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Arabian Journal of Business and Management Review
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The Influences of Employee Job Satisfaction an Organizational Commitment on Turnover Intention

Ibrar M*

PhD Scholar, Department of Management Sciences, Batkhela Malakand Agency, Khyber Pakhtoon Khwa, Pakistan

Corresponding Author:
Ibrar M, PhD Scholar
Department of Management Sciences
Batkhela Malakand Agency
Khyber Pakhtoon Khwa, Pakistan
Tel: +923139181002
E-mail: dr.mibrar1002@gmail.com

Received June 02, 2015; Accepted September 23, 2015; Published October 05, 2015

Citation: Ibrar M (2015) The Influences of Employee Job Satisfaction an Organizational Commitment on Turnover Intention. Arabian J Bus Manag Review 5:169. 

Copyright: © 2015 Ibrar M. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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Abstract

Purpose: This study aims to examine and find out the influences of job satisfaction and organizational commitment on employee turnover intention in a production industry. In this study find out what are other factors to influence the employee satisfaction and turnover intention the determinants of employee turnover has been studied extensively. Design/methodology/approach: There are a total of 70 questionnaires collected from 90 questionnaires that had been distributed at the chosen organization. Demographic characteristics were discussed briefly according to the frequency level and percentage. Findings: In addition, both descriptive and inferential statistics were applied to analyze the data obtained. As for inferential statistics, Pearson Correlation Coefficient was used to measure the degree between independent variables with dependent variable in this research. Conclusion: The research findings showed that for the independent variable of job satisfaction with the factors on satisfaction with pay and supervisory support had a low and negative significant relationship on employee turnover intention. However, organizational commitment had no significant relationship towards turnover intention among the employees within the organization. Originality/value: By reviewing the different finding that the Employee satisfaction and Turnover intention. The contribution of this paper is to look at how to finding the effective solution. The influences of job satisfaction and organizational commitment on turnover intention. Study of paper: The study of this paper is exploratory is qualitative study of research.

Keywords

Turnover intention; Organizational commitment; Job satisfaction

Introduction

In today’s working environment, employee turnover issues have expanded tremendously. Such matter may directly or some indirectly affect the human resource practices of recruitment and selection, training, human resource development, performance appraisal orientation and maintaining the workforce. Besides, if a high numbers of employees leave the organization, workload and overtime working condition for existing employees are heavily increased, and thus, may reduce their productivity level due to low employee morale. In addition, not only it brings negative consequences towards the employees, a high rate of job turnover in an organization may impact its overall performance. Therefore, in order to obtain a high productivity and performance, it is crucial for organization to gain employees support and contribution [1,2]. Various study and research had been done on turnover issues. Job satisfaction, for an instance, could help to increase employee commitment and motivation. A research conducted by Hay, found that the majority of the employees chose career opportunities, learning and development as the fore most reason to stay in an organization, to which, lead towards job satisfaction. Employees who are dissatisfied would eventually leave the organization, and at the same time, the organization loss the knowledge that the employees had brought in. If the organization decides to recruit new employees to replace those who leave, and their feelings of dissatisfaction are not met too, this could affect the daily operation of the organization, and the vicious cycle of turnover rate will happen again. In this study, to ensure that the employees in an organization are retained, the research focused on several factors that could influence the turnover intention among the employees, which include job satisfaction (satisfaction with pay, supervisory support), and organizational commitment.

Research questions

1. Which affect the Employee turnover intention?

2. What are the roles of organization commitment with employee turnover intention?

3. How is it employee turnover intention increase with employee satisfaction?

4. Why the organizations more focus the turnover intention?

5. How to manage the employee satisfaction, Turnover intention.

6. What are the other factors lead to employee turnover intention Instead of pay, Supportive Management?

7. How to improve employee satisfaction on organization commitment?

8. What are the importance and practical implication of Turnover intention on organization Commitment?

9. What is the best solution of this problem?

10. How to understand the employees’ perceptions of nature work; it could help to reduce the turnover rates in the organization?

Objectives

In this study, there are approximately three (3) research objectives and hypotheses used as a guideline for the Research to work on. The objectives were on identifying the relationship between job satisfaction and organization commitment towards employees turnover intention. Below in the specific objectives used as reference in this study:

1. To highlight the main finding by performing statistical techniques and to govern the relationship for the factor.

2. To understand that the process that why some employees leave the organizations when they are unsatisfied while other remain when are satisfied.

3. To find out low morale of the employees and turnover and the organization.

The specific objectives of this study are to determine

1. The relationship between satisfaction with pay and employee’ turnover intention.

2. The relationship between supervisory support and employees’ turnover intention.

3. The relationship between organization commitment and employees’ turnover intention.

Importance of the Study

Employee’s Turnover Intention is important for desirable outcomes to any business. A high degree of employee feeling, possession and status are directly connected and interlinked to a lower turnover rate. In this manner, keeping employees satisfied with careers must be a priority to each and every employer. Whilst, this is so-called fact in management practices, decline in economy may cause employer to refuse it. There may be certain justifications why employees discourage with their job and then resign, such as lacking of communication; high rate stress within the organization, other reasons may be lack of recognition or glass ceiling. Management should take strict actions actively to enhance these factors, if they hope to lower the turnover rate, even in economic uncertainty, so high turnover rate can be avoided [3].

The importance of this topic is realized all over the world. For instance the workers and research conducted on this topic is clear proof for it, further more organization private emphasizing more on creating a good job satisfaction and implemented.

Furthermore when we conducting this research in Pakistan for different types of industries it will suggest something about different of them, because the privatized its practice and its effects for each organization. Consequently this too will make contribution for Pakistan firms to understand the importance and practical implication of Turnover intention on organization Commitment [4].

Conceptual Framework

In this study, it was intended to investigate how to the influences of job satisfaction and organizational commitment on turnover intention of the employees. Figure 1 Shows the relationship between job satisfaction (with factors such as satisfaction with pay and supervisory support), and organizational commitment with employees’ turnover intention this conceptual framework was developed based on established the relationship between Dependent and in depended variables.

arabian-journal-business-management-review-Conceptual-Framework

Figure 1: Conceptual Framework.

As for the research hypotheses, they are specific statement of prediction that the research expected in this study. Thus, the research used alternate hypotheses to identify if there is a significant relationship between the independent variables with the dependent variable mentioned.

The following hypotheses are formulated

H1: There is significant relationship between satisfaction with pay and employee’ turnover intention: According to Farooqui and Nagendra [5] Price [6] pay satisfaction is defined as the amount of overall positive effect or the individual feelings toward pay. In this study, the operational definition for satisfaction with pay means that the individual’s perception with their overall pay received from the employer based on the demand and expectation given to the employee. Gustafson concluded in her study that compensation and opportunities for better pay largely contribute to employees’ turnover intention in organization. As the important theory used as reference in this study is the Equity theory developed by Adam. He explained that individuals who value fair treatment will lead towards maintaining the relationships between members within an organization. And so, if the employees feel that inequality exists in pay treatment, a range of negative behaviors pursued such as absenteeism, and the desirability to move out from the organization. Thus, the research came up with the first hypothesis for this study, and that is to look at whether the pay received by the employees could lead towards their turnover intention in the organization. That conclude that the pay increment is positive impact on turnover intention, that high pay will lower turnover intention, lower pay will be higher turnover intention.

H2: There is significant relationship between supervisory support and employee’ turnover intention: And this study defined supervisory support as the physical and psychological encouragement given by the employer or supervisor who value the contribution of employees and thus, help to promote their development. The research believes that this could affect employees’ performance and effectiveness. From previous study done. The stated that the supervisors are mainly involved in performance evaluation and feedback, hence, supervisor’s favorable or unfavorable treatment reflects in organization’s view in decision on employees. Referring to a research conducted by employees who are given a voice, open communication, recognition, and support by their respective supervisors, and cared for their well-being, they tend to remain in the organization for a long period of time. Therefore, in this study, the researchers presented the second hypothesis, which is to look at the relationship between supervisory support and employees’ turnover intention [7,8].

H3: There is significant relationship between organizational commitment and employee’ turnover intention: Mowday, Porter, and Steers [1], defined organizational commitment as a strong belief in and acceptance of the organization’s goals and values; a willingness to exert considerable effort on behalf of the organization; and a strong desire to maintain membership in the organization in this study means that if the employees’ values aligned with the organization’s goals, hence that would lead to their willingness to remain in the organization. Pertaining to a research, affective commitment has significant negative influence on turnover intention, which is similar to a research done by Law indicated that affective commitment is the most prominent component of commitment in predicting turnover of the employees’ Therefore ,the final hypothesis used for this study is to look at to exert considerable effort on behalf of the organization; and a strong the relationship between the organizational commitment and employees’ turnover intention.

Research Methodology

In this research, a survey questionnaire was designed according to the objective of the study, and it was used to gather accurate and less bias data. The questionnaire involved comprised of five (5) sections whereby it contained the demographic characteristics of the respondents on the first section, with the other four (4) sections on factors of job satisfaction, organizational commitment, supervisory support, employee turnover intention the last four section were rating from (1) strongly Disagree’ to (5) “strongly Agree “measured using a five-level Likert scale developed by Resins Likert.

A total of 100 questionnaires were distributed among the management and non-management employees in production industry. Only 70 of them were successfully collected from the studied organization. In analyzing the available data, descriptive and inferential statistics were used by utilizing the Statistical Package for Social Science (SPSS) version m16.0.

As mentioned earlier, descriptive statistics were used to analyze the respondents of demographic data such as gender, age, marital status, educational level, income, and years of service working in the organization. The data was presented via frequency and percentage%. On the other hand, inferential statistics were used to determine the relationship between dependent and in-depended variable. The research hypothesis were analyzed by using Pearson’s Correlation [9].

Coefficient and the signs of the correlation coefficient indicate the strength of the relationship or the degree of association between the two variables. The independent variables for this study include job satisfaction, which consisted of satisfaction with pay and supervisory support, as well as organizational commitment. On the contrary, dependent variables were the employee’s turnover intention.

In designing the question items, the researchers adapted and modified the questions from previous researchers to suit the current research.

Limitations

This study focused on one selected organization. The sample for this study may limit the ability to generalize this research to represent the whole population of the publication industry.

Hence, the sample only focuses on one selected background of company. However, this study’s result is suitable and able to measure the effect of job satisfaction, and organizational commitment employee turnover intention exactly for the similar background company population [10,11].

In addition, the sources of literature for this study are more reliable on the western content. Thus, this helped to explain the differences of results on the research findings if they were to compare with this study. Moreover, most of the items used in this study, such as the research instrument, were adapted and modified from the western journal, as the western researchers developed the items according to their cultural context. These items may lead to some contradiction in measuring the society in the eastern context. For this reason, restrict the findings of this study to generate perfect result to represent Pakistani content population.

Recommendations

As this research studied the population of the publication production industry, future research should study on similar research framework at different population group such as the banking, telecommunication, hospitality or even the manufacturing industry. Although it could be a challenge, involving more than one industry as the studied population improves the findings of the result as comparison can be made and thus, the researcher may as well get to identify which industry that has the highest level of turnover intention among the employees. Besides that, for future research, it is also advisable for the future researchers to conduct interviews to gather more in-depth information on the factors that contribute to employee turnover intention other factors such as leadership style or group dynamics for instance, should be taken into consideration to see whether these factors have potential influence on employees’ turnover intention.

On the other hand, human resource practitioners are encouraged to develop a more effective planning to retain the employees in their organizations. By understanding the employees’ perceptions of nature work, it could help to reduce the turnover rates in the organization. In a nutshell, these findings could assist the human resource practitioners to relevant program, which could increase the employees’ satisfaction and lead towards the retention of these employees. Thus, human resource practitioners should be aware of the factors that could lead to the employees’ intention to leave the organization.

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