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THE IMPACT OF JOB ROTATION ON EMPLOYEES’ PERFORMANCE A CASE STUDY: UTRAK FINANCIAL SERVICES LIMITED
ABSTRACT
Since 2008 Utrak Financial Services Limited has adopted a job rotation program to help solve skills acquisition and performance problems. The problem the thesis attempted to investigate was that in addition to economic objective that every employee requires from his employer, when employee are allowed to perform the same transactional duties over many years, they feel bored and unsatisfied by doing the same kind of work over time. This development may affect job satisfaction and ultimately productivity. To achieve the objectives of the research, an exploratory and descriptive design were adopted aimed at assessing the impact of job rotation on employees’ performance. Questionnaires were administered to head office staff from the operations, Customer Service and Accounting departments. Structured interview was also employed to collect data. The study revealed that job rotation is an important programme for allowing employees to acquire new skills, enhance staff productivity, develop new relationships across the company and gain skills needed for future career advancement. However, respondents complained of not been made part of the implementation process. They also reveal that, the major challenges upsetting the programme were; resistance from superiors; resistance from employees and lack of adequate training before employee is moved to a new department. The participants in the job rotation programme who were interviewed expressed a high level of satisfaction with the programme. The study revealed that the respondent’s appreciate the effectiveness of job rotation programme in their organization. The researcher concludes by making recommendations to involve employees in the implementation process, use the programme to develop employees to increase their performance level. Also it is recommended that the programme must benefit both the employer and employee in the organization.
Table of Contents
Declaration ………………………………………………………………………… …………….ii Dedication…………………………………………………………………………………………iii Acknowledgement………………………………………………………………… ……………iv Abstract ……………………………………………………………………………………………………………. v
List of content……………………………………………………………………………………vi List of table………………………………………………………………………………………vii List of figures………………………………………………………………………. ……………vii List of abbreviations………………………………………………………………………………ix
CHAPTER ONE: INTRODUCTION
1.0 Background of the study…………………………………………………………………. 1
1.1 Problem statement………………………………………………………………….…….4 1.2 Objectives of the study……………………………………………………………………… 4
1.2.1 General objectives…………………………………………………………………………4
1.2.2 Specific Objectives……………………………………………………………………….4
1.3 Research Question………………………………………………………………………..5 1.4 Significance of the Study…………………………………………………………………5 1.5 Methodology ………………………………………………………………………………6
1.6 Scope of the Study…………………………………………………………………………7 1.7 Limitations of the Study……………………………………………………………..……..7 1.8 Organisation of the Study………………………………………………………….. ……..7
CHAPETR TWO: LITERATURE REVIEW
2.0 Introduction………………………………………………………………………………..9 2.1 Definition of job rotation ………………………..………………………………………..9 2.2 Job performance …………………………………………………………………………12
- The impact of training on employees…………………………………………………….13
- How job rotation is utilized by organization …………………………………………….14
- Employer and employee perspective on job rotation….…………………………………16
- Management view about job rotation ………………..………………………………….19
- Reason for the development of job rotation …………………………………………….20
- How to implement an effective job rotation programme…………………………………22
- Risk of implementing an effective job rotation programme……………………………..24
- How organisation’s benefit from job rotation……………………………………………25 2.11 Challenges of job rotation …………..……………………………………………………28
2.11.1 Resistance by experienced staff………………………………………………………….28 2.11.2 Job and pay structure…………………………………………………………………….28 2.11.3 Cost of implementation…………………………………………………………………..28 2.11.4 Presence of Labour union………………………………………………………………..28 2.11.5 Industial setting………………………………………………………………………….29 2.11.6 Three key challenges……………………………………………………………………..29 2.11.7 Employee’s resentment…………………………………………………………………..29
2.12 Conceptual framework……………………………………………………………………30
CHAPTER THREE: METHODOLOGY AND ORGANIZATIONAL PROFILE
3.0 Introduction………………………………………………………………………………31
3.1 Research design………………………………………………………………………….32
3.2 Source of data……………………………………………………………………………32
3.2.1 Primary data……………………………………………………………………………..33
3.2.2 Secondary data…………………………………………………………………………..33
3.3 Population………………………………………………………………………………..32
- Data collection and tools and procedure…………………………………………………33
- Data analysis and presentation……………………………………………………………33 3.6 Ethical consideration……………………………………………………………………..33
3.8 Organisational profile……………………………………………………………………34
3.8.1 Historical background of Utrak Financial Services Limited…………………………….34
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION
4.0 Introduction………………………………………………………………………………39 4.1 Presentation of data………………………………………………………………………40 4.1 Length of service…………………………………………………………………………40
- Introduction of job rotation………………………………………………………………41
- Number of times employees’ have been rotated…………………………………………42
- Various departments’ employees have worked…………………………………. ………. 43
- Effectiveness of job rotation……………………………………………………………..44 4.6 Level of satisfaction………………………………………………………………………46 4.7 Job performance………………………………………………………………………….46
- Significance of job rotation programme…………………………………………………48
- Achievements from the job rotation progrmme………………………………………….49 4.10 Job rotation policy……………………………………………………………………….49 4.11 Implementation process………………………………………………………………….51
4.12 Learning mechanism……………………………………………………………………..52
4.13 Training…………………………………………………………………………………..53
4.14 Employees involvement………………………………………………………………….54 4.15 Interest in job rotation……………………………………………………………………54 4.16 Benefits of job rotation…………………………………………………………………..56 4.17 Challenges of job rotation………………………………………………………………..57
- Challenges from HRM point of view…………………………………………………….57
- Challenges from employees point of view……………………………………………….58
4.18 Respondents recommendation……………………………………………………………58 4.19 Effects of job rotation……………………………………………………………………61 4.20 Implications………………………………………………………………………………61
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction………………………………………………………………………………62 5.2 Summary of findings ….…………………………………………………………………62
- Assessing the effectiveness of job rotation ………………………………………………62
- The rationale of job rotation …………………………………………………………….63
- Implementation process of job rotation …………………………………………………63
- Challenges from job rotation ……………………………………………………………63 5.2.5 Benefits from job rotation ……………………………………………………………….65 5.3 Conclusions………………………………………………………………………………65
5.4 Recommendations………………………………………………………………………..66 5.4.1 Employees involvement …………………………………………………………………67
5.4.2 Skills development ………………………………………………………………………67 5.4.3 Communicate policy …………………………………………………………………….68
- Both the employer and employee need to benefit from the programme …………………68
- Increase employees performance ………………………………………………………..69 REFERENCES ………………………………………………………………………………….70 APPENDIX………………………………………………………………………………………73
LIST OF TABLES
3.1 Population of members in the selected department………………………………………33 4.0 Qualification……………………………………………………………………………..40
- Number of time employees have been rotation………………………………………….43
- Various departments’ employees have worked………………………………………….43
- Significance of job rotation programme…………………………………………………49 4.4 Interest in job rotation……………………………………………………………………56 4.5 Benefits of job rotation…………………………………………………………………..58
4.6 Challenges from employees point of view……………………………………………….60
LIST OF FIGURES
2.1 Development of conceptual framework………………………………………………….31 4.1 Length of service…………………………………………………………………………41
4.2 Effectiveness of job rotation……………………………………………………………..48 4.3 Implementation process………………………………………………………………….52 4.4 Interest in job rotation……………………………………………………………………56 4.5 Recommendation…………………………………………………………………………61
LIST OF ABBREVIATIONS
UFSL Utrak Financial Services Limited HRDC Human Resource Development Council SPSS Statistical Package for Social Science HRM Human Resource Manager
PNDCL Provisional National Defenses Council Law SME’s Small and Medium Enterprise
CHAPTER ONE
INTRODUCTION
- Background of the study
Human Resource is the most important resource compared with other resources like machine, material, land, etc. In the organizational context, the efficiency of human resource depends on the development of the individual’s job according to human capability and characteristics. Job rotation is one of the most important issues in of Human Resource Management.
Many businesses, small and large, are attempting to improve work design systems by the development of job rotation strategy. Job rotation is a strategy conducted by organizations either private or public to improve employee performance and productivity (Schultz 2010). Job rotation is implemented in line with the business goals and human resource strategies of the organization. Job rotation can also be used to alleviate the physical and mental stresses endured by employees when working in the same position, year after year. By allowing employees to rotate to other positions, the risk factors for some types of musculoskeletal disorders may be reduced. Individuals learn several different skills and perform each task for a specified time period.
There are different reasons a company may choose to utilize job rotation such as using job rotation as a learning mechanism. There are significant benefits that may outweigh the costs involved with training employees for diversified positions. As a learning mechanism, employees are given the opportunity to learn necessary skills which can help them to advance within a company. This employment opportunity also has the effect of boosting morale and self efficacy. The company may benefit from using job rotation by having the ability to keep key staff within a
company. This practice may allow a company to run more efficiently, and as a result, become more productive and profitable.
Job rotation has existed in business for so many years. It may have been called multi-tasking, lateral transfer, job-shadowing or simply doing what was needed to get the job done. Many independent and family owned businesses use job rotation as a means to learn operations and become “well-rounded” employees. Larger businesses faced with the reality of a shrinking labour pool and an aging executive workforce look up to job rotation as a succession planning tool. To some extent, job rotation enhances the skills and legacy of the organization while working to retain younger employees who increasingly demonstrate desires to learn and experience new things. This “expedition” experienced by younger employees helps them to understand the value of each functional area’s contribution to the organizational mission.
Job rotation helps workers to understand the different steps that go into creating a product and/or service delivery, how their own effort affects the quality and efficiency of production and customer service, and how each member of the team contributes to the process. Hence, job rotation permits individuals to gain experience in various phases of the business and, thus, broaden their perspective. It is also believed that job rotation has the ability to decrease the amount of boredom and monotony experienced by employees who work in the same position for extended periods of time.
Job rotation is also practised to allow qualified employees to gain more insights into the processes of a company, and to reduce boredom and increase job satisfaction through job variation. Job rotation benefits employees who participate by reducing job burn-out, apathy, and fatigue, which ultimately increase the level of employee satisfaction and motivation Plowman
(2012). Not all employees are open to the idea of job rotation. Higher performers compared to under performers are likely to like job rotation because it is perceived to add to a greater improvement in skills Khan (2010).
At senior management levels, job rotation is frequently referred to as management rotation, and is closely linked with succession planning thereby developing a pool of people and providing them with the knowledge and experience which makes them capable of stepping into an existing job. Here the goal is to provide learning experiences, which facilitate transfer and utilization of knowledge as well as changes in thinking and perspective.
Cosgel and Miceli (1999) have pointed out that an increased satisfaction is one of the benefits of rotation. In their model, employees prefer to perform a variety of tasks rather than specializing in a single task and, as a consequence, job rotation increases job satisfaction. It is a potential solution to these employees lack of motivation since it inspires employees to achieve higher performance, allowing continuous growth at work, extended knowledge and skill, and increasing employee- customer quality. Scholars have all proposed that job rotation may help employees to acquire multiple capabilities and expand vision, and that it can be an approach to reduce job burnout. Surveys show that an increasing number of companies like Ecobank, Zenith Bank, Barclays Bank etc. are using job rotation to train employees.
A study on the impact of job rotation on employees’ performance with special reference to Utrak Financial Services Limited is increasing productivity, new product development and creativity.
1.2 Problem statement
Years ago, management, thought employees come and work to achieve their economic objective. However it is being observed that in addition to economic objectives, employees also demand certain training opportunities and job satisfaction.
Allowing your employees to perform the same transactional duties everyday usually make them feel bored and unsatisfied with what they are doing. Thus the importance of job rotation is introduced to alleviate the physical and mental stresses endured by employees when working in the same position, year after year. The researcher seeks to find out the effectiveness of job rotation in the organization and ways and means to improve the awareness of job rotation.
1.3 Objectives of the study
There are two main objectives for the study. These are general objective and specific objectives.
1.3.1 General objective
The general objective is ‘To determine the impact of job rotation on employees’ performance in Utrak Financial Service Limited’ (UFSL).
1.3.2 Specific objectives
The following are the main specific objective:
- To identify how effective is job rotation in improving employees’ performance at UFSL.
- To determine how job rotation can be successfully implemented to achieve results at UFSL.
- To find out the challenges of job rotation at UFSL.
- To find out the benefits associated with job rotation at UFSL.
- To make appropriate recommendations on how to promote job rotation UFSL.
1.4 Research question
Following the research objectives, the research has the following specific research questions to be answered.
- How effective is job rotation in improving employees’ performance at UFSL?
- How can job rotation be successfully implemented to achieve results at UFSL?
- What are the challenges of job rotation at UFSL?
- What are the benefits of applying job rotation at UFSL?
- How could job rotation be improved to benefit UFSL?
1.5 Significance of the study
The significance of job rotation in financial services cannot be overemphasised. Many non- financial services in Ghana do not see the essence of job rotation but it is a requirement from Bank of Ghana and beneficial to employees’ development. The study seeks to unearth how important is the incorporation of job rotation in an organisation’s processes and procedures could benefit an organisation
Job rotation is the surest way of keeping the employee away from complacency and boredom of routine. It is difficult for an employee to sustain his interest in a given job for substantial length
of time as people have the tendency of outgrowing their jobs through the learning and experience that they gain over a period of time. Stimulating human mind through diversity of challenges is a sure way to bring to the forefront its creative instincts and in taking the individual and organizational performance to a higher plane. This is where job rotation can prove to be a handy tool. It is also common knowledge that job rotation is also practised to allow qualified employees to gain more insights into the processes of a company, and to reduce boredom and increase job satisfaction through job rotation. At the senior management levels, job rotation frequently referred to as management rotation, is tightly linked with succession planning thus developing a pool of people capable of stepping into an existing job.
The study seeks to help employers to put more emphasis on job rotation and be able to enhance employees’ performance.
1.6 Methodology
The methodology sets out the procedural strategies adopted by the researcher in conducting this research work. It also details out reasons why such strategies and methods were adopted. Specifically, this section details the Research design. The design work is a descriptive study in which convenience-sampling technique was used to select the sample size for the study. The researcher adopted UFSL as the case study organisation.
Considering the nature of the research, the study made use of both primary and secondary data. This enabled the researcher to gather qualitative and quantitative data. A strategy adopted by the researcher in accessing secondary data was through the use of published journal articles, text books and the internet.
1.7 Scope of the study
The study focused on the impact of job rotation on employees’ performance. Geographically, the study covered only three departments of Operations, Customer Service and Accounting Department at the head office of UFSL.
1.8 Limitations of the study
Financial and time constraints have set some limits to the study. The time available did not allow for an in depth study into all the issues relating to job rotation. All efforts, however, were made to consider issues that brought out the general and very relevant matters for needed attention. Also inadequacy of secondary data on the study was a great limitation to the work. However, despite all these limitations, the study seeks to make some meaningful contributions to the impact of job rotation on employee’s performance.
1.9 Organisation of the study
The research study has been organized into five main chapters. Below is the content of each of the five chapters that constitutes this research study.
Chapter one deals with the introduction of the study and it includes background of the study, problem statement, objective of the study, research questions, significance of the study, methodology, scope of the study, limitations of the study, as well as the organization of the research study.
Chapter two identifies and reviews previous and relevant work done on the topic. It also involves the definition of concepts.
Chapter three deals with the research methodology adopted in this study. It deals with population and research instruments. It also highlights the organizational profile of UFSL was used as the case study organization.
Chapter four presents the analysis and discussion of secondary and primary data collected and the results that have been derived from the analysis of the data.
Finally, chapter five deals with summary of findings, conclusion and recommendations of the whole work.
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