Employee Turnover Intentions, Job Satisfaction and Organizational Commitments - Essay Example

Employee turnover intentions, job satisfaction and organizational commitment Name: Tutor: Course: Date: Table of Contents Table of Contents 2 1.0 Introduction 3 1.1 Purpose of the study 3 1.2 Objectives of the study 3 2.0 Literature review 3 3.0 Methodology 5 4.0 Results and discussion 6 4.1 Results 6 4.2 Discussion 7 5.0 Conclusion 8 5.1 Implications of this study 8 5.2 Limitation of the study 8 References 9 Appendices 11 Appendix I: Descriptive statistics table 11 Appendix II: Mean and Standard Deviation 12 Appendix III: Reliability analysis table 12 Appendix IV: Correlations 12 Appendix V: Regression table 13 1.0 Introduction Contemporary work environment is experiencing turbulence as employees dissatisfied with work conditions, remuneration and growth opportunities exit to join other organizations. While employee turnover remains a threat to the productivity and performance of the organization, their intentions are related to low job satisfaction and commitment. The situation becomes dire when the organization is not able to retain even the most competent and skilled employees. Satisfied employees have low turnover intentions (Testa, 2001). Moreover, job satisfaction increases organizational outcomes such as low absenteeism, turnover, and high work performance (Reily, 2006). Although several studies have demonstrated the existence of a relationship between employee turnover, job satisfaction and organizational commitment, they have narrowly concentrated on the three variables and establish their correlations (Pfeffer, 2007; Allen & Griffith, 1999; Gustafson, 2002). In addition, most of the studies on employee turnover have been done in the manufacturing industry with little attention to the service industry, especially, hotel industry (Liu et al. 2010; McCarthy et al. 2007; Rizwan et al. 2013). This shows that there is need to investigate the relationship between employee turnover, job satisfaction and organizational commitment in determining hotel performance. Managers, by understanding employee’s value perception, can be able to create and build a work environment that yields high employee satisfaction levels. 1.1 Purpose of the study The aim of the study is to investigate the relationship between job satisfaction, employee turnover and organizational commitment in the hospitality industry. 1.2 Objectives of the study 1. To establish a relationship between employee turnover and job satisfaction 2. To determine the relationship between job satisfaction and organizational commitment 3. To find out the association between employee turnover and organizational commitment 2.0 Literature review Reily (2006) defined job satisfaction as the attitude and individual’s perception towards work and pay. Employees who are happy are enthusiastic of their work, and are able to commit more of their energies in achieving organizational goals and objectives. Employees, when properly trained are not only able to work smart but also show higher levels of competence and capability. On the other hand, dissatisfied employees express aloofness, discontent and intentions to leave the organization. Mathieu and Zajac (1990) describe organizational commitment as a positive response to working conditions and the attachment towards an organization. Employees who are highly committed to the organization have low turnover intentions. Similarly, Saeed et al. (2014) note that turnover is the rate of exit at which employees are dismissed or choose to exit the organization. High employee turnover is necessitated by low job satisfaction and organizational commitment. Mbah and Ikemefuna (2012) in an empirical study of Total Nigeria PLC issued 300 questionnaires to employees in the survey study. The study found that employee turnover intention was reduced by high job satisfaction. Iqbal et al. (2014) studied four public educational institutions in Pakistan using non-probability sampling of 200 respondents. The study found that there is a relationship between employee turnover intention and job satisfaction, organizational commitment and leadership support. Shurbagi and Zahari (2013) also conducted a quantitative survey of 227 employees of National Oil Corporation in Libya, and found that organizational commitment, specifically affective commitment, was positively related to job satisfaction. Medina (2012) found that organizational culture moderated the relationship between job satisfaction and turnover intentions which was inversely correlated. Saeed et al. (2014) sampled 200 employees and in the survey used line regression to establish that job satisfaction negatively influences turnover intentions. According to Expectancy theory, Vroom (1964) posits that employees exit the organization owing to incompetence to gain individual benefits and negative job performance. With high job performance, employees get satisfied and choose to remain longer in the organization. Organizations intend to compete and create competitive edge over rivals through industrious, hardworking and innovative employees. They do so by maintaining a healthy employee turnover and building on human capital bases on innovative solutions and ideas. Employees can choose to voluntarily leave the organization or on involuntary basis be fired from the organization. Owing to the huge costs of replacing employees, turnover has negative consequences on the organization. This is because the firm will incur extra expense on selection and recruitment as well as training for required skills and competencies. Susskind et al (2000) shows that job satisfaction, on consistent basis, has significant negative correlation with turnover intentions. While completing job-related roles can be linked to failure or performance, organizations demand efficiency, good leadership skills, time management and organizational skills. 3.0 Methodology This study involved quantitative and qualitative research methods. This mixed method approach ensures that diverse opinions and thoughts are captured in the study which brings in more reliable results and errors. According to Lakshman et al (2000), quantitative methods can be measured, and has credibility over the unmeasurable parameters. However, the extent of consequences, events and severity cannot be determined by quantitative methods alone which requires the use of qualitative analysis. In this investigation, 200 employees of Hilton Hotel Chain in United Kingdom were administered with questionnaires. The questionnaires were self-administered to the employees after an agreement with the hotel management on the best time to complete the survey. Despite questionnaires being easy and convenient to administer, they do not capture the opinions and thoughts of respondents in detail. Interview schedules provide the details and capacity to further probe the respondents for additional information. Convenience sampling was used in the various departments of the hotels; customer care, culinary services, accommodation, marketing and finance. Similarly, managers were notified on the upcoming survey so as to give opportunity to employees to respond. The managers were sent e-mail invitations and reminders to inform employees to participate in the survey. To ensure reliability of the data collection instruments, they were piloted to the students from the business management department at the university. The study also liaised with the lecturers and tutorial assistant to ensure validity of the questions. The instruments were designed in a way to respond to the three research objectives and hypotheses. Hypotheses; H1: There is no relationship between employee turnover and job satisfaction H2: There is no association between employee turnover and organizational commitment H3: There is no relationship between job satisfaction and organizational commitment The study used descriptive, correlation and regression measures. Descriptive statistics employ measures of central tendency, dispersion and distribution such as percentages, mean, standard deviation and kurtosis or skewness. Correlation measures attempt to relate the strength and direction of variables involved in the study. On the other hand, regression determines how a number of independent variables influence one dependent variable in an equation. 4.0 Results and discussion 4.1 Results The study administered 200 questionnaires of which 180 were returned. Of the 180, 11 questionnaires were rejected due to insufficient data making the total number of valid questionnaires to be 169. The return rate was 90 percent which was sufficient for reliable results. The data was analyzed using descriptive, correlation and regression methods. As shown in the table 1 (Appendix I), majority of the respondents 65 (38.46%) were aged between 26 and 25 years. This was closely followed by 40 (23%) number of respondents who were between 36 and 45 years. On educational attainment, 73(43%) of the respondents had a university degree and was followed by 67(39%) who had college education. Majority of the respondents 102(60%) were married while a distant 45(26%) were single. On income levels, 73(43%) of the respondents had income ranging between £500 and £1000. A significant other 62(36%) had income less than £500. On work experience, most of the respondents had worked between 1 and 12 years representing 112(66%) of the respondent population. Most of the respondents 65(38%) were drawn from culinary services followed by accommodation at 56(33%) of the respondents. Respondents said that they were satisfied with most aspects of job satisfaction such as co-worker satisfaction, rewards, benefits supervision and operating procedure. Their means and standard deviation were organizational commitment (µ=2.84; SD=0.614); job satisfaction (µ=2.98; SD=0.657) and employee turnover (µ=2.83; SD=0.801) as shown in Appendix II. According to Sekaran (2005), Cronbach’s alpha (α) is used to test reliability of the instrument. Suitable values are considered between 0.6 and 0.8. The reliability of coefficients of the variables were; organizational commitment (α=0.749); job satisfaction (α=0.823) and employee turnover intentions (α=0.891). Pearson correlations were also used to establish the relationships between the variables. At pp Read More