Attrition Rate in Organization Yesh Lami Print Pvt Ltd

“A STUDY

ON FACTORS AFFECTING TURNOVER INTENTIONS

OF EMPLOYEES IN PACKAGING INDUSTRIES

YESH LAMI PRINT PVT LTD

WITH A VIEW OF HERZBERG THEORY OF MOTIVATION.”

A Project Report Submitted In Partial Fulfilment of Award of MBA Degree

Submitted By:

NEHA JAIN

Project Guide: Submitted to:

Jallavi panchamia SKPIMCS

CERTIFICATE

This is to certify that Ms Neha Jain student of MBA 2nd year S. K. Patel Institute of Management and Computer Studies, have submitted their Comprehensive Project titled “A study on factors affecting turnover Intentions of Employees in packaging industries “YESH LAMI PRINT PVT LTD” with a view of Herzberg Theory of Motivation.” in the Year 2012-2013 in partial fulfilment of Kadi Sarva Vishwa Vidhyalaya requirements for award of the title of Master of Business Administration.

Dr. N. N. Jani Ms. Sonu Gupta Ms. Jallavi Panchamia

Director HOD Project Guide

Date:

II

DECLARATION

We, hereby, declare that the Comprehensive Project titled, “A study on factors affecting turnover Intentions of Employees in packaging industries in “YESH LAMI PRINT PVT LTD” with a view of Herzberg Theory of Motivation” is original to the best of our knowledge and has not been published elsewhere. This is for the purpose of partial fulfilment of Kadi Sarva Vishwa Vidhyalaya requirements for award of the title of Master of Business Administration, only.

Neha Jain Signature

III

ACKNOWLEDGEMENTS

No task is a single person effort, same is with this project. The expertise, skill, generosity, and

hard work of many individuals and organizations contributed significantly to the success of this

project. This project could not have been completed without the cooperation of various

employees of the organizations that we visited. Among them. Special thanks to Mr. Kishore

Soni, Mr. Pankaj Sharma, Mr. Mafatlal kaka, Mr. Dhaval, Mr. Sandip Patel.

We would like to extend heartily thanks to Prof. Jallavi Panchamia who not only served as our

internal guide but also encouraged and supported us throughout our academic program. She and

the other faculty members patiently guided us throughout the project, never accepting less than

our best efforts. We heartily thank them all & also to our institute (SKPIMCS) who gave

opportunity for doing such comprehensive project.

Special thanks to director Dr. N. N. Jani and Prof. Sonu V Gupta (HOD), whose inspirational

words always helped us throughout our academics.

Finally, yet importantly, we would like to express our heartfelt thanks to our classmates, staff

members of our department for their help and wishes for the successful completion of this

project. Warm regards to our college library too for backing up with indispensable support of

various learning resources.

We would also like to thanks all the people who have contributed in this project directly or indirectly.

Neha Jain

IV

EXECUTIVE SUMMARY

This project aims at studying the reasons behind the high attrition rates prevailing in YESH

LAMI PRINT PVT LTD. Turnover means voluntary cessation of membership of an organization

by an employee of that organization. Turnover intention is broadly defined as attitudinal

(thinking of quitting), decisional (intention to leave), and behavioral (searching for a new job)

processes proceeding voluntary turnover. Employee turnover incurs significant cost, both in

terms of direct costs (replacement, recruitment and selection, temporary staff, management

time), and also (and perhaps more significantly) in terms of indirect costs (morale, pressure on

remaining staff, costs of learning, product/service quality, organizational memory) and the loss

of social capital. Employee turnover is a major issue for companies in many Asian countries such

as India, Singapore, Hong Kong, South Korea, Malaysia, and Taiwan.

The primary objective is to find the Turnover Intentions in the employee of my company. This

project tries to understand the reasons for the high levels of attrition in my company with a view

of the Herzberg’s Two Factor Theory. Keeping in view the motivating factors and the hygiene

factors, the different reasons for leaving the job is studied. The same is also kept in mind while

framing the appropriate Retention techniques.

It was seen that even though there is attitudinal Turnover Intention in the employees. However,

there was decisional Turnover Intention seen in the cases of “searching for a new job” or

“Switching over to another job”. Also the different factors were highlighted to be major factors

that either can increase the satisfaction level or decrease the dissatisfaction in the employees and

thereby retain them in the organization.

After knowing the factors that induced the Turnover Intentions, appropriate retention strategy

also has been laid. With this the attrition rate can be reduced or managed up to a certain degree.

5

TABLE OF CONTENTS

Certificate..........................................................................................................................I

Declaration........................................................................................................................II

Acknowledgements...........................................................................................................III

Executive Summary..........................................................................................................IV

Chapter: 1 Introduction......................................................................................................01

Chapter: 2 Research Methodologies.....................................................................................14

Chapter: 3Industry profile..................................................................................................16

Chapter: 4 Literature Review.............................................................................................18

Chapter: 5 Data Analysis and Interpretation......................................................................28

Chapter: 6 Research Findings ……………........................................................................53

Chapter: 7 Conclusions …..................................................................................................55

Chapter: 8 Suggestions ...…...............................................................................................56

References............................................................................................................................

Annexure..............................................................................................................................

6

CHAPTER - 1

INTRODUCTION

Work in today's organizations is characterized by increasing complexity, rapid change and

increasingly competitive business environments. In such a turbulent environment, the

organizations are facing a gradual shift in the traditional employment relationships.

Organizational loyalty is reported to be in decline as turnover rates increase, average job tenure

falls and employees go "job shopping". Under these recent developments employee turnover has

been viewed as an important organizational problem. Its importance lies in the fact that there are

numerous negative consequences in organizations if the rate of employee turnover is high. The

direct and indirect costs associated with turnover, not only in terms of recruitment and training,

but also in terms of work disruption and demoralization of remaining employees are very

significant and expensive. Turnover intention has been acknowledged as the best predictor of

actual turnover observed that behavioral intentions to stay or leave are consistently related to turn

over behavior. Also, Wonder, in their turnover model, measured intent to leave as a surrogate for

actual turnover. Turnover intention is a complex phenomenon that depends ~n various factors.

Growing body of research on employee turnover behavior indicates that age, job satisfaction,

tenure, job image, met expectations, organizational commitment are consistently related to

turnover intentions and the actual turnover.

Among various factors influencing the intentions of a person to quit the job, job satisfaction has

been found to be most influential. Locke described job satisfaction as "a pleasurable or positive

emotional state resulting from the appraisal of one's job or job experiences". The process how

job dissatisfaction leads to thoughts of quitting is well explained by Mobley's turnover model

which posits that job and working conditions affect job satisfaction which in turn leads to the

thought of quitting, to evaluate the utility of searching behavior, job search. Evaluation of

alternatives, comparison of alternatives via present job, intention to quit or stay, and finally to

turnover or retention behavior. Research findings have shown that people who are relatively

satisfied with their jobs, will stay in them longer, i.e. lower turnover, and be less absent

7

Considering the significance of job satisfaction or dissatisfaction in influencing the intentions of

employees to quit the organization, the present study was designed to examine the relationship

between job satisfaction and turnover intentions.

MEANING OF EMPLOYEE TURNOVER:

Turnover means voluntary cessation of membership of an organization by an employee of that

organization. Turnover intention is broadly defined as attitudinal (thinking of quitting),

decisional (intention to leave), and behavioral (searching for a new job) processes proceeding

voluntary turnover. Employee turnover incurs significant cost, both in terms of direct costs

(replacement, recruitment and selection, temporary staff, management time), and also (and

perhaps more significantly) in terms of indirect costs (morale, pressure on remaining staff, costs

of learning, product/service quality, organizational memory) and the loss of social capital.

Employee turnover occurs when employees voluntarily leave their jobs and must be replaced.

Turnover is expressed as an annual percentage of the total workforce. For example, 25 percent

employee turnover would mean that one-quarter of a company's workforce at the beginning of

the year has left by the end of the year. Turnover should not to be confused with layoffs, which

involve the termination of employees at the employer's discretion in response to business

conditions such as reduced sales or a merger with another company.

“Employee turnover has been defined as the rate of change in the working staff of concern

during the definite period”.

In other words, it signifies the shifting of work force into and out of an organization. It is a major

of extent to which old employees leave and new employees enter into service in a given period.

Employee turnover is the cause and effect of instability of employment, apart from being a major

of the morale and efficiency or otherwise of worker.

Therefore, it can be concluded that Employee turnover is a perpetual concern for companies.

Having to replace staff at regular interval can be headache for a busy manager and the entire

8

resource- shaping circus of hiring and training new employee is one that company scarcely look

forward to.

FACTORS RELATED TO EMPLOYEE TURNOVER:

There are several factors which are related to employee turnover, thus, as shown with the help of

diagram as below:

9

The explanation of these factors related to Employee Turnover is as under:

1. The Economy in this model, the overall economy sets the stage for alternative

employment opportunities. In a tight economy, generally there are less alternative

opportunities and employees are less willing to leave their current jobs even if they are

dissatisfied.

2. Company culture is another strong determinant of turnover intentions. Company culture

is determined by a bunch of things as skills, leadership, rewards/recognition, and

communications.

3. Organizational Characteristics nested within an industry is the specific organization.

Within any industry, there are some organizations that simply do a much better job of

retaining employees than others. Some of this has little to do with enlightened practices

and is simply a product of workforce demographics. All things being equal, a younger

workforce will have more job and company changes than an older workforce. Part-time

personnel are less stable than full-time personnel and a workforce with greater average

tenure will have fewer turnovers than a workforce with less average tenure.

4. Industry Trends the Health Care industry is a good example of how industry trends

interact with the general economy. With managed health care has come an increased

focus on profitability and cost reduction, and rapid consolidation of hospitals. This has

created an atmosphere of uncertainty and dissatisfaction for many health care

professionals.

The current good economy offers career opportunities outside of the industry and can

increase the level of turnover that might already occur. The net effect is that turnover is very

high in this industry and there is an increasing shortage of qualified professionals.

5. Job Characteristics one of the most researched areas is the relationship between job

satisfaction and turnover. There is a well documented body of research that suggests the

following job characteristics are most commonly associated with job satisfaction:

10

Variety - Jobs that offer a greater variety of tasks are associated with higher

satisfaction levels

Autonomy - Jobs that offer greater freedom and choice in execution (i.e.,

empowerment) are associated with higher satisfaction levels

Identity - Jobs that offer a sense of ownership and personal accountability are

associated with higher satisfaction levels

Feedback - Jobs that offer intrinsic feedback on quality of performance are

associated with higher satisfaction levels

Different Schools of Thoughts

There are two schools of thoughts on employee turnover research: the labour market school and

psychological school. The labour market school deals with the issues such as demand & supply,

job search, availability of job opportunities or perceived alternatives. The psychological school

concerns with those issues principally related to psychological accounts such as job satisfaction,

organizational commitment, organizational climate, and job stress. Both schools of turnover

research are unable to predict and explain the adequately reasons and measures for organization

to manage turnover effectively. Mobley indicates that there are four primary determinants of

Turnover: Job satisfaction-dissatisfaction; expected utility of alternative internal work

roles; expected utility of external work roles; and non-work values and contingency

Job satisfaction describes how content an individual is with his or her job. There are a variety of

factors that can influence a person's level of job satisfaction; some of these factors include the

level of pay and benefits, the perceived fairness of the promotion system within a company, the

quality of the working conditions, and the job itself. Falkenburg and Schyns describe job

satisfaction as a behavioural cycle; as a cause of behaviour consists of satisfaction with different

aspects of the job and the work situation. Satisfaction is the extent to which employees like their

work. There is a negative relationship between job satisfaction and withdrawal behaviour. Job

satisfaction can be divided into three dimensions: satisfaction with pay, satisfaction with nature

11

of work, and satisfaction with supervision. The relationship between job satisfaction and

turnover is one of the thoroughly investigated variables in turnover literature.

This study is to know the factors affecting the Turnover intentions or the factors that motivate the

employees to stay in the organization. It is carried out also to have a comparative view of the

factors affecting in my company. It is a known fact that the attrition rate in our company is very

high. So, this study will shower light on the major factors that induce the employees to either

stay or leave the organization.

Some of the other factors are categorized under “Pull factors” and “Push factors”, “Individual

Characteristics”. The push factors include factors like, Job satisfaction, satisfaction with pay,

salary, And performance - reward contingencies. The push factors include persona income,

household income, job status and alternatives as well as external demands. These factors are

controllable by the organizations to create satisfaction among their employees. Dissatisfaction

can be reduced by improvising on these factors.

12

The other factors that play a major role in inducing turnover intentions are the personal

characteristics. These can be age, gender, education, tenure in the company, or even the marital

status. The chances of a woman leaving the job after marriage are much higher than the men.

Also, people in their early ages tend to change jobs more frequently than the later ages after

having a family.

REASONS FOR EMPLOYEE TURNOVER

It is not easy to find out as to who contributes and who has the control on the attrition of

employees. Various studies/survey conducted indicates that everyone is contributing to the

prevailing attrition. Turnover does not happen for one or two reasons. The way the industry is

projected and speed at which the companies are expanding has a major part in employee

turnover.

For a moment if we look back, did we plan for the growth of this industry and answer will be no. The readiness in all aspects will ease the problems to some extent. In our country we start the

industry and then develop the infrastructure. If we look within, the specific reasons for attrition

13

are varied in nature and it is interesting to know why the people change jobs so quickly. Even today, the main reason for changing jobs is for higher salary and better benefits. But in call

centres the reasons are many and it is also true that for funny reasons people change jobs. At the same time the attrition cannot be attributed to employees alone.

Organizational Matters:

The employees always assess the management values, work culture, work practices and

credibility of the organization. The Indian companies do have difficulties in getting the

businesses and retain it for a long time. There are always ups and downs in the business. When

there is no focus and in the absence of business plans, non-availability of the campaigns makes

people to quickly move out of the organization.

Working Environment:

Working environment is the most important cause of high turnover. Employees expect very

professional approach and international working environment. They expect very friendly and

learning environment. It means bossism; rigid rules and stick approach will not suit the call

centre. Employees look for freedom, good treatment from the superiors, good encouragement,

friendly approach from one and all, and good motivation.

Job Matters:

No doubt the jobs today bring lots of pressure and stress is high. The employees leave the job if

there is too much pressure on performance or any work related pressure. It is quite common that

employees are moved from one process to another. They take time to get adjusted with the new

campaigns and few employees find it difficult to get adjusted and they leave immediately.

Monotony sets in very quickly and this is one of the main reasons for attrition. Youngsters look

jobs as being temporary and they quickly change the job once they get in to their own field. The

other option is to move to such other process work where there is no pressure of sales and

meeting service level agreements (SLA).

The employees move out if there are strained relations with the superiors or with the

subordinates or any slightest discontent.14

Salary and Other Benefits:

Moving from one job to another for higher salary, better positions and better benefits are the

most important reasons for attrition. The employees expect salary revision once in 4-6 months

and if not they move to other organizations.

Personal Reasons:

The personal reasons are many and only few are visible to us. The foremost personal reasons are

getting married or falling in love or change of place. The next important personal reason is going

for higher education. Most of the BE, MCA and others appear for GATE examination or other

examinations and once they get cleared they quickly move out.

Health is another aspect, which contributes for attrition. Employees do get affected with health

problems like sleep disturbances, indigestion, headache, throat infection and gynaecological

dysfunction for lady employees. Employees who have allergic problems and unable to cope with

the AC hall etc will tend to get various other health problems and loose interest to work.

Poaching:

The demand for trained and competent manpower is very high. Poaching has become very

common. The big companies target employees of small companies. The placement agencies have

good days for doing more business.

The employees with 4-6 months experience have very good confidence and dare to walk out and

get a better job in a week's time. Most of the organizations have employee referral schemes and

this makes people to spread message and refer the know candidates from the previous companies

and earn too.

Employee’s Advocate:

One of the main reasons why employees leave companies is because of problems with their

managers. An HR professional can be termed an employee’s advocate and a bridge between top

15

management and employees at all levels. There is a huge gap between HR professionals and

employees in terms of understanding challenges and delivering requirements. HR has not really

understood the problems associated with employees’ careers and jobs. The company’s overall

plans and strategies also depend on HR professionals as they voice employees’ problems and

requirements. The HR department should have genuine interest in the employees’ welfare…it is

responsible for making sure that their expectations are met. By doing this it is easier to meet the

company’s business targets.

EFFECTS OF EMPLOYEE TURNOVER

There is no set level of employee turnover which effects on the employing organization become

damaging. Mostly it is said that employee turnover is not good for the organizations. But

employers should remember that turnover is not that bad either. What is required is an optimum

mix of turnover, not too high-not too low. An optimum mix of employee turnover can help in

many ways.

A little rate of employee turnover may result into:

Bringing in new ideas and skills from new hires

Better employee-job matches.

More staffing flexibility.

Facilitate change and innovation.

High rate of turnover may lead to decrease in:

Productivity

16

Service delivery

Spread of organizational knowledge

Interdependence of workers which creates bottlenecks in the smooth flow of activities

which affects the overall co-ordination.

Additional direct and indirect cost increase the cost of production and in turn there is a

reduction in the profit.

HERZBERG THEORY – TWO FACTOR THEORY17

Herzberg’s Two-Factor Theory divides motivation and job satisfaction into two groups of factors

known as the motivation factors and hygiene factors. According to Frederick Herzberg, “the

motivating factors are the six ‘job content’ factors that include achievement, recognition, work

itself, responsibility, advancement, and possibility of growth. Hygiene factors are the ‘job

context’ factors, which include company policy, supervision, relationship with supervision, work

conditions, relationship with peers, salary, personal life, relationship with subordinates, status,

and job security”.

Basically the theory differentiates the factors between intrinsic motivators and extrinsic

motivators. The intrinsic motivators, known as the job content factors, define things that the

people actually do in their work; their responsibility and achievements. These factors are the

ones that can contribute a great deal to the level of job satisfaction an employee feels at work.

The job context factors, on the other hand, are the extrinsic factors that someone as an employee

does not have much control over; they relate more to the environment in which people work than

to the nature of the work itself.

Herzberg identifies these factors as the sources for job dissatisfaction. “Hertzberg reasoned that

because the factors causing satisfaction are different from those causing dissatisfaction, the two

feelings cannot simply be treated as opposites of one another. The opposite of satisfaction is not

dissatisfaction, but rather, no satisfaction. Similarly, the opposite of dissatisfaction is no

dissatisfaction.

While at first glance this distinction between the two opposites may sound like a play on words,

Herzberg argued that there are two distinct human needs portrayed”. Therefore, the basic

premise of the Two-Factor Theory is that if an employer or manager is trying to increase job

satisfaction and ultimately job performance for an employee or coworker, they need to address

those factors that effects one’s job satisfaction. The most direct approach is to work on the

intrinsic, job content factors. Giving the employee encouragement and recognition helps them to

feel more valued within the company, as well as giving a sense of achievement and

responsibility.

18

This project tries to understand the reasons for the high levels of attrition in the company YESH

LAMI PRINT PVT LTD with a view of the Herzberg’s Two Factor Theory. Keeping in view the

motivating factors and the hygiene factors, the different reasons for leaving the job is studied.

The same is also kept in mind while framing the appropriate Retention techniques.

19

RESEARCH METHODOLOGY

2.1 Research Objective:

Primary:

To identify the factors which induce turnover intentions in the employees? To identify the factors which motivate an employee to stay in the organization?

To find out the relation between job satisfaction and the Turnover intentions.

Secondary:

To suggest ways to retain the talents in the organization.

2.2 Research type

This study is based on the qualitative research; Qualitative research is research concerned with the measurement of attitudes, behaviours’ and perceptions and includes interviewing methods such as telephone, intercept and door-to-door interviews as well as self-completion methods such as mail outs.

2.3 Scope of the study:

This study is to know the factors affecting the Turnover intentions or the factors that motivate the employees to stay in the organization. For manufacturing company YESH LAMI PRINT PVT LTD of Ahmedabad are considered.

2.4 Sampling:

Sample size: 100 employees of company

20

2.5 Data collection Sources:

o Primary Data: Primary data is collected through interviewing 100 employees of company.

o Secondary Data: Details from websites, journals, articles, are used as a secondary data.

o Tool: Questionnaire

21

CHAPTER – 3

COMPANY PROFILE

WE “YESH LAMI PRINT PVT. LTD”:

“POSITIVE ATTITUDE IS OUR PASSPORT FOR BETTER TOMMOROW”

As the name suggest YESH Think Positive any one can create its transparent picture with closed eye only just by the power of imagination with the customer- focused attitude, desire to understand customer business & identity the right partner for executing the job. We act as one stop-shop for flexible packaging users.

Milestone of “Think Positive” group was incorporated in year 2004 by young entrepreneur with positive attitude & with that the Company has developed successful network in packaging industry manufacturing customized flexible laminated packaging material under roof of Yesh.The company specializes in manufacturing and developing all kind of available & new Printed flexible packaging Concepts.In India, We have manufacturing facility in Ahmedabad & to serve better we have sales offices at different region. With vision of globalation, we are about to start our new Overseas Manufacturing plant of Flexible Laminated Packaging Material in Africa, to satisfy our Valued overseas customers needs.

22

We possess high technology & skilled workforce. Not only quality products, we are committed to deliver comprehensive services to meet individual customer needs & exceed customer satisfaction.

TECHNOLOGICAL STRENGTH AT “YESH”:

(A) ROTO GRVOUR PRINTING

Machine Quality Line 1 Line 2

(1) Made: Center (I) Modal No.

CIL-01

Center (I) Modal No.

CIL-08

(2) Size:

Printed Width

Minimum Width ->350mmMaximum Width ->920mm

Re 1/- Upto 10Kg Bag

Minimum Width -> 510mm

Maximum Width -> 1250mm

Re 1/- to 50Kg Bag

(3) Speed : Line Job-125 Mtr./Min

Half Tone Job-70 Mtr./Min

Line Job-300 Mtr./Min

Half Tone Job-200 Mtr./Min

(4) Registration Controlling :

Manually & OnlineStereoscope Controlling

Synchronize Electro Mode Motorize Controlling &

Online Web Video System

(5) Print Dry Process:

Heater Heater with Hot – Air Generator

(6) Ink Circulation

System :

Rotor Ink Circulation Pump In Each Station

(B) LAMINATION MACHINE


CIL-01

Nord Meccanica

Super Simplex 1100

(2) Size: Minimum Width ->350mmMaximum Width -

Minimum Width -> 510mm

23

Lamination Width >920mmRe 1/- Upto 10Kg Bag

Maximum Width -> 1000mm

Re 1/- to 50Kg Bag

(3) Speed : 200 Mtr./Min 400 Mtr./Min

4) Dry Process: Heater Solvent Less

(C) SLITTING MACHINE


CIL-2001


CIL-2008

(2) Controlling: Line Guiding System With

Stereoscope System

Line Guiding System With

Web Video System

(D) DOCTORING MACHINE


CIL-01


CIL-08

(2) Visioner: Stereoscope Online Web Video

(E) POUCH MAKING MACHINE

(1) Made: Primo Pack Primo Pack

(2) Capacity: 25 Gm to 5 Kg 25 Gm to 10 Kg

(3) Types Of Making:

Center – 3 Side Sealing

Side Gazzet, D-Punch Pouch

Standy Pouch,

Zipper Pouch,

Dori Handle Pouch,

Top Sealing Back

(F) QUALITY EQUIPMENTS

24

(1) Lab Description: Caliper Gauge –GSM Tester Chemicalcally Material Identificer Solvent Viscosity & Recovery Equipments Bond /Strength Strength

OUR BELIEF IN QUALITY:

“Quality ensuring reliability and customer satisfaction”

Quality is passion at “YESH” and aspect of high quality permits every department here. The strong process oritation translates into real benefits like reduce cycle time improve customer statification.

AIM at “YESH” Quantity with Quality Quality with Assurance Assurance with Commitment Commitment with Service Service with Team work Team work with Leadership

CORPORATE VISION:

We at YESH envision ourselves to be the Market Leader in every activity we do. The growth horizons of this group are projected to be on Global platform and Standards. Anybody making to our Team at any level and above all the attitude to follow our vision & give their fullest to achieve the goal.

Professional to the core we at YESH take utmost care of our associates (Suppliers, Client & team) and treat them like the family.

OUR PARTNERS:

We have always aimed at becoming a strategic business partner to our customer whose role goes beyond supplying products.

25

“YESH” has been able to establish a very wide range to customer base which includes more than 200 customers and more than 25 sectors across the globe like (Spices, Tea FMCG, Food & Bakers (Biscuits Confectionary), Brewieries, Pan&Tobacco, Dairy Processor, Agricultural Chemicals & Industrials, exporters, etc.,)

We are sure that now you have understood the reason behind our success.our work ethics & systems ensure the best and with consistency. And above all, this is just the beginning, we ensure that a lot of innovation and Improvement in Future “Welcome to YESH”

26

LITERATURE REVIEW

1) Job Satisfaction and Turnover Intention Relationship: The Moderating Effect of Job Role Centrality and Life Satisfaction - Okechukwu E. Amah

Turnover affects the cost of operations and drains the organization of inherent tacit knowledge.

To manage these effects job satisfaction and turnover relationships have been studied. However,

only moderate results have been obtained, a situation blamed on the exclusion of individual

difference factors, and other relationships involving these factors.

The relationship between job satisfaction (JS) and employee turnover is one of the pathways to

better understanding employee turnover - organization linkages. This connection of employee

responses has attracted the interest of researchers, because satisfied employees have a greater

tendency to stay, and contribute to an organization’s competitive advantage and productivity.

Studies have shown that TI is a good measure of actual turnover behavior, and that attitude is an

immediate determinant of TI. The first way is to study more variables including situational

variables expected to be antecedents of turnover behavior. The second strategy is to consider

various forms of the relationship involving these antecedents. These authors also recognized the

existence of other individual factors that are potential antecedents of employee turnover, and

recommended that future studies might be designed to identify these variables. The variables that

are used in this research paper are Job Satisfaction, Role Clarity, Life Satisfaction, Turnover

Intention, Job Status, Gender, Age.

Using data from 400 employees of a new generation bank located in Lagos, Nigeria, the

relationship among job satisfaction, life satisfaction, role centrality and turnover intention was

evaluated. Job satisfaction was found to have a direct negative relationship with turnover

intention. Life satisfaction and role centrality moderated this relationship, such that participants,

27

who were low in life satisfaction and role centrality, had greater tendency to exit the organization

even at high levels of job satisfaction.

They formulated the under stated hypotheses to prove their stand:

H1: Job Satisfaction is negatively related to turnover intention.

H2: Life Satisfaction is negatively related to turnover intention.

These results indicate that the effect of job satisfaction on turnover can be enhanced in two ways;

namely, when employees find congruence between their job and their self identity, and when

involvement in such jobs enhances their overall life satisfaction. Consequently, human resources

managers will be challenged to place a high priority on job design, and develop policies that help

employees to balance their work and non work involvements so as to enhance their overall life

satisfaction.

Interaction of LS and JS to Predict Turnover Intention

According to Wright and Bonett (2007), well being is a primary resource, which results from a

combination of secondary resources. Thus, LS, being a measure of subjective well being results

from the combination of the secondary resources, JS and family satisfaction (Frone, Russell &

Cooper 1992, Akerele, Osamwonyi & Amah 2007). These secondary resources (JS and family

satisfaction) are held in bundles or what (Hobfoll 1989) referred to as caravans. Individuals do

not assess the optimum level of each resource in a bundle, which will be independent of the

levels of the other resources that will be included in the same bundle. Thus, when making

decisions involving the level of each secondary resource in any bundle, there is a holistic view of

the entire range of resources in the bundle (both available and potential levels).

This decision process can be understood by considering the consumer behavior analyses in the

theory of indifference curves (Koutsoyiannis 1979). An indifference curve shows the

combination of goods that yield the same level of satisfaction, and when indifference curves are

28

shown in a graph, they form an indifference map. Individuals will always prefer the bundle of

goods that provide higher satisfaction, and are on a higher indifference curve in the individual’s

indifference map. From the theory of the indifference curve, an individual can accept a lower

level of a good in the bundle, if a higher level will negatively affect the level of satisfaction

derived from the other goods in the same bundle. This decision becomes very critical if this

higher level results in the individual moving to a lower indifference curve in the indifference

map. Similarly, LS can be compared to the level of satisfaction in the indifference curve, while

job and family satisfaction are in the bundle, and their combination will result in a level of LS. It

is likely that an employee will remain in a job with low JS, if one with higher satisfaction will

negatively affect family satisfaction, and cause lower overall LS. For example, an employee in a

current job with low satisfaction, and low commuting, may not exit the job, even when offered a

new job with higher JS, if the new job involves greater commuting that will negatively affect

family satisfaction, and thus, put the individual on a low overall life satisfaction. Hence, the

individual will prefer to remain in the current job to optimise LS, and this relationship is

expressed in hypotheses three.

H3: LS will interact with JS such that the relationship between JS and turnover intention will be weaker for high life satisfaction participants.

RC as Moderator of the Relationship Between JS and Turnover Intention

The work of Kanungo (1982) and Paullay, et al. (1994) established the distinction between job

and WC. The former is a micro definition involving the current job, while the latter is a general

measure relating to an entire work system, and reflects the centrality of participating in the work

domain to individual’s self identity. When comparing individual differences on the centrality of

the work and family domains, as was done by Carr, et al. (2008), the WC is the construct to be

used. The concept of RC, like the job involvement concept, adopts a micro view of the definition

of centrality by considering the importance of an individual’s present job in the definition of self.

Thus, RC captures an individual’s perception that the current job defines his/her self worth and

29

self esteem. Like identity RC is an individual value measure (Rothbard & Edwards 2003), the

state is enduring, it is not situational, and is resistant to change.

There is no consensus yet as to the definition of value. For the purpose of this study, value is

defined from the work of Kluckhohn (1951:395-398) as “…a conception, explicit or implicit,

distinctive of an individual or characteristic of a group, of the desirable which influences the

selection from available modes, means and ends of action.”. Thus, value can be an individual or

a social phenomenon, and is accepted as a component of super ego, which when violated is likely

to result in feelings of guilt, shame, and ego deflation. Contribution to the framework has been

given by Smith (1963), who stated that in order to maintain self esteem, individuals become

thoroughly practiced in evoking values to justify their actions and behaviors. In summary, RC (as

an individual value), is unique, it varies in importance, and is important in determining the

attitudes and behavior of individuals in the work place (Schwartz 1994).

Turnover decision, like any other decision in the social sciences, involves cost benefit analyses.

Some employees may consider leaving their job very costly, due to their great commitment to the

workplace, or when they define their role as central to the definition of their personality and self

identity (Kluckhohn 1951, Smith 1963, Judge 1993, Carr, et al. 2008). Borrowing from the

assertion of Carr, et al. (2008) on WC, RC may likely determine how decisions are made and

actions that are taken. Based on these assumptions it is likely that even in situations of low JS,

employees may perceive that the cost incurred when they leave a particular job may be higher

than the benefit they will get by leaving, because they consider the current work role as central to

their self identity. Thus, the negative relationship between JS and turnover may be weaker.

Individuals’ work family conflict levels have been found to depend on their WC level, and thus,

WC moderated the relationship between work family conflict and work attitude.

The findings in the Rothbard and Edwards study of the identity, and utilitarian motives of

individual time involvement in roles has potential to shed more light on the interactive effect of

RC. These two authors discovered that the identity motive operates on the premise that people

invest more in a role with which they identify as it enhances their self esteem and self

actualisation. But whether people can maintain their organizational linkage, and invest more in a

30

role when they have low JS was somewhat answered by the finding of Rothbard and Edwards

(2003) that people can accommodate the cost of displeasure and not withdraw, if they perceive

that the expected long term benefit is more than the cost. These findings indicate that the

centrality of a role to an individual may likely moderate their JS-turnover relationship. Hence,

hypothesis four is tendered.

H4: RC will moderate the relationship between JS and turnover intention such that for employees who see their role as central to the definition of their identity, the relationship between JS and turnover intention will be weak.

Conclusion

A major contribution of this study is the adoption of a micro definition of centrality, which

considers the centrality of the individual’s role in self definition. The study argues that the micro

level definition is well suited when within domain study is involved. This approach followed the

work of Paullay, et al. (1994), who disaggregated the macro definition of Kanungo (1982) into

general WC and micro job involvement. Job involvement like RC is always used in within work

studies, and provides better result than the macro definition confounded with WC (Paullay, et al.

1994).

The current study has made contribution in the turnover model, by identifying three additional

pathways to employee turnover, namely, through the interactive effects of LS and RC and the

direct effect of RC. The significant interactive roles of LS and RC have implications for

organizational participants. Firstly, it implies that managers must be aware of the level of LS; the

contributions made by the various domains to this level of LS, and individual preference as to the

importance of each domain in defining self identity.

31

Thus, it is necessary to consider the centrality of the job role of an individual in self definition,

while analysing the turnover pathway involving employee work attitude. The fact that the

employee is generally satisfied with the overall job system does not guarantee low turnover, if

the employee does not see the current role as central to self definition. Consequently,

organizations are encouraged to design work environments that enhance employee JS, and also

ensure that the employees are happy with the jobs assigned them, and see such jobs as part of

their self definition. When they perceive leaving the organization will have high cost to them,

and thus, discourage turnover.

Secondly, personality tests are frequently used in the selection processes by organizations.

Organizations should go further by identifying the role preferences of employees also, and by

appropriate use of high performance human resources policies, they can reinforce the

individual’s perception of the centrality of the role assigned them, thereby managing turnover.

Life satisfaction is affected by job and family satisfaction (Akerele, et al. 2007). Thus, managing

life satisfaction involves robust management of job and family satisfaction, which attracts

attention for the establishment of human resources policies that will help employees balance

their work and family involvements.

32

2) Relationship between Job Satisfaction and Turnover Intentions: An Empirical Analysis

Ms. Gurpreet Randhawa

The present study attempts to examine the relationship between job satisfaction and turnover

intentions. The data was collected from 300 scientists (150 from NationalDairy Research

Institute, Kamal and 150 from Agriculture Extension Centres in Haryana). The scientists were

surveyed by questionnaire. The sample was drawn by using the simple random sampling

technique. Further, comparative analysis was also done in order to measure the significance of

difference between the mean scores of two groups of scientists.

The broad objectives of the present study were:

I. To study the relationship between job satisfaction and turnover intentions.

II. To study the effect of job satisfaction on the turnover intentions.

III. To compare the scientists working at NDRI, Kamal and at Agriculture Extension Centers

in Haryana on the measures of job satisfaction, turnover intentions and demographic

variables.

Conclusion

To conclude, the present study found a significant negative relationship between job satisfaction

and turnover intentions suggesting thereby that higher the job satisfaction, lower is the

individual's intention to quit the job. This shows that job satisfaction or dissatisfaction plays a

significant role in influencing the turnover intentions of employees. People satisfied from their

jobs, do their work with full interest and loyalty and have low intent to quit the organization and

viceversa. The results showed a significant negative correlation between job satisfaction and

turnover intentions. This signifies that higher the job satisfaction, lower is the intent of a person

to quit the job.

33

In today's changing contours of work and employment where one organization career is

becoming rarer, employers should keep their employees satisfied so that they rarely think to

leave.

34

Controllable vs. Uncontrollable Factors of Employee Turnover Intentions: An

Empirical Evidence from Textile sector of Pakistan.

Dr. Mahmood A. Bodla And Abdul Hameed

Employee turnover has substantial cost as it is a loss of social capital. The paper examines one of

the major human resource issues i.e. employee turnover intentions in to two dimensions:

controllable and uncontrollable factors. Controllable factors are the organizational factors and

uncontrollable factors are the environmental factors. Five variables are used for the measurement

of controllable factors which include satisfaction with pay, satisfaction with working conditions,

satisfaction with supervision, organizational commitment, and Job stress. Job hopping and

perceived alternative employment opportunities are the two variables used for measurement of

uncontrollable factors. The data is collected from 252 first line managers and supervisors of

textile sector of Pakistan for ascertaining the reasons of employee turnover. The statistical tools

employed to analyze the data are correlation and regression analyses.

The hypotheses laid were:

Hypothesis 1: Job satisfaction is negatively associated with turnover intention.

Hypothesis 1a: Satisfaction with pay is negatively associated with turnover intention.

Hypothesis 1b: Satisfaction with work is negatively associated with turnover intention.

Hypothesis 1c: Satisfaction with supervision is negatively associated with turnover intention.

Hypothesis 2: Organizational commitment is negatively associated with turnover intention.

Hypothesis 3: Job stress is positively associated with turnover intentions.

Hypothesis 4: Job hopping is positively associated with turnover intention.

35

Hypothesis 5: Alternative employment opportunity is positively associated with turnover

intention.

Measures

Controllable variables included job satisfaction, organizational commitment, and Job stress. Job

satisfaction was measured on five point likert scale and this variable divided into three

dimensions i.e. satisfaction with pay, working condition, and supervision. Three items were used

for measuring each dimension. These were adapted from the Minnesota Satisfaction

Questionnaire (Weiss et al., 1967) and the Index of

Organizational Reaction Questionnaire (Smith, 1976). The reliabilities of three cales showed

satisfactory with Cronbach alphas of 0.63, 0.84, and 0.65, respectively, for satisfaction with pay,

working condition and supervision. Organizational Commitment Questionnaire (OCQ) was used

to measure employee commitment level, developed by Khatri and his colleagues (Khatri et al,

1974). Eight items were used for the measurement of organizational commitment. The scale

showed a good reliability i.e. 0.81. Job stress four items were used to measure, developed by

Vigoda and Kapun (2005). The job hopping was measured on three item scale which already

developed by Khatri and his lleagues (Khatri et al., 2001). The scale showed reliability i.e.

Cronbach alpha 0.71. The perceived alternative employment opportunities scale contained six

items and was adopted by Michaels and Spector (1982), Arnold and Feldman (1982), Billing and

Wemmerus (1983) and Modey et al (1984). The scale showed good reliability i.e. 0.76 and single

factor in factor analysis.

Conclusion

Employee has intention to switch when he is dissatisfied from his pay, supervision and nature of

work. A satisfied employee is more committed to the organizational work and has strong loyalty

and affiliation with the organization. Job stress is the mental tension caused by the workload,

working condition, and lack of means to perform job. So, job stress is another reason for

switching job from one to another organization. Job hopping and alternative employment

opportunities are the environmental factors who responsible for employee turnover intention. 36

Job satisfaction and organizational commitment are negatively associated with turnover

intention. Job stress, job hopping and alternative employment opportunity is positively

associated with turnover intention. Controllable or organizational factors (job satisfaction,

organizational commitment, job stress) are more responsible for the intentions of employee

turnover as compare to uncontrollable or environmental factors (job hopping, alternative

employment opportunity). Human resource personnel can manage employee turnover by

providing competitive pay package, inspirational supervision, and congenial working condition

which ultimately produce committed and loyal employees.

Job stress can be managed by proper division of work and counseling service for the solution of

stress related problems. The researchers can extend this research by adding more variables just

like organizational change and its impact on employee turnover intentions, managers’ leadership

style and employee turnover intention. They can compare this study into two dimensions

manufacturing vs. service sector employees by increasing sample size which will give broader

view and comprehensive frame work of employee turnover intention.

37

CHAPTER - 5

DATA ANALYSIS

TURNOVER INTENTIONS OF EMPLOYEES IN YESH LAMI PRINT PVT LTD.

1. I will leave if something better turns up?

18%

30%33%

9%

10%

Least LikelyMay beSomewhat LikelyQuite LikeyExtremely Likely

Interpretation: In the above graphs, we can see that, the more employees are tending to take a hop to another job if an opportunity turns up. It can be said that here, employees in this company have attitudinal TI intention. It would take other factors’ influence to turn it into decisional TI or put it into behaviour.

It is quite likely that 33% of the employees to change their job after getting another offer.

2.) I intend to leave as soon as possible.

Interpretation: Majority of the employees of this company show and attitude to leave the job as soon as possible, which can be said as decisional Turnover Intention.33% of the employees are like to leave as soon as possible.

38

18%

30%33%

9% 10%

Least LikelyMay beSomewhat LikelyQuite LikelyExtremely Likely

3.) How likely is that you will actively look for another job?

18%

30%33%

9% 10%


39

Interpretation: In the above graph, it can be seen that majority of the employees in this company show a decisional Turnover Intension. The employees responded showing their likeliness of actively looking for another job.

In relation to the previous question, it can be said that, employees would seek for new job and will change as soon as they get an appropriate job

4.) I would change the job as soon as I get another job.

18%

30%33%

9% 10%

Strongly Disagree

Slightly Disagree

Neutral

Slightly Agree

Strongly Agree

Interpretation: In the above graphs, we can see that in IT sector,33 % more employees are tending to take a hop to another job if an opportunity turns up than the other sector. It can be said that employees in yesh lami print have Decisional TI intention which is seen in the 9% graph of employees strongly agreed that they would leave the current job as soon as they get another job.

5.) I often think of quitting my job.

40

18%

30%33%

9% 10%

Strongly Disagree

Slightly Disagree

Neutral

Slightly Agree

Strongly Agree

Interpretation: It is seen that even though there is attitudinal Turnover Intention in the employees of the thus yesh lami print it is not that likely that they don’t often think of quitting their jobs.

It signifies that there may be some factors that may be inducing their intention to stay with the same job.

41

Future Plan to stay in the organization

6.) Which of the following most clearly reflects your feelings about future with this company?

18%

30%33%

9% 10%


Interpretation: here most of the employees have somewhat likeness with feeling about future in their company but 18% of the employee has least likely in nature.

7.) I would be more satisfied with some other job at this facility than I am with my present job?

42

18%

30%33%

9% 10%


Interpretation: here 10% of the employees of this company are satisfied with some other job than they are working with present job while 33% are satisfied with their current job.

8.) My job is usually interesting to me?

Interpretation: here 10% of the employees are satisfied with their current job while 18% of the employees of this are not satisfied with their current job.

18%

30%33%

9% 10%


43

9.) My job suits me very well?

18%

30%33%

9% 10%


Interpretation : here the employees of this company up to 10% says that their job suits them while 18% of employees say that job doesn’t suits them.

10.) If I have a chance, I will change to some other job at the same time rate of pay at this facility.

44

18%

30%33%

9% 10%


Interpretation : here 10% of the employees are interested in changing job as they get the ssame job at same rate with the same facility while 18% of the employees are interested to stay with same job.

11.) If I have chance, I will change to some other job at the higher rate of pay at this facility.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees are interested in changing job with paying higher rate while 18% of employees are least likely to pay higher rate.

45

IF YOU WOULD CONSIDER STAYING AT YOUR CURRENT JOB,THEN PLEASE CHECK THE REASON APPLICABLE FOR THE SAME

1.) I like what I do.

Interpretation: here 10% of the employees like to do their job while 18% of the employees do not like their work.

2.) The environment here is lively.

Interpretation: here10% of the employees like their environment while 18% employees are don’t adjust with their environment.

46

18%

30%33%

9% 10%


3.)3.)3.)3.)3.)3.)3.)3.)3.)3.)3.)

Flexible works practices /options.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees of this company like their flexible work practices while 18% are not adjust with their company flexible work practices.

4.) Have good pay.

47

18%

30%33%

9% 10%


18%

30%33%

9% 10%


Interpretation: here 10% of the employees are satisfied with the pay while 18% are not satisfied with pay.

5.) Job is quite challenging.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees like their challenging job while 18% o the employees do not like their challenging job.

6.) I get opportunity to learn new things and develop.

48

Interpretation: here 10% of the employees like the opportunities they get in company while 18% of the employees don’t like these things to develop.

7.) I am trained adequately.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees say that they are trained while 18% do not think that they are trained adequately.

8.) Opportunity to grow. 49

18%

30%33%

9% 10%


Interpretation: here 10% of the employee like that in this company there is opportunity to grow while 18% of the employee does not agreed with this statement.

9.) Adequate incentives, rewards and recognition.

50

18%

30%33%

9% 10%


18%

30%33%

9% 10%


Interpretation: here 10% of the employees are agreed with incentives and rewards while 18% of the employees are not agreed with this recognition.

If you would consider changing your current job, then please check the reasons applicable for the same.

1.) High job demands.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees are consider to change current job because of higher job demand while 18% of the employees are not agreed with this demand so they don’t want to change job.

2.) Long working hours

51

Interpretation: here 10% of the employees want to change job because of long working hours while 18% of the employees want to with this organization.

18%

30%33%

9% 10%

strongly disagree

slightly disagree

neither agree nor disagree

slightly agree

strongly agree

3.) Ineffective management.

Interpretation: here 10% of the employees like to change job because of ineffective management while 18% are least likely to change job.

52

18%

30%33%

9% 10%


4.) Feeling discriminated.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees are feeling discriminated so they want to change job while 18% of the employees are satisfied with job.

5.) Inadequate opportunities for career advancement.

18%

30%33%

9% 10%


53

Interpretation: here 10% of the employees think that there are inadequate opportunities for career advancement while 18% of the employees disagreed with this change.

6.) Want to obtain more or different expertise

18%

30%33%

9% 10%


Interpretation: here 10% of the employees want to change job because they want to obtain different expertise while 18% of the employees disagree and don’t want to change job.

7.) Lack of challenges and boredom

54

Interpretation: here 10% of the employees think that there is lack of challenges and boredom so they want to change job while 18% are disagree with this change.

8.) Lack of social support

18%

30%33%

9% 10%


Interpretation: here 10% of the employees ant to change job because of lacking in social support while 18% of the employees 18% of the employees disagreed with this change.

9.) Inadequate flexible work practices/option55

18%

30%33%

9% 10%


18%

30%33%

9% 10%


Interpretation: here 10% of the employees want to change job because of inadequate flexible work practices while 18% of the employees disagreed with this change.

10.) Feelings of not fitting in.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees are not feeling fit in organization while 18% of the employees are fit with organization.

11.) Lack of development opportunities.56

18%

30%33%

9% 10%


Interpretation: here 10% of the employees think that they get lack of development opportunities while 18% of the employees don’t think the same.

12.) Lack of training.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees want change of job because of lack of training while 18% of the employees disagreed with the same.

13.) Inadequate rewards /reviews/raises57

18%

30%33%

9% 10%


Interpretation: here 10% of the employees want to change job because of inadequate rewards while 18% of the employees disagreed with the same.

14.) Want a higher job status.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees want higher job status while 18% of the employees are happy with their current job

15.) Want to advance my career.58

16.) Want higher salary.

Interpretation: here 10% of the employees want to change job because they want higher salary while 18% of the employees are satisfied with salary.

59

18%

30%33%

9% 10%


18%

30%33%

9% 10%


17.) Want a better compensation place.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees want better compensation so they want to change job while 18% of the employees are satisfied with the same

18.)Want the opportunity to learn new things.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees want to learn new things so they want to change job while 18% are disagreed with the same.

60

19.) Want more challenges in my job.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees want more challenges job while 18% of the employees are satisfied with job

IF YOU DECIDE TO LEAVE CURRENT JOB WHAT WOULD BE YOUR INTENTIONS?

1.) I would intend to look for different type of job in my same company.

18%

30%33%

9% 10%


61

Interpretation: here 10% of the employees extremely intended to leave current job while 18% of the employees are least liking to change job.

2.) I would intend to stay in a similar job but move to different company.

Interpretation: here 10% of the employees extremely like to stay in similar job while 18% of the employees are like to stay in organization.

18%

30%33%

9% 10%


3.) I would intend to no longer work in same field /sector

62

18%

30%33%

9% 10%


Interpretation: here 10% of the employees like to leave same field while 18% of the employees intend to stay in the organization.

4.) I do not intend to look for another job at all.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees do not intend to change job while 18% of the employees least likely to stay with that organization.

63

The information I get through formal communication channels help me to perform my job effectively.

18%

30%33%

9% 10%


Interpretation: Here 10% of the employees can perform well in organization because of formal communication while 18% of the employees least likely for the same.

In the organization, it is often unclear who has the formal authority to make a decision.

64

18%

30%33%

9% 10%


Interpretation: here 10% of the employees extremely like that it remain unclear who make the final decision while 18% dislike the same

It’s really not possible to change things in the institution.

Interpretation: here 10% of the employees extremely like that in these company things could not be change while 18% are least like for the same.

65

18%

30%33%

9% 10%


I am told promptly when there is change in policy, rules, or regulations that affects me.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees extremely likely that change policy while 18% of the employees least likely to affect me.

I have the authority I need to accomplish my work objective. 66

18%

30%33%

9% 10%


Interpretation: here 10% of the employees have the authority I need to accomplish my work objective while 18% of the employees are disagreed with the same

Employees do not have many opportunities to influence what goes on in the organization.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees extremely like those employees’ opportunities to influence while 18% of the employees disagreed with the same.

67

Under the present system, promotion is seldom related to employee performance.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees like present system, promotion are seldom related to employee performance while 18% of the employees least likely to same.

Management at this institution is flexible enough to make changes when necessary.

18%

30%33%

9% 10%


Interpretation: here 10% of the employee extremely likes management at this institution while 18% of the employees is disagreed with same.

68

In the organization, authority is clearly delegated.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees extremely like authority is clearly delegated while 18% of the employees is least likely the same.

In general, this institution is run very well.

18%

30%33%

9% 10%


Interpretation: here 10% of the employees agreed with the institution while 18% of the employees is disagreed with the same.

69

CHAPTER – 6

RESEARCH FINDINGS

This project tries to identify the factors that induce the Turnover Intention in the employees. These factors are studied with a view of Herzberg’s Two Factor Theory of Motivation. For this, 100 employees of YESH LAMI PRINT PVT LTD were interviewed with the use of carefully prepared questionnaire. The data derived were analyzed in accordance with the Herzberg’s theory.

There is more probability of employees from this company that employees turnover could be increased. Employees of this company induced that induce their turnover intentions. While interviewing, many employees showed attitudinal and decisional levels of intentions of leaving the organization. It can be said that employees in this company have attitudinal TI intention. It would take other factors’ influence to turn it into decisional TI or put it into behaviour.

Also, it was seen that majority of the employees of this company show less willingness to leave the job as soon as possible, which can be said as decisional Turnover Intention. Additionally, it was seen that majority of the employees in this company show a decisional Turnover Intension. The employees responded showing their less likeliness of actively looking for another job.

Employees rated different reasons for quitting the present job in both the sectors. While there were also similarity in their choices. However, it was seen that in this company , employees more wanted the job content factors than the context.

The reasons that majorly affect the satisfaction levels of the employees of both the sectors as it is the motivating factors that increase the satisfaction level were also studied.

The content factors, also known as intrinsic motivators, define things that the people actually do in their work. These factors are the ones that can contribute a great deal to the level of job satisfaction an employee feels at work. Here, employees rated different reasons for staying with the present job in this company. While there were also similarity in their choices. However, it was seen that in this company, employees more rated the job content factors than the context as a reason to stay with their organization.

70

Apart from this, the factor that induces the Turnover Intentions was also studied. Among many factors, some of the factors were seen to be more dominant. Some of the factors were, “High Job Demands”, “Long Working Hours”, “Advancement of Career”, “Higher Salary”, “Opportunities to learn new things”.

Also the reasons that were chosen as a reason to stay with the same job were the Job content Factors like “the nature of job” and “opportunity to learn and develop” and Context Factors like, “Environment” and “incentives”.

Employees of this company have chosen reasons that induce their turnover intentions.

71

CHAPTER - 7

CONCLUSION

It can be concluded that there is more probability of employees from the yesh lami print pvt ltd has the neutral thought that to stay or not with the organization.

Employees of this company have chosen reasons that induce their turnover intentions. While there were also similarity in their choices. However, it can be concluded that in this company most of the employees are at neutral stage to stay or not with this organization.

The employees of this company chose, “High Job Demands”, “Long Working Hours”, “Advancement of Career”, “Opportunities to learn new things” as a reason to change the job.

With the use of questionnaire tool, it can be concluded that there is significant difference in the intention to stay with this organization.

72

CHAPTER – 8

SUGGESTIONS

Employee retention is critical to the long term health and success of the business. A motivated employee wants to contribute to work areas outside of his specific job description.

In today's scenario, it is not enough to pay the employees well and get the work done. Salary might be an initial excuse to switch over. As the job demands are increasing, the demands of the employees have also risen.

The expectancy theory states that everyone does not value outcomes the same way. This is the reason; the organizations need to design an effective retention plan for their organizations. This plan may include effective “Rewards & Recognition Programs”. These plans may or may not be monetary.

It was learnt from the interviews that the employees of this company more wanted the job content factors than the context. The employers in this organizations can carry out “coaching sessions”, opportunities for career advancement, giving more flexibility and autonomy in their work and more transparency in the organization, etc.

In this compan, employees apart from the job content factors the employees also chose the factors like higher salary, social environment and Job status as reasons for changing the job. Employers in this organizations need better ways to link the rewards and incentives to the work. As it was seen that employees also responded positively to the satisfaction with their salary and showed that there was adequate rewards and recognition. What lacking here is the link that is to be established.

73

BIBLIOGAPHY

Book Reference:

o Stephen Robins, Timothy. J., and Seema. S. (2009) Organizational Behavior, 13th edition, United States.

Web References:

o http://teorionline.files.wordpress.com/2011/08/mann-whitney-u-test.pdf

o http://www.managementstudyguide.com/herzbergs-theory-motivation.htm

o http://tutor2u.net/business/people/motivation_theory_herzberg.asp

o http://www.itsmyascent.com/HRZone

o http://www.ibef.org/industry/informationtechnology.aspx

74

Please fill the given questionnaire as truthfully as you can.

We assure you that any information you provide will be kept confidential and used for academic purpose only.

Respondent Name:Company Name:Age:Designation:Tenure in the company:Qualification:Contact Number:

I. Do you know of the hierarchy of your company? If yes then please specify at the back.

Yes - No –

II. Brief about your Job role/profile: …………………………………………………………………………………

III.

75

Q2 (1- Least Likely, 2- May be, 3- Somewhat Likely, 4- Quite Likely, Extremely Likely)

Q3 & 4 (1- Strongly Disagree, 2- Slightly Disagree, 3- Neither disagree nor agree,

4- Slightly Agree, Strongly Agree.)

Q5- (1- I will definitely not leave, 2- I probably will not leave, 3- I am uncertain, 4- I probably will leave, 5- I definitely will leave)

1) What are your plans for staying with this organization? Also, rate it on 1 to 5 scale.

1 2 3 4 5

I intend to stay until I retire. I will leave only if an exceptional opportunity turns

up. I will leave if something better turns up. I intend to leave as soon as possible.

2) How likely is that you will actively look for another job?

1 2 3 4 5

3) I would change the job as soon as I get another job. Choose an appropriate option I light of this statement. Also, rate it on 1 to 5 scale.

1 2 3 4 5

4) I often think of quitting my job. Choose an appropriate option I light of this statement. Also, rate it/them on 1 to 5 scale.

1 2 3 4 5

76

5) Which of the following most clearly reflects your feelings about your future with this company? Also, rate it on 1 to 5 scale.

1 2 3 4 5

6) Which of these is more applicable to you? Select and also, rate it/them on 1 to 5 scale.

1 2 3 4 5

I would be more satisfied with some other job at this facility than I am with my present job.

My job is usually interesting to me. My job suits me very well. If I have a chance, I will change to some other job

at the same rate of pay at this facility. If I have a chance, I will change to some other job

at the higher rate of pay at this facility.

7) If you would consider staying at your current job, then please check the reasons applicable for the same and rate them on 1 to 5 scale.

1 2 3 4 5

I like what I do. The environment here is lively. Flexible work practices / options. Have good pay. Job is quite challenging. I get opportunity to learn new things and develop. I am trained adequately. Opportunities to grow. Adequate incentives, rewards and recognition.

77

8) If you would consider changing your current job, then please check the reasons applicable for the same and rate them on 1 to 5 scale.

1 2 3 4 5

High job demands Long working hours Ineffective management Feeling discriminated Inadequate opportunities for career advancement Want to obtain more or different expertise Lack of challenge or boredom Lack of social support Inadequate flexible work practices / options Feeling of not fitting in Lack of training Lack of development opportunities Inadequate rewards / reviews / raises Want a higher job status Want to advance my career Want a higher salary Want a better compensation place Want the opportunity to learn new things Want more challenge in my job

9) If you decide to leave your current job, what would be your intentions? Please check all that apply and rate them on 1 to 5 scale.

1 2 3 4 5

I would intend to look for a different type of job in my same company.

I would intend to stay in a similar type of job, but move to a different company.

I would intend to no longer work in the same field / sector.

I do not intend look for another job at all.

78

10) Rate these statements from 1 to 5 in accordance with your problem areas.

1 2 3 4 5

The information I get through formal communications channels helps me to perform my job effectively.

In the organization, it is often unclear who has the formal authority to make a decision

It's really not possible to change things in the institution.

I am told promptly when there is a change in policy, rules, or regulations that affects me.

I have the authority I need to accomplish my work objectives.

Employees do not have much opportunity to influence what goes on in the organization.

Under the present system, promotions are seldom related to employee performance.

Management at this institution is flexible enough to make changes when necessary.

In the organization, authority is clearly delegated. In general, this institution is run very well.

Thank You for your support!!!

79

Leadership & Management

Attrition Rate in Organization Yesh Lami Print Pvt Ltd