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Investigation of Employee Turnover

Free Sample on the Investigation of Employee Turnover

Staff and Worker Turnover

The issue of worker turnover in the eatery business is the genuine territory of sympathy toward the entire administration. The investigation of this theme is stopped great in both hypothetical and functional terms through which I can not just pick up my hypothetical information about reason for representative turnover and maintenance systems, yet it enhances my handy learning how this issue adversely influence the entire association. The principle reason for my thesis is to examine the issue of high staff and worker turnover at Dominos Pizza. The primary center of the paper is given on the examination of the significant reasons for worker turnover, the part of HRM in recovering with this issue and suggestions to the administration in regards to maintenance procedures.

The essential system for information gathering strategy is decided for the exploration work. The essential information is using so as to amass review through survey. The study analyzed 75 ex-workers of Dominos Pizza to recognize the conceivable reasons of taking off. The reasons of the turnover or aim to stop given by ex-workers were discovered fundamentally same.The consequences of the study mirrors that the issue of high staff turnover at Dominos is primarily due to three top reasons incorporate low wage increase, low professional success opportunities and low employment fulfillment. Moreover, the other real reasons for turnover incorporate incapable HR hones, workplace, professional stability, relationship in the middle of business and representative, low responsibility et cetera.

An exhaustive investigation of the thesis would be useful in recognizing fitting maintenance programs and systems to control over the issue of high representative turnover inside of eatery business segment.

Introduction to employee turnover 

The dissertation is based on the issue of staff turnover, which is one of the serious areas of concern for each and every business organization. The success and failure of an organization is greatly depended manager’s practices to deal with employee turnover. The problem of employee turnover is not only induces problems related to cost, but also it affects the productivity and service efficiency (Woodner 1999, p. 21). Employee turnover is the one of the seemingly intractable HR challenges that has been faced by number of organizations. As a result of high employee turnover, organizations bear number of costs. Some of the costs incurred due to this problem are productivity lost, high hiring and recruitment costs, cost of training, customer satisfaction loss, and low sales turnover loss and so on.

An organization needs to look after and take deep interest in the employee turnover rate as this is very expensive part of flourishing business and its activities (Armstrong, 2006). In context to the research topic, store performance is negatively affected by increasing rate of employee turnover and thereby; it is essential to be focused on the turnover causes (Ton and Huckman, 2008). From this, it is seen that increased rate of employee turnover is not only loss in terms of productivity and net revenues, but it raises other costs. The most commonly or likely reasons for leaving to new job are organization culture, unrealistic expectations, economy, and work environment. A thorough analysis of this dissertation will provide depth knowledge of employee turnover to the learner in terms of major causes and its negative impact on an organizations and customer services. 

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In context to this topic, the research is being conducted in the area of restaurant sector to investigate about employee turnover issue. The main focus of the dissertation is to investigate on staff turnover specifically in case of Dominos Pizza. In context to this, Bernardin (2008) has noted the case study of Domino’s or study did by David Brandon (Domino’s Pizza, CEO). As per CEO study, it is seen that marketing and packaging was not significant factors related to success or failure of any individual store, but it has greatly been relied upon the store managers practices and management tactics (Domino’s Pizza: Change is good, 2008).

In the similar context, the company’s managements need to investigate the major causes of high staff turnover issue because this is directly linked with store profit and competitive position. It is also found from Domino’s case study that £2500 costs has been incurred by the company due to staff turnover each time when an employee works as on hourly bases lays off of present job and the costs of store manager quits is £20000. It is seen that high employee turnover at Domino’s Pizza store is very serious issue. According to latest report of CIPD (2010), the top three reasons of living the job and switch to other companies in the UK is to better job satisfaction equals 61% to learn new skills and develop career equals 40% and lastly for better benefits and pay equals 48% (Employee outlook Forecast from the front line remains unsettled. 2010).

As a result, it is found that rate of staff turnover at Domino’s Pizza was reduced as recorded in the year 2006. From this, it is analyzed that an effective HRM is very important in order to keep talented and skills employees along with to assess performance on job (Bernardin 2008, p.176). The example of Dominos Pizza to investigate staff turnover issue and importance of HRM practices is the best case study to recall how costly and serious might be the problem of employee turnover for organizations. Moreover, high rate of staff turnover is considered as costly concern in the sector of fast food. It is found that turnover rates in this section is about 200% for a year in both hourly workers and store managers cases, while; it is only 10-15% in case of small and large scale organizations . 

The new stores of Domino’s have experienced staff turnover $1mm from as stated in the referred article (Domino’s new stores to have turnover of over $1mm from day one, 2011). With this, it can be estimated that turnover problem is highly major issue that chronically affect organizations productivity and lessen profitability. In relevance to dissertation topic, it is found that store manager leaving job in every 3 to 6 months at Domino’s Pizza stores. The major cause of high staff turnover at Domino’s stores is that stores are mainly works with hourly worker at low wages and thus, workers can quit from job if they do not find suitable and flexible working environment (Kreitner, 2008).

In the similar context, another identified problem of staff turnover at Dominos is the repetitive nature of work that makes work boredom. In addition to this, lack of flexibility at stores is another major cause of high turnover (The Domino’s Theory of Keeping Employees, 2005). Overall, a thorough study of the dissertation helps in identifying and analyzing the high rate of staff turnover at fast food stores and at what extent, an organization performance is negatively affected due to this costly issue.

The number of valid and effective strategies is used Dominos Pizza store to select right candidate for the right job as per requirements and also computerized system has also been used to improve employees’ performance and their work interest and efficiency (Domino’s trying to reduce employee turnover, n.d.).

Research Question

The research is aimed to investigate staff turnover in context to the Domino’s Pizza stores. In relation to the given dissertation topic, the main research question is,

“How problem of staff turnover at Dominos affect its productivity and service quality and investigate major causes of high staff turnover at Dominos?”

An analysis of the research question helps in knowing how critical might be the staff turnover problem for food fast business sector. The related sub-questions are being addressed throughout dissertation:


• How high staff turnover at Dominos Pizza has badly been affected stores sales and profitability growth?
• What are major causes of high staff turnover at Dominos?
• To what extent the problem of staff turnover hinges upon human resources management practices?

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Aims and Objectives

This is the most significant part of the dissertation that depicts about the main aim and objectives explores in the research planned. The main research aim is to researches out staff turnover problem in Dominos to identify rate of turnover, major causes and HR managers actions and tools is used to control over high turnover. Straight forwardly, the research planned is being focused on the major causes of high staff turnover at Dominos Pizza stores.

The main objectives of the research that are being explored throughout the research study are depicted as follows:

  • To investigate the major causes of the employee turnover in the organizations from reviewing relevant and up to date literary sources.
  • To assess HR management role in handling with high staff turnover. 
  • To make recommendations to management regarding retention strategies in order to reduce the high levels of staff turnover.

Rationale of the Research

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Human resources management tools and practices are played a very tremendous role in managing and controlling over high employee turnover problem. The issue of staff turnover in the fast food sector is very serious and costly issue as this induces various problem for organizations such as low performance and productivity, negative sales and profitability, low customer service and directly affect customer satisfaction (Ongori, 2007). In context to this, the staff turnover problem should be considered as serious issue and organizations needs to take effective HR actions to control over high employee turnover rate. The study of the employee turnover problem in this sector is worthwhile study through which researcher can learn and evaluate relationship between staff turnover and HRM.

The significance of the research study can be seen in terms of theoretical as well as practical terms and thereby, the study would be quit benefited for the learners. In addition to this, the research in this area would improve my knowledge about how employee turnover negatively affect overall organizations performance and thus, a thorough study would be benefited in investigating how important is to consider employee turnover problem in order to retain trained and skilled workers for a longer period.

Summary

The research main focus is to investigate staff turnover problem at Dominos. Employee turnover is the one of the serious areas of concern for an organization. This is because business performance, sales and profitability are greatly affected by high employee turnover. Besides that, this problem increases costs to organization in terms of new employees hiring and training costs. It is also summed that staff turnover rate at fast food industry is quit high in comparison to the small and large scale problems due to inefficient HR practices and selection process. The research explores how serious is the employee turnover problem at Dominos along with what are major causes of high turnover rate. Altogether, it is summed up that employee turnover is directly related to organizations sales and profits and thus, there needs a great attention to look after problem of high employee turnover.

References

  • Aarons, G. A. and Sawitzky, A.C., 2006. Organizational Climate Partially Mediates the Effect of Culture on Work Attitudes and Staff Turnover in Mental Health Services. Adm Policy Mental Health 33(4), pp. 289-301.
  • Acton, T. and Golden, W., 2002 [Online].. Training: The Way to Retain Valuable IT Employees?. Available at: <http://informingscience.org/proceedings/IS2002Proceedings/papers/acton140train.pdf >. [Accessed 27 January 28, 2012].
  • Armstrong, M., 2006. Human Resource Management Practice. 10th ed. London: Kogan Page.
  • Bartlett, C.A. and Ghoshal, S., 1994. Changing the role of top management beyond strategy to purpose. Harvard Business Review. Available at: <http://hattonconcepts.com/media/papers/competitiveness/Beyond%20Strategy%20to%20Purpose.pdf>. [Accessed 2 January 2012].
  • Bernardin, H.J. 2008. Human Resource Management. 4th ed. McGraw-Hill Education.
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