THE INTENTION OF EMPLOYEE TURNOVER ON ORGANIZATIONAL EFFECTIVENESS: THE CASE OF MINISTRY OF PUBLIC SERVICE AND HUMAN RESOURCE DEVELOPMENT

Abstract

This study intended to investigate the intention of employee turnover on organizational effectiveness the case of Ethiopian Ministry of Public Service and Human Resource Development with the objective of investigating the intention of staff turnover on organizational effectiveness. Quantitative approach with some qualitative information used to describe the situation. The study used mixed type of research design which includes descriptive and explanatory types. The dependent variable in this study is organizational effectiveness. The independent variable is cause of employee turnover namely remuneration, employee training, job dissatisfaction and performance appraisal. The total number of 145 employees was selected as a sample in this study. In addition, all staff members and head of Human Resource Development Directorate were purposely sampled for semi-structured interview questionnaires. Descriptive statistics was used to explain the demographic characteristics of respondents by measuring its frequency and percentages. Hypotheses were measured using statistical analysis which includes Pearson correlation and multiple regressions. Moreover, qualitative data gathered from interview also analyzed in sentence form. The results of analysis have shown there was significant relationship between the four selected causes of employee turnover and their impact on organizational effectiveness. The study findings suggests that remuneration is the primary cause of staff turnover in MOPSHRD and it is affecting the performance of the organization in terms of achieving strategic objectives which results loose of time, cost and talent. In addition most employees training are not based on the need of employee performance and requirement of the job. Furthermore, limited involvement of employee and delay on implementation of career advancement of regulations specially related with performance appraisal are causes for dissatisfaction. The conclusion shows that the causes of employee turnover have a significant effect on organizational effectiveness. Since human resource is an engine for other resources the management of the organization should take improvement to retain employees. Lastly, suggestions for further research were discussed.