Professional Documents
Culture Documents
To attain this objective, the research was used both primary and secondary source of data the
primary source of data collected by questionnaire and interview. The secondary source of data
collected from written materials and internet. in addition this un structured interview was
conducted the manager and staff workers after the data collected the researcher analysis and
interpreted the data using descriptive types of research and presented using table and
percentage . The sample size was 2o% of the total population in probability sampling techniques
specifically a simple random sampling technique.
The researcher findings clearly suggest that human resource planning contribute various
benefits to employees of Hamaressa Edible oil S.C.This leads to minimizing the rate of turnover
in the organization.
Acknowledgment
First of all we would like to praise almighty ALLAH for this charity kindness and for giving us
the strength to bring our longtime dream and effort into reality. Next we would like to extend our
most profound gratitude and sincere appreciation to Ato Abdulahimed our advisor for his great
contribution in giving advice, suggestion, correction and comments, guidance from the beginning
of the topic selection up the end of Research.
Last but not least our deepest appreciation goes I would like to express appreciation my family
for continuous encouragement and provide moral and financial support.
Table of Contents
CHAPTER ONE..................................................................................................................6
1. Introduction to the title....................................................................................................6
1.1 Background of the study........................................................................................................6
1.2 Background of the organization.............................................................................................7
1.3 STATEMENT OF THE PROBLEM......................................................................................8
1.4 Research Question...............................................................................................................9
1.5 Objective of the study............................................................................................................9
1.5.1 General Objectivity.........................................................................................................9
1.5.2 Specific Objective...........................................................................................................9
1.6 Significant of the Study.......................................................................................................10
1.7 Scope and Limitation of the Study......................................................................................10
1.8 The Organization paper........................................................................................................11
CHAPTER TWO...............................................................................................................12
REVIEW OF LITERATURE............................................................................................12
2.1 Human resource management and planning........................................................................12
2.2 Employee turns over............................................................................................................14
2.3 TYPES AND FORM OF JOB TERMINATION.................................................................15
2.3.1. A VOLUNTARY RESIGNATIONS............................................................................15
2.3.2 Causes of voluntary resignation....................................................................................16
2.3.3 FORCED RESIGNATION...........................................................................................19
2.4 ASSESSEMENT OF EMPLOYEE TURN OVER.............................................................22
2.4.1 DIRECT AND INDIRECT COST................................................................................23
2.5 Data on the effect of Administrative issues.....................................................................24
2.6 THE CONTRIBUTION OF HRP...................................................................................24
2.6.1. Job trending for employees..........................................................................................24
2.6.2 Improve Salary..............................................................................................................24
CAPTER THREE..............................................................................................................26
3 RESEARCH DESIGN AND METHOLOGY................................................................26
3.1 Source and types of Data.....................................................................................................26
3..2. Methodology of data Collection.......................................................................................26
3.3 Population and Sample sizes...............................................................................................26
3.4 Sampling Techniques...........................................................................................................27
3.5 Methods of data Analysis and Interpretations.....................................................................27
CHAPTER FOUR.............................................................................................................27
4. DATA PRESENTATION AN ANALYSIS....................................................................27
4.1 Demographic variable..........................................................................................................28
4.2 ACTUAL TURNOVER RATE OF EMPLOYEES.............................................................29
1.2 FORMS OF TURN OVER.............................................................................................30
4.4 ENVIROMEVTAL CONDUTION.....................................................................................32
3.5. THE CNTRIBUTION OF HRP IN KFSC......................................................................32
4.6 ADMIISTRATION ISSUES...........................................................................................36
4.7 DATA ON THE IMPACT OF EMPLOYEES TURNOVER..........................................37
Direct cost: according to the data of respondents......................................................................38
CHAPTER FIVE...............................................................................................................38
5. SUMMARY, CONCLUDION AND RECOMMENDAITON......................................38
5.2. CONCLUSION...................................................................................................................40
3.2. RECOMMENDATIONS................................................................................................41
Reference...........................................................................................................................43
APPENDIXES...................................................................................................................44
List of Table
Table 1 General characteristic of respondents.............................................................................29
Table 5:the situation amended by Hamaressa Edible Oil share company towards the assessment
of employees turn over problem...................................................................................................34
Table 6:company’s request to resignation workers and their intention to stay in HEOSC..........35
ABBREVIATIONS
HRP = Human resource planning
HR =Human resource
LIST OF TABLES
6. Table 6 The Company request to resignation workers and their intention to stay in HE
S.C
E and J.W(2010) voluntary turnover is the process where an employee making decision on
staying or leaving an organization. Therefore the research high turnover bring destruction to the
organization such as direct and indirect cost .direct cost is the cost which occurred in selection
,recruiting , and training new employee. Indirect cost is also cost to learning, pressure on
employees, and loss social capital. Essentially concerning with the process of supply and
demand for different category of personnel in the organization for year come.it ensuring the
proper quality of employees with adequate supply in order to achieve effective utilization of
output (good and service). There are a number of employees to take care of organizational
activity. The human resource activity.
Edwin explained employee turnover as the movement in to and out of an organization by the
work force it is described as exit of and entrance of employees to the organization
(1987: 873).. But sometimes turnover is good when poor performance employee leaves the
organization. And employee with ideas can be hired, new employee can be at lower page and
remaining employees have better protean opportunity Hamaressa Edible Oil S.C. known as was
established in 1937 in Hamaressa, near in Harar, Ethiopian .The aim of its establishment was to
be meet the standard of the similar benchmark , fill the domestic and international market, for
society consumption and operate to make market share .
At present the factory has 200Permit and 7non-perm ant employees. The per cartage
combinations of the employees. The per higher officers, expert level staff supervisor, and low
level workers operators are 17% , 25% and 58% respective . The factory has 4 different times
with their own divisions and subdivision accordingly uses mixed organization structure suitable
to the line and support functional unit.
Hamaresa Edible Oil Facto Pure refined edible oils are extracted from Groundnuts Seed, Cotton
Seed, Niger seed, Sesame Seed and other Seeds using the contemporary machineries and also the
Product wastes are used for bio fuel and the oil cakes are used to feed animals.
Human resource was essential activity in the organizational to controlling employee’s turnover.
There are main reason for the employees turnover such as lack of job satisfaction, unfair wage
,lack of professional gain ,discriminatory treatment ,unbalance work assignment and biased
administration measurers .the contribution of human resource planning in Hamaressa Oil share
companies was play a great role to minimize employees turnover, to make working companies
more product ivies and satisfied due to ,stable working environment , equal employment
opportunity ,performance appraisal , in terms of job satisfactio,compensation ,reward and low
employees turnover in the organizing was a very vital.
The factory annual performance is declining in terms of profit due to high experience
(availability, quality, and quantity) skilled man power turnover out of the Company or
organization. Well products (good) are not sold due to are operating under satisfaction. . financial
control system is not self-protected and effective. When needs are not being satisfied at their
present place of work and an alternative to lea living the campy.
But African countries like Ethiopia are unable to produce and maintain trained manpower and
utilized as effectively as possible. The deteriorating performance of the company, as mentioned
here in above has strong relation with turnover of employee. Based on the above clarification the
researcher was raised the following basic equation to answer in the course of study.
2. What contribution does human resource planning on Hamaressa Edible Oil S.C
3. What sort of action should be done in Hamaressa Edible Oil SC an employee turnover?
4. what can human resource planning should be done to make working employees more
productive and satisfaction
To identify the action that should be done in Hamaressa Edible Oil s.c on
employee’s turnover.
To identify the area by which the employees of the organization will job
satisfaction.
It will provide information for the human resource planning low to satisfy the
employee.
It provides information for the government about the assessment of human resource
planning and the employee turnover.
For the requirement of BA degree in order to get an experience for future carrier
development.
The theories and approach will have expected to identify the importance of human
resource planning and the assessment that led to higher rate of employee turnover.
In this study the researcher touched forms of turnover like resignation, retirement and
dismissal, the other was contribution of HRP, and how to decrease turnover in the
company using like working condition, Administration issue and Compensation pattern,
But the researcher was does not touched cause of turnover and others.
There are many oil share company in Ethiopia, but the researcher study confined only in
Hamaressa Edible oil Share Company, because employee’s turnover was increase time to
time.
Shortage of finance and time to conducts a very large study.
Lack of sufficient written document research paper done on related topic in the area made
the researcher not to get sufficient information from the secondary data as proposed.
In Chapter 2, the literature review of the summary from the relevant secondary sources
of the data. A review of the available literature on HRM practices, which included
performance appraisal, reward, working condition, equal employment opportunity and
training are presented. This part focuses on the employees turn over and how to
minimize the problem of employees turn over. Proposed theoretical or conceptual
framework developed based on the research objectives and research questions. While
hypotheses are developed based on previous findings and theories to examine whether
the theory formulated is valid or not.
CHAPTER TWO
REVIEW OF LITERATURE
They are responsible for recruiting new employees to replace those who leave and for filling
newly created position. HRM division also trains or arranges for the raining of its staff to
encourage worker productivity efficient and satisfaction and to promote the overall success of the
organization.
Human resource management creates workers compensation plans and benefit packages for
employees. (Encyclopedia standard 2004).
HRM is a “management function that helps mangers recruit, select train and develop member
for an organization. It concerned with the people’s dimension in organization “(K. Aswathappa
1996:6).
In the words of Edwin B. flipped planning organizing and controlling of the procurement
development compensation integration maintenance and separation of human resource to the end
that individual organization and social objectives are accomplished (1984:1).
Human resource planning is the process of determining needs type and number of employees to
be hide in an organization. It is indicated that human resource planning may have a different
approach in different organization, but the general importance is almost similar.
Human resource planning has two part ( Edwin Buffy Flipper 1884: 113) the first part is the
process of determining the kind or quality personnel needed an second analysis of determining
number of personnel required
K. Aswathapa explained HRP as the process by which an organization ensures that it has the
right number and kind of people at the right time and place capable of effectively and efficiently
completing those tasks that will help the organization achieve its overall objective (1997:54).
According to William B. weather and Keats Davis Human resource planning (HRP)
systematically forecasts an organization future supply and demand for employees. By estimating
the number and type of employees that will be needed the personal department can better plan its
recruitment. Selection training caper plan and other activities. HRP allows the department to staff
the organization as the right time with the right employee (William and Davis, 1985: 92).
From the above defamations of HRP we can see that it is a process having its own procedure.
According to Dr. C.B Memorial .Dry Salish Maoris and Drip Saba Rao HRP encompasses: _
The purpose of HRP and HRM is to avail the required number of workers with needed skill
at the time they are required. This will have a positive impact towards achieving
organization goal by minimizing effects of unexpected employee termination.
Turnover refers to the movement in to and out of an organization by the work force (Edwin
1989: 547) as per Ivancevich (1987:873) of and
Labor turnover is of two types these relating to job shifting and those relating to total
separation sometimes with details of voluntary and involuntary cessation of employee (peter
de wolf 196: 49).
In addition to cost touches of high employee turn over the issue deals with important
resource of an organization and therefore it must be investigated as to who is terminating
and why. Besides it would minimize cost by applying HRP for future recruitment.
Theories of turn over maintain employee leave their job voluntarily when their needs are not
being satisfied at their present place of work and an alternative job become available which
the employees believe will satisfy more of their needs (Ivancevich p.875, 1989) in making
selection among work for terminating workers the considerations was according to Pieter
quality of work which is define as and encompasses a full gamut of different approaches
3 Opportunity to use and develop human capacity though autonomy the acquisition of
multiple skill availability of information performance of whole task.
Voluntary resignations are reduced by a satisfying work environment challenging high quality
supervision and personal opportunity for growth (William an Davis, 1985: 223).
2 Low compensations
3 No (lesser) benefit
As far as the organizational compensation is concerned employee compensation are designed and
do three things according to (Dewing 1984: 281) (1) to attract capable employee to the
organization (2) to motivate them toward superior performance and \93) to retain their service
over an extended period of time
Compensation (in what so ever form) should be high enough to motivate and retain qualified
workers and optimal to ensue enough margin to the employee.
Now a day the number of rewards offered by organization ranges in to hundreds it is a widely
accepted Principe that those reward schemes of compensation policies have to be adequate
equitable. Cost effective secured incentive providing and acceptable to employee (Invancich an
Gleuck 1989:416).
An organizations compensation policy must be meticulously designed and must be properly
managed if it is mismanaged. Its effects are far reaching. Accordingly, it may result in high
turnover. Increased absenteeism more grievances search for higher paying jobs. Job
dissatisfaction poor productivity and unfulfilled strategic plans (warmer and Davis 1985:333).
If all the components of compensation packages are fairly and full applied, it has a passive role
in establishing better environment and motivated workers can stay so long.
From this we noted that compensation below or above equity create feeling of dissonance.
Though his scope of the study is limited to causes and effect analysis of employee turnover. We
would like to relate and differentiate compensation and motivation. As stated in modern
personnel management book, compensation is not the only important factor to motivate peoples.
But it has some impact together with other motivation factors
Based on the above definition compensation for any job should be attractive to enable to retain
best skill and best performer. The compensation is of two types one is objectively measurable
and the other is subjectively measurable one. objectively measured compensation includes
wages. Salaries bonus and other material benefits. The immeasurable compensation on the other
hand includes benefits advantage provided by the organization like pension insurance both for
health and life holiday pays good work environment etc.
As there are a number of composition reward schemes that their presence or absence may
because employees resign. Below we discuss little about some of them.
B. NO OR LESSER BENEFITS
Compensation of this type is kind of immeasurable benefits that company should provide many
benefits of this type like fringe benefits are designed to meet certain needs relating to physiology
and safety. They may even help to meet self-actualization needs and the needs of esteem in that
they may be interpreted as indications of personal worth (French 1987:467)
Here benefits refer to both group and individual provision which include pension plan
insurance workers compensation tuition and fees guaranteed annual wage etc.
Occasions like holyday, sick leave attendance of funeral and other social and family activity.
Insurance both for health and life insurance is one of the benefits that should be given proper
attention. Life insurance refers to the provision of material compensation for the death of
employee to his successors.
On the other hand, health insurance is insurance for health disorder pertinent to work related
illness. The employer will cover all medical expenses in part of full depending on the collective
agreement of the company.
Pension plan in Ethiopia is regarded as an instrument to keep workers in office and enable older
workers retire gradually by providing them reward to the maximum of employee’s salary.
C. ADEQUATE SALARY
One of the most difficult functions of personal management is that of determining rate of
monetary compensation. not only is it one of the most complex duties but it is also one of the
most significant to both the organization and the employee in establishing salary for a job ( work
) there are many factors that need to be considered .
Significant factors affecting salary determination are supply and demand for employee’s skill
organization the firm’s ability to pay. Productivity of the firm and the economy cost of living and
government (Edwin 1984:281).
The outcome of pay dissatisfaction are shown next (dig.12) below. It affects organization
productivity and evidence in the quality of work life absenteeism to increase
From the above facts we can inter than keeping the salary of employee as high as possible will
help to minimize dissatisfaction of workers.
D. UNBALANCE WORKLOAD
It can be seen that employees of an organization with similar job assignment and position will
carry out the job differently. One individual may be very busy in terms of work volume and he
may works beyond its paid time. In such situation employee is start of stress and may look for
other alterative. In Hamaressa Edible Oil SC when an employee is required to leave the company
this is the practice the individual is asked to perform so many jobs. Besides his work is deemed
to be below standard or what is expected from him and his position. Following we here with
presented model developed by William and Davis for low pay and its consequences.
According to some scholar’s layoffs are separation of employee from the organization for
economic reason. It may last only a few weeks if its purpose is to adjust inventory level or to
allow the factory to retool for new product when it was caused by a business cycle the layoff
may last many months or even years. However, the layoff is the result of a restructuring or
rescaling of an industry the temporary layoff may be permanent (William and Davis, 1985: 221).
When companies are to make lay off as per the above definitions there is no set formality of
carry out the layoff. According to Edwin (1984: 557) companies wish to take advantage of the
lay off to retain its most employee and let the more marginal ones go” There is controversy
among different scholars about lay off. Some agree on lay off are regulated through seniority
system while others advocate related it with performance still others insist lay off to be on value
and nature of performance.
In the Ethiopia low there are no set criteria as to the decision when and who will lay off first.
According to the proponents of the seniority criteria of selection employee to be first lay off is
those employees having the highest length of service and hence are loyal are retained even at the
expense of performance (quality and quantity of work) while employees who are the last to join
the organization are laid off despite the fact that they are good performers.
In most cases dismissal sometimes called discharged of employees are related to discipline
cases. In addition, unsatisfactory performance of employees during their early time of
employment is also another cause of discharge.
In the words of k.A as wathppa dismissal is explained as where the termination of employment
is initiated by the employer. It known as dismissal / discharge which is a drastic step and it
should e taken after careful through 1997:459
According to k. Aswathppa again the possible reason for employee dismissal; were
1 Excessive absenteeism
2 Serious misconduct
There is provision almost in all countries that prohibit discharge in causes related with
2 union activities
The possible reason for employee’s unsatisfactory performance may include technological
change changes in the organization structure affecting employee job.
Job assignment that the employee has no past experience, job assignment that could create
conflict with supervisors. common company rules and regulations that will end up employee
dismissal who doesn’t respect includes; repeated attempt to misuse company resource organizing
leading and participating to attack coworkers, theft loyalty issue excess absenteeism attendance
problem etc..
Retirement is both voluntary and forced separation of employee. One of the key issues of
modern times is whether the decision to retire should be made by the organization or be left to
the employee concerned
Retirement is said to be voluntary when employee is willing to retire before his mandatory age of
retirement and involuntary when the employee is forced to terminate the mandatory age.
Equally and importantly death has also its own contribution for employee termination from and
organization.
We have discussed the causes of employee turnover in an organization and now onward we will
look in to the assessment of employee turnover.
The willingness of employee t6o leave on organization for another creates a special challenge
for human resource development (willing and paves 1989:249)
According to K. Aswathappa separations are painful to both parties and should therefore. Be
administered carefully (1997:458)
Turnover costs include cost for social; security and unemployment compensations terminal
vacation underutilized facilities until the replacement is hired employment costs such as
recruitment expenses. interview time test costs computer record cost and covering expenses
administration cost of notification and payroll changes and losses of productivity until the new
employee reaches the performance level of the one who left the job ( Invancvich and Glueck
1989:873).
Greater application of the significant of those cost has stimulated considerable managerial
interest in the problems and causes of labor turn over. The effects of undeterminable cost are
very disastrous. Hence those hiring cost can be minimized to the lowest possible through proper
human resource planning.
\not all resignation is costly sometimes it is a relief. The willingness of employee to leave one
organization for another creates a special challenge for human resource development (William, a
Davis 1985: 29).
For an organization when incapable employee resigns it is a relief. Whereas it is costly if skilled
and key workers resign. for example, if senior officer resigns it will affect the smooth operation
of the business since the officer has past information an experience on this area of responsibility.
The effect would be interruption of operation including loss of sales operation under capacity
etc. in addition the company loses the advantage of expertise know how and psychological
damage on remaining employee will happen and in turn has negative effect on workers
performance.
In some cases, resignation of employee is less costly and hence it may be advantages to the
company. This is true in the cases of poor performers resign and if replacement of resign position
by new competent employee (new blood) bring advantage to the company in terms of invention
of new system (that save cost) that minimize cost of operation etc.
It is good to state the words of (Edwin 1984; 584) in this regard as follows separation can
produce value to the organization in the form of new idea entering the enterprise possibly higher
quality of personnel being added and lowering of salaries paid when older high seniority persons
are replaced by lower paid entrants Nevertheless any movement in or out of the organization
results both the monetary non- monetary costs shown above. Cost of employee turnover can be
categorized as direct and indirect costs.
4 Increased production cost scrap levels and risk of accidents to inexperienced workers
5 Long- term worker becoming unsettled and leaving \low morale and resulting low
productivity
7 All turn over are not costly to an organization. There are conditions where it is important
for both employee and employer
According to my interview data regarded reshuffling practices. It noted that the reshuffling is not
common in HEOSC. Since such position with personal interest has repeatedly changed and
hence will not affect the majority.
Training is important factor for productivity higher productivity observed informs that report
providing trending.
2.6.2 Improve Salary
As far as the organizational compensation is concerned employee compensation are designed and
do three things according to (Edewing 1984: 281) (1) to attract capable employee to the
organization (2) to motivate them toward superior performance and \93) to retain their service
over an extended period of time.
Compensation (in what so ever form) should be high enough to motivate and retain qualified
workers and optimal to ensue enough margin to the employee.
Now a day the number of rewards offered by organization ranges in to hundreds it is a widely
accepted Principe that those reward schemes of compensation policies have to be adequate
equitable. Cost effective secured incentive providing and acceptable to employee (Invancich an
Gluck 1989:416).
The data collected instrument applied in this research study was two types. These are close ended
and open-ended items. In addition to this unstructured interview were conducted with selected
tools management personnel. The others collected tools under secondary source are written
document, books and internet.
CHAPTER FOUR
NO. Items
Number Percentage
1 Gender /sex
a. male 35 70%
b. female 15 30%
2 Age in years
a. below 30 30 60%
c. above 40 2 4%
Total 50 100%
3 Service in HEOSC
Total 50 100%
4 Educational level -
a.aboveBA degree
b. BA degree 30%
c. Diploma 15 36%
Total 50 100%
Out of 50 respondents 70% are male and 30% are females. In the item two show that the
age category respondents, 60% of age group were below 30%, 36% of between 30-40
4% of above 40 years old.
Based on the above table 1 item 3 side that 46% of respondents were below 3 years of
service 30% of respondents were between 3-6 years’ service and 24% of respondents
have above 6 years’ service in the hamaressa edible oil share company.
From the above table on the fourth item that is educational level in Hamaressa Edible
Oil share company with regarded the table 1 out of 50 respondent 36% were diploma ,
30% were BA degree levels ,22% were high school completed and the rest of 12% were
1-8 grade education level. According to the respondent said that there is no above BA
degree level of education.
NB Number of terminates employees including data on the temporary workers dead and retired
employee are not included.
Based on the data gathered, 1.55% of respondent terminated in the years 2000 from the total of
386, the suggested possible reason based on researcher interview was still the delay in
implementation of the new structure. In 2001 from the total of 376, 2.65 of workers are
terminated. In the above table 2 replied that4.46% of terminated workers terminated in the year
of 2002. Terminated workers terminated in the year 2002. In this year the contributed to increase
rate of turnover in the years.
2000 1 2 2 - 6
2001 - 3 7 - 10
2002 3 3 8 3 16
Total 4 8 17 3 32
With regarded to the above table 3 let us seen each form of employee turnover see one by one
1. Dismissal: - from the above table the researcher was seen that in the years
between 200- 2002 about 3 employees were discharged. From the personal file of
these domiciled workers. They said that 3 of them were dismissed in disciplinary
reason.
2. Retirement: - the above table show that a total of 8 workers were retired in the
period under investigation which is about 8(25%) of total termination respondent.
As a table 3 shows that number of retired workers in the year 2000-2002 is vary
few compared with the previous years
3. Death: It is one form of job termination and, according to table 3 the dyed
workers are 20 % and 75% of the total terminated in the years of 2000 and 2002
respectively.
4. Resignation: - As the data have be seen from table 3 it is the most dominating
from of job termination in the case of Hamaressa Edible Oil share company . As
indicated in the above take about 17 workers resigned in the period of 200- 2002.
It is almost 53% (17) of total terminated workers. According to the data on the
above table voluntary resignation of workers that dominate the form of
termination in Hamaressa Edible Oil share company followed by retirement and
death
Yes
No 14 28%
36 72%
Total 50 100%
From the above table on the first item that the working condition has anything to control that
decision for employees to leave in Hamaressaa Edible Share Company. According to the
respondent said that 72%of them are no answer or anything to do them in the company.
Items of table 4 indicates that 8% of respondent were terminated by death 16% of respondent
were by dismissal and 70% were by resignation forms of terminated.
According to the data most of the employee is terminated by resignation. The above table show
that it was the dominate from employee termination.
5 10%
Total 60 120%
As show table 5 above out of 50 respondents 30 said that improve working condition 48%
responded improve salary and compensation, 18% of responded fair work assignment, 14% them
responded justifiable administrative measurement and the rest 10% were responded solution is
that participation in HRP.
According to table 5 improve salary and compensation patted are the first amended solution in
Hamaressa Edible Oil share company. The interview respondent said that the current
compensation scheme of Quality share company was comfortable in accordance with the other
company. According to HRP department this one is the first improvement to minimized turnover
problem in Hamaressa Edible Oil share company.
With regarded the above data improve working condition is the 2 nd amended solution of
HEOSC. Out of the above selected data (situation) fair work assignment is amended by HEOSC.
According to respondent this one is general problem to all government and nongovernmental
organization so everyone works on its professional and HEOS.Charing additional employees by
different profiational. The other one was justifiable administration measurements. This one was
seen in table 7.
Table 6:company’s request to resignation workers and their intention to stay in HEOSC
a. yes
39 78%
b. NO
11 22%
Total 50 100%
A. compensation patter
B. In adequate salary
20 40%
C. work load
10 20%
D. working environment
9 18%
E. Dies comfort with immediate
15 3%
F. Place of work
4 8%
3 6%
Total 61 112%
Description 1 in table 6 shows that how to stay the resignation employees and the effect
of HRP in the hamaresa edible oil share company to evaluated this, out of the total
respondent 78% were respond yes, and the rest 22% resend, No
Description 2 of table 6 above shows a good situation would be using to stay the
employees in the company. As we seen in the table 40% of the respondent replied that
compensation pattern 20% replied in adequate salary ,18% of them replied working load
, 30% of them replied working environment ,8% of them discomfort with immediate
bass and 6% of them replied that place of works.
According to respondent response compensation pattern was the major salvation to stay
employee in hamaresa edible oil Share Company.
In my interview HRD manager and other start respondents said that the current
compensation pattern is batter but not equal with working expectation. So HRP
department planned to give some materials and benefits to the workers. From table 6 can
see that unbalances woke load is the problem of HRP. According to the data on the
interview work load was as a source of stress that may lead to job terminations out of 50
respondents 20% of them replied that the work assignment is being unfair which create
burden un their work life . As the data on table 6 replied the work distribution was unfair
and make them busy at work place. In the researcher interview it can curate delay in
work accomplishments and deterioration of work quality and become forget full. So to
minimize the type of problem HRP department hearing employees towards their
rotational.
4.6 ADMIISTRATION ISSUES
Table 7: Respondent opinions towards administrative issue
A . yes
29 58%
B .NO
21 42%
Total 50 100%
Job reshuffling 3 6%
Total 50 100%
Items 1 of table 7 show whether the administrative issue is affected employee’s turnover has
been evaluated. As we seen in the table 58% of the respondent replied yes, 42% replied no
answered.
Items 2 of table 7 above shows all the respondents answered almost the same answer replied un
fair training distribution 40% replied over control and supervision 18% were decision
interference and the rest 6% them replied that job reshuffling .
According to the data above table 7 again the researcher could see that of interview. Out the
interview response many of them indicate they dislike the control system in the factory. Hence it
influences their decision to terminate the job positively.
Regarding decision interference according to interview especially with that middle manages
decision one not dependable by top manager since their decision and comments are frequently
changed or ignored. Still 18 % respondent indicate that there is decision interference implied that
such interference will affect daily routine work and moral of employee by deteriorating self-
confidence.
According to my interview question regarding reshuffling practices I noted that the reshuffling is
not common in HEOSC.
A. Yes
B NO 28 56%
22 44%
Total 50 100%
With regarded to these factors as shown in the table above out of 50 respondents 56% them
replied that yes. 44% were no answered.
Items2 of table 8 indicates that all the fact on the collected data show that of 50 respondents 60%
of them indicated job termination was financial effects. The financial or the cost should be
divided in to two i.e. direct cost and indirect cost.
CHAPTER FIVE
1.1. SUMMARY
From the respondents answer to the questionnaire and the manager response for the interview
questions the researcher tried to summarize as follows:
From the total study population, majority (72.4%) of the employees existence of female
are not equal to males in the company.
From the respondents response about the age distribution of the employees, most of the
employees of the company were categorized in productive age group, which means
72.4% of the company’s employees were between 20-40 years.
Based on the respondents answer about the marital status of employees, the majority of
the employees were married, which account 64.5% of the sample employees.
According to the respondents response about the educational level of employees, most of
the employees at the company were not well educated, this means 72.4% of the sample
employees had got at least diploma and below it.
When we see the respondents answer about work experience (with in and out side the
company of the sample employees, the majority of the company workers do not have
much experience. .
From the respondent answer about he criteria that the company use to select employees
for the development program. Dessie water spring company selected employees based on
different criteria. accordingly company gives more emphasis on performance rating, work
experience, educational level and chance respectively.
According to the respondent answer about the number of development program that are
given by the company , for their employees, all most 89.5% of the respondents had got at
least one chance for the development program or had not got any development program
chance.
As the personnel manager and the sample respondents answer about the type of training
and development program that provided by the company. Dessie water spring company
provides different methods of training and development program but the most common
methods were orientation, class room training , coaching and job rotation.
When we see the respondents answer about the place that the development program was
conducted most of the time the development program was conducted with in the
company, which means 78.9% of the respondents attained the development program with
in the company.
Based on the sample employees response about the contribution of the development
program for the improvement of employees performance, we can understand the
development program improves the employees performance at low level.
As the personnel department manager and program sample employees answered about
the benefit of human resource development program. It has benefit for employees to
become self confident, helps to gain a higher position, provides a greater job satisfaction
and improves the pervious performance of employees. And hence it Dessie water spring
company can be productive, profitable and competitive.
From the manager and employees response about the evaluation method of the
development program. Dessie water spring company uses examination and observation
method to evaluate the development program.
According to the manager and sample employees response about the major problems that
face the company during human resource development program. Dessie water spring
company face different problems like :
- Lack of sufficient materials to perform the development program
- Inability of the trainer to the train trainee
- Lack of good development program design.
The manager and respondents suggestion about the problems that face Dessie water
spring company during human resource development program were summarized as
follows.
-All the necessary material that involved in the development program should be supplied
by the responsible body.
5.2. CONCLUSION
From the finding of the primary data, the student researcher draw the following conclusions:
Dessie water spring company use criteria for selecting employees for
development program but the criteria are not enough to identifying trainee.
The development program that given by the company for their employees are not
distributed to all employees, which means the number of the development program
is insufficient and not distributed to all employees of Dessie water spring i
company.
The contribution of the human resource development program of the company for
the improvement of trainees perivious performance were low.
Human resource development program improves the employees performance at a
high level. This means human resource development have are relationship with the
improvement of the performance of the employees.
Human resource development program have several benefits for employees and it
helps Dessie water spring company to become profitable, competitive and
productive.
Observation and examination are the evaluation method that Dessie water spring
company uses to evaluate the development program, however it is not the
satisfactory evaluation method.
Lack of sufficient material, inability of trainers to train trainees and lack of good
development program design are the major problems that face Dessie water spring
company during human resource development program.
Dessie water spring company does not have sufficient amount budget for
development program, the development program cost is covered from the budget
that has been reserved for other purpose.
1.2. RECOMMENDATIONS
Based on the major finding of the study, the student researcher suggests the following that helps
the company to solve the problems of human resource development activities.
The criteria that the company uses to select employees for the
development program are not enough to identifying the required trainee, which may leads to wrong
objective,so,the company is advised to check the candidates, personal characteristics, quality of
thinking, general attitude to his/her work associates, knowledge application and proficiency in
utilizing good human relation in addition to educational level, performance rating and personnel
history when selecting employees for training to achieve the training and development program
objectives.
The number of the development program that given by Dessie water spring company for its
employees are not satisfactory . As a result the company is advised to provide different training
and development program, which has clear objectives, adequate materials, skilled trainer and
appropriate location that the development program is conducted, this is important to improve the
employees performance and develop their skill.
Dessie water spring company uses different methods to evaluate the development program,
however, it is not a satisfactory method , which many affect the evaluation method effectiveness,
thus the company is advised to evaluates the employees job performance after training and
development program based on the trainees effort on the performance of job like, on services
efficiency, productivity, so, as to identify employees weakness that needs for improvement in
training program.
The abilities of the trainees after the training and development improved at low level, which may
result in waste of time, effort and money. Hence, the company is advised to provides training and
development program for the employees that the type of the development program are related
with the trainees job, adequate tools to perform the skills and abilities of the trainee.
Lack of sufficient materials is one of the major problem that face the company during human
resource development practice, it is negative impact on the development program
effectiveness. Hence, the responsible body is advised to facilitates all the necessary materials
that are involved in the development program like, special training room, projector, boards,
different written materials that are related with training and development program and so on
to enhance the effectiveness of training and development program.
Inability of trainer to train trainee also another problems of the development program, it is
one of the basic causes for the development program failure because the development
program is depend up on the abilities of the trainers. As a result the company should be
selected trainers who has sufficient knowledge and abilities about the development program
that will be given to the trainees and gives training for the trainers before train the trainees.
Lack of good development program design is the major problems during Human resource
development program in Dessie water spring company, with out the effective development
program design the effectiveness of the development program is impossible because the over
all activities of the development program is depend up on the development program
designee, therefore , the responsible bodies advised to design human resource development
program effectively, which have clear objectives, effective methods, related with the trainees
job and correct evaluation methods.
Reference
Anthony, William P. (1993). “Strategic Human Resource Management”, Dryden Press, New
York.
Armstrong, Michael (1988). “A Handbook of Personnel Management Practice”, Prentice Hall,
New Jersey.
Beach, Dale S. (1980). “Personnel The Management of People at Work”, MacMillan, New York.
George Bohlander (2002). “Managing Human Resources”, Therson, p. 24.
Jaffery, A. Mello (2003). “Strategic Human Resource Management”, Thomson.
Rothwell, William J. (1988). “Human Resource Planning and Management”, Prentice Hall, New
Jersey.
Schuler Randall S. (1981). “Personnel and Human Resource Management”, West Publishing.
New York.
Werther, William B. and Keith Davis (1993). “Human Resources and Personnel Management”,
McGraw-Hill,
New York.
Anthony, William P. (1993). “Strategic Human Resource Management”, Dryden Press, p. 179,
New York.
Edwin B.Flippo (1984) Personnel management, 6th edu, fong and sons printers pte Singapor
Mathis, R.L and Jackson J.M: (2008), Human resource management 12 ed.
Shanun Tyson and Alford York, (2001 An introduction to Human resource management 1st ed.
APPENDIXES
HARAMAYA UNIVERSITY
Department of management
Questionnaire for employees of Hamaressa edible oil share company concerning on employee
turnover. The objective of this questionnaire is to collect data and information intended to
examine the Assessment of HRP (Human Resource Planning) and employee turnover used by the
organization in case of Hamaressa edible oil Share Company.
The basic Objective of this questionnaire is in partial fulfiument of the requirement for bachelor
degree in Management.
For the successes of the study your truthful response is very crucial and you are requested to feel
all the questions sincerely and kindly.
I. General information
1. Gender A. male B. female
4. Educational status
5. Do you get any opportunity of training/ orientation regarding the company development and
profitability?
A. yes
B. No
6. If your answer for question above is yes, to what extent does the training/orientations
improves your work performance?
7. If your answer is Medium or low, please state the main reasons for your low work
performance. (You can circle more than one for this answer).
A. Yes B. No
9. If yes, what is the main reason for any of satisfactions and become the cause for employee’s
turnover? (You can choose more than one and circle it)
A. compensation problem
C. in adequate salary
10. What measures should be taken to minimize employee turnover? (You can circle more than
one).
11. Does the work environment have any problem with your decision to leave the company?
A. Yes B. No
12. If your answer for question number above is yes, then how do you leave the company?
A. retired B. dismissal C. resign D. death E. volunteer
13. Is there any negative impact on the company due to employee’s turnover?
A. Yes. No B.
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15. Is there any positive impact on the company due to employee’s turnover?
A. yes B. NO.
16. If it is yes, please specify the advantages or benefits the company gets from employees turn
over?
17. If your termination is by resignation does the company’s concerned body ask you for the
reasons?
A. Yes B. NO .
18. Is there any administration issue that causes for employees turnover?
A. Yes. No B. No
19. If yes, which administrative issues is the main cause for turnover?
20. What are the human resource planning contributions regarding employees handling, turn
over, and other issues in your company?
____________________________________________________________________
____________________________________________________________________
A. Yes B. No