better working
conditions, culture and environment. They also want that their views and opinions should be
taken into consideration by businesses. This results in increasing satisfaction among them and
also encourages them to give their best. According to Ton and Huckman (2008), employees
serving period is higher than in older employees as compared to the young ones. This means that
that old workers are the more loyal in serving long terms as compared to other people in
organization (Ton and Huckman 2008). The process of hiring people in a business enterprise is
complex one.
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Businesses are required to deal invest huge amount of human resources, finance and
efforts in order to hire effective and talented personnel from the pool of candidate. In addition to
this, they also invest resources in providing the training and development programs in order to
provide selected candidates with the knowledge about culture and work of organization.
Zimmerman and Darnold, (2009) has explained that it is a great loss and threat to businesses
when trained employees leaves. The increasing competition among firms has provided with both
negative and positive aspects (Zimmerman and Darnold, 2009). In positive terms it has provided
employees with better growth opportunities whereas in negative terms it has created obstacles in
the smooth flow of business operations.
According to Applebaum and et.al., (2010) poor management can be termed as one of the
most common factors behind employee turnover. Sometimes management in businesses is so
bad that it creates dissatisfaction among workers and also encourages them to seek for other jobs
(Applebaum and et.al., 2010). For the purpose of lower down the rate of employee turnover and
sustain in marketplace, it is required by the firms to manage things effectually. On the other
hand, it can be explained that rude behaviour of manager or senior management forces
productive and skilled workers to quite their respective jobs. In the present scenario, things have
changed to a great extent and nowadays it is the businesses which strive for skilled and dynamic
workforce.
Rude behaviour of management results in affecting the self respect and ego of people in
organization. Along with this, scolding employees in front of other also results in making
him/her feel ashamed. Nadiri and Tanova, (2010) has asserted that rudeness and back biting has
become very common in organizations and has resulted in enhancing the rate of employee
turnover. These all things create a very negative environment in businesses and also lead to
dissatisfaction among workers (Nadiri and Tanova, 2010). Other than this, it can be expressed
that people work hard because they want to achieve something or get something in return. This
means that companies are required to provide different types of incentives and rewards in order
to get the best out from their workers. The increasing competition has resulted in increasing
workload on staff members. Further continuous work without getting something in return leads
to lower down the morale of employees (Valentine and et.al., 2011). It also impacts their
motivation level, performance and overall, productivity to a great extent. At present, employees
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also feel that the organization for which they are working should focus on their training and
development programs.
The reason why employees prefer training is that it increases their knowledge and skills.
Effective training programs also results in making employees productive and provide them with
better opportunities in terms of growth and development. Employees no longer stay in businesses
which do not take care of training needs to employees (Amstad and et.al., 2011). It is required
from the employees that they should always remain updated with the use of modern technology
and market trends. It can be also stated that training programs are not only beneficial for
employees but they also provide several kinds of advantages to employer. Organizations with
trained workforce are able to deliver more satisfactory products and services to customers.
According to the views of Harter and et.al., (2010), boredom can be termed as the biggest
reason behind employee turnover. In the present era, people in the organization are no longer
seeks for doing any kind of monotonous work. Every day they want to do some challenging
work which can results in their personal and professional development (Harter and et.al., 2010).
They also look forward to for a job which can polish their skills set and can lead to enhancement
of their skills. When people finds that their job is very challenging and they are doing same kind
of work again and again, they start looking forwards to opportunities outside the business
enterprise. It is required by managers to take time for their workers and discuss with them about
their professional growth which they are seeking for (Hom, and et.al., 2012). It can be stated that
organizations which has given preference to succession planning are able to retain their skilled
and productive workforce without any difficulty. Businesses should also avoid situations where
employees start perceiving that they are doing a monotonous or dead end job.
Firms need to consider the fact that each person is well informed about its roles and
responsibilities within company. Multinational organizations are not able to create environment
in which every worker is well aware of the task and responsibilities which they need to
accomplish.
According to Hancock and et.al., (2013), international employee turnover can be very
big threat to companies which are operating in the global business environment (Hancock and
et.al., 2013). Inadequate salaries and incentives are the common reason why employees leave
organizations. Money has become the most important thing in the life of human being. Further,
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with the help of money that is able to satisfy needs of themselves and their families. It becomes
very essential for employees to quite their job when they receive very low salary and are not able
to meet the demand and basic needs. Thus, it can be stated that to retain staff members, firms
need to provide salary and incentives to employees as per industry standards. Each and every
workers strives for improving its standard of living and therefore, businesses should provide fair
pay to workers (Avey and et.al., 2011). Other than this, when employees do not get recognition
from their top management, then also they are encouraged to quite their job. In the present
scenario, every staff member wants that their efforts should be recognised by organization and
they should be rewarded for the same. In case when any one of the employees has given
outstanding contribution in the success of business enterprise and his/her efforts are not being
recognised then a sense of dissatisfaction is created among them. Further they no longer remain
in the mood to give efforts in the future (Davidson, Timo and Wang, 2010). This also results in
lowering down the motivation level and morale of employee. In situations where employers do
not recognize efforts of their workers, it becomes a common perception of staff member that
there is no sense in working with organization anymore.
However Hinkin and Tracey, (2010) has argued that changes has emerged as another
reason behind increasing rate of international employee turnover. In the present scenario, it has
become very important for companies to make changes or modifications at regular intervals in
order to sustain in market (Hinkin and Tracey, 2010). Increasing competition, frequent changes
in external business environment are some situations which forces companies to carry out
modifications in existing practices, culture and structure. It can be stated that most of the time
people are not able to cope up with changes in organizations. This directly creates sense of
dissatisfaction among worker and encourages them to leave the business enterprise.
Workload can be termed as another reason which increases the rate of employee turnover.
Further, such rates get very high when one employee does the work and activities of more than
one person continuously for long time. In such situations people in organizations are also
required to work overtime in order to complete the task assigned to time (Zhang, Fried and
Griffeth, 2012). Some businesses also not pay any kind of money against employee overtime. It
can be stated that such kind of practices creates negative environment in companies and also
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boost up the stress level of worker. They no longer feel motivated towards work and starts
seeking for potential employment opportunities in outside the business enterprise.
Batt and Colvin, (2011) has explained that managers are required to make sure that
people in organization are not overburdened with work and they should be provided with sense
of relief. Along with this, in situations where workload is excessive, employers can go for
recruitment and selection of new staff (Batt and Colvin, 2011). This will provide relief to
workers and also brings some fresh talent within the organization. On the other side of this, the
leadership style which has been adopted by a business enterprise also affects its rate of employee
turnover. Further, it can be expressed that constant use of styles such as autocratic style directly
results in creating dissatisfaction among people in organizations. The leaders in organizations do
not take views and opinions of employees into consideration. Along with this, employees are
also required to follow the decision made by top management without any kind of objections. As
per the view of Rigby and O'Brien-Smith, (2010) organizations with autocratic leaders tend to
have high rate of employee turnover as compared to organizations which has adopted other
leadership style (Rigby and O'Brien-Smith, 2010).
2.3 Link between employee turnover and business performance
It can be stated that sudden or unplanned turnover of employees can affect business to a
great extent. High rate of employee’s turnover clearly highlights the fact that organizations are
lacking in something. As per the view of Hom and et.al., (2012) the relationship between high
turnover of workers and performance of a business enterprise is direct. Low rates of turnover
means that the company is capable enough to retain highly skilled and productive workforce
(Hom and et.al., 2012). It also reflects the fact that it is putting lots of efforts in meeting the need
and expectations of all its staff members. On the other side of this, high rate of turnover depicts
that the organization is not capable enough to hold its highly capable employees. Datta and et.al.,
(2010) has explained that when experienced and productive employee leave, a great loss to
organizations occurs. In addition to this, it is not easy for businesses to easily find replacement of
employees (Datta and et.al., 2010).
Turnover also restricts the capability of companies to understand the need, demand of
customers and satisfy them in the best possible manner. This affects the performance of
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organization in negative terms and also affects overall brand image in negative terms. It can be
also expressed that each and every employee which resigns from their job increases cots of
company (Ramesh and Gelfand, 2010). Huge amount of financial resources is invested in order
to make employees productive and when such employees resign cost of company gets increased.
Along with this, financial performance of businesses also affected as they are required to hire
new employees in order to fill the vacant position. Cost of company also increases when
company invest finances in advertisement for the vacant (Chen and et.al., 2011). On the other
hand, the productivity of firms is suffered from high rate of employee turnover.
Businesses when loss their efficient and productive employees, they are not able to serve
customer in appropriate manner. In the current scenario, the competition among business in
almost every industry has become very intense. This means that people in market are available
with wide variety of choices or alternatives to satisfy their needs. However, Batt and Colvin,
(2011) argued that business may have same kind of technological resources and funds but the
difference between them is of skilled workforce (Batt and Colvin, 2011). Therefore, in order to
perform better in highly competitive market, it is required by business to retain their employees.
Highly capable employees will also help in servicing customers with the best quality of products
and services. It can be stated that employee turnover and performance of business are directly
linked with each other.
As per the view of Staufenbie and König, (2010) businesses are not affected by turnover
of employees working at lower level of organization to a great extent. Further, they are highly
affected in situations when people at middle or top level resign from their post (Staufenbiel and
König, 2010). People at higher level are usually engaged in developing strategies and action plan
which helps in getting competitive advantage over other companies. It has been also become
essential for companies to have backup of their effective personnel (Managing impact of
employee turnover, 2016). When good people leave organizations, employer are not able to finds
their replacement. This results in affecting the overall performance in negative terms. Businesses
with low rate of employee turnover are able to deal with issues and challenge easily (Direnzo and
Greenhaus, 2011). In addition to this, it also supports in making changes happen in organizations
in order to make its operations more effective. In the present scenario, it has become very
important for businesses to seek for the ways through which they can enhance their performance.
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This can be done by having efficient and skilled workforce in within organizations. Many
companies in the world have started focusing on training and development of their workers. The
objective behind providing such development sessions to people in organization is to make them
aware about recent developments in their domain and improve their overall productivity. Most of
the businesses are unaware of this fact that employee turnover impacts their overall performance
to a great extent. Chen and et.al., (2011) has explained that nowadays organizations loss their
capability of severing customers effectively when skilled employees quite their job (Chen and
et.al., 2011). It has become very important for companies to make sure that their workers remain
with them for long time period. This can be done with the help of understanding need and
requirement of people within organizations and satisfying them in the best possible manner.
However, Goodwin, Groth and Frenkel, (2011) has argued that sudden turnover of employees is
a big threat for companies as it is not easy for them to find replacement of their skilled and
productive workers in short period (Goodwin, Groth and Frenkel, 2011). Along with this, even if
companies are able to find out replacement, they are required to invest huge amount of resources
to make selected candidates aware about organization's culture.
Park and Shaw, (2013) has asserted that managers needs to keep an eye on the rate of
employee turnover in the entire year (Park and Shaw, 2013). High rate of employee turnover can
be very costly for businesses as they are again required to invest resources in providing training
to new candidates which has replaced employee which left the organization. As per the view of,
Seibert, Wang and Courtright, (2011) companies are not aware of the fact that high turnover
affects the morale, motivational level and performance of exciting workers (Seibert, Wang and
Courtright, 2011)). For instance when peers and closed colleagues of a particular employee leave
their job, it is very common that they are not able to concentrate and give the best of their efforts.
This results in lowering down performance of employees which further impacts overall
productivity of organization in negative terms.
2.4 Strategies to lower down the rate of employee turnover
In the highly competitive marketplace, companies are required to develop effective
strategies to deal with issues such as high rate of employee turnover. According to Nyberg,
(2010) the view point of one of the biggest challenge which firms are facing nowadays of high
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rate of employee turnover (Nyberg, 2010). Further, it has become very challenging task for them
to retain their staff members for long run. It can be stated that in order to deal with such
issues/challenges, companies are required to become aware of the factors which are forcing
employees to quite their job.
Babcock-Roberson and Strickland, (2010) has stated that in order to lower down the rate
of turnover, employers are required to identify the factor behind the same (Babcock-Roberson
and Strickland, 2010). In addition to this, they also need to take corrective measures in order to
overcome it and retain employees. Some common factors can be low pay, very fewer
opportunities in terms of future growth and employment, inadequate work environment, negative
atmosphere, inappropriate working hours etc. The problem of high employee turnover can be
resolved by directly communicating with people in organizations.
Further, managers and leaders can carry out meeting with workers in order to become
aware of the problems and issues which have been faced by them. For example they can ask staff
members that whether working conditions and atmosphere is appropriate or not. Along with this,
managers can also encourage workers to give suggestions if in case they find that working
conditions are not suitable (Markos and Sridevi, 2010). On the other side of this, has explained
that employee leave organization because they do not find potential opportunities for growth and
development. Thus, it can be stated that at the time of carrying out their operations, companies
are required to make sure that fair and adequate growth opportunities are given their staff
members at frequent intervals. This will create sense of satisfaction among workers and will also
encourage them to stay within organization for a long period. Messersmith and et.al., (2011) has
explained that businesses also need to treat their employees equally and fairly and this helps in
retaining them for a long period (Messersmith and et.al., 2011).
Nowadays, companies are also required to provide wider range of monetary and non-
monetary benefits to their employees. This will not only develop satisfaction among workers but
will also encourage people to give more efforts towards the success of organization. It can be
stated employee should be provided with different kind of benefits in order to retain them for
long run. Furthermore, salaries and pay should be based on industry standard. It can be stated
that at the time of operating in global business environment, companies are required to make sure
that they do not encourage any kind of discrimination at workplace (Chen and et.al., 2011).
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One of the most common reasons behind high rate of international employee turnover is
inadequate pay. Therefore, in order to lower down the employee turnover rate, it is required by
companies to develop a system which offers fair and adequate pay. It can be stated that the
salaries and wages of employees should be based on their skills, capabilities and knowledge. In
addition to this, they should be also adequate payment in situations where people are working
overtime (Nyberg, 2010). Workers also leave their job due to high workload on them. Therefore,
businesses are required to make sure that people are not doing excessive work and if they are
doing so then they are being paid fairly against the work. Recruitment and selection of new
candidates is one of the best strategies which can be used by companies in situations where
employee turnover has become high due to excessive workload.
Hiring of new employees will lower down some amount of work on existing employees.
It will also provide them with chance to relax and focus on quality of their work. Hancock and
et.al., (2013) has explained that one of the best strategy which can be used to lower down the rate
of employee turnover is of training and development (Hancock and et.al., 2013). Companies are
able to develop satisfaction among their workers with the help of providing such sessions to their
staff members. The workers also starts perceiving the fact that employer is concern about their
growth and development. However, Hom and et.al., (2012) has argued that before providing
training sessions to employees, it is required by organizations to have adequate knowledge about
employees training needs along with their preferred learning style (Hom and et.al., 2012).
Furthermore, the rate of employee turnover also gets rises when continuous training sessions are
provided to employees for long run. Such kind of session makes worker feel bored and also
lower down their entire productivity.
In the present scenario, change has become very important for companies and they cannot
survive in long run by using same kind of strategies, products and plans. Today, businesses that
believe in innovations and carry out innovations are the one which witnesses success at its very
best. However, the process of change management is not easy for organizations and it is the time
when employees turnover increases (Applebaum and et.al., 2010). During stages such as change
in strategy, culture, structure, operations and technology of organizations, workers are not able to
cope with the changes.
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In addition to this, it becomes very difficult for some employee to resist those
modifications. Such kind of situations encourages people in the organization leave their job and
look for other alternatives. In order to deal with such situations, firms are required to develop
effective change management tools. In addition to this, it is the responsibility of employer to
ensure that its employee is able to cope with change. This can be done by making workers aware
about the needs of change and the benefits which organizations will have from that change.
Other than this, they also need to ensure that the queries and doubts are resolved in an
appropriate way. Valentine and et.al., (2011) has asserted that manager or leaders needs to
develop a positive atmosphere during the process of change in order to lower down the rate of
employee turnover.
On the other side of this, hiring best and most effective personnel is an effective strategy
to reduce the increasing rate of turnover. In addition to this, employer is also required to ensure
that they hire candidates which can fit well in company’s culture and can stay for long term. It
can be stated that such kind of recruitment and selection process can be costly to companies but
can provide them with several benefits in long run. According to, Zimmerman and Darnold,
(2009) paying employees more is another useful strategy to lower down rate of employee
turnover in organizations (Zimmerman and Darnold, 2009). When businesses pays more salaries
and wages to staff members as compared to other players in industry, the chances of high
employee turnover gets very low.
It can be also stated that well paid employees contributes a lot in growth and success of
enterprise. Other than this, it can be stated that taking feedback and reviews from employees is
another strategy which can be used to lower down employee turnover rate. Such kind of reviews
and feedbacks will support organizations to become aware of the issues and challenges which
workers are facing. In addition to this, it will also assist in identification of environment and
culture within a company.
Zhang, Fried and Griffeth, (2012) has asserted that the strategy of using exist interview is
a good option to the decrease employee turnover in the future (Zhang, Fried and Griffeth, 2012).
Companies can ask several questions to employees such as their work experiences, reason for
their resignation, culture of the organization, any suggestions to the organization etc.
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Furthermore, by working upon the suggestions and information provided by employees
businesses can lower down their rate of employee turnover.
Offering flexibility to employees and prioritizing their happiness is another effective
strategy which can be used to retain workers for long time. In the modern era, some employees
leave their job because they are not able to maintain balance between their personal and
professional life (Park and Shaw, 2013). In addition to this, they become so frustrated that they
end up by quieting their respective jobs. In such situations, employers are required to provide
complete kind of flexibility to all their workers (Amstad and et.al., 2011). This helps them to stay
longer with a particular organization by maintaining balance between both personal and
professional life. On the other hand, employers are also required to make sure that managers and
leaders treat their employees or subordinates fairly.
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CHAPTER 3: RESEARCH METHODOLOGIES
3.1 Introduction
Research methodologies are very important chapter in dissertation and plays very
important role in making a study successful. Furthermore, the chapter consists of wide range of
tools and techniques which are used by researcher to obtain suitable findings (Sullivan, 2011). It
can be also stated that researchers are required to be very careful in selecting right
methodologies. The objective behind development of this chapter of research methodologies is
to develop suitable plan in order to carry entire research in the best possible manner. The use of
appropriate and suitable methodologies also helps in addressing all research questions in
effective manner.
3.2 Research philosophy
In simpler terms, the beliefs and values of a researcher which helps in carrying out the
task of data collection and analysis is defined as research philosophy. In addition to this,
philosophy also assists in making the use of results obtained. It can be also stated that the use of
right research philosophy assists in enhancing the overall quality of study (Silverman, 2010).
Positivism and Interpretivism are two different kinds of philosophies which are generally
used while carrying out the process of data collection, evaluation and usage (Remelts, 2015). In
the present research, the scholar has adopted for interpretivism research philosophies, in order to
get useful information regarding the impact of turnover on business performance of company.
One of the main reasons behind choosing interpretivism philosophy is that it has helped the
scholar in getting in-depth knowledge regarding the topic under investigation. In addition to this,
it has also supported the researcher in interpreting various elements which are associated with the
study. The use of interpretivism philosophy has resulted in getting more useful information
regarding what kind of impact employee turnover has on overall performance of a company. On
the other hand, it can be stated that positivism philosophy was not appropriate as per the nature
of the present study. It is more useful in researches which are completely based on logics and
evidences. Therefore, it has been stated the use of interpretivism philosophies has made this
research more effective and suitable.
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3.3 Research approach
The procedures and action plans which are developed in order to carry out a research are
termed as research approach (Qur, 2013). Researchers are required to develop suitable plans
which can help them in getting knowledge about the topic under investigation and obtain desired
results. Inductive research and deductive research are the two different forms of research
approach which are commonly used while carrying out studies (Singh, 2010). The researcher has
adopted deductive approach to research for the present study. It can be also expressed that the
rationale behind using deductive approach is that it has provided information that moves from
general to specific. It has provided the scholar with generalized information regarding the impact
of international employee turnover on performance of organization. In addition to this, it has also
rendered with more specific information in order to justify the questions of this research. On the
other hand, it can be said that the use of inductive approach would have provided the scholar
with more generalized information which was not required as per the nature of present study.
Along with this, deductive approach is mostly refereed when adequate amount of sources are
present of literature and therefore it was more suitable for the present study.
3.4 Research purpose
Research purpose can be defined as the statement which highlight the fact that why the
entire research is carried out. In order words it can be termed as the main goal behind carrying
out a particular study (Saunders, 2003). Furthermore, there are different types of research
purpose such as descriptive, exploratory, explanatory etc. The use of descriptive research
purpose helps in describing various elements associated with the topic under investigation
(Beiske, 2007). The use of exploratory research purpose is done in situations when problem is
not clearly defined. Explanatory purpose is used when explains elements of study. The
researcher has employed descriptive research in this study. This design has helped in collecting
more suitable and useful information about the impact of international employee turnover on the
performance of a company. The selected research purpose has also provided the researchers with
various useful sources of data collection. Other than this, it has helped the research in describing
different elements of the present study.
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3.5 Research strategy
Research strategy is termed as an important tool in research methodologies which helps
scholars to identify the main problem or issues associated with the study. In other words, it can
be defined as the systematic plan which supports in addressing the research questions in the best
possible manner (Kumar, 2002). Various types of research strategies such as experiment, case
study, survey, etc. are used to carry out a particular study in appropriate manner. In experimental
strategy, the scholar manipulates one particular variable of research and controls the other
remaining variables. On the other hand, case study strategy is the one in which a particular case
is taken into consideration to answer the research questions developed by scholar (Kothari,
2004). At last there is survey which is used to gather information about topic of study and then
answer research questions on the basis of collected information. In the present research, survey
has been used as the research strategy. Main reason behind choosing the above mentioned
research strategy is that it helped in acquiring relevant data regarding the impact of international
employee turnover on performance of company. The research has used questionnaire to gather
useful information and answer research questions on the basis of the same.
3.6 Research methods
Research method is termed as the way thorough which a particular study will be carried
out. Qualitative and quantitative are the two common methods of research which are mostly used
to accomplish a particular study (Gulati, 2009). Qualitative method is used in situations where
non-numeric information is present in the study. On the other hand, when numeric data is
present, quantitative method is mostly adopted by research. In the current study, the research has
adopted for qualitative method as it was more suitable as per the nature of the present research.
The use of above mentioned method has provided the researcher with in-depth knowledge
regarding the topic under investigation. In addition to this, it has used subjective information
which was most suitable one according to the nature of present study.
3.7 Collection of data
Data collection is the most important activity throughout the research (Hogg, 2008). Data
collection is not an easy task to perform and researcher is required to deal with various issues
and challenges. For instance scholar has to defined appropriate sources of data collection. Along
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with this, at the time of collecting primary data the faces issues in terms of gathering information
from the suitable respondents (Creswell, 2013). The process of data collection starts with
determination of the kind of information required. On the other side of this, primary and
secondary are the two most important sources through which data about a particular topic or
subject matter can be collected (Nalzaro, 2012).
In the present research, the scholar has used both the sources of data collection in order to
get the best and more reliable information related to impact of international employee turnover
on performance of a company. The primary data which is also termed as raw data is gathered by
using a well structured questionnaire. It can be stated that a series of questions were handed over
to the respondents in order to get new, fresh and more reliable information regarding the topic
under investigation. On the other side of this, the researcher has also used various kinds of
secondary sources to collect data with regarding impact of international employee turnover. The
use of secondary sources has helped in getting aware about the views and opinions of other
researchers and scholars. Sources such as books, journals and online sources have been used to
gather suitable information regarding the topic of study. It can be stated that the use of both
sources has supported in acquiring proper and more relevant data and helped the researcher in
achieving desired results.
3.8 Sample selection
Population can be defined as the overall people from whom the data related to topic
under investigation can be collected. In the present study, target population which has been used
to collect primary information is the managers of Aldi. The managers have acted as key
respondents and has provided with accurate and reliable data related to the impact on
international employee turnover on overall performance of a company. The managers working at
Aldi's international outlets were taken into consideration to understand the factors or reasons
behind high rate of employee turnover. In addition to this, they have also provided information
regarding link between performance of organization and high rate of turnover. The rationale
behind choosing managers of Aldi as respondents is that the managers are the one which deals
with issues such as employee turnover. Along with this, they are the one which deals with
employees existing procedure and formalities. They are also encourages employees to fill
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feedback forms and give their reviews regarding their overall experience at workplace.
Therefore, it can be stated that managers are the most accurate and reliable sources to collect
primary data for the present study.
Sample size can be termed as the total number of respondents which has been selected to
gather information about a particular topic. In the current study, 25 managers has been selected
as sample size. The reason behind selecting the above mentioned sample size is that it has
provided the research aware about different elements associated with the study. Further, the
scholar has gained adequate knowledge regarding how overall performance of an organization is
affected by high rate of employee turnover. On the other hand, it can be stated that non-
probability and probability are two different types of sampling techniques which are used to
determine how the data will be collected.
In this study, judgemental sampling is often known as purposive sampling which has
been used by the researcher. Rationale for the selection of this sampling is that it has allowed the
researcher to collect data on the basis of a particular purpose. Another reason behind using the
selected sampling method is that it is less costly and consumes very less time in collecting data
other than this, it also eliminates the chances of getting irrelevant information or item in the
study. In addition to this, the selected sample size and technique has helped in getting more
accurate and unbiased results in the present study.
3.9 Data analysis
Data analysis is defined as an activity in which collected data is inspected and
transformed with an objective to gain some useful information. During data analysis, researcher
is needs to be very particular and specific in order to obtain suitable findings. It can be stated that
the qualitative and quantitative are two ways by which collected data can be analyzed.
Qualitative technique is used in study in which information is present in non-numeric form. In
addition to this, different themes are formed to present the findings of research. Statistical tools
such as SPSS is used to analysis information collected from different sources in quantitative
technique of data analysis. In the present study, qualitative technique has been used in order to
analysis information which has been collected from primary and secondary sources.
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3.10 Limitations
It can be stated that at the time of conducting present research, the scholar has faced
various kind of limitations. Among all those limitations cost and time was the major among all
those limitations. The scholar was having limited amount of financial, human and technological
resources at the time of carrying out this the research. This has affected the results or findings of
this research. In addition to this, time of conduct the present study was another limitation of
present study. On the other side of this, the information has been collected from 10 managers of
Aldi and thus, it can be stated that sample size for present study was limited.
3.11 Ethical consideration
It is required by scholars to take ethics into consideration while carrying out a particular
study. One of the major reasons behind this is that it enhances the overall effectiveness of
research. In the present study, no partiality has been done by research and it is one of the major
ethical considerations. The information collected from various sources is secured in appropriate
manner. The results or findings of present study will be used only by research and it won’t be
revealed to any other party. Further, researcher will also make sure that the data collected from
different sources will be destroyed after making its use.
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CHAPTER 4: RESULTS ANALYSIS AND DISCUSSION
4.1 Introduction
The chapter of data analysis termed as an important chapter of research. Further, it
consists of different techniques of data analysis which has been employed by scholar to analyze
and discuss findings of research. In the present study, qualitative technique of data analysis has
been used by the researcher. In addition to this, thematic method has used to carry out analysis
and discussion of results.
4.2 Presentation of findings
Theme 1: Employees are the biggest assets of an organization.
Do you think that employees
are the biggest asset of any
organization?
Number of respondents Percentage
Yes 20 80.00%
No 5 20.00%
Can't say 0 0.00%
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Findings: The findings of primary data collected clearly highlights the fact that
employees are the biggest assets of an organization. Further, it can be stated that out of the total
25 respondents, majority which is 80% agree with the above stated fact. On the other side of this,
20% do not agree with the same.
Theme 2: International Employee turnover has emerged as major issue for Aldi.
In the present era,
international employee
turnover has emerged as
major issue which has been
faced by your organization?
Number of respondents Percentage
Strongly agree 12 48.00%
Agree 5 20.00%
Neutral 1 4.00%
Disagree 2 8.00%
Strongly disagree 5 20.00%
27
Yes No Can't say
0
5
10
15
20
25
Do you think that employees are the biggest assets of
any organization
Series1
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Findings: From the information collected from manager of Aldi, it has been identified
that, international employee turnover has become one of the major issue for organization. Out of
the total 25 respondents, majority which is 48% strongly agree with the above stated fact. 20% of
the total respondents agree with the same whereas 4% of the total respondents were neutral. On
the other side of this, 8% of respondents disagreed and the remaining 20% strongly disagree with
the same.
Theme 3: Old employee serving period is higher than young employees
Employee serving period is
higher in old employees in
comparison with the young
ones?
Number of respondents Percentage
Strongly agree 8 32.00%
Agree 10 40.00%
Neutral 2 8.00%
Disagree 3 12.00%
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In the present era, international employee turnover has emerged as major issue which has been faced by your organization
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
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Employee serving period is
higher in old employees in
comparison with the young
ones?
Number of respondents Percentage
Strongly disagree 2 8.00%
Findings: The information collected from primary sources, reflects the fact that young
employees have very less serving period as compared to old ones. Out of the total 25
respondents, majority which is 40% agrees with the stated fact whereas 32% strongly agree with
the same. 8% of the total respondents were neutral and 12% of them disagree with the above
mentioned fact. The remaining 8% strongly disagree with the same.
Theme 4: Working environment and behaviour of manager are some common factors
which results in high rate of employee turnover.
Behaviour of manager and
work environment are some
common factors which
results in high rate of
employee turnover?
Number of respondents Percentage
Yes 13 52.00%
No 10 40.00%
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Employee serving period is higher in old employees in comparison with the young ones
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
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Behaviour of manager and
work environment are some
common factors which
results in high rate of
employee turnover?
Number of respondents Percentage
Can't say 2 8.00%
Findings: From the information collected with the help of primary sources, it has been
find out that working environment and behaviour of manager are some common factors which
results in high rate of employee turnover. Majority which is 52%, Out of the total 25 respondents
were in the favour of above statement. On the other side, 40% disagree with the fact and
remaining 8% were neutral.
Theme: 5 There are several reasons behind employee turnover.
As per your opinion, what
are the other reason behind
employee turnover?
Number of respondents Percentage
Poor management 2 8.00%
No training and development
sessions
1 4.00%
30
Yes No Can't say
0
2
4
6
8
10
12
14
Behaviour of manager and work environment are some common factors which results in high rate of employee turnover
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As per your opinion, what
are the other reason behind
employee turnover?
Number of respondents Percentage
Boredom 2 8.00%
Inadequate salaries and
incentives
5 20.00%
Frequent changes 4 16.00%
Excessive workload 3 12.00%
All the above 8 32.00%
Findings: From the primary data collected, it has been found that employee turnover is
caused for several reasons. Out of the total 25 respondents, majority which is 32% agree with
the above mentioned fact. 8% of the total respondents said that employee turnover is caused due
to poor management. 4% of the respondents were in favour of the fact that no training and
development sessions are the reason behind employee turnover. The other 8% of the total
respondents stated that turnover is caused when workers gets bored from their job. Other than
this, 20% of the total respondents were in favour of inadequate salaries and incentives whereas
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Poor management
No training and development sessions
Boredom
Inadequate salaries and incentives
Frequent changes
Excessive workload
All the above
0 1 2 3 4 5 6 7 8 9
As per your opinion, what are the other reason behind employee turnover
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16% favoured frequent changes as a reason of employee turnover. The remaining 12% of the
total respondents said that it is caused to excessive workload on employees.
Theme 6: Participative leadership style supports in retention of workers to a great extent
Participative leadership style
helps in retaining employees
in Aldi?
Number of respondents Percentage
Yes 20 80.00%
No 3 12.00%
Can't say 2 8.00%
Findings: From the primary data collected, it has been found that participative leadership
style helps in retaining employees within organization. Out of the total 25 respondents, 80%
agrees with the above mentioned fact. On the other hand, 12% said that it is not necessary that
participative style of leadership can encourage employee to stay within organization.
Theme 7: High rate of employee turnover affects Aldi's ability to serve its customers.
32
Participative leadership style helps in retaining employees in Aldi
Yes
No
Can't say
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High Employee turnover also
affects the ability of Aldi's to
serve their customers in
effective manner?
Number of respondents Percentage
Yes 22 88.00%
No 3 12.00%
Can't say 0 0.00%
Findings: The information collected from primary data with the help of questionnaire
highlights that organization such as Aldi are not able to serve customers. Out of the total 25
managers of Aldi, 88% agrees with the above mentioned statement. On the other side of this,
12% of the total respondents expressed that high rate of employee turnover do not affect the
organization's capability and abilities to serve customers.
Theme 8: It has become very essential for the organizations to always seek for the ways
through which they can enhance their performance.
33
Yes
No
Can't say
0 5 10 15 20 25
High Employee turnover also affects the ability of Aldi's to serve their customers in effective manner
Number of respondents
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In the modern era, it has
become very important for
Aldi to seek for the ways to
improve its performance?
Number of respondents Percentage
Strongly agree 9 36.00%
Agree 12 48.00%
Neutral 1 4.00%
Disagree 1 4.00%
Strongly disagree 2 8.00%
Findings: from the information collected by primary sources, it has been found that in
the present scenario, it has become essential for businesses such as Aldi to always improve their
performance. Out of the total 25 respondents, 48% agrees with it and 36% strongly agree with
the same. On the other hand, 4% of the total respondents were neutral and other 4% disagree
with the above mentioned statement. At last, 8% employees strong disagree with the mentioned
fact.
Theme: 9: High Employee turnover have various impact on organization
34
In the modern era, it has become very important for Aldi to seek for the ways to improve its performance
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
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What are the impacts of high
international employee
turnover on organizations?
Number of respondents Percentage
Lower down overall
effectiveness
3 12.00%
Creates negative environment 2 8.00%
Decreases productivity of
existing workers
3 12.00%
Dissatisfaction among
employees
4 16.00%
All the above 12 48.00%
Other than this 1 4.00%
Findings: The findings of collected primary data highlight the fact that organizations are
required to face several impacts of high employee turnover. Out of the total 25 respondents,
12% were in favour of the fact that international employee turnover lower down overall
effectiveness. Further, 8 % of the respondents said that it creates negative work environment. On
the other side of this, 12% of the total respondents argued that high employee turnover decreases
productivity of existing workers in organization. The other 16% said that it creates dissatisfaction
35
Lower down overall effectiveness
Creates negative environment
Decreases productivity of existing workers
Dissatisfaction among employees
All the above
Other than this
0 2 4 6 8 10 12 14
What are the impact of high international employee turnover on organizations
Number of respondents
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among employees. The majority which was 48% of total respondents were in the favour of all
the above stated impacts. However, 4% of the respondents said that high rate of employee
turnover has other than the above mentioned impacts.
Theme 10: There are various strategies employed by Aldi to lower down its employee
turnover rate.
What are the strategies
employed by your
organization to lower down
the rate of employee
turnover?
Number of respondents Percentage
Adequate salaries and pay 3 12.00%
By providing growth and
development opportunities
2 8.00%
Giving training sessions to
workers
2 8.00%
By discussing problems faced
by employees at regular
intervals
7 28.00%
treating employees fairly 1 4.00%
All the above 8 32.00%
Other than this 2 8.00%
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Findings: It has been found that there are various kinds of strategies which have been
implemented by Aldi in order to lower down its rate of employee turnover. Out of the total 25
respondents, 12% stated that adequate salaries and pay is provided to employees. On the other
hand, 8% were in favour of providing growth and development opportunities whereas other 8%
favoured giving training sessions to workers. Other than this, 28% of total respondents said that
they discuss problems faced by employees at regular intervals. 4% stated that they treat their
employee fairly whereas 32% favoured all the above.
Theme 11: Exist interviews are conducted in Aldi when employees leave the organization
Do you conduct exist
interviews for employees
who resign from the
organization?
Number of respondents Percentage
Yes 25 100.00%
No 0 0.00%
37
What are the strategies employed by your organization to lower down the rate of employee turnover
Adequate salaries and pay By providing growth and
development opportunities
Giving training sessions to
workers
By discussing problems faced
by employees at regular
intervals
treating employees fairly All the above
Other than this
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Findings: It has been found from the data collected from primary sources that exist when
employees leave Aldi, there exist interviews are being conducted. Out of the total 25
respondents, 100% were in the favour of above mentioned statement.
Theme 12: High rate of employee turnover is also because of discrimination at workplace
Discrimination at workplace
results in increasing
employee turnover rate?
Number of respondents Percentage
Strongly agree 18 72.00%
Agree 4 16.00%
Neutral 0 0.00%
Disagree 2 8.00%
Strongly disagree 1 4.00%
38
Exist interviews are conducted in Lidl when employees leave the organization
Yes
No
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Findings: From the information collected, it has been found that Discrimination at
workplace results in increasing employee turnover rate. Out of the total 25 respondents, majority
which is 72% strongly agrees with the fact whereas 16% agrees with the same. On the other side
of this, 8% of the total respondents disagreed and the remaining 4% strongly disagree with the
same.
Theme 13: Aldi is required to maintain low rate of international employee turnover in
order to perform better in the future.
In order to perform better in
the future, Aldi is required
to maintain low rate of
international employee
turnover?
Number of respondents Percentage
Strongly agree 17 68.00%
Agree 3 12.00%
Neutral 1 4.00%
Disagree 2 8.00%
Strongly disagree 2 8.00%
39
Discrimination at workplace results in increasing employee turnover rate
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Document Page
Findings: The data gathered with the help of primary sources reflects the fact that in
order to deliver better performance in the future, Aldi needs to maintain low rate of international
employee turnover. Out of the total 25 respondents, 68% strongly agree with this statement
whereas 12% agree with the same. 4% respondents were neutral while other 8% disagree with
the above mentioned fact. The remaining 8% of the total number of respondents were strongly
disagreed with the same.
4.3 Analysis
Theme 1: Employees are the biggest assets of an organization.
Analysis: The information collected from various primary and secondary sources clearly
highlights the fact that employee are the biggest assets of organization. It has been analyzed that
employees plays very important role in success and growth of an organization. From the primary
data collected, majority of respondents stated that workers are the one which put their efforts in
accomplishment of aim and objectives of organization. Along with this, effective employees
understand need and demand of customers and deliver products and services according to the
same. From the data collected with the help of primary sources, it has been analyzed by the
researcher that without having skilled and productive workforce, it is very difficult for businesses
40
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
0 2 4 6 8 10 12 14 16 18
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to gain high degree of customer satisfaction and competitive advantage over other market
players.
The same thing has been analyzed from the secondary information collected by using
various sources. The data collected from secondary sources depicts that two organizations can
have same kind of financial and technological resources but what make one organization
different from another is its team of highly skilled and productive workforce. This is the only
reason why businesses seek for skilled and qualified candidates for vacant position in
organization. Nowadays focus is also provided on training and development of workers in order
to make them more efficient in delivering satisfactory products and services to customers. This
directly results in enhancing degree of customer satisfaction and getting advantage over other
businesses in the industry. Therefore, it can be stated employees are very important assets of
organization.
Theme 2: International Employee turnover has emerged as major issue for Aldi.
Analysis- From the findings of primary and secondary information collected it has been
analyzed that international employee turnover has become a major issues for many businesses. It
has been analyzed from primary information collected that it has become very difficult for the
organization to retain its employees. Further, majority of respondents also explained that they are
taking corrective measures to identify the reason for employee turnover and to lower down the
same. It has been analyzed that the organization is greatly affected by its employee turnover at
international level. However, some respondents argued that it is not a big issue for Aldi and the
supermarket chain will sort out this issue in new few months by taking corrective measures.
From the secondary information collected, it has been analyzed that in order to sustain in
highly competitive environment, businesses are required to make sure that they are able to retain
their skilled and capable employees. On the other side of this it has been also analyzed that
employee turnover is a big issues for organization because this clearly highlights the fact staff
members are not satisfied with their job. High turnover also creates stress among existing
workers as they need to fill the gap until a new candidate fills the vacant position in the
organization. It has been analyzed that in the modern era, companies are required to maintain
low rate of employee turnover in order to enhance their overall productivity and carry out more
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effective operations. The findings of both the data collected by researcher, clearly highlights that
nowadays high rate of employee turnover has become a serious issue of organizations.
Theme 3: Old employee serving period is higher than young employees.
Analysis: It has been analyzed by the researcher that old employees serve organization
for long time period in comparison with young ones. The results of primary information
collected highlight that most young employee do not remain with organization for long time
period. Majority of respondents stated that when young employees join Aldi, they always seek
for higher and better employment opportunities. They want organization to listen their views and
opinions. Young employee also wants that their creative ideas should be implemented by the
supermarket chain. In situations when their requirements are not fulfilled, young workers directly
resign from their job. From the primary data collected, it has been analyzed that the maturity
level of young workers is usually high as compared to the young ones. They understand situation
of Aldi in more effective manner and they are less involved in conflicts and disputes.
On the other hand, some respondents have argued that it is not necessary that old
employee will serve for long time and young employee wont. Further, they explained that there
are various other factors which can creates dissatisfaction among old employees and can
encourage them to resign from their post. On the other side of this, from the results of secondary
data collected, it has been analyzed that young employees wants to grow in their career with a
rapid pace. This is the only reason they do not stick to a particular business enterprise for long
time period. At the time of doing their job also, young employees keeps on searching for better
employment opportunities outside the organization. Further, when they get desired opportunity,
they switch from one company to another. In addition to this, it has been analyzed that old
employees want stability in career and this is the reason why they serve organization for long
time period. This can be considered as the rationale behind why businesses operating in any
industry prefer old and experienced employee for vacant position in comparison with fresher and
young candidates. Organizations are now aware of this fact that as soon as young employee will
get better opportunity, they will leave their job.
Theme 4: Working environment and behaviour of manager are some common factors
which results in high rate of employee turnover.
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Analysis: It has been analyzed that the most common reasons behind high rate of
employee turnover are considered as working environment and behaviour of manager. From the
primary information collected, it has been analyzed that when working environment is not
appropriate, then employee are encouraged to quit from their respective job. Majority of
respondents stated that it has become very important for Aldi to develop a positive working
environment at the time of carrying out its operations at international level. In case when
environment is negative, dissatisfaction is created among workers and they are not able to
provide adequate efforts in accomplishment of Aldi's aim and objectives. This also results in
high rate of international employee turnover which is very bad for the supermarket retailer.
Along with this, majority of respondents also agreed with the fact that good behaviour of
manager is also very important in order to retain employees at workplace. On the basis of their
personal experience, manager of Aldi has stated that when they behave in rude and arrogant
manner, the rate of employee turnover automatically increases. This is because such kind of
behaviour creates sense of dissatisfaction among workers in Aldi and it also lowers down their
productivity. Staffs members are not able to concentrate on their work when they are being
scolded by managers.
The same information has been analyzed from the secondary data gathered by the
research. Friendly and helping behaviour of manager directly encourages employee to stay in
organization for long time period. Such kind of behaviour also allows people in organization to
openly discuss the problem and challenges which they are facing. Further, managers also provide
great efforts to resolves issues which has been faced by employees. Other than this, it has been
also analyzed from the secondary information collected that it is working environment of
businesses needs to be positive and appropriate to carry out work. It can be also stated that if
such kind environment is not maintained then companies are required to deal with several
consequences. One of the major among those is high rate of employee turnover. Some other
consequences involve decline in performance and productivity of organization, low customer
satisfaction rate along with decline in sales and profitability. Therefore, it has been analyzed that
at the time of carrying out their operations, businesses need to work upon the above stated
factors. This will help in retaining workers within organization and will also assist in delivering
more effective products and services to all customers.
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Theme: 5 There are several reasons behind employee turnover.
Analysis: It can be analyzed that from the information collected from various sources
that there are various factors behind high rate of employee turnover. It can be stated that there is
no single reason which can encourage workers to leave organization. The findings of primary
data collected clearly highlights that poor management is one of the common factors among
those. When things are not managed properly, a sense of dissatisfaction is created among
workers and they are being encouraged to switch to another organization. On the other hand,
some respondents has explained that when employee leave their job when they find that
employer do not provide any kind of training and development programs to them. They start
perceiving the fact that their organization is not concern about providing better employment
opportunities to them. In the present scenario, business enterprise is required to understand the
fact that providing training will not only benefit employee but will also provide several kinds of
advantages to the organization. Other than this, it has been also analyzed that boredom another
factors which results in high rate of employee turnover.
The results of both primary and secondary data collected highlights that people in
organization now want challenging work and they are not interested in doing any kind of
monotonous work. This clearly means that organization needs to make sure that they do not offer
staff members with same kind of work routine for long time period. However, it can be argued
that inadequate salaries and incentives can be termed as a major reason behind high rate of
employee turnover in organizations. The findings of both primary and secondary research are in
favour of the above mentioned statement. Inadequate pay in form of salaries and incentives
lower down the morale and motivation level of employees. Further, it also encourages them to
quit their job and work for companies which provides better pay so that they can satisfy their
needs. On contrary of this, changes in organization are another reason of increasing rate of
employee turnover.
The respondents stated that they are required to make changes in process, strategy and
operation's of Aldi at regular intervals in order to sustain in highly competitive marketplace. Rate
of international employee turnover increases when workers are not able to cope up with changes
made in different international stores of Aldi. The same things are observed from secondary
research that employee quit their job when they feel that they are not able to adopt changes made
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in organization. Other than this, businesses are organization is required to make sure that entire
workload is managed in the best possible manner. From the data collected, it has been analyzed
that excessive workload increases stress among people in organization. It also dissatisfies people
working in organization as they are required to provide extensive efforts in order to accomplish
aim and objectives of the same. Therefore, it can be stated that there is no single element which
can be termed as the reason behind employee turnover. There are several factors associated with
it and management is required to consider each and every factor in order to lower down the rate
of employee turnover at international level.
Theme 6: Participative leadership style supports in retention of workers to a great extent.
Analysis: From the data gathered by various sources, it has been analyzed that leadership
style influences the overall rate of employee turnover to a great extent. Furthermore, it can be
stated organizations which has adopted for participative style of leadership are able to retain
employee to a great extent. The results of primary information collected, highlights that in order
to lower down high rate of international employee turnover, participative style of leadership is
very effective. In this style, views and opinions of employees are taken into consideration.
Along with this, they are also encouraged to take part in the decision making process of business
enterprise. This supports them to give more efforts in growth and success of organization. In
addition to this, such kind of leadership style also results in creating sense of satisfaction among
people within companies.
The findings of secondary research also highlight the fact that in order to lower down
employee turnover rate, businesses needs to adopt participative style of leadership. The reason
why the above mentioned style is considered as more effective is that its use results in creating
positive work environment. Further, the employee feels happy and they are able to give their best
towards success of organization. On the other side of this, some respondents argued that it is not
necessary that participative style can always provide benefit to a business enterprise. The use of
this style can slower down the entire decision making process of company. Some respondents
were in favour of autocratic style of leadership and said that it is more effective as compared to
participative style of leadership. However, it has been analyzed that it is not suitable for
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organizations to adopt autocratic style in situation when the rate of employee turnover is very
high.
Theme 7: High rate of employee turnover affects Aldi's ability to serve its customers
Analysis- It has been analyzed that high rate of international employee turnover is not
good for organizations in any case or situation. The data collected from various sources
highlights the fact that organizations are not able to serve their customers effectively in situation
when employee turnover is increasing. At the time of primary data collection, the respondents
explained that Aldi is not able to serve its customers properly in such situations. In supermarkets,
workers are the one which comes in direct contact with customers and when they leave the
organization the quality of service provided to customers is directly affected. It can be also stated
that existing employee are well aware of the organizations culture and structure. Along with this,
it can also be stated that they are clear about the way in which customer’s needs will be
understood and service will be provided. Further, when such employee resign from their post, it
becomes very difficult for businesses to understand needs of customers and satisfy the same. On
the other hand, the results of secondary data collected also highlight the fact that in high rate of
employee turnover, organization needs to carry out the task of recruitment and selection to fill
the vacant position. This increases overall cost of operation and resource utilization of
companies. Further, it is not easy for new employees to understand what customers are
demanding and to deliver satisfactory services to them. Therefore, it has been analyzed that
organization ability to serve its customers is affected by rising employee turnover rate. In order
to provide competitive products and services to all its customers, Aldi needs to take corrective
measures to reduce its rate of international employee turnover.
Theme 8: It has become very essential for organizations to always seek for the ways
through which they can enhance their performance.
Analysis- In the present scenario, the competition among supermarket retail has become
so intense that it has become very complicated for businesses to attract customers. Further, they
are not able to retain even their old customer. From the primary data collected, it has been
analyzed that Aldi needs to seek for the ways through which it can enhance its performance.
Majority of the respondents stated that in highly competitive marketplace, supermarkets need to
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improve performance at regular intervals. They need to make several kinds of improvements in
their products and services in order to retain old ones. In addition to this, they also need to adopt
innovative marketing and promotion strategies so that they can attract customers. On the other
hand, the same thing has been analyzed from the secondary information collected. The
competition among businesses in every industry has is getting intense day by day along with the
passage of time. Nowadays, people in market are available with wide variety of options available
with them in terms of choosing products and services. This has restricted capabilities of
businesses to attract customers. Furthermore, they need to offer products which are different and
unique from other market players. Thus, it can be stated that it has become very important for
businesses to keep on enhancing their overall performance at regular intervals.
Theme: 9: High Employee turnover have various impact on organization.
Analysis: It has been analyzed that high rate of employee turnover has various kind of
impact on organization performance. The results of both primary and secondary data collected
are in the favour of the above mentioned statement. High turnover lowers down overall
effectiveness of a particular business enterprise. Losing valuable employees results in pushing
organization two steps backwards. Along with this, it also creates negative environment within
the entire workplace. It can be stated that when colleagues and co-workers of a particular
employee leave organization, their morale and motivation level is affected to a great extent in
negative terms. Further, employees are not able to concentrate on their work or task during
increasing rate of employee turnover. This directly results in lowering down the effectiveness
and productivity of existing workers. The same findings have been observed from the
information collected with the help of various secondary sources. Employee turnover causes
several kinds of impacts on productivity and efficiency of companies. At the time of primary and
secondary data collection, the researcher has analyzed that various impact of employee turnover
has on overall operations and activities of organization.
Theme 10: There are various strategies are employed by organization for lowering down
the rate of employee turnover.
Analysis: It has been analyzed that there are greater number of strategies that are being
employed by Aldi for the purpose of reducing the rate of employee turnover to a significant
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level. It has been determined that firm increase motivation among the work force by the means
of offering them adequate amount of salaries and wages. Further such acts as an aid in increasing
satisfaction among them to a significant level. This can results in affecting the performance at
work. From the analysis of the responses gained through survey it can be interpreted that by
offering opportunities for growth and development employees can be encouraged which has
greater impact in reducing the amount of turnover of the personnel. It has been determined that
another factor that is being used by Aldi for lowering down the employee turnover includes
discussion of the problem at regular intervals. Such assist in gaining insight to the grievances of
the personnel which can be resolved later for the purpose of increasing satisfaction among the
employees. It can be assessed that fair treatment to the employees is an effective strategy that can
result in increasing work performance and reducing the turnover of personnel to a greater extent.
Theme 11: Exist interviews are conducted in Aldi when employees leave the organization.
Analysis: From the information collected, it has been analyzed that nowadays businesses
has started conducting exist interviews for employee. The results of primary data gathered
highlights that the manager in Aldi carries out such kind of interviews when employee leaves the
organization. Further they are being asked to provide their opinions and views about culture and
environment of organization. Most of the time of such in interviews is conducted by human
resource manager of Aldi. The objective behind this is to identify what are reasons due to which
a particular employee has resigned from his/her post. Sometimes employee leaves because they
do not like work environment or the pay is inadequate. On the other hand, the findings of
secondary research reflects that in order to lower down the rate of employee turnover businesses
are required to conduct exist interviews. The benefits of such interviews are that it make
organization aware about areas in which they are lacking. Further by working upon the feedback
and review of employees and taking corrective measures the problem of increasing employee
turnover can be solved.
Theme 12: High rate of employee turnover is also because of discrimination at workplace.
Analysis: From the information collected, it has been analyzed that manager needs to
make sure that they do not encourage any kind of discrimination at workplace. From the primary
data collected, it has been observed by researcher that the majority of respondent agrees that
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workplace discrimination also results in rising up rate of employee turnover. The same results
are obtained from secondary sources that employee are encouraged to leave a particular
organization in situations when partiality exist in organization. Business needs to make sure that
they do not encourage any kind of discrimination on the basis of age, gender or other variables.
Furthermore, the growth and development opportunities should be provided equally. This not
only creates a health and positive workplace but also results in enhancing overall productivity of
workers. Therefore, it has been analyzed that in order to reduce employee turnover rate, it need
to eliminate workplace discrimination.
Theme 13: Aldi is required to maintain low rate of international employee turnover in
order to perform better in the future.
Analysis: From the information collected, it has been analyzed that it is not easy for
organization to sustain in global market place and it is required by them, to lower down the rate
of employee turnover. It can be stated that in performance can be enhanced only in situation
where skilled and productive employee remain within organization. Such kind of employee will
be able to deal with customers in more effective manner. The same results have been identified
from secondary information collected that the low rate of employee turnover provides
organization with better growth and development opportunities in the future.
CHAPTER -5 CONCLUSION AND RECOMMENDATION
5.1 Conclusion
From the above study, it can be concluded that high international employee turnover
places a negative influence on the growth and performance of Aldi. There are several factors
which may be the cause of high employee turnover. Low level of motivation and satisfaction is
one of the main factors which may result into high employee turnover. Besides this, culture and
structure of the organization also has high level of influence on the workers. When, culture of the
business is not positive then employees are discouraged to work with their existing business unit.
Further, it can be inferred that now employees prefer to work with the organization who
offers more learning and development opportunities to them. It is also the most significant factor
which may cause of high employee turnover. All these factors negatively hamper the
productivity and profitability of Aldi. Moreover, business organization makes huge investment in
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the recruitment and selection of the personnel who are highly skilled in nature. Further, business
enterprise also spends high for the training and development of the personnel. In this, if skilled
personnel leave the organization then sales a gross margin of Aldi is highly affected. Moreover,
older employees are highly productive as compared to the newer one. Moreover, old employees
have complete idea about the ways in which they need to perform the work. Thus, when skilled
and competent personnel leave the organization then sales growth of the firm is also affected.
Besides this, it can be concluded that employees are considered as an important asset of
the business enterprise. Organization cannot perform their activities and functions without the
availability of skilled personnel. Nevertheless, in the present time employee turnover is
significantly raise sat global level. Thus, it is the most significant issue which is facing by Aldi in
the present level. Moreover, in retail industry employees plays a vital role in delivering the
product or services to the customers. Furthermore, satisfaction and loyalty aspect of the
customers are highly influenced by the services which are offered by the personnel. In this, if
employee turnover increases then Aldi is not in condition to offer the quality services to the
customers. From survey, it has been identifying that employee turnover is also impacted by the
environment in which they work. If staff of the business unit is not supportive in nature then it
also places negative impact on the performance personnel. Along with it, behaviour and attitude
of manager is also affects the employees decision making. When manager does not involve their
personnel during the process of taking decision, the satisfaction level of employees is directly
affected. In addition to this, when manager behave with the employees in accurate manner then it
may also turn into high level of employees turnover.
By summing up this assertion, it can also be articulated that lack of training and
development activity is one of the main factors due to this employee turnover increases. Now,
young people have desire to learn the new ways of performing work which helps them in
building the bright future or career. In the present era the companies do not give much training as
it hires highly talented personnel. This is due to the reason that it wants to reduce the cost that is
incurred due to organization of training and development programme. This has huge impact on
the motivation level of the employees that affects the employee’s turnover to a significant level.
It can be inferred from the exploration of the study that the type of leadership that exists
within the organization plays significant role in determining the employee’s turnover to a greater
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extent. The present report presents that through participative leadership style business can retain
large number of personnel. This is because such acts as an aid in increasing motivation among
the workforce to a significant level. When, personnel are allowed to take part in the process of
decision making then such results in building healthy environment within the organization that
would later enhance the performance of work in appropriate way. In addition to this the present
report concludes that as a reason of higher employee turnover ability of the organization such as
Aldi gets affected in terms of serving the needs of the customers in effective manner. When
employees are not satisfied then they make delivery of quality services to the customers. In
situation when retention of personnel is less than there is greater chances that performance of the
firm is affected adversely. It has been inferred from the study that it is important for the business
to examine the manner in which it can enhance its performance. This is because such would
assist the organization in attainment of pre-determined goals with effectiveness.
It has been explored from the study that there is greater impact of employee turnover on
the firm. This is in terms of decreasing the productivity of the existing work force. It is due to the
result in increasing the turnover of employees in the firm. On the other hand high turnover leads
to creation of negative environment within the firm that affects the attainment of pre-determined
goals within the firm to a significant level. It has been inferred from the report that the role of
Exist interview is critical while the employee is leaving the job. Along with that, it assists in
making determination of the reason due to which the employee has left the job. Thus,
improvements can be bought within firm.
5.2 Recommendations
This part of the dissertation covers potential suggestions which can be beneficial for
business to reduce the amount of turnover. With this firm can attain its per-determined set of
targets in effective manner. Following are the recommendations that need to be considered by
the firm in effective manner:
It is important for the company to provide employees with the facility of flexible working
hours so that they can work with greater effectiveness. Sometimes the employees are late
due to their personal issue. But this can be resolved by the means of offering them
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flexible working hours. Such is effective in offering them greater satisfaction to work and
enhancer their performance to a significant level.
It is suggested to Aldi to offer employees with performance based incentives. This acts as
means of encouragement that can assist in increasing their performance to a greater
extent. In addition to this by providing remuneration in terms of financial and non
financial terms business can increase the retention of the workforce within the business to
a greater extent. This would result in enhancing the overall performance of business. This
in turn would assist the firm in attaining desired targets within specified duration of time.
Incentive acts a type of motivation for the employees that facilitates in boosting their
morale to work with full zeal and enthusiasm. This results in increasing their work
performance with effectiveness.
It is being suggested to the organization to provide facility to the employees regarding
assistance to their families. This is relating with offering facility of schools, hospital for
the members of the work force. Such assist in reducing the turnover of the personnel as
they are offered with facility for their family which is their primary motive.
It is recommended to the business to ensure management of work pressure. As such it
acts as an aid for them in providing them better motivation to work in the best possible
manner. When the employees are overloaded with work then it becomes important for the
business to manage the work in effective manner so that employees get motivated to
work. In situation when there is greater work load it becomes important for the personnel
to delegate the work appropriately.
5.3 Limitations and future research
At the time of carrying out this particular research, the scholar has faced limitations
regarding time was limited available as well as with restricted authentic sources created
constraints to gather quality of information regarding the selected topic. Furthermore, permission
of the respondents causes various hindrances as people took lot of time to provide their responses
regarding the various aspects of the selected topic. In future research can be carried out regarding
ways through which business can lower down rate of employee turnover. On the other side of
this, same research can be conducted in other sectors such as hospitality or retail in the future.
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APPENDIX
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QUESTIONNAIRE
Name_____________
Gender
Male
Female
Age
18-30 Years
31-40 Years
41-50 Years
51-60 Years
60 and above
1. Do you think that employees are the biggest assets of any organization?
Yes
No
Can't say
2. In the present era, employee turnover has emerged as major issue which has been faced by
your organization?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
3. Employee serving period is higher in old employees in comparison with the young ones?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
4. Behaviour of manager and work environment are some common factors which results in high
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rate of employee turnover?
Yes
No
Can't say
5. As per your opinion, what is the major reason behind employee turnover?
Poor management
No training and development sessions
Boredom
Inadequate salaries and incentives
Frequent changes
Excessive workload
All the above
6. Participative leadership style helps in retaining employees in Aldi?
Yes
No
Can't say
7. Employee turnover also affects the ability of Aldi to serve their customers in effective
manner?
Yes
No
Can't say
8. In the modern era, it has become very important for Aldi to seek for the ways to improve its
performance?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
9. What is the major impact of employee turnover on organizations?
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Lower down overall effectiveness
Creates negative environment
Decreases productivity of existing workers
Dissatisfaction among employees
Other than this
All the above
10. What are the strategies employed by your organization to lower down the rate of employee
turnover?
Adequate salaries and pay
By providing growth and development opportunities
Giving training sessions to workers
By discussing problems faced by employees at regular intervals
treating employees fairly
All the above
Other than this
11. Do you conduct exit interviews for employees who resign from the organization?
Yes
No
12. Discrimination at workplace results in increasing employee turnover rate?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
13. In order to perform better in the future, Aldi is required to maintain low rate of employee
turnover?
Strongly agree
Agree
Neutral
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