A Report Submitted in Partial/Fulfillment of the Requirements for Award of the
Degree of Master of Business Administration (MBA) of Mzumbe University of
Tanzania
Production is a very important issue for an industry or organization. There are several
factors on which production of an organization mostly depends upon. Employee’s voluntary
turnover is one of them which are considered to be one of the challenging issues in business
now days. The impact of voluntary turnover has received considerable attention by senior
management, human resources professionals and industrial psychologists. It has proven to
be one of the most costly and seemingly intractable human resources challenges confronting
by several organizations globally.
Voluntary labour turnover is a costly problem and an economic drain to Tobacco Industries,
costs Tobacco Industries in Tanzania huge sum of money in recruiting and training
replacements. Alliance Tobacco Tanzania Limited has incurred costs on recruitment and
training new employees, work disruption, increased scrap and overtime as a result of
departed workers for the past four years while they have the task to increase government
revenue and developing social activities through tobacco productions.
This research study focused on Alliance Tobacco Tanzania Limited, Voluntary Turnover
and its main objective is to assess the factors (Psychological, Economic and Demographic
factors) that contribute to labour voluntary turnover on production in Tobacco Industry in
Tanzania. The study was able to find out the causes of labour voluntary turnover and effect
of labour voluntary turnover on production to Alliance One Tobacco Limited. Key models
and theories from the literature of labor turnover were presented.
The study used a sample size of 43 out the total population of 327. Purposeful sampling in
this study used to select the key respondents while Stratified random sampling used to select
the main respondents. The study used interview schedule and questionnaires to collect data;
they will be administered to the key and main respondents at their offices.
Data analyzed using frequency distribution tables and analysis will be done to identifies the
key factors of labor turnover and its intent to leave the organization and also the results will
be revealed to prove that, labor turnover have a direct impact to production.
Keywords: Labor turnover; Voluntary Turnover, Psychological Factors, Economic
Factors, Demographic Factors and Production Turnover Costs.