The Influence Of Job Satisfaction And Organizational Commitment On Employees Turnover Intention

Project and Seminar Material for Business Administration and Management BAM

The Influence Of Job Satisfaction And Organizational Commitment On Employees Turnover Intention

Chapter One


1.1 Background Of The Study

Turnover is a vital strategy for companies, people, and culture, and it has both positive and negative aspects (Phillips and Connell, 2003). While there have been studies of turnover in the last 30 years in the behavioral and human resources fields of theories of voluntary resignation (Tett and Meyer, 1993; Mobley, 1992; Lee and Mowday, 1987; Dalton and Todor, 1979; Burguess et al., 2001), such as in labor economics (Du et al., 2006; O’Higgins, 2012), they were identified as efforts in Brazil with works by Pinto and Gonzaga (2014) and Pinto and Gonzaga (2007). However, due to the high turnover in Brazil, there are also holes in the academic study agenda (Campos and Malik, 2008; Menezes and Bastos, 2010). Market statistics, such as those reviewed by Corseuil et al. (2013), who looked at Brazilian turnover from 1996 to 2010, backed up the relevance of the topic and its continued inclusion in the study agenda. Mowday (1984) argued that a high degree of employee engagement may be one way to reduce the effects of turnover. This topic was selected for this analysis to examine the employee’s loyalty to the company for this purpose, and since this construct is considered one of the triggers of turnover. Organizational loyalty, according to Siqueira and Gomide Jnior (2004), is a psychological relationship maintained between an individual and an organisation. It is the degree of dedication and support that workers display to the company, according to Baotham et al. (2010), with a strong association between engagement and the desire to stay in the organization, according to Robbins (2005). There are a variety of explanations when an employee leaves or intends to quit a business (Gaylard et al., 2005; Agapito et al., 2015). Following a review of the literature, two structures were selected as influencers of this choice or desire to quit the organization: “work satisfaction” and “organizational engagement” (Tett and Meyer, 1993; Gaertner, 1999; Mobley, 1992; Griffeth et al., 2000; Du et al., 2006; Lee and Mowday, 1987; Yucel, 2012; Baotham et al., 2010).

1.2 Statement Of The Problem

Employee turnover problems have become even more prevalent in today’s workplace. Such matters can have an effect on human resource activities such as recruiting and evaluation, preparation, human resource growth, success assessment orientation, and staff maintenance, either explicitly or indirectly. Furthermore, if a large number of workers quit the business, the workload and overtime working conditions for remaining employees would be significantly increased, potentially lowering efficiency due to poor employee morale. Furthermore, not only can a high rate of worker turnover have detrimental effects on workers, but it may also have an effect on an organization’s overall success. As a result, gaining employee support and contribution is critical for organizations to achieve high morale and success. On the subject of turnover, several studies and experiments have been conducted. For example, job satisfaction can aid in increasing employee commitment and motivation. According to a study conducted by Hay, the majority of workers cite employment prospects, learning and growth as the primary reasons for staying with a business, which leads to work satisfaction. Workers who are unhappy will ultimately quit the company, and the company will lose the experience that the employees bring along with them. If the company chooses to hire new workers to replace those who quit, and their needs are not fulfilled as well, the organization’s everyday operations will suffer, and the vicious cycle of employee attrition will begin again. To ensure that workers of an organisation are kept, this analysis looked at many aspects that could affect employee attrition intentions, such as work satisfaction (pay, supervisory support), and organizational engagement.

1.3 Objective Of The Study

  1. To determine the relationship between satisfaction with pay and employees’ turnover intention.
  2. To determine the relationship between supervisory support and employees’ turnover intention.
  3. To determine the relationship between organization commitment and employees’ turnover intention.

1.4 Research Question

  1. What is the relationship between satisfaction with pay and employees’ turnover intention?
  2. What is the relationship between supervisory support and employees’ turnover intention?
  3. What is the relationship between organization commitment and employees’ turnover intention?

1.5 Significance Of The Study

This study will be significant as it will bring to the fore Employee Turnover Intention as an important factor for a company’s desired results. A lower attrition rate is closely correlated and interlinked to a high level of employee feeling, ownership, and standing. As a result, making workers happy with their jobs should be a top priority for any boss. Though this is a well-known reality of management strategies, a downturn in the economy can lead to an employer refusing it. There could be a variety of factors why workers become dissatisfied with their jobs and eventually leave, such as a lack of contact, elevated levels of tension inside the company, or a lack of respect or a glass ceiling. Even in times of economic instability, management should take proactive steps to improve these conditions in order to reduce turnover rates and prevent high turnover rates.

1.6 Scope Of The Study

The study focuses on the impact of job satisfaction and organizational commitment on employees’ intention to leave.

1.7 Limitation Of Study

This research focused on a single entity. The small sample size of this study could restrict its ability to generalize the findings to the entire publishing industry. As a result, the study only looks at one company’s history. However, the findings of this study are appropriate and capable of measuring the impact of work satisfaction and organizational engagement on employee turnover intention for a similar company population.

1.8 Definition Of Terms

Job Performance:

Job performance determines whether or not an employee does a good job. Human resources administration includes job success, which is researched academically as part of industrial and organizational psychology. Organizational results and productivity are heavily influenced by performance.

Organizational Commitment:

Organizational commitment refers to the connection or bond employees have with their employer (the organization).

Turnover Intention:

Turnover intention is a metric that determines whether or not workers of a company or organization plan to leave their jobs or whether the company or organization intends to fire employees. The purpose of turnover, like turnover itself, may be voluntary or involuntary.

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