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Analysis of Impact of Employee Turnover on Organizational Profitability: Burger Kings

1. Introduction

Burger king is one of the top leading food chair organization. The researcher has utilizes the example of burger king for the analysis of impact of employee turnover on the overall performance and profitability of organization.

1.1 Aim of research study

The primary aim of this research is to study the influence of employee turnover on thee performance of an organization like Burger King. Along with this, the researcher also aims to detect the relationship between employee turnover and the performance of the company.

1.2 Objective of research study

The objectives of the research work follows as:

  • To scrutinize the impact of turnover rate on Burger King’soverall performance.
  • To inspect the reason behind employees turnover ratio and its affect on organization productivity and do profitability.
  • To study the relationship between the employee turnover and organizational profit share
  • To determine the effectiveness of employee turnover on organization profitability or the importance of employee turnover & organizational profitability for any organization.

1.3 Hypothesis

  • Profit share of the organization – Burger King is dependent on turnover ratio of employees.
  • Profit share of the organization – Burger King is not dependent on turnover ratio of employees.

2. Literature review

2.2 Analysis of employee turnover impact on Burger King Employees

According to Epstein and Buhovac (2014), employees turnover is dependent on various factors and the most important out of all factors are internal and external environment of the organization. If the turnover of the employees will be low then it will affect their performance which will create an adverse effect on the performance of the company. Apart from all this, Burger King is a well-popular food supplies and has its outlet in number of places which are further having employees from different regions, society who possess some different beliefs. So their working styles will be different. This will further affect the overall turnover of the company. According to Poole and Jenkins (2013), employees turnover ration plays an important role in the profit share of the organization.

2.3 Relation among employee turnover and organizational profitability

In this context, Park and Shaw (2013) stated that turnover of employees and overall performance of organization both are dependent on each other or are interdependent. For example, if the turnover of the employees in Burger King is low then the share of the organization will also be low and the employees of the organization are not performing good then also the share of the company will be low. And the team in which the individual employee is performing; its profitability and productivity will be affected more. In this context, Appelbaum (2013) stated that employee turnover is dependent on various factors like internal and external environment of workplace, working style, etc. The profitability of Burger king is also dependent on various factors like selling rate and employee turnover ratio. Employees turnover work as a motivational factor which regulate the performance of the employees and the overall performance of organization. In this context, Hancock et al. (2013) stated that high incentives and high reward level should be provided to employees if the share of profitability of organization is high.

2.4 Summary

Employees turnover is the main factor behind the high profit share of Burger king. The profitability of Burger king and the turnover of the employees is dependent on each other. If the turnover of the employees will be low then high range of profitability will not be gained by the organization.

3. Research methodology

3.1 Research approach

Deductive approach has been adopted for this research. The research has been carried by taking top to bottom approach into consideration. The theories are based on top to bottom approach.

3.2 Research design

According to Poole and Jenkins (2013), research design is like the blueprint of research that contains important information about the research work and plays an essential role in the presentation of the research. Explanatory approach of research design has been used by the researcher for this research work.

3.3 Research philosophy

Research philosophy also plays an essential role as it helps to gather information for the research in the proper way. Different theories and principles have been studied to collect the information regarding this research.

3.4 Data collection approach

Primary data collection method and secondary data collection method both are used in this research. Primary data has been collected by interviewing the employees of Burger king whereas the second or data has been collected from internet or online websites and other sources.

3.5 Sample Size

Sample size for the collection of primary data helps to conduct interview or survey in a better way. The interview has been conducted on 10 employees of Burger king and other 10 employees on the top listing of the employees working in Burger King.

3.6 Research ethics

All rules and regulations and code of conduct have been followed while collecting data for the research and concluding the topic of readership with the help of interviews.

3.7 Limitations

The limitations that came in the path of completing this research are time, budget and the limited information provided from the side of employees.

References

Mowday, R. T., Porter, L. W., and Steers, R. M. (2013). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic Press.

Epstein, M. J., and Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts.Berrett-Koehler Publishers.

Poole, M., and Jenkins, G. (2013). The impact of economic democracy: Profit-sharing and employee-shareholding schemes. Routledge.

Park, T. Y., and Shaw, J. D. (2013). Turnover rates and organizational performance: A meta-analysis. Journal of Applied Psychology, 98(2), 268.

Appelbaum, E. (2013). THE IMPACT OF NEW FORMS OF WORK ORGANIZATION ON WORKERS”. Work and Employment in the High Performance Workplace, 120.

Hancock, J. I., Allen, D. G., Bosco, F. A., McDaniel, K. R., and Pierce, C. A. (2013).Meta-analytic review of employee turnover as a predictor of firm performance. Journal of Management, 39(3), 573-603.

Heavey, A. L., Holwerda, J. A., and Hausknecht, J. P. (2013). Causes and consequences of collective turnover: a meta-analytic review. Journal of Applied Psychology, 98(3), 412.

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