scholarly journals Does organizational performance affect employee turnover? A re‐examination of the turnover–performance relationship

2020 ◽  
Vol 98 (1) ◽  
pp. 210-225
Author(s):  
Weijie Wang ◽  
Rusi Sun
2017 ◽  
Vol 5 (1) ◽  
pp. 370
Author(s):  
Chiemeke Kingsley Chiedu ◽  
Choi Sang Long ◽  
Hapriza BT Ashar

Employee turnover has become a key performance indicator for many organizations as they struggle to retain talented employees. The negative impact of turnover on organizational performance has continually forced organizational leaders to seek better ways of retaining valuable employees. The relationship between man and work has always attracted the attention of philosophers. A major part of men’s life is spent at work. Work is social reality and social expectation to which men seem to conform. It not only provides status to the individual but also binds him to the society. An employee who is satisfied with his job would perform his duties well and be committed to his job, and subsequently to his organization. This paper examines relationship among job satisfaction, organizational commitment and employees’ turnover intentions at Unilever Corporation in Nigeria. The data for this study was collected from 117 employees currently working at Unilever Nigeria PLC using the survey method via the questionnaire. Pearson Correlation and the multiple regression analysis techniques using the SPSS version 22.0 was used for the data analysis. The findings of the study revealed that both job satisfaction and organizational commitment have significant negative relationship with employee turnover intentions. In addition, organizational commitment was revealed to have a more dorminant influence on employee turnover intentions than job satisfaction. Based on these findings, the implications, recommendations, practice, and theory were discussed.


2004 ◽  
Vol 33 (3) ◽  
pp. 335-350 ◽  
Author(s):  
Daryl D'Art ◽  
Thomas Turner

Schemes of profit sharing and employee share‐holding have a 19th century origin. The objects of profit sharing vary according to its proponents. The primary focus of this paper will be on managerial schemes of financial participation and the expectations that their installation will lead to an improvement in organizational performance and employee behaviour. Using a survey of 2,827 private sector firms in 11 European countries we test for the effect of profit sharing on profitability, productivity and employee turnover and absenteeism. In addition, the effect of profit sharing on union influence is examined. In common, with other research in this area, our results show that while there is some evidence of a positive relationship between profit sharing and organizational performance, this was not definitive. In the case of union influence, there was some evidence of an adverse effect of these schemes on the solidarity of the collective.


2017 ◽  
Vol 48 (6) ◽  
pp. 522-534 ◽  
Author(s):  
Shinwoo Lee

Contrary to received wisdom, could turnover actually be good for an organization? Traditional research on turnover in the public management field treats turnover as a dependent variable, emphasizing its negative role on organizational performance without sufficient theoretical or empirical support. With an emphasis on the type of employee turnover as a situational factor, this research establishes the hypothesized relationships between different employee turnovers—employee transfers, quits, and involuntary turnover—and organizational performance, and tests them using panel data from 2010 to 2014 in agencies of the U.S. federal government. Empirical results challenge the accepted belief about the harmful effects of turnover on organizational performance: Turnover can be beneficial for an organization. The results confirm the relationship differs across the type of turnover involved: Employee transfers have an inverted U-shaped relationship with organizational performance, and involuntary turnovers have a linear and positive relationship with organizational performance. Given the use of a perceptual measure of organizational performance by remaining employees, these results imply that a low-to-moderate level of employee transfers is likely to increase organizational performance and that involuntary turnovers—an elimination of employees who presented poor performance or were involved in misconducts—contribute to improving organizational performance.


10.12737/3536 ◽  
2014 ◽  
Vol 3 (2) ◽  
pp. 59-62
Author(s):  
Анисимова ◽  
Galina Anisimova ◽  
Дроздова ◽  
Ekaterina Drozdova ◽  
Палагутина ◽  
...  

As the shortage of competent well-trained employees is becoming more and more acute, so is the problem of recruiting and selecting appropriate personnel for organizations. Meanwhile the healthy performance of HRM service, and particularly, well-considered personnel recruitment and selection procedure, helps to slow down employee turnover, which in turn, positively influences on financial well-being and performance of an organization. Employee turnover can have several effects on the organizational performance. Dependant on the sphere of activity and jobs of permanently changing employees, this effect can be favorable or virtually imperceptible, but in certain cases can lead to loss of competitiveness and setback in production. Despite the urgency of the high employee turnover problem, employee retention programs are still can be found in only few organizations. The major guidelines for shaping recruitment and selection process are presented in the paper, accompanied by the list of the most popular and efficient methods of hiring, based on internal and external sources. Especially emphasized are the conditions and stage-after-stage recommendations for proper personnel selection, making it possible to hire employees, whose personal character traits qualify for the job and/or the set of activities to be implemented. The above said proves high theoretic and practical importance of the study, carried out by the authors.


2018 ◽  
Vol 40 (2) ◽  
pp. 272-296 ◽  
Author(s):  
Justin M. Stritch ◽  
Angel Luis Molina ◽  
Nathan Favero

The creation of organization-level performance goals has evolved into a ubiquitous facet of the study and practice of public management. In this article, we theoretically and empirically examine the relationship between unattainable organizational goals and collective frontline employee turnover, and consider the moderating role of a public organization’s performance context on the relationship. While the findings indicate a positive relationship between unattainable goals and collective frontline employee turnover, the effect is conditional on organizational performance. The research offers nuanced insights into the establishment of goals in public organizations and has important implications for managing personnel on the frontlines of public service delivery.


2013 ◽  
Vol 3 (1) ◽  
pp. 74 ◽  
Author(s):  
Muhammad Ashar ◽  
Mudasar Ghafoor ◽  
Easha Munir ◽  
Sadia Hafeez

To survive in highly competitive business environment organizations are focusing on capitalizing its human recourses. These resources are very difficult to imitate and combination with other resources also help to gain edge over competitors. The objective of our study is to investigate relationship of two most important perceptions of training with affective commitment. These perceptions of training include perceived availability of training and perceived supervisor support for training. Later on we investigate relationship of affective commitment with employee turnover intentions. For this purpose questionnaire were considered as a tool to get responses from telecom and banking sector of Pakistan. Total 150 questionnaires were distributed and 123 useful questionnaires were received at a response rate of 82%. Statistical tools that used to analyze the relationships were Pearson moment quotient and linear regression. The result shows significant positive association of both training perceptions with affective commitment. The finding also shows significant negative association of affective commitment with employee turnover intention. This study helps managers to understand training-attitude-organizational performance relationship. Key Words: Training Perceptions, Affective Commitment, Turnover Intention, HR Practices 


Author(s):  
Muhammad Al Azzim Mohd Zaki ◽  
Juhaizi Mohd Yusof ◽  
Nur Aishah Awi

This study provides a conceptual framework for understanding the impact of transformational leadership on organizational commitment and organizational citizenship behaviour (OCB) among employees in Terengganu's Government Linked Companies (GLCs). In this context, this paper mainly aims at providing a new perspective to understand the occurrence of organizational commitment. It seeks to intrinsically enhance the employees for their discretionary behaviours to the organization's activities. To date, only limited studies are available that consider OCB as a connection developer between transformational leadership and organizational commitment. Organizational commitment is a critical concept with multiple antecedents and implications for organizational performance, goals, employee turnover, and work satisfaction. Employees' commitment to their jobs and organizations is determined by situational and dispositional factors, or by a combination of the two. This study examines how leaders' influences drive employees' OCB and its relationship with organizational commitment. The framework suggests that transformational leadership has a direct influence on organizational commitment and employees’ OCB. It is hypothesised that OCB both directly influence and mediate transformational leadership on organizational commitment.


Author(s):  
Hanan Suleiman Salim Al Amri ◽  
Jitendra Pandey

The problem of employee turnover is very important in any organization. The impact of displacing an employee differ based on many factors, including the hardness of the position. To study the impact, we prepare a questionnaire and distribute it online with people working in Oman. However, there is not many studies highlighted the employee turnover. Employee turnover is a measurement of numbers of employee who left their works or organization and there are two types of employee turnover, voluntary and involuntary.   Therefore, the aim of this research is to examine the problem and understand it, which consists of three elements: analyze the cause, determine the impact of employee’s performance, and provide solutions and recommendation based on findings.  This research focuses on the impact of staff turnover on organizational effectiveness and employee performance within Oman. High staff turnover rate may jeopardize efforts to attain organizational objectives. In addition, when an organization loses a critical employee, there is negative impact on innovation, consistency in providing service to guests may be jeopardized and major delays in the delivery of services to customers may occur. The research design used in this study was the quantitative approach, which allowed the researcher to use structured questionnaires when collecting data.   A pilot study was conducted to test the questionnaire. The survey method was used in this study because the target population only composed of 100 employees. A high response rate of 88% was obtained using the personal method of data collection, questionnaire was structured in a 5-point Likert scale format. The Statistical Package for Social Science (SPSS) version 15 for Windows was used for statistical analysis of the main responses. The study finding suggests that salary is the primary cause of staff turnover in the Department of Home Affairs. The findings highlighted that high staff turnover increases workload to the present employees in the department. The study finding also showed that staff turnover causes reduction in effective service delivery to the customers and reflects poorly on the image of the Department. Other findings suggested that unhealthy working relationship may also be the cause of staff turnover in the department. The recommendations highlighted that top management should pay a marketable salary to employees and the employees must be rewarded if they have achieved their goals. Top management should also develop opportunities for career advancement in the department. Top management should involve employees when they make key decisions that will affect them in the organization. The study concludes with direction for future research.


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