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Labour

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RELATION BETWEEN LABOUR TURNOVER AND ORANIZATIONAL PRODUCTIVITY

ABSTRACT:-

Organizations zealous about growth would always intend to develop their respective current human capital and other potentials. But in this world of frequent upgrade and innovations in the business environment and the technological ways of doing things, organizations would commit themselves towards bringing their workforce to the task requiring intellectual and manual growth and development. The idea behind this would be to intensify the additional productivity generated by extra employee hired. All these put together would amount to organizations being cost conscious in making sure that employees with high human capital do not leave their organizations. But in order to be realistic, organizations cannot be everything to all people. No matter how great your company is, it is likely that some of your employees will eventually move on to other opportunities. That may be costing you a lot and affecting your well enjoyed stabilized organization productivity. This is an empirical research paper to study the relation between labour turnover and organizational productivity.

Keywords:- Labour Turnover, Labour availability, Organizational Productivity.

REVIEW OF LITARATURE:-
Generally, all costs related to the leaving and replacement of employees can be considered to be costs of labor turnover. These embrace not only the costs of recruitment and selection. As early as 1960, Gaudet (1960: 39-47) put forward a rather comprehensive list of turnover costs with items such as advertising, college recruiting, applicant’s travel expenses, medical examinations and psychological testing, recruitment awards for employees, and ‘hotel entertainment’. The costs of these items can be accounted for, and the same roughly holds for the loss of sales because of vacancies and higher average pay due to extra overtime.

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