Study is based on Aldi | Dissertation

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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