The Effects of Formal Training and Perceived Organization Support - Essay Example

However, the relationship between formal training and employee turnover intention is not clear according to the results. To reduce employee turnover intentions, SMEs should build a reciprocate culture among employees and develop a long-term employment relationship with the employees. Also, SMEs should pay attention to keeping the fit keeping employee skills and responsibilities after training, such as promotion or extended job requirements. Moreover, managers need to find how employees feel supported and how to fulfill their need to reduce turnover intentions and achieve a high level of commitment.

1. Introduction

It is not the only large firms that could rule the world economy today, but also small and medium-sized enterprises (SMEs) which are taking an increasingly significant role in economic life. In China, there is 99.6 percent of enterprises are SMEs (Cunningham, 2010). SMEs are playing crucial roles of economic, social, and political in creating employment, utilizing resources, and income (Nelson, 1987). However, it is difficult for SMEs to retain their employees. According to Cully et al. (1999), SMEs more unstable table their human resource management (HRM) are informal, and Mayson (2005) noted that the main challenge for SMEs is to find the right led employees and retain them. There are several reasons to explain why SMEs are difficult to remediator retain staff according to Williamson (2000), SMEs are perceived to have lower levels of legitimacy and are less proper or appropriate to work to by employees’ perceptions. Secondly, there is always a lack of financial support to employees for Cardon and Stevens, 2004). Thirdly, because of the limited size of SMEs, employees have fewer chances to develop and advance their careers (Marlow, 2000; Patton, Marlow and, Hannon, 2000, Williamson, 2000). Hence, this study will focus on how different factors will influence the turnover intentions and job performance in SMEs and it is worthwhile to study Chinese construction firms because China has a huge construction market in the world (Chen, 1998; Wu and Zhang, 2005).

There is a huge number of studies have shown that training could contribute to the organizational value and employee effectiveness (Owens, 2006). It is argued that training could shape and keep employees. However, it is not agreed that the correlation of training and turnover intention is negative, as there are mixed results done by various studies. It is estimated that small firms are less likely to provide training especially formal training than larger companies (Kitching and Blackburn, 2002).