A Study On Relationships Among Job Satis
A Study On Relationships Among Job Satis
A Study On Relationships Among Job Satis
ABSTRACT
Human resource is perceived as the valuable asset of the company with an
increasing value over time; human resource is today considered one of the
most crucial factors of the business success and has received increasing
attention from the management. A number of organizations have currently
built up their competitive advantages by concentrating on the integration
between human competency and organization development. How to develop
and continually improve the skill and knowledge of the firms’ employees as
well as, most importantly, how to maintain those the valuable persons with the
business have become the key of today’s business success.
Identifying intrinsic and extrinsic motivational variables influenced the
retention and reduction of employee turnover in both skilled and unskilled
employee is beneficial to every business. In this study, an attempt is made to
examine the content of the employee in service industry sector to improve the
effectiveness of human resource management.
Key word: Job Satisfaction, Organization Commitment, Turnover Intention.
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A Study on Relationships Among Job Satisfaction, Organizational Commitment and Turnover
Intention In Kolors Healthcare India Pvt ltd, Chennai
Cite this Article: N. Kamakshi Priya and Dr. M. Kalyana Sundaram, A Study
on Relationships Among Job Satisfaction, Organizational Commitment and
Turnover Intention In Kolors Healthcare India Pvt ltd, Chennai. International
Journal of Advanced Research in Management, 7(1), 2016, pp. 58–71.
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INTRODUCTION
The survival of businesses critically depends on the ability of the managements in
creating and maintaining the competitiveness of their organizations. To build up the
business competitiveness, many firms in the past decades paid most of their attentions
to improve their productivities. Production management, such as the use of new
technology and innovation for production, therefore became the first priority among
the other business functions (Panuwatwanich, 2008). However, when the time goes by
the business competition has become more aggressive. A certain firm cannot win over
the others by relying solely on its high productivity. The other functions of the
business, which used to receive less attention from the management, then now also
become the critical parts of the firm’s success which the management cannot
overlook.
Because human resource is perceived as the valuable asset of the company with an
increasing value over time, human resource is today considered one of the most
crucial factors of the business success and has received increasing attention from the
management. A number of organizations have currently built up their competitive
advantages by concentrating on the integration between human competency and
organization development (macris, 2008). How to develop and continually improve
the skill and knowledge of the firms’ employees as well as, most importantly, how to
maintain those the valuable persons with the business have become the key of today’s
business success.
Employee turnover rate can be used as one indicator of the business
competitiveness. The high turnover rate can cause the business to lose their cost
competitiveness. High turnover rate generates a significant amount of costs to the
company including costs arising during the recruiting process, training costs, and
opportunity costs such as work delay during the recruiting and training process. The
prior study shows that in some labour intensive industries, the companies have to
spend on average 3-6 months in training the new-hired employees, depending on the
work difficulty (Vakola, 2007).
A skilled employee is one who has comprehensive knowledge and ability in their
work. An unskilled employee is one who does operations that involve the
performance of simple duties. Unskilled and middle level of employee often have
high turnover due to can get a new job easily. In any industry, there are two employee
classes, unskilled employee and skilled employee. There are many different
characteristics between this two groups such as training period, work’s objective and
other substantial factors. Since the performance of skilled and unskilled employee is
the key success in this industry, the employee retention strategy should be designed to
support and challenge the business objective.
Identifying intrinsic and extrinsic motivational variables influenced the retention
and reduction of employee turnover in both skilled and unskilled employee is
beneficial to every business. In this study, an attempt is made to examine the content
of the employee in service industry sector to improve the effectiveness of human
resource management.
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N. Kamakshi Priya and Dr. M. Kalyana Sundaram
REVIEW OF LITERATURE
Turnover
Turnover is defined as the “individual movement across the membership boundary of
an organization” (Price, 2001: p. 600). Employee turnover is the rotation of workers
in the labour market; among firms, jobs and occupations. Labour turnover is one of
the most significant causes of declining productivity and disruption of the production
process. Higher job turnover is leading to higher costs associated with recruitment,
selection, job training and cost of training including supervisory time spent in formal
training.
The theory of voluntary employee turnover proposed by March and Simon (1958)
argues that employee turnover results from the individual’s perceptions about the
perceived desirability of movement and ease of movement. March and Simon model
concluded that labour turnover are mainly two factors namely “perceived desirability
of movement” which is influenced by job satisfaction, internal organization and
“perceived ease of movement” which is influenced by opportunity extra
organizational. Then, Mobley et al. (as cited in Staffelbach, B. ,2008) expanded model
concluded that decision to quit are namely job satisfaction, expected utility of
alternate roles in organization, expected utility of alternate role outside organization
and non-work value and roles. And Sheridan and Abelson (1983) The ‘Cusp-
Catastrophe’ model shown the complexity of intrinsic properties of turnover
phenomenon. First, abrupt change when they feel that cannot stay. Second, called
‘hysteresis zone’ representing a state of disequilibrium between from retention and
termination. Third, bifurcation plane which is very small change (job tension, job
dissatisfaction and job stress) between retention plane and termination plane.
Organizational Commitment
Bateman and Strasser defined commitment as “multidimensional in nature, involving
an employee’s loyalty to the organization, willingness to exert effort on behalf of the
organization, degree of goal and value congruency with the organization, and desire to
maintain membership” (p.95). Organizational commitment was defined by Allen and
Meyer (1996) as a psychological link between the employee and their organization
can take three quite distinct forms. Three-component view of commitment consists of
affective, continuance and normative (Allen & Meyer, 1990).
Affective commitment refers to an employee’s involvement in, identification with
and emotional attachment to the organization. This means employee stays with an
organisation because he wants to. He believes in and identifies himself with the
organisation. Continuance commitment refers to commitment based on costs that
employee recognition is associated with leaving the organization, remain with the
organization because they have to do so. Finally, normative commitment refers to
commitment based on a feeling of obligation to stay with the organization because
they feel they ought to do so. From the study by Weibo at et. (2010) concluded that
Allen and Meyer approach is the leading centre of organizational commitment
research. This is due to the various studies which have found a correlation between
commitment to the employing organization and intention staying or leaving.
Employees with lower levels of commitment were more likely to leave from
organizational (Porter, 1974).
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A Study on Relationships Among Job Satisfaction, Organizational Commitment and Turnover
Intention In Kolors Healthcare India Pvt ltd, Chennai
Job satisfaction
Organizational commitment was defined by Greenberg and Baron (1997) as an
individual’s cognitive, affective, and evaluative reactions towards his or her job. And
a commonly accepted job satisfaction definition is offered by Locke (1976) as the
pleasurable emotional state resulting from the perception of one’s job as fulfilling or
allowing the fulfilment of one’s important job value.
Job satisfaction is one of the widely discussed topics of employee’s behaviours at
work. Satisfaction of employees is a concern for organizations as it leads to higher
productivity, low turnover, reduced absenteeism, increased moral and many other
positive returns.
High employee turnover rate has increasingly been an issue of interest to both
practitioners and academicians, not just in developed countries but also in the
developing countries. From the perspective of human resource management, high
turnover rate is a serious issue due to several reasons. First, high turnover rate has
financial consequences. When employees leave, recruiting, selecting, and training of
new employees are necessary. Replacing a full-time, private-sector worker may likely
to cost 25% of his or her total annual compensation. Second, employee turnover may
disrupt company’s productivity and thus performance, especially when it involves
critical positions in organizations. High turnover also fosters a sense of discontinuity
in the workplace hence unsettling managers and employees. Companies that are not
able to reduce their employee turnover figure will likely lose their competitiveness in
the long run. Due to these detrimental consequences, it is therefore crucial for
organizations to better understand the factors contributing to employee turnover in
organizations.
Job satisfaction, organizational commitment, and turnover intention are ones of
the most examined popular subjects in the study of work related attitudes since the
importance of organizational factors in affecting attitudes or behaviors of employees
has attracted considerable attention on the organizational behavior area (Mathieu and
Zajac, 1990; Meyer and Allen, 1984, 1990; O’Reilly and Chatman, 1986). In different
studies, many researches and scholars examined the relationships among job
satisfaction, organizational commitment, and turnover intention to see if there is any
difference or not from the other studies, and to compare the differences if so. The
majority of the studies suggested that job satisfaction has a significant and positive
relationship with all dimensions of organizational commitment (Bagozzi, 1980;
Reichers, 1985). Though the why and how question is still in question, organizational
commitment and job satisfaction are jointed variables affecting negative outcomes
such as turnover intention is clear (Shore and Martin, 1989).
Negative organizational outcomes such like turnover, absenteeism and turnover
intention have attracted considerable interest from both managers and researchers
across a wide array of disciplines. Based upon the literature, a structural model was
tested in this study and the effects of job satisfaction and organizational commitment
on turnover intention was tested. This study aims to investigate the impact of job
satisfaction on all three dimensions of organizational commitment, and turnover
intention and also the relationships between all the three commitments dimensions
and turnover intention.
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N. Kamakshi Priya and Dr. M. Kalyana Sundaram
positively or negatively about the intrinsic and/or extrinsic aspects of one’s job. In
simpler words, it is about how employees feel about various aspects of the job
(P.E.Spector (1997)). Since job consists of various spectrums, job satisfaction is often
conceptualized as a multidimensional construct that consists of many elements,
typically called job satisfaction facets (K.S. Law, C.S. Wong, and W.H. Mobley
(1998)). Common job satisfaction facets include co-workers, appreciation, benefits,
job conditions, pay, promotion, supervision, and organization’s policies or procedures
(P.E.Spector (1997)).
Review of available literature has shown considerable interest in the study of job
satisfaction (R. Mowday, L.W. Porter, and R.M. Steer (1982)) - (R.W. Griffeth, P.W.
Hom, and S.Gaertner (2000)). In fact, as noted by (P.E.Spector (1997)), job
satisfaction is “the most frequently studied variable in the organizational research”.
The extent to which people like (satisfaction) or dislike (dissatisfaction) their job has
received enormous attention mainly due to its associations with issues that are of high
concerns to organizations such as commitment, absenteeism, and staff turnover
(P.E.Spector (1997)), (T.A. Judge, D. Heller, and M.K. Mount (2002)).
Many studies conducted amongst the employees in the western countries
consistently showed negative and significant relationship between job satisfaction and
turnover intention (R. Mowday, L.W. Porter, and R.M. Steer (1982)), (V.
Duraisingam, K. Pidd and A. M. Roche (2009)) - (M.C. McCulloch and D.B. Turban
(2007)), (R.W. Griffeth, P.W. Hom, and S.Gaertner (2000)) - (C. Ostroff (1992)).
Similarly, studies conducted in the Eastern countries, for instance in China also
supported the generally agreed notion of a negative association between job
satisfaction and turnover intention among employees (J.T. Yang (2008)), (H.M.
Tzeng (2002)) - (B. Jiang, R.C. Baker, and G.V. Frazier (2009)) , (T. Lam, T. Baum,
and R. Pine (2001)). It is therefore reasonable to conclude that regardless of the
differences between both the cultures, job satisfaction is negatively related to turnover
intention among employees.
Likewise, job dissatisfaction has been found to be positively and significantly
associated with turnover intention among retail employees (G.H. Lucas (1985)) - (J.K.
Sagerand A. Menon (1994)). Overall, although limited, studies in the retail context
have interestingly revealed similar pattern of findings to other industries. In general,
studies on job satisfaction and turnover intention have consistently provided
evidences that unsatisfied employees tend to have intention to leave their
organizations and find alternative jobs. If opportunities are unavailable at that
particular time, employees may emotionally or mentally “withdraw” from the
organization (P. Lok and J. Crawford (2004)). This is certainly undesirable for the
customer-orientated retail business as studies have found that the level of employee
satisfaction is positively related to customer satisfaction (J.D. Rogers, K.E. Clow and
T.J. Kash (1994)).
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A Study on Relationships Among Job Satisfaction, Organizational Commitment and Turnover
Intention In Kolors Healthcare India Pvt ltd, Chennai
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Affective commitment refers to the extent to which employees identify with, are
emotional attachment, and are involved in the organization. Employees having strong
affective commitment stay with the organization because they want to.
Continuance commitment refers to an employee’s awareness costs of leaving the
organization. Employees whose primary link to the organization is based on
continuance commitment remain because they feel that have to so.
Normative commitment reflects a feeling of obligation to remain in an organization.
Employees with a high level of normative commitment feel that they ought to remain
with the organization (Meyer and Allen, 1991). It develops as the result of a moral
obligation to repay the organization for benefits (e.g., tuition payments or skills
training) received from the organization or socialization experiences that emphasize
the appropriateness of remaining loyal to one's employer.
Studies on organizational commitment have found different relationships with (a)
job search behaviors, turnover intention, and extra-role behaviors and performance ;
(b) job satisfaction and job tension; (c) autonomy and responsibility and role clarity;
and (d) age , sex, education, career stage, need for achievement, and job tenure
(Bateman and Strasser, 1984; Mathieu and Zajac, 1990). Accordingly, it is seen that
organizational commitment is a predictor attracting researchers interested in behaviors
of individuals in organizations (Chang, 1999).
METHODOLOGY
The Study is descriptive in nature. The study is made to measure the relationship
between job satisfaction and organization commitment and turnover intention in
Kolors Health Care India Pvt. Ltd. The population of the study consists of the entire
employee working in Kolors Health Care India. Hence the population of the study is
70 employees. The sample size for the study is 60 by adopting simple random
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A Study on Relationships Among Job Satisfaction, Organizational Commitment and Turnover
Intention In Kolors Healthcare India Pvt ltd, Chennai
ANALYSIS OF INTERPRETATION
To identify association between selected personal profile and Employee
Satisfaction, Organization Commitment and Turnover Intention.
Chi Square
Sl.No Hypothesis df Sig Result
Value
There is no association between Gender and
01. 2.825 4 .588 Accepted
Employee job satisfaction
There is no association between Gender and
02. 1.544 4 .819 Accepted
Organizational Commitment
There is no association between Gender and
03. .282 4 .991 Accepted
Turnover Intention
There is no association between Employee
04. Educational Qualification and Employee Job 11.339 8 .183 Accepted
satisfaction
There is no association between Employee
05. Educational Qualification and Employee 16.531 8 .035 Rejected
Organizational Commitment
There is no association between Employee
06. Educational Qualification and Employee 8.222 8 .412 Accepted
Turnover Intention
The above table shows that there is no association between gender and Job
satisfaction, Organization Commitment and Turnover Intention. The Educational
Qualification also shows that it has no association with Job Satisfaction and Turnover
Intention. But Educational Qualification has significant association with
Organizational Commitment.
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A Study on Relationships Among Job Satisfaction, Organizational Commitment and Turnover
Intention In Kolors Healthcare India Pvt ltd, Chennai
To identify the Strength, Magnitude and Direction among the dimensions of the study
Job Organizational Turnover
Satisfaction Commitment Intention
Pearson Correlation 1 .409** -.240
Job Satisfaction Sig. (2-tailed) .001 .008
N 60 60 60
Pearson Correlation .409** 1 -.086
Organizational
Sig. (2-tailed) .001 .017
Commitment
N 60 60 60
Pearson Correlation -.240 -.086 1
Turnover
Sig. (2-tailed) .008 .017
Intention
N 60 60 60
**. Correlation is significant at the 0.01 level (2-tailed).
The above correlation table shows the inter relationship between the dimensions
Job Satisfaction and Organization Commitment and Turnover Intention. The
correlation between job satisfaction and organizational commitment is .409 which is
mildly correlated and highly significant and the correlation between job satisfaction
and turnover intention is -.240 which is negatively correlated and significant. The
correlation between organizational commitment and job satisfaction is .409 which is
mildly correlated and highly significant and the correlation between organizational
commitment and turnover intention is -.086 which is negatively correlated and
significant. The correlation between turnover intention and job satisfaction and
organizational commitment shows negative correlation i.e. -.240 and -.086
respectively and is highly significant.
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N. Kamakshi Priya and Dr. M. Kalyana Sundaram
the respondent’s responded moderate and strongly agreed. Too much of their life
would be disrupted if they decided to leave their organization now to this 25% of the
respondents disagreed. One of the few negative consequences of leaving this
organization would be the scarcity of available alternatives to this 32% of the
respondent’s responded moderate and agreed.
Even if it was to their advantage, they don’t felt it would be right to leave the
organization now to this 38% of the respondents disagreed. They would not leave
their organization right now because they had a sense of obligation to the people in it
to this 31% of the respondents strongly disagreed. They owe a great deal to their
organization to this 35% of the respondents strongly disagreed. They would feel
guilty if they left their organization now to this 42% of the respondents strongly
disagreed. Intend to leave the organization to this 35% of the respondent’s responded
moderate. Intent to make a genuine effort to find another job over the next few
months to this 33% of the respondents disagreed. Often think about quitting to this
25% of the respondents responded moderate.
MANAGERIAL IMPLICATIONS
The top level management should ensure to formulate strategies, that employee
should always consider that the job they perform give continuous pleasant. The
managers should always be responsible to make the job interesting to the employees,
by assigning different types of job to employees to avoid monotonous. The
organization should arrange for appropriate training program to make the employee to
work with more enthusiastic. The employee should always feel that the organization
is part of their family, and spend rest of their career in this organization. The
employees should emotionally attached to the organization, and make them to feel
that organization problems are their own problem. Employees should work with
desire for the organization, not for the matter of necessity. The organization should
ensure at appropriate times to ensure the level of job satisfaction and organization
commitment is at optimum level, which will reduce the turnover intentions.
CONCLUSION
Job satisfaction is thought to influence their work outcomes such as organizational
commitment and turnover intentions. In the current study, it is identified the potential
relationships of job satisfaction, organizational commitment, and turnover intentions.
Organizations must be aware of organizational commitment and turnover intentions
among employees who vary in job satisfaction levels.
In other words, it was found in this study that job satisfaction is one of the most
important antecedents of organizational commitment and turnover intention of
employees. Within this context of managing organizational behavior, the results of the
present study have a number or practical implications. Especially, the job
satisfaction’s of employees is important issue. The effectiveness of selection, training,
and supervisory programs should be gauged in part by their effect on employees’
satisfaction with their work. Managers should try to increase of job satisfaction of
employees. Findings of this study would help managers and policy makers of
organizations as well as practitioners to formulate strategies and program to overcome
turnover problem among employees as well as to ensure organizational commitment
and job satisfaction.
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A Study on Relationships Among Job Satisfaction, Organizational Commitment and Turnover
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