THE INVESTIGATION OF STAFF TURNOVER ON ORGANIZATIONAL EFFECTIVENESS: THE CASE OF MOHA SOFT DRINKS INDUSTRY, NEFAS SILK PEPESI COLA BRANCH

Abstract

The food and drink industry is one of the fast growing industries in Ethiopia. Every time, there are new soft drink options arriving in the market and more often, already known soft drink brands are expanding by introducing other drinks which are based on the test requirement of the user. The existence of huge potential to exploit drives companies to work hard which of course cannot be achieved without hardworking, committed and qualified employees. Thus, the main purpose of this paper is to examine the effects of staff turnover on organizational effectiveness. The study was done based on primary and secondary data sources. A selfadministered structured questionnaire was designed to collect the relevant information from the respondents. Partly descriptive and partly causal or explanatory research design were followed and applied. The collected data were analyzed using descriptive statistics and linear regressions. The result revealed that environmental factors, job related factors and organizational factors are found to be significantly related to organizational effectiveness. The study recommends that the management should keep up the good work which is done in the areas of employment retention. Further, the study recommends, even though competitive compensation for employee retention is crucial, it will not single-handedly guarantee the company’s effectiveness. Thus, the company should also focus on areas such as research and innovation, advertisement, packaging, design proper competition strategy, value chain etc…