Impact of Staff Turnover at United Finance Company SAOG Report

This dissertation report focuses on the critical issue of staff turnover within United Finance Company SAOG, an Oman-based financial institution. The study investigates the impact of employee turnover on the company's business growth and success. The research employs various analytical models and frameworks, including Mind Mapping, the Five Whys, Soft System Methodology, Hard System Methodology, and Fishbone analysis, to identify the root causes and effects of high employee turnover. The report examines the concept of unstable staff turnover, its impact on the business environment, the issues it replicates, the relationship between turnover and employee sustainability, and the strategies the company employs to address the problem. The analysis utilizes secondary data to explore the problem and presents a comprehensive review of the literature, followed by conclusions and recommendations to mitigate the negative effects of staff turnover and improve organizational performance. The report aims to understand and mitigate the impact of staff turnover on the business environment and employee sustainability at United Finance Company SAOG.

Dissertation

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................1
ASSESSMENT 2: REPORT ..........................................................................................................1
TITLE: ............................................................................................................................................1
Introduction......................................................................................................................................1
Analysis ...........................................................................................................................................4
Value Chain Analysis................................................................................................................11
Critical Review of Literature ........................................................................................................14
CONCLUSION .............................................................................................................................22
RECOMMENDATION.................................................................................................................22
ASSESSMENT 2: REFLECTIVE.................................................................................................24
REFERENCES..............................................................................................................................29

EXECUTIVE SUMMARY
Staff turnover introduces to the percentage or number of employees who leave an
enterprise and are replaced by other workers. Measuring turnover of employees can be essential
to managers or an organisation that need to analyse main research behind turnover or estimate
the hiring cost for budget purpose. Main purpose for conducting this dissertation is to analysis
impact of staff turnover issue on business growth and success of united finance company SAOG.
For this dissertation, different models or framework have been used by researcher such as Mind
Mapping, The five Whys, Soft System Methodology, Hard System Methodology and Fish bone
analysis. All these are identified as a best model which will support an organisation to overcome
impact on high employee turnover on their profitability and productivity (Aarons and et. al.,
2012). For this, different objectives were addressed by the investigator such as concept of
unstable staff turnover in the context of business, impact of unstable staff turnover on the
business environment of United Finance Company SAOG., issues that replicates through
unstable staff turnover within United Finance Company SAOG, relationship between unstable
staff turnover and employees sustainability and different ways that are considered by United
Finance Company SAOG to addressing the issue of unstable staff turnover. Along with this,
literature review were also used for identifying opinion of authors about the topic. Al last,
conclusion and recommendation have been done for fulfilling issues of staff turnover.
ASSESSMENT 2: REPORT
TITLE:
“Staff turnover at united finance company SAOG”.
Introduction
Problem Statement
The dissertation is based on the issue related with financial company as “United Finance
company is facing a problem of unstable staff turnover which is taking place as the
employees are leaving their jobs for some other opportunities”.
Overview of the Research
In the era of globalisation, it has been regarded to be a key consideration to deal with
unstable employee turnover for any organisational concern. Unstable staff turnover is a wide
1

issue, particularly in the area of human resource management and has a huge impact over the
operations of an organisation or its performance. In the financial sector the potential motive of
each business organisation is to enhancing performance of the firm through reducing extra
employee turnover. Each business organisation is concern over minimising turnover and gaining
more benefits from the employees. United Finance Company SAOG is the chosen organisation
for this particular project, it is a Oman based finance company which successfully operates its
business operations from there (Brandt, Bielitz and Georgi, 2016). The company operates at
large level and facing the issue of unstable staff turnover, thus this is a wide issue which has
influences the sustainability of employees they they are leaving their jobs for some other
opportunities. This dissertation will covers the analysis of the issue of unstable staff turnover and
how it could affect the sustainability and performance of employees within United Finance
Company SAOG.
Background of the Organisation
United Finance Company SAOG is a financial company which is based in Oman and
operating its business functions from 8 different location which involves Ibra, Sohar, Nizwa,
Barka, Ibri, Mawaleh & Salalah. The company was founded in the year of 1997. The company
mainly deals in variety of products and services that are connected with financial aspects like
financing products, corporate deposits and Banc Assurance. The organisation has started its
business operations with around the capital of 5 million with its main office which is situated in
Muscat and 5 rivals with 4 being older then 10 years in 1997. The major objective of the firm is
to capturing a wide area of market through providing effective services and benefits to its clients.
Another potential aim of the firm is to increasing its profitability by 10 percent in upcoming two
years by improvising quality of services and reducing the high staff turnover (Chu, C. H.,
Wodchis, W. P. and McGilton, K. S., 2014).
Research Aim
This Considered as the most essential aspect of an exploration work, thus it provides a
significant direction to the researcher to implement all investigation activities in right manner.
The potential aim of this particular research is "To analyse the impact of unstable staff turnover
on employees performance and sustainability". A case study on United Finance Company
SAOG.
Research Objectives
2

Significant objectives of this specific research are associated as under:
 To understand the concept of unstable staff turnover in the context of business.
 To determine the impact of unstable staff turnover on the business environment of
United Finance Company SAOG.
 To identify the issues that replicates through unstable staff turnover within United
Finance Company SAOG.
 To evaluate the relationship between unstable staff turnover and employees
sustainability. To identify the ways that are considered by United Finance Company SAOG to
addressing the issue of unstable staff turnover.
Research Questions
The major questions that covers the aim and objective in appropriate manner are associated as
under:
 What is the concept of unstable staff turnover in the context of business?
 What is the impact of unstable staff turnover on the business environment of United
Finance Company SAOG?
 What are the potential issues that replicates through unstable staff turnover within United
Finance Company SAOG?
 What is the relationship between unstable staff turnover and employees sustainability? What ways are considered by United Finance Company SAOG to addressing the issue of
unstable staff turnover?
Methods for Analysis
This is also another essential aspect of research which provides a systematic direction to
the investigator to implement all exploration activities in right manner. Major consideration of an
investigator is to select the most suitable methodology in respect to carry out the work in proper
manner (Currie and Hill, 2012). A research is either quantitative and quantitative in nature, thus
in this particular investigation work qualitative investigation tool will be applicable because it is
effective in providing detailed analysis on an issue with the support of appropriate hypothesis
and theories. Along with this data is being gathered through secondary sources because the
present exploration work is based on qualitative investigation in which secondary tools will
effective in drawing a valid and accurate outcome.
3

Analysis
This section work toward performing analysis over the information gathered regarding
the particular issues that are facing by company which leads to staff turnover. This evaluation
will be performed with the help of using several theoretical models or framework that will
provide a guidance regarding systematic evaluation of effect as well as cause behind a particular
area of concern. As there are number of issues prevailing in United Finance Company SAOG
which leads to increase in staff turnover which includes, not proper support from employer, lack
of monetary benefits except salary, extra working hour, unstable fund position etc. In order to
overcome staff turnover issues, several solutions can be adopted by United Finance Company
SAOG which support it in overcoming issues of staff turnover such as providing employees
incentives over their efforts, flexible working hour, working in shifts, adoption of autocratic
leadership etc. Apart from this the analysis will be performed over several factors that are
interconnected with the performance of United Finance Company SAOG (Dawson and et. al.,
2014). In this present investigation work unstable staff turnover is the issue which is faces by
United Finance Company in their business operations. This section is effective conducting
analysis on basis of theories and models that are applicable towards the specified area of study.
Some significant models related with this area of study are associated as below:
Mind Mapping
A mind map is considered as a digram which is used to visually organize data or
information. It is a visual thinking tool which helps structuring data, or helping the firm or an
individual in to effective analyse, synthesize, comprehend, recall or generate new or unique
ideas. The diagram of mind map represent the tasks, words and concept arranged around a
subject using a non linear graphical layout. This will allow the user to build a model around a
central concept. Mind mapping is also refers as the tool for the brain which captures the thinking
that goes on inside the head of an organisation or individual. Mind map helps an individual to
think, remember, collect knowledge or create ideas (Duffield and et. al., 2014). However this
tool is effective in making an individual more better thinker. It is an easy path to brainstorm by
organically without worrying in regards to the structure and order, it basically allows an
individual to visually develop an idea that helps them in effectively conducting analysis and
recall. This tool is basically effective in representing the proper structure of an organisational
4

operations and working. This tool is significantly applied through the businesses in respect to
reaching at appropriate data of a central world. It can guide to determine the factors which are
causing issues for the businesses. When all the aspects of the conflicts are identified than it helps
the firm in analysing an appropriate solution for the issue which has some sort of influence over
the businesses and its operations. Mind maps can be best used for solving the problem,
presenting the information, gaining the knowledge on complex subject, and researching or
unifying the information from number of sources. As a large finance industry the United Finance
Company is dealing with the difficulty of unstable staff turnover which recognised as the major
issue and has a wide impact on the overall operations and functions of firm. So, the managers of
the business entity can use this technique to find solution for the trouble as this tool is effective
in providing an appropriate structure to proper execution of operations and provide solutions for
conflicts (Green, Miller and Aarons, 2013). A mind map is considered as a digram which is
effective for representing organisational task, words, concepts or items that are linked to the
operations of the firm and managed across a central concept or subject applying a non liner
graphical layout which allow the user to build an intuitive framework across a central concept. A
mind map is also refer as an effective platform for determining an organisation, developing
decision or anticipating key risk and threats. The divergent nature of a Mind Map allows
limitless enlargement of knowledge or idea whilst keeping a consistent and managed structure
that is effective in rendering the whole picture in one visual snapshot to a business in regards to
its operations and functions. A mind map can be used as content management system. This will
allow the data to store in an organised manner. By using various software of mind mapping files
can be easily attached to other deaprtmnent, this will increase the flexibility The management of
United Finance Company has concern over using the tool of mind mapping and develops a wider
area to implement organisational operations in effective manner and proper solutions can be
implemented on the issue of research.
The five Whys
The five whys is considered as an effective technique for making root cause analysis in
the lean management arsenal. This also refers as an iterative interrogative tool which is applied
by a business to explore the cause-and-effect relationships underlying a specific trouble. The
primary goal of this tool is to find out the root cause of a defect or problem by repeating the
question "Why?". Thus it is effective in providing effective details in regards to a specified area
5

of study. It is one of the simplest tool which is used to do analysis without the use of statistical
data. This method is most useful when the problems which are involved use human factors and
their interaction It is an interactive and interrogative tool that is applied to determine the
interrelationship among the cause and effect of an issue (Halter and et. al., 2017). This method
can be used by the top executives of United Finance Company in order to analyse the real cause
of problem and then find appropriate solution for the same. Issues and conflicts are unwanted in
nature thus these can arises in any situation or circumstances. Problems are also recognised as
the symptoms of inside issues, that are required to be fixed by organisations for smooth
functioning or organisational operations and functions. Fixing an issue quickly may be a
convenient answer, however, it doesn’t defend an organisational work process from recurring
issues and mistakes. This is why an organisation requires to focus on finding the root cause and
tackle it properly. This method is effective in conducting in-depth analysis on the issues which
has a huge impact over the performance of firm. Staff turnover is a big challenge which is
necessary for a business to overcome in respect to maintaining smoothing functioning of
organisational operations. This tools is effectively providing in-depth evaluation on the issue,
thus it is essential for the organisation or its management to conduct detailed investigation are
reaching at the root cause in respect to implement valid and reliable solution to address the issue
in effective manner. Engaged employees always contribute to the full extent of knowledge and
helps the organisation to succeed and encourage other to do their best. They always identify the
mission and vision and establish a real connection of the work they are doing. There are various
models to know about employees engagement. One of them is discussed below:
IES model of Engagement: this model demonstrate the strong relationship between feeling
valued , involved and engagement. A feeling of involved is get through cooperation, family ,
communication and feeling of valued is earned by equal opportunities, training and development.
Soft System Methodology:
Soft system methodology is refers as an approach to organisational process modelling
and it can be applied both for general issue solving or in the management of change. It was
basically created by organisations in respect to solving issues that hampers the operations and
functions of firm. This is also an essential problem solving method which helps an organisation
to find appropriate solutions for the issues that causes trouble in the operations of firm. This tools
6

is significantly applied by United Finance Company in respect to assisting the way in which
issue related with unstable staff turnover can be addressed (Hayes and et. al., 2012). SSM is not a
system design tool, but a tool for system requirements investigation. However systems analysis
tools, such as entity-relationship modelling or data-flow diagrams, which allow the designer to
model how the system should operate, Soft System Methodology questions what operations the
system should perform and, more importantly, why. Moreover, Soft system methodology renders
a soft investigation that can be applied to precede the hard research.
(Source: Soft System Methodology, 2019)
Hard System Methodology
Hard System Methodology: This technique is defined as a tool which is used to analyse
the system by solving the problem quickly. It is a rigid technique and procedure which provides
unambiguous solution to well defined data and processing problems. This methodology is used
to analyse and evaluate the problem in order to resolve a problem (Hundera, 2014). It is a system
7
Illustration 1: Soft System Methodology:

based process which is used to identify the problem which will help in implementing the change
and fixing things. In United finance company it is used to identify the opportunities or problems
existing in the real world and the problems given will be well-defined. It is used to address both
quantitative and qualitative problems. This technique is useful for united finance company as it
will help the managers to reach the actual cause of problems.
(Source: Hard System Methodology, 2018)
Fish bone analysis
Fish bone analysis is a graphical presentation that displays the possible cause of a
problem. This was first used in 1920. It is known as Fishbone diagram because of its shape It is
also known by the name of Ishakawa diagram as it was popular in 1960s by Kaoru Ishikawa. It is
a visual way to look at cause and effect. Manager of united finance company also use this
technique for solution of problem of unstable employee turnover (Jeon and et. al., 2015). The
company display problem at the head or mouth of the fish. Possible causes are listed on smaller
bones. There are certain benefit of using this analysis. Some of them are discussed below:
8
Illustration 2: Hard System Methodology

 Display the relationship: The fish bone diagram display the relationship clearly and
logically. In other word relation can be easily understood at a glance. This will help the
united finance in understanding the nature of each and display the relationship.
 Display all cause: The fish bone diagram elaborate each and every problem which is
beneficial in a single diagram. By this United Finance company can presenting the
problem and solutions to stakeholders.
 Stimulate problem solving: By seeing all the reason in a diagram will help the team to
find out the best solution for the problem.
 Maintaining team focus: The fish bone analysis will help the team to be very focused so
that the problem can be solved easily and a goal can be achieved. It also ensures that
everybody is involved in the same focus and no one is wasting time for other problems.
The Fishbone diagram not only help united finance company to identify the cause of problem
that hampers the growth of company rather it is also used to avoid their occurrence in the future
(Jeon and et. al., 2015). By looking in the past what problem have arrived and by planning the
things for the coming future.
 Looking back in the past: By this united finance company will look into the past
whatever mistake it has made. Then will analyse the mistake and finding all the possible
cause for the same. This will help the company to take all the possible measures to
prevent such type of mistakes and problems in the future.
 Looking into the future: This step involves evaluating the future and planning for them
in advance. In this United Finance company will discuss about the problems that could
arise in near future. Company also make plans to attain success in future.
9