EFFECT OF JOB ROTATION ON EMPLOYEE PRODUCTIVITY

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EFFECT OF JOB ROTATION ON EMPLOYEE PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

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’ (JOHNMITH VENTURE).

1.3.2 Specific objectives

The following are the main specific objective:

i. To identify how effective is job rotation in improving employees’ performance at JOHNMITH VENTURE.

ii. To determine how job rotation can be successfully implemented to achieve results at JOHNMITH VENTURE.

iii. To find out the challenges of job rotation at JOHNMITH VENTURE.

iv. To find out the benefits associated with job rotation at JOHNMITH VENTURE.

v. To make appropriate recommendations on how to promote job rotation JOHNMITH VENTURE.

1.4 Research question

Following the research objectives, the research has the following specific research questions to be answered.

i. How effective is job rotation in improving employees’ performance at JOHNMITH VENTURE?

ii. How can job rotation be successfully implemented to achieve results at JOHNMITH VENTURE?

iii. What are the challenges of job rotation at JOHNMITH VENTURE?

iv. What are the benefits of applying job rotation at JOHNMITH VENTURE?

v. How could job rotation be improved to benefit JOHNMITH VENTURE?

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.

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