RESEARCH PROPOSAL

Proposed title

Employees turnover and seasonal fluctuations in warehouses An investigation into Sainsburys distribution centre Waltham Point
BY

AHMED SHAH
LJMU Student ID: 518885 Kaplan ID: C0332380
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Table of Contents
1.0 Introduction.....................................................................3 1.1 Background and Scope............................................4 2.0 Literature Review............................................................5 2.1 Aims, Objectives and Research Questions..............7 3.0 Proposed Methodology...................................................8 3.1 Research Philosophy..............................................9 3.2 Research Approach................................................9 3.3 Data Collecting and Tool.........................................9 3.4 Sainsbury Distribution Centre Waltham Point.......10 3.5 Data Analytical Tool.............................................11 3.6 Ethics...................................................................11 3.7 Limitations...........................................................11 3.8 Time Line: Gantt Chart.........................................12 4.0 Conclusions.................................................................13 References..................................................................14

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1.0 Introduction
Rider (2008) emphasizing on training to the warehouse staff categorically stated that the turnover rate is high; especially during certain seasons; wherein the logistics within the distribution centres of superstores is at stake the author also argues that the average cost incurred in the process of hiring recruiting and training is more than sixty percent of the individual salary. In spite of this fact most of the companies hardly take this in to account emphasising on training; Rider (2008) further states that dont just train employees how to perform certain task. Instead, teach them why the task is important. He also concluded in his studies that for reduction of employees turnover training is imperative. As such the author argues that the HR within the warehouse needs to incorporate effective strategies in reducing employee turnover. With the reputation of being one of the oldest food retailers in the United Kingdom, Sainsburys Supermarkets chain has more than 500 supermarket stores along with 300 convenience stores. Sainsburys was launched in 1869. Today the largest of the companys stores, holds 30,000 food products in addition to other non-food goods and services. In addition, the company facilitates online-shopping and home-delivery services. Manhattan in its corporate brochure (2009) reported that Sainsbury made a decision on consolidating its DC network. The decision was taken after thoroughly reviewing the distribution infrastructure of Sainsbury. Following the decision, the construction of four new fulfilment centres began. One of the centres was based at Hams Hall near Midlands, the other at Stoke (Staffs), and two other centres at Waltham Point and Rye Park in North London. Each of these centres occupied approximately 600,000 square feet. To facilitate this project, Sainsburys shut down few of its RDCs. This Manhattan project of the company incorporated latest technology equipments at the newly started fulfilment centres, they include: automated equipment and warehouse control systems (WCS). It took duration of six months to complete the construction of the centres and they were launched with totally new kind of infrastructure, people, operations and technology. The project, in fact, was highly sophisticated and new of its kind ever undertaken by Sainsbury.

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1.1 BACKGROUND AND SCOPE (Statement of the Problem)

From the above stated discussion the researcher attempts to emphasise two important factors: 1) Warehouse Management in general and empirical studies on Sainsbury in particular; 2) The impact of employee turnover in general and the same impact of turnover in a warehouse setup that is perceived as mostly seasonal in nature (Min, 2007). As such further investigation into the background of the stated area of study is done by the researcher such that an appropriate topic for discussion is derived based on which an empirical research can be carried out. Emphasizing on the employee turnover issue, Min (2007) opined that job security is a major concern while it comes to recruitment of warehousing staff and their subsequent retaining. The author notified that monetary incentives are of little importance when it comes to retaining employees or the employee turnover issue for that matter. The scholar reasoned that the major setbacks affecting job security in the logistics area are: presumption that the jobs in logistics are temporary and are subject to alterations in view of the increasing merger & acquisition activity, and the high amount of risk perceived in this area. Moreover, the employees are wishing for better working conditions and better work-life coordination as well as for healthy relationships between personnel of all cadres. In continuation the studies of Stuff (2010), based on the latest IRS research reports, revealed that the voluntary resignation rate among the employees was around 8.6 per cent in the year 2009, (http://www.xperthr.co.uk). The above statistical finding was gathered from the opinions of 256 employers employing around 700,000 workers. Min (2007) reasoned that incentives and pay hikes have not made any progress towards resolving the workers shortage problems in the logistics industry. How far these statistics reported in websites stand true in literature and official records is what the proposed study also intends to investigate. The above stated discussions stand as focal view that resulted in deriving the topic: Employees turnover and seasonal fluctuations in warehouses An investigation into Sainsburys distribution centre Waltham Point.

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2.0 Literature Review

An initial investigation into the literature revealed that the subject of Employee turnover is one of the popular areas of investigation for academicians as it is an influencing factor as far as the labour productivity and organisational performance are concerned. Beilock and Capelle (1990) through their studies on truck driver turnover reported that experienced truck drivers exhibited lesser turnover than inexperienced drivers. The authors reasoned that given their years of experience in driving, the experienced drivers should be given more compensation than the junior drivers and therefore, the former are more prone to risks in situations such as job changes and other alterations. In another study in the similar area of logistics literature, Richard et al. (1995) made a unique observation that the attitude and response of the dispatcher towards the truck driver also influences the turnover issue. In furtherance, scholars Keller and Ozment (1999a, b) and Keller (2002) made similar observations on the dispatchers attitude extending support to the above statement. However, according to Rodriguez and Grifn (1990), LeMayet al., (1993), Taylor (1994), Keller (2002), and Min (2002), compensation plays a major role in the recruitment and retention of truck drivers. Other studies, such as those of LeMayet al., (1993); Taylor, (1994); Keller (2002); Min (2002), indicated that other factors that affect driver turnover as job previews that depict the realistic picture of the organisation, the size of the organisation, haul length and the time drivers are allowed to spend with their families. This is evident to state that the experience of an employee can be a factor for employee turnover; thus the researcher intends to investigate into the factors that influence employee turnover; this would be the first objective of the proposed research. Studies specifically emphasizing on factors influencing employee turnover are very few in number. However, the academic contribution the researcher intends to make will be in line with previous contributions to employee turnover in the logistics industry. One can see from Beilock and Capelles (1990) studies that the demographic elements like age and educational background of the truck driver also influence the turnover rate.Fugure-1 illustrates the above observation.

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Figure 1: Key variables impacting Employee turnover

Source: Beilock and Capelle (1990)

As shown in Figure 1, there exists a correlation between demographic variables such as gender, age, qualifications and the turnover rate. In addition, the figure also depicts the correlation between occupational characteristics (such as skill, experience, tenure and status), the individual characteristics (such as compensation, rewards, and promotions), the organisational characteristics (such as its size, industry, popularity, working conditions, and job requirements)and the turnover rate. Emphasizing on the perception of the employees and HR staff of a warehouse, the studies of Ashforth and Saks (1996) concluded that the organisational culture also plays an important role in employee turnover. The scholars observed that the socialising nature of the organisational culture has a long standing effect on the newly recruited employees. In this connection, given a healthy organisational culture and environment, the newly recruited staffs will develop more commitment towards the organisation. Here, Barber (1998) commented that the environment should be family type and friendly and that it is the responsibility of the HR dept to ensure such a friendly atmosphere is created for the workforce. In extension to the above observations, the WERC Sheet (2002) reported that the warehouse employees can be influenced to stay with the organisation permanently by socialising activities. The researcher is of the opinion that the above information should have already motivated warehousing employers to promote friendly environment and healthy working conditions as well as increased socialisation via personal communication with staffs. In such situation the perception of both the employees and the managers who guide them becomes important. Thus the researcher also propose to assess and evaluate how individual perception of employees and the factors that influence them personally and socially for employee turnover.

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2.1 Aims, Objectives and Research Question

The proposed research aims to investigate what causes employee turnover in general and how seasonal fluctuations impact the productivity and services in a warehouse. To further evaluate the results empirically the researcher furthers with a case study investigating into the warehouse of Sainsburys distribution centre at Waltham Point, North London. The objectives of the proposed research include:

To identify the factors that influence employee turnover. To assess how seasonal fluctuations of employee turnover impact the warehouse services. To evaluate the perception of warehouse staff in relation to employee turnover. To assess employees perception of factors influencing employee turnover

The principle research question of the proposed dissertation is

What are the factors that influence employee turnover?

The above question will be investigated in terms of the factors identified by the Staff, Employees and the employers. With the stated aim, objectives and research question the researcher proposes a methodological structure for the proposed dissertation.

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3.0 Proposed Methodology

Eminent scholar, Saunders et al., (2010) emphasised that the first essential step in research is to devise a research model consisting of the detailed methodology to conduct the study. Therefore, the study proposal that initiated to investigate in to the impact of seasonal fluctuations on employee turnover has already instigated to further the research by adopting a case study. Research design as suggested by the present and the previous academicians is the initial step in the process of the study. White (2005) made an important observation here, along with the generalised focus; the research should necessarily be in an organised and systematic fashion. The scholar explained that if such an organised gathering of data is achieved it would make it simpler for the researcher to deal with the later stages, i.e. while analysing and explaining various phenomena. However, to conduct the current dissertation, the research did not make any special effort in designing a research methodology; the researchers task was simplified from the suggestions of Saunders (2010) research onion which gives an ideal model to conduct the proposed research (figure2).

Figure 2: Research Onion

Saunders et al (2007, p.132)

As indicated in the figure, case study (a separate introduction to the case in also discussed) was chosen as the research strategy within the research onion model, Now, we move on to discuss the research philosophies, research approaches and the data collecting systems in the following sections.

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3.1 Research philosophy

For the proposed research assuming people who work for the case study organisation are the samples, requiring interpretation of human behavioural attributes as indicted in the previous sections; thus, it becomes imperative for the researcher to adopt the interpretivist research philosophy which is by nature a qualitative approach observed by White (2005). Gathering of statistical information is not of much significance for the current research; therefore, quantitative (positivist) approach is not being used by the researcher. The researcher went with the opinion of Crossan (2003) who felt that quantitative approach is of minimal use for interpretation of human behaviour. Conducting the proposed research; with the stated philosophy of interprevitism the researcher further to state that the approaches that will be appropriate for the proposed research.

3.2 Research approach

Saunders et al (2007) is of the opinion that inductive approach alone is sufficient because data analysis and derivation of themes are incorporated in it. Furthermore, as the researcher deemed it fit to apply thematic analysis as the data analytical tool, it becomes imperative for the researcher to choose the inductive approach. The deductive approach, according to Fisher (2007), involves making conclusions using logical and scientific principles which could not be of much importance and not of any practical utility as far as study on evaluating the behaviour of employee turnover is concerned. However, within the interview schedule prepared to collect the primary data the researcher has also incorporated a few close ended questions asking the participants to choose an appropriate option for the given statements. The statements would be derived from the research aims, objectives and questions. The options as selected by the participants would be measured in figures giving percentile for each of the option. As this method is termed as questionnaire by Saunders et al., (2007) though the evaluation of the results is not statistical in nature but the results are quantified; thus the approach of quantitative is also justified

3.3 Data Collection and Tool

According to Kumar (2005), primary data is the information personally gathered by the researcher using any of the interactive methods. The scholar goes on to define secondary data as the information gathered from previous academic contribution related to current research area. The chosen research area, i.e. the area of management studies has wide scope of study and extends across versatile parameters; therefore, the secondary information gathered plays a key role in the attainment of research aims. On the other hand, as human behaviour is being explored, the gathering of primary data is equally important in context of the current study. With respect to primary data, scholars, Ryan and Bernard (2000) notified that in qualitative analysis one can gather information in two ways: 1) through interviews incorporating open-ended questions, and 2) gathering information in an organised fashion from the participants.

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As already stated, the proposed study aims at deriving themes and this requires the researcher to personally interact with the respondents through semi-structured interviews with the help of openended questions and the interviews should essentially be conducted in-depth as according to Beebe (2006).

3.4 Data analytical tool

According to Hollaway and Trodes (2003), the process of thematic analysis involves transformation of the gathered information into text and then the researcher reads and re-reads the text to identify themes emerging out of the information. The next step, as illustrated by Kumar (2005) is to reorganise the themes and to identify key implications and other influential information useful in the light of the research aims. As discussed above the researcher is of the opinion that there are various indicators and variables and factors influencing employee turnover. These could be anything that is explained in length by various empirical studies. Thus there is a need to further concise the content of literature such that related factors can be discussed with the data gathered by the researcher and evolve themes and codes to qualitatively evaluate the results. As such the researcher proposed to apply the qualitative thematic analysis tool to evaluate the data.

3.5 Ethics
Bartunek and Louis (1996), emphasised on strict ethical adherence and regulations be followed while dealing with sensitive issues like gathering human expressions and feelings, etc. As the current research aims at gathering of such sensitive information, it is therefore very much necessary to stick on to the ethics through ethical considerations. The participants in the study will be given full freedom to exercise their will to withdraw from the process at any stage of the study. Participation is fully their choice and they can do so at their own discretion. In addition, their prior consent for participation would also be obtained.

3.6 Limitations
It is the researcher who chose the methods, philosophies, and strategies for conducting the study. The present research that investigates in to the factors that influence the employee turnover needs to interpret the human behaviour and perception in particular and so the philosophy of Interprevitism is justified. The decisions of the researcher were purely based on his convenience; therefore, discrepancies are inevitable at some places. The researcher feels that the chosen qualitative approach is itself a major drawback in the study; quantitative analysis should have been incorporated in some areas to produce statistical information this however is done using MS-excel data charts rather than SSPS method which is mostly suggested by various researchers. Moreover, the numbers of samples gathered not exceed fifty, is another limitation that cannot be generalized to specific area in other or similar circumstances; as most of the expression are individual and tend to change with changing behaviour and circumstances. Thematic analysis could also be another major challenge for the researcher wherein balancing of emotions becomes crucial and often difficult.

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3.7 Time line: Gantt chart

Weeks Tasks Topic Aims & Objectives Ethical Approval Secondary Data (Literature ) Primary Data (Interview) First three Chapters Data Findings and Analysis Conclusion First Draft Copy Final Dissertation
August 3rd and 4th week September 1st & 2nd Week October 3rd & 4th Week November 1st Week

September 3rd & 4th Week October 1st & 2nd Week

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4.0 Conclusions
Many organisations irrespective of their size and area of functioning of experiencing the issues of employee turnover there were many factors influencing turnover issues one of the major as identified in the proposal is job security and monitory incentives. These issues become more crucial during certain seasons. Though organisations were emphasising on regular pay hikes the issues of turnover still did not seem to be a taking a reduction rate. However, the proposal identified that the active involvement of HR within the framework of organisational rules and objectives and further considering employees behaviour and attitude; can resolve most of these issues through training. Based on the literary evidences and the conclusions from empirical studies the researcher proposes to conduct a full length research investigating in to find the relationship between seasonal fluctuations and employees turnover and to further conduct empirical studies within the context of the warehouse at Sainsburys.

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References
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Min. H., 2007. Examining sources of warehouse employee turnover.International Journal of Physical Distribution and Logistics Management, Vol. 37(5), pp. 375- 388. Morgan, G. and Smircich, L., 1980. The case for qualitative research.Academy of Management Review, Vol.5(4), pp. 491-500. Richard, M. D. LeMay, S. A. and Taylor, S. G., 1995. A factor-analytic log it approach to truck driver turn over. Journal of Business Logistics, Vol. 16, No. 1, pp. 281-98. Rider, D. A., 2008.Massocephalusstysi, a new species of Pentatomidae (Hemiptera: Heteroptera) from the Philippines. Acta Entomologica Musei Nationalis Pragae Vol 48(2), pp. 583-590. Rodriguez, J. M. and Griffin, G. C., 1990.The determinants of job satisfaction of professional Drivers.Transportation Research Forum, Vol. 30, No. 2, pp. 453-64. Ryan G. W. Bernard H. R., 2000. Data Management and Analysis Methods, inDenzin, N. K., Lincoln, Y. S. eds., Handbook of Qualitative Research, Thousand Oaks: Sage, pp. 769-802. Saunders, M. Lewis, P. and Thornhill, A., 2007. Research methods for business students.4th ed., London: Prentice Hall. Saunders, J. Nehaniv, C. L. and Lyon, C., 2010. Robot learning of lexical semantics from sensorimotor interaction and the unrestricted speech of human tutors.In 2nd Intl Symp.On New Frontiers in HRI, AISB. Taylor, G. S., 1994. Realistic job previews in the trucking industry. Journal of Managerial Issues, Vol. 6, No. 4, pp. 457-73. WERC Sheet., 2002. Employee retention: whats the catch. WERC Sheet, November, pp. 8-10. WERC Sheet., 2000. Can incentive programs pay off. WERC Sheet, November, pp. 8-10. White, P. A., 2005. The power PC theory and causal powers: Comment on Cheng (1997) and Novick and Cheng (2004). Psychological Review, Vol. 112, pp. 675684.

Further Readings
Ashford, S.E., George, E. and Blatt, R., 2007. Old assumptions, new work, The Academy of Management Annals, Vol. 1, pp. 65-117. Batt, R. Holman, D. and Holtgrewe, U., 2009. The globalization of service work: comparative institutional perspectives on call centers. Industrial and Labor Relations Review, Vol. 62, pp. 453-88. Benapudi, V. Mangum, S. L. and Tansky, J. W., 2003. Nonstandard employment arrangements: a proposed typology and policy planning framework, Human Resource Planning, Vol. 26, pp. 2440. Blatt, R., 2008. Organizational citizenship behavior of temporary knowledge employees, Organization Studies, Vol. 29, pp. 849-66. Camerman, J. Cropanzano, R. and Vandenberghe, C., 2007. The benefits of justice for temporary workers, Group & Organization Management, Vol. 32, pp. 176-207. De Cuyper, N. and De Witte, H., 2008. Volition and reasons for accepting temporary employment: associations with attitudes, well-being, and behavioural intentions. European Journal of Work and Organizational Psychology, Vol. 17, pp. 363-87. De Cuyper, N. de Jong, J. De Witte, H. Isaksson, K. Rigotti, T. and Schalk, R., 2008. Literature review of theory and research on the psychological impact of temporary employment: towards a conceptual model. International Journal of Management Reviews, Vol. 10, pp. 25-51. 14 | P a g e

De Cuyper, N. Mauno, S. Kinnunen, U. De Witte, H. Makikangas, A. and Natti, J., 2010. Autonomy and workload in relation to temporary and permanent workers job involvement. Journal of Personnel Psychology, Vol. 9, pp. 40-9. Faber, N. de Koster, M. B. M. and van de Velde, S. L., 2002. Linking warehouse complexity to warehouse planning and control structure: an exploratory study of the use of warehouse management information systems. International Journal of Physical Distribution & Logistics Management, Vol. 32, No. 5, pp. 381-95. Galais, N. and Moser, K., 2009. Organizational commitment and the well-being of temporary agency workers: a longitudinal study, Human Relations, Vol. 62, pp. 589-620. Gue, K. R., 2001. Cross-docking: just-in-time for distribution, Available at: http://web.nps.navy. Mil Liker, J. K. and Wu, Y., 2000. Japanese automakers, US suppliers and supply-chain superiority, MIT Sloan Management Review, Vol. 42, No. 1, pp. 81-93. Min, H., 2004. An examination of warehouse employee recruitment and retention practices in the USA. International Journal of Logistics: Research and Applications, Vol. 7, No. 4, pp. 345-59. Muilerman, G., 2001. Time-based Logistics; An Analysis of the Relevance, Causes and Impacts, TRAIL thesis series, Delft: Delft University Press. Mullins, B., 2002. Computer-assisted tool, job analysis help slash turnover, Distribution Center Management, Vol. 37, No. 2, pp. 1-3. Organ, D. W. Podsakoff, P. M. and MacKenzie, S. B., 2006. Organizational Citizenship Behavior: Its Nature, Antecedents, and Consequences, Thousand Oaks, CA: Sage Publications. Silla, I. Gracia, F. J. and Peiro, J. M., 2005.Job insecurity and health-related outcomes among different types of temporary workers, Economic and Industrial Democracy, Vol. 26, pp. 89-117. Slack, N. Chambers, S. and Johnston, R., 2001. Operations Management, Harlow: Prentice-Hall. Speh, T. W. and Maltz, A., 2002. Private Warehousing: A Snapshot, Warehousing Education and Research Council, Oak Brook, IL. Stanworth, C. and Druker, J., 2006. Human resource solutions?Dimensions of employers use of temporary agency labour in the UK, Personnel Review, Vol. 35, pp. 175-90.

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