The effect of labour turnover on organisational performance in Bata Shoe Company, Uganda Limited

Abstract

The study examines the effect of Labour Turnover on Organisational Performance with particular reference to Bata Shoe Company (Uganda) Limited. It was focused on establishing the impact of high labour turnover on an organisation. Particular focus is placed on examining the factors that lead to labour layoff by management of BSC, examining the existing human resource plan, policies and its effects on labour turnover and organisational performance, to ascertain the extent to which customer complaints affect organisational performance; to develop staff retention strategies which will lead to organisational performance and to identity leadership and managerial skills which would improve organistional performance.

Major conclusions include: human resource policies and plans were favouring the management Department; The Human Resource Department does not have the autonomy to make decisions on its own; BSC(U) Ltd has varying working conditions; Poor handling of grievances by management; Inadequate room for staff training and development; Customer complaints affect their performance; no Customer Care Service Department at BSC; Low pay; Inadequate staff retention strategy; Management and leadership skills within BSC are not good enough; most decisions made are autocratic and no induction programmes at BSC.

The study recommends that: Career counselling should be introduced; Long-term incentives to prevent turnover; Staff Retention Strategies; BSC should have a clearly well stated salary structure; BSC needs to have orientation programmes; In-house training and seminars about leadership and management skills should be introduced.