International Review of Business Research Papers
Vol. 4 No.3 June 2008 Pp.1-10
A Relationship between Organizational Climate, Employee
Personality and Intention to Leave
Liew Chai Hong and Sharan Kaur
This study aimed to examine the relationship between organizational climate, employee personality and their intention to leave an organization in the Malaysian context. Four organizational climate dimensions were chosen for this study, i.e. structure, responsibility, rewards and support. Dominance and sociability were the personality dimensions chosen and its moderating effects were on the relationship between organizational climate and intention to leave. Study results revealed that organizational climate has a significant association with employeesrsquo; intention to leave. All the four organizational climate dimensions had significant negative correlations with employeesrsquo; intention to leave. Meanwhile, both the dominance and sociability personalities were found significantly moderating the relationship between organizational climate and employeesrsquo; intention to leave. This study was therefore able to prove the hypotheses proposed and provide support to the existing theories.
Field of Research: Human Resource Management
1. Introduction
Retaining valuable employees is one of the important issues for competitive organizations today as employees are the most valuable assets in any company. It is usually in a companyrsquo;s best interest to put its energy in retaining the quality employees that they already have, and not recruiting them. However, increasing employee turnover has been a trend in many organizations today and the issue of staff retention has continued to plague organizations in Malaysia. Intention to leave and actual turnover are often highly correlated. For this reason, researchers often use intent to leave as a proxy for turnover. Price (1977) developed a model of turnover which proposes that intention to leave is influenced by personal characteristics, role related characteristics, facility characteristics, turnover opportunities, and job characteristics. Mobley (1982), on the other hand classes the causes and correlates of turnover into a simple model, which presents the determinants into external economy, organizational variables and individual variables.
Dr. Sharan Kaur, Graduate School of Business, University of Malaya email: sharan@um.edu.my
Liew Chai Hong, Graduate School of Business, University of Malaya email: chaihongliew@yahoo.com
This study on employeersquo;s intention to leave, however, is zooming in at the organizational and individual levels. One of the organizational variables used is organizational climate which potentially correlates to turnover while employeesrsquo; personality is selected in this study as a moderating variable associated to intention to leave. Employees tend to leave organizations that endure unfavorable organizational culture. However, organizational culture is something cemented to the organizations and it is not easy to change. Implementing employee retention strategies by changing organizational culture could be time-consuming and it would not probably show significant results in the short term. The process is further complicated by various types of employeesrsquo; personalities that resist changes. On the other hand, it would be easier for an organization to improve the organizational climate that share personalities of the employees which consequently will change the overall impression and perception of employees towards their work. Over time, positive organizational culture could be developed and changed based on the stretched norms and assumptions.
It is hoped that this study will shed some light for organizations that encounter high turnover rates resulting from unfavorable organizational climate. Knowing more about why people intent to leave is important to develop general guidelines to improve the relevant organizational climate factors that are considered short-coming in the organizations.
2. Literature Review
Turnover is defined as the cessation of membership in an organization by an individual and their movement out of an organization. Voluntary and involuntary turnover are commonly distinguished. Voluntary turnover is individual movement across the membership boundary of a social system initiated by the individual while involuntary turnover is movement not initiated by the individual, probably by the organization (Price, 1977; Mobley, 1982; Reggio, 2003). Even though turnover is most frequently thought of in terms of negative organizational consequences, the movement of employees in and out of an organization is however able to revitalize an organization. The most obvious positive consequence is replacement of better performers in the organizations. When turnover occurs, it creates opportunities for replacement which subsequently brings with innovation, new ideas and approaches, contributing to organizational effectiveness via change. Turnover may also be able to reduce cost by eliminating or merging vacant positions as high-priced talent may be traded for lower-priced talent with equal capabilities (Roseman, 1981). Besides, turnover may be the last-resort of conflict resolution as many personal or task conflicts are not easily resolved, especially if they stem from differences in fundamental values or beliefs. Turnover may be the ultimate solution to conflict in order for the organization to function effectively (Staw, 1980). Nevertheless, turnover of employees disrupts teams, raises costs, reduces production, and results in lost knowledge (Mustapha amp; Mourad, 2007). It is a negative aspect, appearing to reflect significant work place problems. The loss of employees through turnover may result in increased recruitment and train
剩余内容已隐藏,支付完成后下载完整资料
资料编号:[29398],资料为PDF文档或Word文档,PDF文档可免费转换为Word
课题毕业论文、外文翻译、任务书、文献综述、开题报告、程序设计、图纸设计等资料可联系客服协助查找。