EFFECT OF SELECTION PROCESS ON LABOUR TURNOVER AND PRODUCTIVITY OF EMPLOYEES
(A STUDY OF NIGERIA BOTTLING COMPANY PLC)
ABSTRACT
This research work examined Effects of Selection Process on Labour Turnover and Productivity of Employees. A study of Nigeria Bottling Company Plc. The objectives of the study included to: ascertain the effect of selection process on labour turnover and productivity, find out the challenges militating against effective selection process, determine how selection process affects sales turnover and evaluate the relationship between selection process and profitability. The research method adopted by the researcher was the survey research method. The major instrument of data collection was the questionnaire. The sources of data were the primary and secondary sources. The population of the study was 248 while the sample size of 89 was determined using the Freunds and Williams  formula. The data collected was presented in tables of frequencies and percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings included that Selection process affects labour turnover and productivity to a significant extent, there are challenges militating against effective selection process, Selection process has a positive effect on sales turnover and Selection process has a significant relationship with profitability. The researcher concluded that selection process has a positive effect on labour turnover and productivity of employees’ of NBC Plc. and it was recommended that management of organizations should give attention to their selection process as it has a significant effect on labour turnover and productivity, management of organizations should try to overcome the challenges militating against effective selection process, management of organizations should also consider improving on their sales turnover through effective selection process and management of organizations should also improve on their net profit through effective selection process.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the Study                    
1.9    Operational definition of terms                    
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework                        
2.2     Theoretical Framework of the Study                
2.3    Empirical Review                              
2.4 Summary of Review of Related Literature            
2.5 Gap in the review of the related literature            
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1     Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis    
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                        
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.3.4 Research Question Four                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.4.4 Test of Hypothesis Four                        
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
4.5.4: Discussion Based on Hypothesis Four            
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5     Suggestions for further Research                
List of References                             
Appendix    A                                
Appendix    B                                
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
The aim of human resource management (HRM) is to put the necessary tools in the hands of those human resource (HR) specialists entrusted with the people’s decisions within organisations, and to empower them in order to avoid various psychological biases, unfair discrimination, and injustice (Grobler, 2011:262). Organisations need human resources to function and in the modern competitive business environment, organisations are quickly realising that employees are their major source of competitive advantage and a critical success factor which is required as an ingredient to stay ahead of their competitors (Lawler 2008:45). Organizations cannot function without people working together and whenever people work together, the personnel management function must be performed and executed. Other resources may include physical and financial resources. However, the most vital among all these resources seems to be the human element (Johnson, 2011:59).
The human resources which is the concern of personnel management, deals with the recruiting of a person into organization, his behavior in the work situation, his interests and relationship both with his fellow workers and the organization. It is a series of management activities which procures personnel for the organization to achieve effective performance towards organizational growth. In human resource management, recruitment is the foundation for selection process. Recruitment involves using application forms, resumes, interview schedules, employment and skills tests and reference checks to evaluate and screen job candidates. Selection is the process of choosing from numerous applicants a suitable candidate to fill a job position. Selection in modern organizations can be said to be anchored or rooted on the Biblical saying that; many are called but a few are chosen”. Selection is among the major functions of human resource department and as well an important first step towards creating the competitive strength and the strategic advantage for the organization. Searching for, and obtaining potential job candidates in sufficient numbers and quality and at the right cost is the best way for organization to get the most appropriate people to fill its job positions.
Productivity is one of the most challenging issues related to manufacturing and service organizations. Productivity usually relates to efficiency (how many valuable resources are used relative to what it produced) and effectiveness (measuring the ability of the manufacturing or service process to produce the desired result). This can be achieved if the selection process of an organization is devoid of nepotism and chance to meet the challenging constraints affecting the organization.
Ongori (2012:50), posits that labour turnover is the ratio of the number of organisational members who have left during the period being considered, divided by the average number of people in that organisation during the period. Turnover levels vary between organisations.
The importance of adhering to selection process is vital for organizational competitiveness and a failure to approach this function effectively will result to selection of wrong and underperforming employees which will in turn lead to low level of productivity. Recruitment and selection are very sensitive as many managers have a need to hire a new employee and this process is always under strict monitoring from their side. However, once the organisation‘s recruitment activities have succeeded in attracting sufficient number of relevant applicants from the external labour market, the aim of the subsequence selection activities is to identify the most suitable applicant and persuade them to join the organisation.
However, in the Nigerian manufacturing sector, a lot has been said about the process of selection of the employees. It is based on this background that this research examined the effect of selection process on labour turnover and productivity of employees with Nigeria Bottling Company Plc as a case study.
1.2    Statement of the Problem
    The effects or consequences of not adopting effective selection process could lead to decline in profitability of many organizations. This is because effective selection process brings into the organization experienced employees that can take up vacant positions in an organization.
    Furthermore, ineffective selection process can increase the labour turnover in an organization. When some employees feel that their organizations, do not carry out their selection process effectively, they may seek employment in other organizations, coupled with decline in sales turnover.
1.3    Objectives of the Study
The broad objective of the study is to examine the effect of selection process on labour turnover and productivity of employees. However, the specific objectives include:
1.    To ascertain the effect of selection process on labour turnover and productivity.
2.    To find out the challenges militating against effective selection process.
3.    To determine how selection process affects sales turnover
4.    To evaluate the relationship between selection process and profitability.
1.4    Research Questions
Based on the objectives of the study, the following research questions were raised
1.    To what extent is the effect of selection process on labour turnover and productivity?
2.    What are the challenges militating against effective selection process?
3.    How does section process affects sales turnover?
4.    What is the relationship between selection process and profitability?
1.5    Statement of Hypotheses
Based on the objectives of the study, the following research questions were raised.
Hypothesis One
H0:    Selection process does not affect labour turnover and productivity to a significant extent.
HI:    Selection process affects labour turnover and productivity to a significant extent.
Hypothesis Two
H0:    There are no challenges militating against effective selection process.
H1:    There are challenges militating against effective selection process.
Hypothesis Three
H0:    Selection process does not have a positive effect on sales turnover.
H1:    Selection process has a positive effect on sales turnover.
Hypothesis Four
H0:    Selection process does not have a significant relationship with profitability.
H1:    Selection process has a significant relationship with profitability.
1.6    Significance of the Study
This research will benefit the readers and also future researchers and students who will love the opportunity to pick this from the library. Other people that will also benefit from the work are”
a.    Organization
b.    Researcher
c.    Government
The organization will benefit from this work, appreciating the causes and implication of wrong selection process with a view to avoiding it.
The researcher will gain more knowledge at the time of completion of this work. The research work is also important to the researcher as it is a partial requirement for the award of a Bachelor of Science (B.Sc) degree in Business Administration. The Government will benefit from this work because it will help to reduce labour turnover and equally reduce unemployment rate in the country. This research work will serve as reference material for further research on this topic.  
1.7    Scope of the Study
This study which is on the effect of selection process on labour turn over and productivity of employees covers all the Nigerian bottling Company Plc in Nigeria but was limited to Nigeria Bottling Company Plc 9th Mile Ngwo. The time scope is between 2015-2017.
1.8    Limitations of the Study
A study of this nature could not be done without some form of involved tasks. The researcher encountered some difficulties like;
a.    Uncooperative Attitude of Respondents: The respondents of Nigeria Bottling Company Plc were economical with information. But after much explanation and persuasion, they gave out the necessary information needed for the research work.
b.    Fund:  there was insufficient fund to carry out all that was suppose to be done  
1.9    Definition of Terms
Selection: Selection is the process of collecting and evaluating information about an individual in order to extend an offer of employment.
Recruitment:    It is to find new person to join a company or an organization
Employee Turnover: Employee turnover has been defined as the rotation of workers around the labour market between organisations, jobs and occupations; and between the states of employment and unemployment.
Job Fit: The process of selecting is about the fit between the applicant and the job; the person who is best able to integrate his/her personal needs with those of the organisation.