factors influencing employee turnover intention: the...
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Factors Influencing Employee Turnover Intention: The Case of Retail Industry in Bangkok, Thailand
Xiangping Wu
http://eprints.utcc.ac.th/id/eprint/1334
© University of the Thai Chamber of Commerce
EPrints UTCC http://eprints.utcc.ac.th/
Factors Influencing Employee Turnover Intention: The Case of
Retail Industry in Bangkok, Thailand
XIANGPING WU
A Thesis Submitted in Partial Fulfillment of the Requirements
For the Degree of Master of Business Administration
International College
University of the Thai Chamber of Commerce
2012
iv
ABSTRACT
At present retail industry in Thailand is one of the important components. The
GDP worth approximately 1.4 trillion Baht, among them, modern trade 40% and
traditional trade 60%. Thus, traditional trade is one of important parts of economic
growth. The traditional trade operators consist of family stores and local street store.
Normally the size of the store is small but they are being mostly operated by local
family owners (Thailand Retail Industry report, 2011). The retail market was expected
to grow at least 3-5% in the year 2011and provided a large number of jobs (Thailand
Retail Industry report, 2011). However, in recent years, employee turnover was a
major concern for many organizations today. Employee turnover rate has been
continued to grow in Bangkok, Thailand. High employee turnover can have a
devastating effect on a company. The employee turnover rate in Thailand was more
than a 10% for several years (Bangkok Retail Market Report, 2010). It was making
the managers are anxious, because the high turnover rate was not only increase the
company's operating costs but also reduce the competitiveness of a company in the
peer. However, for employees, leave from the present company was not absolute bring
the benefits for them. Sometimes it is helpless of voluntary turnover. Thus, employee
turnover would bring the great loss to both company and employee.
The purpose of this study was to investigate the factors influencing employee
turnover intention. Based on the related research, the research variables were job
characteristic, job satisfaction and organizational commitment on employee turnover
Dissertation Title Factors Influencing Employee Turnover Intention: The
Case of Retail Industry in Bangkok, Thailand
Name Xiangping Wu
Degree Master of Business Administration
Major Field International Business
Thesis Advisor Dr. Pussadee Polsaram
Graduate Year 2012
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intention. The quantitative research methods were used and the data collected by
using questionnaire to respondents. The statistical program was use to analyses
demographic factor. The findings indicated that job characteristic has direct effect to
job satisfaction and organizational commitment, and there had both direct and indirect
effect to employee turnover intention. The outcome of this study assisted the
managers more deeply understand the factors influencing employee turnover
intention, thus lead to more attention of the management on employee turnover.
However, the results of this study also confirmed that job characteristic, job
satisfaction and organizational can affect employee turnover intention in different
degree. Therefore, managers should pay more attention on employee’s job satisfaction
and organizational commitment to improve them and reduce employee turnover
intention. Ensure the low cost and high competitiveness of organization.
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ACKNOWLEDEMENTS
I would like to express my sincere gratitude to my thesis advisor: Dr. Pussadee
Polsaram, who gave me insightful comments and direction in every each of this thesis
completion. She gave me many innovative suggestions, patient guidance and
encouraged me to have the confidence to finish this thesis.
I would like to express my sincere and appreciation to my committee members:
Dr. Pitsamorn Kilenthong, Dr. Rojanasak Chomvilailuk, Dr. Suthawan Chirapanda,
Dr. Haruethai Numprasertchai. They gave me a lot of valuable suggestions and
guidance for my thesis.
My special acknowledgement is extended to Dr. Pirapong Foosiri and Dr. Phusit
Wonglorsaichon for their comment on the conceptual model and questionnaire. My
special thanks Dr. Sawaros Srisutto for teaching me how to use SPSS program.
In addition, my special thanks to Mr. Tawkiat Noisomiee for his patience in
teaching me about statistical knowledge. Moreover, he taught me how to use SEM to
finish the statistical analysis.
Finally, thanks for my family and my friends for giving me encouragement and
care which I have the courage and confidence to finish this thesis.
Xiangping Wu
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TABLE OF CONTENTS
Abstract ....................................................................................................................... iv
Acknowledgements .................................................................................................. vvi
Table of Contents ...................................................................................................... vii
List of Tables .............................................................................................................. ix
List of Tables ............................................................................................................... x
Chapter 1 Introduction................................................................................................ 1
Research Background and Problem Statement ............................................................. 2
Research Objectives ...................................................................................................... 5
Research Questions ....................................................................................................... 5
Scope of Study .............................................................................................................. 6
Expected Benefits ......................................................................................................... 6
Operational Definitions .................................................................................................. 6
Chapter 2 Literature Review ..................................................................................... 9
An Overview of Retailing Industry in Thailand ......................................................... 10
Theory and Literature Review ..................................................................................... 11
Conceptual Model and Hypotheses ............................................................................ 25
Chapter 3 Research Methodology ........................................................................... 29
Research Design .......................................................................................................... 30
Population and Sample ............................................................................................... 30
Variables of the Research ........................................................................................... 31
Research Instrumentation ............................................................................................ 31
Pretest of Research ...................................................................................................... 33
Data Collection ........................................................................................................... 35
Data analysis ............................................................................................................... 36
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TABLE OF CONTENTS (Continued)
CHAPTER 4 Data Analysis and Results ................................................................. 39
Demographic Characteristic......................................................................................... 40
Analysis of the Level of Agreement ............................................................................ 42
Data Analysis and Findings ......................................................................................... 43
Chapter 5: Conclusion, Discussions and Implications ........................................... 56
Conclusion ................................................................................................................... 57
Discussion .................................................................................................................... 58
Implication of the Study............................................................................................... 62
Limitations of the Study............................................................................................... 64
Recommendation for Future Research ......................................................................... 65
REFERENCES ........................................................................................................... 66
APPENDICES ............................................................................................................ 86
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LIST OF TABLES
Table
Table 1.1 Employee Turnover Rate in Thailand 2008-2012 ......................................... 3
Table 2.1 Growth Rate of Retail Sales, International Comparison .............................. 10
Table 2.2 Retail Sales of Thailand 2008-2012............................................................. 11
Table 3.1 Item-Objective Congruence result ............................................................... 34
Table 3.2 Reliability Test Using Cronbach’s Alpha .................................................... 35
Table 4.1 Respondent Characteristics .......................................................................... 41
Table 4.2 Level of Agreement of Respondents ........................................................... 42
Table 4.3 Definition of Variables ................................................................................ 44
Table 4.4 Correlation Matrix ....................................................................................... 45
Table 4.5 Extraction of Communalities ...................................................................... 46
Table 4.6 Total Variance Explained ............................................................................ 47
Table 4.7 Summarized Result of Rotated Analysis ..................................................... 48
Table 4.8 Goodness of Fit Statistic .............................................................................. 50
Table 4.9 Parameters of Statistic Table ....................................................................... 52
Table 4.10 Total Effects and Indirect Effect of Model ............................................... 53
Table 4.11 Summarize of Hypotheses ......................................................................... 55
x
LIST OF FIGURES
Figure
Figure 1.1 Regional Employee Turnover 2011.............................................................. 4
Figure 2.1 Conceptual Model ...................................................................................... 28
Figure 4.1 Structural Equation Model ......................................................................... 49
CHAPTER 1
INTRODUCTION
This chapter presents the importance of the problem of human resources management
which is employee turnover and the problem of retail industry. Besides that, researcher
briefly expounds the related factors of employee turnover intention. The topics are as the
following:
1.1 Research Background and Problem Statement
1.2 Research Objectives
1.3 Research Questions
1.4 Scope of Research
1.5 Expected Benefits
1.6 Operation Definition
2
1.1 Research Background and Problem Statement
Retailing refers to the activities involved in selling goods or services directly to final
consumer and only used for personal use and not for business. Retail industry is as an
intermediary structure that’s communicate consumers and producers, with the
development of economy development (Littler and Hudson, 2003). Retail industry
emerged in the US in the eighteenth century, restricted to general stores. Specialty stores
were developed only in areas that had a large population. Supermarkets flourished in the
US and Canada with the growth of suburbs after World War II (Chulajata, 2012).
In Thailand, retail industry is one of the important components of Thailand GDP
worth approximately 1.4 trillion Baht, among them, modern trade 40% and traditional
trade 60%. Thus, traditional trade is one of important parts of economic growth. The
traditional trade operators consist of family stores and local street store. Normally the size
of the store is small but they are being mostly operated by local family owners (Thailand
Retail Industry report, 2011). Modern trade in Thailand mainly composed of six different
sizes of retail industry. The first is department store. A department store is specializes in
selling a wide range of personal and residential product. The department store segment is
dominated by two major players namely Central Retail Corporation which operates
Central, Robinson and Zen. On the other hand is The Mall Group which operates The
Mall, Emporium and Siam Paragon. The second is superstore and hypermarket. Thailand
has two major players under this market segment include Tesco Lotus and Big C. The
third is supermarket sector. The major players of this market sector are Central Food
Retail (CFR), Foodland and Villa Market. The fourth is Specialty Stores. The specialty
stores are small stores specialize in a specific range of merchandise with high levels of
service and expertise. The Specialty store segment in Thailand is dominated by two
players including Watson and Boots. Both chains offer a wide variety of products
including pharmaceutical product, health and beauty items, personal care and consumer
goods. The fifth is category killer, it focus on one or very few categories of merchandise
and offer a wide variety of such merchandise at relatively low prices. It included IT city,
Power Buy, Super Sports, Home Pro, Index. The last one is convenience sector. A
convenience store is defined as a small store located alongside with busy roads in
populated areas. This sector is dominated by 7-Eleven, V Shop Express, 108 Shops,
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Family Mart and Tesco Lotus Express (Thailand Retail Industry Report, 2011)
The retail market was expected to grow at least 3-5% in the year 2011(Thailand
Retail Industry report, 2011). Retail market provides a large number of jobs. Namely,
according to the Thailand Ministry of Labor statistics, the foreign corporations in the
retail field have provided jobs at steady increase 44.1% in 1999 compare with 1990. Until
year 2011 increase the number of workers in this industry were increase 384.62%
compare with 2005 and the demand is growing by 5 % per year (Thailand Retail Industry
report, 2011).
Employee turnover is a major concern for many organizations today. High employee
turnover can have a devastating effect on a company. The employee turnover rate in
Thailand was more than a 10% for several years (Bangkok Retail Market Report, 2010).
The employee turnover rate in table 1.1 shows that from 2008 to 2011, employee
turnover rate was decreased but it was increased in 2012.
Table 1.1 Employee Turnover Rate in Thailand 2008-2012
Year 2008 2009 2010 2011 2012
Turnover rate 18.70% 18.30% 15.90% 15% 15.20%
Source: Employee turnover costs, 2012
High employee turnover in Thailand will cost the country in terms of human resource
development and reduce the nation's global competitiveness (Thailand Retail, 2011).
According to management, one of the biggest problems in several industries is high
employee turnover. High employee turnover has an impact on the quality and quantity of
production. Thus, it is seen as an area of cost that can be measured and benchmarked
(Fethi et al., 2011).
The following figure shows that Thai employee turnover rate is 15% in 2011, the
second highest position in Asia after Malaysia. It’s higher than Indonesia around two
times which country has the lowest employee turnover rate.
4
Source: Asia and Thailand Reward Trends 2011-2012, 16th March 2012.
Figure 1.1 Regional Employee Turnover 2011
What causes lead to occur of employees’ turnover intention? Many aspects have been
studied by experts. Psychological factors such as job satisfaction (Boran, 2011) and
organizational commitment (Ebru et al., 2010). Many studies found job satisfaction and
organizational commitment of employee gradually weakened before he/she actual
turnover (Joo and Park, 2010). If the employee who has a low level of commitment to
organization, he/she has a negative work-related attitudes and behaviors such as often
absenteeism, join in unproductive even turnover intentions (Hang, 2011). Retail manager
has been suggested to increase career commitment to retailing and organizational
commitment (Calisir et al., 2011).
Besides that, job related factors such as job characteristic can also be viewed as a
major factor that affect to organizational commitment in retail industry. Job characteristic
model compose of skill variety, task identity, task significance, job autonomy, and job
feedback (Casey and Robbin, 2010). Different parts let employees occur different
cognition then occur different level of organizational commitment. It’s not difficult to
understand when employee felt that work more than their ability range and cannot get a
clear feedback, he/she will be upset and discouraged even not really satisfied with their
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job and the organization. On the contrary, the employee occur higher organizational
commitment when he/she highly satisfied his/her job.
Park and Kim (2009) suggested that managers should focus on job satisfaction,
organizational commitment and job characteristic to improve employee attitudes. In the
fierce competition situation, saving cost for each organization is indispensable. It is one
of the most important methods that could improve the success of organization. Therefore,
job characteristic, job satisfaction, organizational commitment worth to manager pay
attention and strive to improve. Promote employee’s positive emotions would be effective
method for the managers who want to timely predict and control the employee's negative
attitude in retail industry of Bangkok, Thailand.
1.2 Research Objectives
Objectives of this study are explored as follow:
1. To study the effect of job characteristic on job satisfaction and organizational
commitment to retail industry in Bangkok, Thailand.
2. To study the effect of job satisfaction on organizational commitment to retail
industry in Bangkok, Thailand.
3. To study the effect of job satisfaction and organizational commitment on
employee turnover intention to retail industry in Bangkok, Thailand.
1.3 Research Questions
Based on the purposes of this study, the following research questions will be
discussed:
1. How is the effect of job characteristic on job satisfaction and organizational
commitment to retail industry in Bangkok, Thailand?
2. How is the effect of job satisfaction on organizational commitment to retail
industry in Bangkok, Thailand?
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3. How is the effect of job satisfaction and organizational commitment with
employee turnover intention to retail industry in Bangkok, Thailand?
1.4 Scope of Study
This study focuses on modern trade of retail industry in Bangkok, Thailand. The main
purpose of this study is to investigate the employee turnover intention. Therefore, the
representative sample was the employee who worked in department store which is fast
development and provides a larger number of jobs in Bangkok, Thailand. Most of the
theories and concepts were taken from empirical research based on the employee’s
attitude and behavior. Thus, this study focuses on the effect of job characteristic, job
satisfaction and organizational commitment to employee turnover intention.
1.5 Expected Benefits
1. The findings and the relevant literature or theory would be useful for the further
research which investigating the effect of job characteristic, job satisfaction,
organizational commitment on employee turnover intention.
2. The findings would be a resource for managers in Bangkok, it is conducive to
improve the factors which have effect on employee turnover intention, reduce the
employee turnover intention in retail industry.
3. The study would bring up more understanding to the managers on the factors of
influencing employee turnover intention in retail industry, Thus lead to more attention of
the management on employee turnover.
1.6 Operation Definition
Retail Industry: refers to the activities involved in selling goods or services directly
to final consumer and only used for personal use and not for business.
Employee: in this study means the employee who works in retail industry.
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Employee Turnover Intention: means employees intend to leave the organization
which he/she working present.
Organizational Commitment: as a psychological attachment of an employee to an
organization, It makes employee willing to sacrifice their own emotion for the
organization and more loyal to organization. Include affective commitment, continuance
commitment and normative commitment.
Affective Commitment: the relative strength of an individual’s identification
with and involvement in a particular organization.
Continuance Commitment: the extents to which employees feel commitment to
their organizations when they consider the costs of leaving the organization.
Normative Commitment: means employee stay with organization just because
it’s a right thing based on their personal norms such as moral then realized the
organizational goals.
Job Characteristic: is a model to determine employee working perception and
reaction in order to understand the employees’ actually feeling to their job. Include five
core job characteristics: skill variety, task identity, task significance, autonomy, and
feedback.
Skill Variety: is the degree to which a job requires a variety of different activities
in carrying out the work, which involve the use of a number of different skills and talents
of the employee.
Task Identity: the degree of the job requires completion of a whole and
identifiable piece of work, and whether the job can be doing from beginning to ending
with a visible outcome.
Task Significance: the degree of job which has a substantial impact on the lives
or work of other people-whether in the immediate organizational or in the external
environment.
Job Autonomy: the degree of job which provides substantial freedom,
independence, and discretion to the employee in scheduling the work and in determining
the procedures to be used in carrying it out.
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Job Feedback: as the degree that the employee receives clear information about
his or her performance.
Job Satisfaction: as a pleasurable or positive emotional state resulting from the
appraisal of one’s job or job experiences. It includes: Pay satisfaction, Supervisory
satisfaction, Co-worker satisfaction, Promotion satisfaction.
Pay Satisfaction: the satisfaction occurs from the salary which base on the
organization salary scale.
Supervisory Satisfaction: the satisfaction occurs from supervisor’s support on
job.
Co-worker Satisfaction: the satisfaction occurs from the degree of professional
cooperation as well as the sense of social belonging.
Promotion Satisfaction: the satisfaction occurs from greater opportunities to
develop in his/her career, certainly it is the present of job approval.
CHAPTER 2
LITERATURE REVIEW
This chapter presents the literature reviews, in order to identify the signification
variable and the conceptual framework construction to investigate the relationship among
job characteristic, job satisfaction, organizational commitment, and employee turnover
intention of retail industry in Bangkok, Thailand. The topics are as the following:
2.1 An Overview of Retailing Industry in Thailand
2.2 Theory and Literature Review
2.2.1 Employee Turnover Intention
2.2.2 Organizational Commitment
2.2.3 Job Satisfaction
2.2.4 Job Characteristic
2.4 Conceptual Model and Hypotheses
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2.1 An Overview of Retailing Industry in Thailand
Bangkok is the largest economy and financial center in Thailand. According to the
information of National statistical office of Thailand, the population of Bangkok near
10.2 million in year 2012. Retailing is a very visible form of economic activity which
exerts a major influence over the lives of consumers (McGoldrick, 2002), it is one of the
major sources of income in Bangkok. More and more various forms of retailing appear
with the development of economy. It includes both two formats which are the traditional
trade and modern trade.
According to the different properties, retailing in Bangkok divides into six categories
included department store, superstore or hypermarket, supermarket sector, specialty
stores, category killer and convenient store which have mentioned in chapter one
(Thailand Retail Industry report, 2011). In the 21st century of Thailand, retail industry
rapid development. From year 2007 to year 2012, the area for rent commercial of modern
trade in Bangkok increase from 4 million to 6 million square meters (Bangkok Retail
Market Report, 2012). The following table shows the retail sales in recent years of
Thailand, US, Japan, China and Germany.
Table 2.1 Growth rate of Retail Sales, International comparison
% change
Country 2008 2009 2010 2011 2012
Thailand 6.91 -4.12 19.19 9.37 10.79
US 2.26 -6.38 6.21 7.37 8.58
Japan 14.91 8.04 7.65 10.37 -7.45
China 33.08 18.00 23.94 22.65 39.36
Germany 9.13 -7.17 -2.58 7.71 -7.36
Source: Industry Report: Consumer goods and retail May 2012
The data in table 2.2 shows that the growth rate of retail sales in Thailand is unstable.
Namely, the growth rate of retail sales was increase in 2008 but decrease in 2009 and
then increase in 2010 and decrease in 2011. Retail sales will expand by an average of
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10.1% annually in year 2012 to 16 in local currency terms, up from 2.7% in year 2007 to
2011. In real (volume) terms, after slow growth of only 1.5% in flood-hit year 2011, and
will then rise by 6% a year on average in year in the next five years.
Table 2.2 Retail Sales of Thailand 2008-2012
Items 2008 2009 2010 2011 2012
Retail sales(US$ bn) 89.7 86.0 102.5 112.1 124.2
Volume growth (%) -2.1 -0.5 6.7 1.5 8.3
Value growth (%) 6.9 -4.2 19.2 9.4 10.7
Source: Industry Report: Consumer goods and retail May 2012
Retail development promoted the development of the economy. However,
development led to the fierce competition in the retail industry. Bangkok is Thailand's
most populous and most developed city. Retailing industry provides a lot of position and
alleviates employment pressure. Most of the position is lower middle level position such
as sales, cashier, tally clerk. However, employees are the lifeblood of a company,
employee turnover brings loss for both employee and company. On the other hand, in
order to defeat competitors, managers must reduce the cost whether management cost or
the cost of production. Therefore, lower employee turnover rate can improve the yield of
retailing even indirectly increase the GDP of Thailand. Hence, it is very urgent to identify
the reasons for employee departure and solve the problem.
2.2 Theory and Literature Review
2.2.1 Employee Turnover Intention
Employee turnover is an important factor which is influencing employee productivity.
Sut and Chad (2011) indicated that employee turnover is cause of economic losses of
organization. It reduces greatly the job efficiency. Similarly, Barak et al., (2001)
suggested that employee turnover is terror and costly, it reduces organizational
effectiveness and employee productivity to a certain extent, and manager must spend
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more energy and material to develop a new talent to replace the employees who leave
out. Hence employee turnover is worth managers to pay attention to invisible burden.
According to Wright and Bonett (2007), their results showed that employee turnover
can be divided to involuntary or voluntary. Voluntary turnover occurs when an employee
wants to leave and eventually decides to leave organization with variety causes. It is
likely the employee accepted a position which has a better treatment whether physical or
spiritual with a different company. As mentioned above, it is the type of leaving that
manager cares and it will be negative impact on the organization. Another situation, an
employee asked to leave the organization for a variety of reasons including layoffs or
poor job performance or other performances harm to benefit of company. The most
reasons for turnover can be divided in to either voluntary or involuntary. A large number
of scholars have determined that intent to stay or leave is strongly and consistently related
to voluntary turnover (Wright and Bonett, 2007; Mathieu and Zajac, 1990). Price (1997)
suggested that most organizational research of turnover is voluntary quits. The
researchers basically concentrate to research on employee turnover intention due to the
data of employees who leaving voluntarily is difficult to collect (Currivan, 2000; Price,
1997).
Many scholars defined that turnover intention is the single best predictor of turnover
and as a key element in study employee behavior, and be the last step before the
employee voluntary too (Lee and Bruvold, 2003, Abrams et al., 1998; Bedeian et al.,
1991). However, Van Dick et al. (2004) defined that an employee’s intention to leave is
not an actual turnover. But it’s also rejected that turnover intention is the best predictor of
actual turnover, it mean that employee has intent to stay with organizations which have a
positive effect to voluntary turnover (Griffeth et al. 2000). Finally, turnover intentions
have substantiated of employee turnover to be robust accept from the most of scholars
(Lee and Bruvold, 2003; Roberts et al., 1999).
So, what the definition about employee turnover intention is. Some researchers
defined that employee turnover intention is like a time - consuming process from thinking
of quitting, intention to search a new job and intention to quit or stay (Jacqueline and
Milton, 2007; Mobley, 1982).
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In addition, employee turnover intention is also defined as “individuals’ own
estimated probability (subjective) that they are permanently leaving the organization at
some point in the near future” (Matthias and Miriam, 2011). It is viewed as “a conscious
and deliberate willfulness to leave the organization” by Meyer in 1993. What causes lead
to occur of employees’ turnover intention is. Many aspects have been studied by experts
which could be divided into five aspects: job related factors such as job characteristic and
job social support; individual attributes such as demographics and human capital;
organizational factors such as organizational culture and human resource practices;
environmental factors such as technology advancement and perceived job alternativeness;
psychological factors such as job satisfaction and organizational commitment.
Wright and Bonett (2007) indicated that when employee cannot get happiness from
their work then the dissatisfaction of job is high, they will look for other opportunities
which can give them happiness or satisfaction. Hence job satisfaction is viewed as
significant predictors of turnover intention (Wright and Bonett, 1992). However, job
satisfaction and organizational commitment pour on employee’s attitudes about job and
organization, but turnover is an actual move out from an organization (Price, 1997). It
showed that job satisfaction and organizational commitment maybe intermediate of
turnover intention (Michaels and Spector, 1982).
Further, Lee and Mowday (1987) confirmed that it’s a positive relationship between
job satisfaction and organizational commitment, in addition turnover intention has a
direct impact on turnover. A number of studies have been done related to intent to leave
or turnover (Lee and Bruvold, 2003; Koch and Steers, 1978). Firth et al. (2003) defined
that managers can reduce employee turnover rate by reduce employee turnover intention,
and then managers need to regulate the relationships between supervisors and
subordinates in order to reduce stress from management. They also need to improve the
satisfaction and commitment of employee, thus reduce the negative intention from
employee.
In summary, this study contributes its comprehensive a lot of related literature theory,
and it focus on the terms of job characteristic, job satisfaction, organizational
commitment and the relationship among them.
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2.2.2 Organizational Commitment
The mainly of this study is determine the relationship between individual and
organizational, organizational commitment is worth to research. Lambert (2003)
indicated that organizational commitment is as a psychological attachment of an
employee to an organization, it enables the employees more loyal to organization, they
are more willing to sacrifice their own emotion for the organization and have a stronger
desire to exert effort for the organization. Similarly, Organizational commitment refers to
the degree of attachment and loyalty felt by individual employees to the organization
(Guimareas, 1996; Luthans, 1995). Sajjad et al., (2011) suggested that organizational
commitment refers to the extent of psychological or dedicate oneself towards the whole
organization. It might change the behavior of employees (Lambert, 2003). Organizational
commitment is viewed as a set of behavioral intentions to motivating many
organizational and behavioral outcomes, which could be conceived as a pattern of
behaviors (Goulet and Frank, 2002).
With the development of the society, many types of organizational behavior are
found, such as new forms of employee relations and new psychological contracts
(Swailes, 2002). Related studies proposed that a high level of organizational commitment
has a positive influencing work - related behaviors and attitudes of employee, also
improved work outcomes (Meyer et al., 1989). Further, organizational commitment is
importance factor influencing organizational antecedent and outcomes, it arises from job
satisfaction (Ford et al., 2003; Meyer et al., 1993), attractive remuneration and trust in
organization (Meyer et al., 2002). Organizational commitment is indicated a certain
degree to promote worker productivity (Chiu et al., 2005), this showed that the employee
who has a high level of commitment would make more personal contribution to
organization. He/she would like to best perform and engage in organizational citizenship
behaviors; thus, reduce the possibility that he/she joins in unproductive or destructive
behaviors (Meyer et al., 2002). However, if the employee who has a low level of
commitment to organization, he/she has a negative in work-related attitudes and
behaviors such as often absenteeism, join in unproductive even turnover intentions (Lin
and Chang, 2005; Bashaw and Grand, 1994). It can be measured by sickness absence,
absenteeism, engagement and employee turnover (Ismail et al., 2011; Khandelwal, 2009;
15
Meyer and Herscovitch, 2001).
Janet and Christopher (2008) showed that organizational commitment would have a
negative linear relationship with employee turnover intention by the analysis of 124
published studies, soon afterwards, they suggest that the employee who has a higher level
of organizational commitment is more likely to remain at work when compare to the
employee who has a lower level of organizational commitment. Similarly, Cathrine
(2011) and Allen (1996) proposed organizational commitment as a psychological link
between an employee and his or her organization, it ensures a greater degree decreasing
of employee voluntarily leave rate. Then many managers want to reduce the employee
turnover intention by improving organizational commitment, such as by increases pay
promotion, monetary bonuses, (Kaplan and Ferris, 2001; Mallam, 1994). Because the
high turnover course high enterprise cost, reduce the employee turnover must be a good
way for cost reduction.
Given that the nature of organizational commitment is layered in terms of one’s
possible commitment level, three specific commitment types have been identified by
Meyer and Allen (1984). These three specific commitment types are characterized by
positive feelings of identification with attachment and involvement in the organization
including: affective commitment, continuance commitment, and normative commitment.
Affective Commitment
Allen and Meyer (1990) defined that affective commitment pertains to the extent to
which an individual identifies with organization and reflects employee affective
orientation towards. It is the most common type studied and one of the most frequently
investigated constructs about employee attitudes. Further, Africa News (2008) reported
the employee who progress with organization usually obtains more organizational
commitment than those who join later. It has consistently been view as the most accurate
predictor of positive organizational behavior (Chen and Francesco, 2003).
Buchanan (1974) indicated that affective commitment as a partisan, affective
attachment to the goals and values of one’s role in relation to the goals values, and to the
organization for its own sake, apart from its purely instrumental worth. When employees
feel the organization give them the fair spiritual and material reward they will receive
16
organizational care and support, follow the organization’s goals and roles thus enhance
job satisfaction (Matthew et al., 2012). Moreover, employees will spread higher level of
affective commitment to the organization when they obtain the expectation reward (Haar
and Spell, 2004). The affectively committed is attracting the employees, all of extrinsic
and intrinsic, spiritual and material rewards can improve organizational commitment in a
certain degree.
Continuance Commitment
Most of the employees think that the longer they stay with organization the more
energy they put in, such as relationships with other employees, retirement plan and other
benefits which as time increases. Therefore, the employees do not leave organization
because they are not willing to give up many years of accumulated results, and they need
some time to adapt to leave organization, and look for the new organization (The
Pennsylvania State University, 2011). Continuance commitment is “the extents to which
employees feel commitment to their organizations when they consider the costs of
leaving the organization” (Meyer and Allen, 1984). Also it is seen as a siren to let
employee realize that their leaving is a high cost then refrain from their intent to leave.
However, Redmond (The Pennsylvania State University, 2011) indicated that
employees will not join in work by required of organization if they have an elevated
continuance commitment. But Pastorino et al., (2010) suggest that continuance
commitment may also occur because the employees do not want to lose company social
ties or friendships. On the other hand, Continuance commitment reflects the level of
employee intent to stay with organization will not to leave (Lee and KamarulZaman,
2009). For example, related Studies examining that government employees have a higher
level of continuance commitment compare with other sectors. Newman and Sheikh
(2012) point out that the reason is the government employees have more stable pensions
then other sectors.
Normative Commitment
Normative commitment is the least researched of three components, it refers to the
employee perceived obligation to continue to stay in organization (Sajjad et al., 2011). It
indicates that employee stay with organization just because it’s a right thing based on
17
their personal norms such as moral then realized the organizational goals. Therefore,
normative commitment has defined that an employee stays with an organization due to
moral obligation; he/she doesn't want to lose co-workers as lessor for resigning (The
Pennsylvania State University Report, 2011; Pastorino et al., 2010). It is found that
normative commitment is differs from affective commitment because it reflects a moral
obligation rather than an emotional attachment (affective commitment) by (Slack, Orife,
Anderson, 2010).
Three components can be concluded: Employees with strong affective commitment
because they like the organization, those with strong continuance commitment because
they can’t leave, and those with strong normative commitment because they have to stay
with organization. Mathieu and Zajac (1990) indicated not surprisingly, affective
commitment has been more strongly related to job satisfaction than continuance
commitment.
Organizational Commitment and Turnover Intention
Africa News (2008) reported that organizational commitment builds with time, the
longer the employee join in organization the easier to engender, and an employee who
has dissatisfaction with their jobs but also perhaps possess high organizational
commitment. The commitment is potentially more beneficial to the company because to
reduce the costs of leaving (Suliman and Lles, 2000). Black et al. (1992) thought that
organizational commitment would be positively related to intent to stay, organizational
commitment is the most strongly related to intent to stay. Similarly, organizational
commitment is viewed as the strongest predictor of employee turnover intention (Ahuja
et al., 2007). Hence, Pare and Tremblay (2007) defined the important effects of
organizational commitment on employee turnover intentions. Furthermore, a larger
number of researchers indicate that the relationship between an employee’s turnover
intentions and organizational commitment is negative (Lin and Chen, 2004; Susskind et
al., 2000; Breukelen et al., 2004).
2.2.3 Job satisfaction
Currivan has indicated that job satisfaction is likely to be the most widely research
topic about work attitudes over the last forty years in 2000. Therefore, job satisfaction is
18
not strange for reader. A large number of researchers have examining on job satisfaction,
but they concluded results were not all the same. Boran (2011) indicated that job
satisfaction is simply how people feel about their jobs in different aspects. It is the extent
to which people like (satisfaction) or dislike (dissatisfaction) their jobs. Similar, job
satisfaction is defined as the extent to which employees like their job by Agho and Price
in 1992. However, the most widely accepted explanation of job satisfaction as a
pleasurable or positive emotional state resulting from the appraisal of one’s job or job
experience (Droussiotis and Austin, 2007; Locke, 1976).
Furthermore, Lim (2008) suggested that job satisfaction had significant influence
whether individual or organization. On the contrary, when employees are not satisfied,
they tend to shift and look for satisfaction elsewhere. It may leads to employee's various
reaction, no matter be psychological or action (Joo and Park, 2010). The most common is
the employee turnover (Beecham et al., 2008). But some pervasive misleading about job
satisfaction is worthy to argue. One such fallacy is: Syptak, Marsland and Ulmer (1999)
indicate that a happy employee is a productive employee, may lead to job satisfaction.
Therefore, whether the same work can attain the same satisfaction between different
employees? Bernstein and Nash (2008) suggested that job satisfaction can be divided into
three components: the first is emotional (it is the generic term for subjective, conscious
experience that is characterized primarily by psychophysiological expressions, biological
reactions, and mental states), such as boredom, anxiety, or excitement; The second is
cognitive (including how people think, perceive, remember and learn), such as feeling
challenging and feeling is needed; Behavioral component is the last one (a response of an
individual or group to an action, environment, person, or stimulus), such as arrive to
company early, absence, voluntary work overtime or pretending to be ill in order to avoid
work. Due to this expansive research, job satisfaction has been linked to productivity,
motivation, physical health, and general life satisfaction (Gunlu, Aksarayli and Percin,
2010). Job satisfaction can be divided in two types which are based on the level of
employees' feelings regarding their jobs. They are global job satisfaction (focus on
employees' overall feelings about their jobs). It is the overall evaluation on job
satisfaction. And job facet satisfaction (focus on feelings about specific job aspects, such
as salary, supervisor support, and the quality of relationships with one's co-workers
19
(Mueller and Kim, 2008).
Pay Satisfaction
Rast and Touran (2012) suggest that salary is basic requirements with employee, they
look for the labor pay remuneration. It means salary is always a decisive role for most
employees. However, a fallacy is that paying is the most important dimension in job
satisfaction; Employee may have higher satisfaction when they are more satisfied with
working environment (Ayse et al., 2009; Berry, 1997). Thus salary is not the only
measurement of job satisfaction, the higher paying from organization is not mean the
higher satisfaction from employees, because there are a lot of reasons lead to employee
dissatisfaction, such as always work overtime, the process boring and without any
change. Despite all this, it still does not deny the major effect of salary to employee
satisfaction. Maslow-hierarchy of needs theory (1943) indicates that, human have five
levels of needs: physiological needs, safety needs, belonging needs, esteem needs and
self-actualization needs. Stand in the breach is physiological, thus paying directly
influence to physiological needs of employee.
Supervisor Satisfaction
Besides pay satisfaction, supervisor support is other significant factors to measure job
satisfaction of employee. Gagnon and Michael (2004) described supervisor support as the
degree to which an employee feels that they are supported by their supervisor. Further,
Heery and Noon (2001) proposed that supervisor is a frontline manager who is
responsible for the supervision of employees. General, when employees feel that the
supervisors are good at discovering their value and given them respect, communicate and
guidance, they take it as inner encourage, thus satisfied to organization then likely to
remain with it (Eisenberger et al., 2002). High manager support lead to high emotional
interaction of employees, research showed that employee perceives supervisor support
strongly related to job satisfaction, affective commitment, and turnover intention (Ng and
Sorensen, 2008). Hence, the supervisor satisfaction must be an important component of
job satisfaction and plays an important role.
20
Co-worker Satisfaction
Definition of co-worker is someone whom works alongside at their job. Usually, it
refers to a person at a same or lower level of seniority not manager or boss. Close
relationship between co-workers could improve employee satisfaction to a certain extent
(Wei, 2009). Thus, co-worker relationship is regarded as the degree of professional
cooperation as well as the sense of social belonging. McCalister (2003) proposed that co-
worker support and supervisor support significantly influence to work stress and job
satisfaction in a negative direction. Therefore a close co-worker relationship could
improve job satisfaction at a certain extent.
Promotion Satisfaction
Mallow-hierarchy of theory needed indicated that after reach the basic needed,
employee begin to pursue high levels needed. Promotion is the pursuit of most employees
and means employees get opportunities to develop in their career, certainly it is
recognition of the current work. Heery and Noon (2001) suggested that promoting bring
to an increasing of employees’ responsibility and status, the jobs which have more
development chances are more likely to be employee chose.
Job satisfaction, Organizational Commitment and Turnover Intention
A larger number of studies propose that there is a positive relationship between
commitment and job satisfaction (Yousef, 2000). It has negatively related with employee
turnover intention (Schnake and Dumler, 2000). Park and Kim (2009) propose job
satisfaction is employee attitude which included pay, promotion, supervision, fringe
benefits, contingent rewards, operating procedures, coworkers, nature of work, and
communication. Therefore, reduce employees’ dissatisfaction must be the way to improve
their satisfaction. Sequentially improve their organizational commitment and reduce the
turnover intention in final. This study focuses on discussing of pay satisfaction,
supervisory satisfaction, co-worker satisfaction, promotion satisfaction.
Job satisfaction was viewed as behavioral aspect of employee toward organization by
many researchers (Ali et al., 2011; Sweeney, 2002). Many studies discuss about the
relationship among job satisfaction, organizational commitment and turnover intention
21
(Joo and Park, 2010). Job satisfaction is employee’s emotional reaction to the job, but
commitment is emotional with organization. Therefore, commitment could be promoted
by a mediator like job satisfaction (Feinstein and Vondrasek, 2001).
Further, Igbaria and Greenhaus (1992) suggested that job satisfaction both directly
and indirectly effect to organizational commitment. Hence, job satisfaction is viewed as a
mediator to improve the productivity, enhance employee creativity and commitment
(Boran, 2011). Similarly, Lai Wan (2007) and Santoshi (2011) indicated that motivate
employee to work hard and it positively influences organizational commitment to a
certain extent. There are many similar reason, Safi, Jamal and Ahmad (2011) proposed
that job satisfaction is a source of organizational commitment, the goal achievement of
employee brings to high morale in the workplace. All studies proof the positive
relationship between job satisfaction and organizational commitment, organizational
commitment could be improve by improving job satisfaction.
Several studies also indicated that job satisfaction is one of the most important factors
for turnover intention (McKnight et al., 2009; Rutner et al., 2008; Korunka et al., 2008;
Joseph et al., 2007). Similarly, another four meta - analyses concluded a significant
relationship between job satisfaction and employee turnover intentions (Fethi et al., 2011;
Zhao et al., 2007; Griffeth et al., 2000). The analysis of Carsten and Spector (1987)
examined the correlation between job satisfaction and turnover was.24. Further, job
satisfaction was shown to reduce employee turnover intention (Alexandrov et al., 2007;
Jones et al., 2007) by mediator (organizational commitment). So the study of job
satisfaction is bound to the ameliorating of employee turnover intention.
2.2.4 Job Characteristic
The objective of job characteristic model is determined employee working perception
and reaction (Morgeson and Humphrey, 2006). So, to understand the feeling of
employees toward their jobs is positive or negative. It proposed by the Harvard
University professor Richard Hackman and Greg Oldham. Job characteristics is not only
influence the employees’ feelings but also their behavioral outcomes (Chun and Rui,
2011). There should be relationships between job characteristics and job outcomes, such
as job satisfaction, organizational commitment and turnover intention (Huang, 2011;
22
Torraco, 2005).
Morgeson and Humphrey (2006) identified five core job characteristics as the
assessment index for skill variety, task identity, task significance, autonomy, and
feedback from job. It analyzed the relationship between them, as well as analyzed the
influence on the employee productivity, job motivation, satisfaction and commitment
(Huang, 2011). According to the job characteristic model, any position can be description
from five core job characteristics. The five job characteristics relate to three underlying
psychological states: work meaningfulness, knowledge of results, and sense of
responsibility. Li and Chun (2011) define that employees' cognition of job characteristics
would affect their performance as well as inspire them.
Skill Variety
In order to improve organization's efficiency and competitiveness, managers expect to
cultivate all-round talents. Researchers define that skill variety as the degree to which a
job requires a variety of different activities in carrying out the work, which involves the
using of a number of different skills and talents (Tsaur, Yen and Yang, 2011). On account
of an all-round talent must achieve the job goals easily compare with those who has a
small working ability range, and organization provides the opportunity to utilize a variety
of valued skills and talents on the job (Piccolo and Colquitt, 2006). Some researchers
propose that skill variety is one of the best predictors of organizational commitment. It’s
more apparent from the employee who has a variety skill (Godwin, Tor, Magid, 1997).
Thus skill variety is more important for job, deservedly there are more and more
employee constantly increment skills training in order to get a better opportunity. Despite
other factors, work skill variety can improve the performance of employees and complete
the task more perfectly (Morgeson and Humphrey, 2006). In a certain extent improve the
enthusiasm of employees and organizational commitment.
Task Identity
Task identity is described as the degree to which the job requires completion of a
whole and identifiable piece of work, the employee is doing a job from start to finish with
a visible outcome (Tsaur, Yen and Yang, 2011; Chen and Chiu, 2009). Whether it's a
personal task or team work, the integrity of the work is quite important, that’s doing a job
23
from beginning to end with visible results. It’s more convenient to employee make a
planning for that task and arranged for each working procedure, it could make the task
can be done smoothly. Also it is more convenient to do a feedback examination. Gomes
and Neves (2011) proposed that task identify has been one of the best promoter of work
outcomes, such as high level of productivity, high level of satisfaction, high level of
commitment, low level of dissatisfaction. The integrity of the task has not only acting on
that task, but also great effect to the organization's long-term growth.
Task Significance
Task significance is described as the degree to which the job has a substantial impact
on lives or work of other people whether in organizational or external environment (Chen
and Chiu, 2009, Morgeson and Humphrey, 2006). Whether a big task or small task,
managers must make staff aware of its importance and Illustrate the significant effects of
this task. It influences employees' psychological change in a considerable extent.
Generally, a lower level task easily lead to employee’s despising. Chen and Chiu (2009)
point out major tasks are easy to make an employee feel its importance, or view be a
burden and feel to pressure. However, researcher found task significance to be positively
related to job satisfaction and organizational commitment (Shawnta and Earnest, 2003).
Therefore improving the consciousness of employee to the importance of the task then
he/her can contribute to a better task.
Job Autonomy
Researchers suggested that it would be an intimate relationship among autonomy,
commitment and work performance (Casey and Robbin, 2010; Morgeson and Humphrey,
2006). Why they come to this conclusion? Huang (2011) defined autonomy as the degree
to which the job provides substantial freedom, independence, and discretion to the
employee in scheduling the work and in determining the procedures to be used in
carrying it out. Therefore the job autonomy makes employee believe that this is the trust
from organization and also be a psychological encourage, he/she will innovative thinking
and develop his/her ability, thus more keen to their job then improve the organizational
commitment.
24
Job Feedback
The publicity of information to communication between employees is quite
important. Due to the information exchange, employees can timely to know the
development direction of the company and improve individual job planning. Job
feedback is the degree to which the employee receives clear information about his or her
performance (Morgeson and Humphrey, 2006). It indicates that the employee cares about
the outcome of his/her work, he/she needs to know whether his/her be a large role to
organization and what is the role, eager to get the supervisors recognition. The researcher
proposes that supervisor feedback is an important promoter of employees’ job satisfaction
(Piccolo and Colquitt, 2006), once get the supervisor's comments which are support or
criticism, he/she makes corresponding reaction such as correct deficiencies and change
weakness, or use their advantages to hard work. Consequently, job feedback is positively
related to commitment, the higher level of job feedback from supervisor could improve
the higher level of organizational commitment (Chen and Kaoa, 2011, Johlke et al.,
2000).
Therefore, a formula was developed (the motivating potential score) to calculate an
individual’s level of internal motivation as provided by the individual’s job scope.
[(Skill Variety + Task Identity + Task Significance)/3] * Job Autonomy * Job Feedback.
Job characteristics model emphasizes that the psychological interaction and work
between employee and job, the best position design give employees inner motivation.
Piccolo and Colquitt (2006) propose that if employee knows (the understanding of
outcome) himself/herself (responsibility experience) as well as succeed in its attention
(meaningful experience) task, well then he/ she will perceive inner motivation. Based on
these conditions, higher employee motivation and satisfaction bring to low absenteeism
and turnover intention (Singh, 1998).
Job Characteristic, Job satisfaction and Organizational Commitment
Job characteristic model is considered to be the core of job enrichment (Morgeson
and Humphrey, 2006). Model presumes that job can be describe according to it
similarities or differences between core dimension. The enrichment work uses the
25
implementation method to have a high level of core dimension. It brings high level of
motivation, organizational commitment and performance, leads to a low level of
absenteeism and employee turnover (Hannif and Vo, 2011). On account of the model
proposes that when employees finish their job with a good job outcome, they would think
that is the achievement from their hard work. Further, it is regarded as an internal reward
or motivation which brings more faith and interest to job (Tsaur, Yen and Yang, 2011). On
the contrary, if employees can’t succeed from their hard work, they would think that they
are not suit for the job and gradually lose the confidence and interests in the work.
Therefore, some researchers (Chen and Kaoa, 2011, Johlke et al., 2000) indicated that
motivational pattern acts on satisfaction and organizational commitment (e.g. job
challenge, autonomy, responsibility, achievement) and though this relationship, it also
affects employee turnover. Hence, research to job characteristics would bring benefits to
employees and related job outcome.
2.4 Conceptual Model and Hypotheses
According to the literature reviews on many organizational factors such as
organizational commitment, job satisfaction, job characteristic, which impact employee
turnover intention. There are some interesting points on how these factors affect to
employee turnover intention. This conceptual framework is developed based on
knowledge and literature review of related theories and previous papers. The dependent
variable is employee turnover intention, the independent variables are organizational
commitment, job satisfaction and job characteristic. This study takes the following
framework as the center to discuss and proposed as following hypotheses.
Employees' cognition of job characteristics would affect their performance as well as
inspire them (Morgeson and Humphrey, 2006). On account of the model proposes that
when employees finish their job with a good job outcome, they would think that is the
achievement from their hard work. Further, it is regarded as an internal reward or
motivation which brings more faith and interest to job (Tsaur, Yen and Yang, 2011).
Therefore, Chen and Kaoa (2011) indicate that motivational pattern acts on satisfaction
(e.g. job challenge, autonomy, responsibility, achievement). It should be positive
26
relationship between job characteristics and job outcomes, such as job satisfaction and
turnover intention (Huang, 2011; Torraco, 2005). According to above previous research
the hypothesis in this study is proposed as following:
H1: Job characteristic has a positive effect on job satisfaction.
The enrichment work uses the implementation method which has a high level of core
dimension. It brings high levels of motivation, organizational commitment and
performance and leads to a low levels of absenteeism and employee turnover (Hannif and
Vo, 2011). Some research indicated that job characteristic does not only influence the
employees’ feelings but also their behavioral outcomes (Chen and Chiu, 2011).
Therefore, researchers point out that motivational pattern acts on organizational
commitment (Johlke et al., 2000). Huang (2011) analyzes the effect on the employee
productivity, job motivation, job satisfaction and organizational commitment, and he
found that there is positive relationship between these factors. Similarly, Torraco (2005)
indicates that job characteristics positively related to organizational commitment and
employee turnover intention. Each job characteristics has a positive relationship with
organizational commitment (Elanain, 2009). Thus, the hypothesis in this study is
proposed as following:
H2: Job characteristic has a positive effect on organizational commitment.
A larger number of studies proposed that there is a positive relationship between
commitment and job satisfaction (Yousef, 2000). Many studies discussed about the
relationship among job satisfaction, organizational commitment and turnover intention
(Joo and Park, 2010). Job satisfaction is employee’s emotional reaction to the job, but
commitment is emotion to organization. Therefore, commitment could be promoted by a
mediator like job satisfaction (Feinstein and Vondrasek, 2001). Hence, job satisfaction is
viewed as a mediator to improve the productivity, enhance employee creativity and
commitment (Boran, 2011). There are many similar reason, Safi, Jamal and Ahmad
(2011) propose that job satisfaction is a source of organizational commitment, the goal
achievement of employee brings to high morale in the workplace. Similarly, Lai Wan
(2007) and Santoshi (2011) indicate that it is important to motivate employee to work
hard because it will positively influence organizational commitment to a certain extent.
27
According to literature, the hypothesis in this study is proposed as following:
H3: Job satisfaction has a positive effect on organizational commitment.
Several studies indicate that job satisfaction is one of the most important factors
influencing employee turnover intention (McKnight et al., 2009; Rutner et al., 2008;
Korunka et al., 2008; Joseph et al., 2007). Similarly, another four meta-analyses
concluded a significant relationship between job satisfaction and employee turnover
intentions (Fethi et al., 2011; Zhao et al., 2007). Further, job satisfaction was shown to
reduce employee turnover intention (Alexandrov et al., 2007). Thus the study of job
satisfaction is bound to ameliorating of employee turnover intention and it is proved to a
negative relationship (Alexandrov et al., 2007). Schnake and Dumler (2000) aslo point
out that job satisfaction negatively related to employee turnover intention. Therefore, job
satisfaction is shown to reduce employee turnover intentions by the mediating construct
organizational commitment (Jones et al., 2007; Wickramasinghe, 2010). Thus, according
to literature, the hypothesis in this study is proposed as following:
H4: Job satisfaction has a negative effect on employee turnover intention.
The commitment is potentially more beneficial to the company because it reduces the
costs of leaving (Suliman and Lles, 2000). Black et al. (1992) showed that organizational
commitment is positively related to intent to stay. Thus, organizational commitment is
viewed as the strongest predictor of employee turnover intention (Ahuja et al., 2007). Joo
and Park (2010) indicate that organizational commitment is negatively related to
employee turnover intention. Similarly, a larger number of researchers show a nagetive
relationship between employee’s turnover intentions and organizational commitment (Joo
and Park, 2010; Breukelen et al., 2004). Thus, according to literature, the hypothesis in
this study is proposed as following:
H5: Organizational commitment has a negative effect on employee turnover intention.
28
Figure 2.1 Conceptual Model
Developed from: Randy and Anne (2003), Hossam (2009), Vathsala (2010), Baek-Kyoo
and Sunyoung (2010), Fethi, Gumussoy, Ibrahim (2011), Alexander and
Abdullah (2012)
H1
H2
H3
H
H5
(+)
(-)
(-)
(+)
(+)
Employee
Turnover
Intention
Job Satisfaction
Job
Characteristic
Task Identity
Task Significance
Job Autonomy
Job Feedback
Skill Variety
Pay Satisfaction Supervisory Satisfaction Co-worker Satisfaction Promotion Satisfaction
Organizational
Commitment
Affective Commitment Continuance Commitment Normative Commitment
CHAPTER 3
RESEARCH MOTHODOLOGY
This chapter presents the methodology approach of collecting and analyzing data
of this study. The topics are as following:
3.1 Research Design
3.2 Population and Sample
3.3 Variables of the Research
3.4 Research Instrumentation
3.5 Pretest of the Research
3.5.1 Validity Test
3.5.2 Reliability Test
3.6 Data Collection
3.7 Data Analysis
30
3.1 Research Design
This study investigates the factors (job characteristic, job satisfaction,
organizational commitment) influencing employee turnover intention. Hence, this
study used quantitative research methodology for exploring factors and developing a
model of the employee turnover intention. The survey research was through
distributed questionnaire to employee of retail industry in Bangkok to collect data.
After that, use the Structure Equation Model (SEM) to examine the postulated
hypothesis (research questions). The data collected was compare with five-point
Likert-type scale.
3.2 Population and Sample
The main purpose of this thesis is to study the employee turnover intention. The
target population in this study was focus on employee of department stores which was
the fast development and provides a large number of jobs in retail industry of
Bangkok, Thailand. It included Central, Robinson, Zen and The Mall in Bangkok.
Therefore, the target sample had drawn from these employees.
The population could not be clearly identified, for the size of sample group in this
study were computed by the sample size formula of Cochran (1977). The accepted
standard is significant at confidence level at 95% or significance at 0.05. Hence, the
size of the sample group is calculated as following:
n = Z2
/ 4e2
n = size of the sample group
Z = confidence level at 95% (𝛼= 0.05)
e = probability of error at 5%
n = 1.9622 / 4 * 0.05
2
n = 384.16
31
From the calculation, the result of the sample size is 384.16, basing on the
confidence level at 95%. Therefore, the size of sample group set in 384 samples that’s
extraction from the population.
3.3 Variables of the Research
Based on the literature and research journals, the following variables are used for
this study:
Independent Variables
The independent variables are the factors that can be varied or manipulated in an
experiment. The independent variables are variables that will have hypothesized to
influence the dependent variable. The independent variables in this study is job
characteristic, included five dimensions are skill variety, task identity, task
significance, job autonomy, job feedback.
Dependent Variables
The dependent variable is the variable that is simply measured by the researcher.
It is the variable that reflects the influence of the independent variable. In this study,
dependent variables included employee turnover intention, job satisfaction,
organizational commitment. Job satisfaction included pay satisfaction, supervisor
satisfaction, co-worker satisfaction and promotion satisfaction. Organizational
commitment included affective commitment, continuance commitment and normative
commitment.
3.4 Research Instrumentation
The questionnaire is designed based on literature review of the study. All of the
questions adapt from related research. Questionnaire has a simple and convenient
design style with closed questions. The questions extracted from the related literature
and they are in accordance with this research, after testing modified them into formal
32
questionnaire. The questionnaire of this study can be divided by 5 parts with 56
questions.
Part 1: Personal Information
There are 7 questions about the personal information from respondents in this
part, included 2 types scale: the nominal scale which is gender; the ordinal scale
which are age, education level, marital status, monthly income, job categories, work
years.
Part 2: Job Characteristic
Job characteristics model related to three underlying psychological states: work
meaningfulness, knowledge of results, and sense of responsibility. They identify five
cores of job characteristics to be the dimensions namely: skill variety, task identity,
task significance, autonomy, and feedback. They are measured by 18 items adapted
from Morris and Venkatesh (2010).
Part 3: Job Satisfaction
Job satisfaction is simply how people feel about their jobs and the different
aspects as well. In this study, it is needed to use four dimensions to measure it which
included pay satisfaction, supervisor satisfaction, co-worker satisfaction, promotion
satisfaction. These dimensions are measured by 16 questions adapted from Artz
(2010) and Chen et al., (2012).
Part 4: Organizational Commitment
Organizational commitment is as a psychological attachment of an employee to an
organization, It makes employee more loyal to organization, take the organization
goal as their goal to struggle, they are more willing to sacrifice their own emotion for
the organization and have a stronger desire to exert effort for the organization. It can
be measured by affective commitment, normative commitment and continuance
commitment. In this part will these three dimensions measure by 11 questions adapted
from Albrecht and Andreetta (2011), Gunlu et al.,(2010).
33
Part 5: Employee Turnover Intention
It refers to a conscious and deliberate willfulness to leave the organization. The
questions in this part euphemistic inquiries the turnover intention of respondent, every
answer has impact or relationship. There are 4 questions adapted from Joo and Park
(2010), Lee and Liu (2007).
3.5 Pretest of Research
3.5.1 Validity Test
The purposes of validity test are to determine the validity and accuracy of the
questionnaire. In order to achieve more accurate item-objective congruence has been
used to measure the validity of the questionnaires in this study. It was handed to three
lecturers who helped making comments, giving scores, reviewing and making
correction out of IOC test. It was given scores and made correction by three lecturers
in the same field. If the score over than 0.75, it means that the item are valid. If the
score equal or less than 0.75 means that the items objective is congruence or invalid
(Rovinelli and Hambleton, 1997). Hair et al (2006) defined the formula IOC=∑R / n
would be used in this study, R=every time to giving score, n=total giving score times.
In table 3.1, the items in first group of job characteristics had score from 0.833 to
1, the items in second group of job satisfaction had score from 0.916 to 1, the items
in third group of organizational commitment had score from 0.833 to 1, the last group
of employee turnover intention had score from 0.833 to 1, every score of IOC is
more than 0.75, it means all items of this questionnaire are valid.
34
Table 3.1 Item-Objective Congruence result
Item Variable IOC results
1 Job characteristic
Skill variety .833
Task identity .833
Task significance .889
Job autonomy 1
Job feedback 1
2 Job satisfaction
Item Variable IOC results
Pay satisfaction 1
Supervisor satisfaction 1
Co-worker satisfaction .916
Promotion satisfaction 1
3 Organizational commitment
Affective commitment 1
Continuance commitment .916
Normative commitment .833
4 Employee turnover intention 1
3.5.2 Reliability Test
The purposes of reliability test are to ensure the quality of the questionnaire, and
guarantee a scale produces consistent results. In order to achieve more accurate, stable
test results, Cronbach’s Alpha coefficient was used to measure the reliability of the
questionnaires. Cronbach’s Alpha coefficient is the most popular form of internal
consistency reliability coefficient. It can test for the degree of correlation between
each item and establishes the internal reliability of the questionnaire responses (Fink
and Jaruwacgirathanakul, 2005). Therefore, the reliability and stability of
questionnaire were determined from the score of each measurement (Hair et al.,
2006). When the reliability value above 0.7, the item is usually viewed as the ideal
item and could be used in data collection. The following table is the comparison of
reliability value before formal collection questionnaire and after the actual collection
35
questionnaire.
From the table 3.5.2 Reliability test, the reliability value of each variable was
shown by Cronbach’s Alpha score. The Cronbach’s Alipha score of 30 copies pretest
from 0.706 to 0.927, it means the questionnaire was excellent and could be used to
make a formal questionnaire. While the Cronbach’s Alipha score of actual
questionnaire collection from 0.734 to 0.886. It means the questionnaire have
reliability, confirmed the role of reliability test.
Both these two tests are passed. It means the data collected is valid and reliable
enough to be used for analysis in chapter 4.
Table 3.2 Reliability test using Cronbach’s alpha
Variable Cronbach's Alpha
pretest
Cronbach's Alpha
actual
Job characteristic
Skill variety .778 .753
Task identity .821 .783
Task significance .706 .734
Job autonomy .738 .784
Job feedback .832 .792
Job satisfaction
Pay satisfaction .779 .872
Supervisor satisfaction .891 .886
Co-worker satisfaction .896 .860
Promotion satisfaction .927 .867
Organizational commitment
Affective commitment .893 .835
Continuance commitment .911 .857
Normative commitment .802 .821
Employee turnover intention .826 .879
36
3.6 Data Collection
The questionnaire was translated into Thai and English language in order to
facilitate the respondent. The data was collected during time December 2012 to
February 2013. A total number of 420 copies of questionnaires were distributed to the
employees who work in retail industry. The chosen places were hold at the department
store Central Plaza Rama 2 branch, Silom branch and Lat Phrao branch, Robinson
Rama 9 branch, Bang Na branch and Rangsit branch, Zen, and The Mall
Ngamwongwan branch and Thapra branch in Bangkok.
For the channel of data collection is directly questionnaire to respondents. The
questionnaires were distributed to respondents who work in Robinson Rama 9 branch,
Bang Na branch and Rangsit branch, Central Plaza Rama 2 branch, Silom branch and
Lat Phrao branch, Zen, The Mall Ngamwongwan branch and Thapra branch. Before
answer, respondents were told that the detail of survey purpose and answer method,
and collect it after respondents filled. The researcher distributed 420 copies of
questionnaire and collected back 391 copies. Among 391 copies there are 384 copies
are qualified to be analyzed.
3.7 Data Analysis
In this study two statistics tool were used to analyze the collected data. The
statistical program was used to analyse part 1 demographic characteristic and to
obtain the result by number, percentage. For part 2 to part 5 computed mean and S.D.
then compare with follow scale range to determine the agreement level of
respondents.
Interpretation of the five-point Likert-type scale. The interval scale is a scale of
measurement of data according to which the differences between values can be
quantified in absolute but not relative terms which any zero is merely arbitrary. The
values of variables at an interval scale are normally quantified numerically. The
interval value between each level is 0.8, and the interval for breaking the range in
37
measuring each variable in calculated as follow:
(5-1)/5= 0.8
4.21 – 5.00 are considered as strongly agree
3.41 – 4.20 are considered as agree
2.61 – 3.40 are considered as neutral
1.81 – 2.60 are considered as disagree
1.00 – 1.80 are considered as strongly disagree
The next step is to determine the correlation between the variables and determine
its strength. The correlation analysis result shows that the variables related each other.
Thus, in order to confirm the components of each variable are consistent and fit
together, the factor analysis was implemented.
The third step is to test the CFA (confirm factor analysis), it means the
components of each variable cannot be extracted more than one factor. Also, the
loading of each component in each variable must high enough to describe the variable
as show in table
The fourth step is to test the research model by use Structure Equation Model
(SEM). Structure Equation Model is a statistical technique for testing and estimating
causal relations using a combination of statistical data and qualitative causal
assumptions. SEM can be used inductively by specifying a corresponding model and
using data to estimate the values of free parameters. Among the strengths of SEM is
the ability to construct latent variables: variables which are not measured directly, but
are estimated in the model from several measured variables. This allows the modeler
to explicitly capture the unreliability of measurement in the model, which in theory
allows the structural relations between latent variables to be accurately estimated.
Thus, this study used SEM and LISREL, SEM is used to determine the relationship
between each latent variable, and the LISREL computer program (Joreskog and
38
Sorbom, 1993) used to determine the goodness of fit of model and test the causal
relationship in the model. Goodness of fit evaluated by means of three standard
indices: goodness-of-fit (GFI), adjusted goodness-of-fit (AGFI) and root mean square
error of approximation (RMSEA). It determines the weight of dimensions for each
variables, and shows in the parameters of statistic table. The total and indirect effects
are shown in the output of LISREL program. The direct effect can be computed by
total effect minus indirect effect. Finally the five hypothesises are determined.
CHAPTER 4
DATA ANALYSIS AND RESULTS
The results of data analysis and hypothesis testing are presented in this chapter.
This study uses the descriptive tool to expound the demographic characteristics, uses
the statistics tool for correlation analysis, factor analysis and hypothesis testing.
Therefore, the three major sections are presented as the following:
4.1 Demographic Characteristic
4.2 Analysis of the Level of Agreement
4.3 Data Analysis and Findings
4.3.1 Correlation Analysis
4.3.2 Factor Analysis
4.3.3 Structural Equation Model (SEM)
4.3.4 Hypothesis Testing
40
4.1 Demographic Characteristic
In this survey, there are 384 questionnaires from respondents found to be usable
for this study. The demographic characteristics were analyzed by descriptive statistics
by computing the number of respondents and percentage of each group. From Table
4.1, there are 7 main items were considered in the statistic, which are gender, age,
education level, marital status, income and job categories. Numbers of respondents in
each category are shown in Table 4.1
According to the result, the gender category includes male and female. There are
233 respondents are female by the percentage of 60.68% in the survey. In contrast, the
male respondents only 151 by 30% of total number of respondents, it is quit lower
than percentage of females.
In the age groups, the most respondents are in the range 20 to 26 years old being
39.32%, while the rage of 27 to 32 years old with a little bit of gap in the second. The
rage of 33 to 39 years old respectively is 70 respondents being 18.23%, and older than
40 years is 17 respondents being 4.43%.
Besides that, the most of respondents who are high school education level
participated by 39.84%, following by 23.44% vocation diploma degree, 36.72% of
bachelor degree. The number of participation is 153, 90 and 141 respondents in
sequence. No respondents are higher than bachelor degree holders.
For the marital status, there are 287 respondents in the survey are single being
74.74%, the second is married respondents, include 89 persons with percentage of
23.18%. Divorced respondents are 6 persons at the percentage1.56%. The last is
others marital status by 0.50%.
The next category is monthly income of respondents, most of respondents who
have monthly income in 9,000 – 15,000 Thai baht participated by 52.34%, total 201
respondents. There are 109 respondents in level of 15,001 – 20,000 Thai baht by
28.39%. The monthly income in 20,001 – 25,000 Thai baht level is 39 respondents by
10.16%, over than 25,000 Thai baht is 35 respondents by percentage 9.11%.
Another personal information which related with the survey result is job
categories. There are 185 sales in terms of job category, it is the most part of total
number of respondents by 48.18 %. Tally clerk are 97 respondents by 25.26%.
Cashiers are 69 respondents by 17.97%, the other job categories 33 respondents by
41
8.59%.
Table 4.1 Respondent Characteristics
Characteristics Frequency
(n=384) Percentage
Gender Male 151 39.32%
Female 233 60.68%
Age
20 – 26 years 151 39.32%
27 – 32 years 146 38.02%
33 – 39 years 70 18.23%
40 years up 17 4.43%
Education level
High school 153 39.84%
Vocation diploma 90 23.44%
Bachelor degree 141 36.72%
Marital status
Single 287 74.74%
Married 89 23.18%
Divorced 6 1.56%
Others 2 0.52%
Monthly income
9,000 – 15,000 Baht 201 52.34%
15,001 - 20,000 Baht 109 28.39%
20,001 – 25,000 Baht 39 10.16%
25,000 Above 35 9.11%
Job category
Sales 185 48.18 %
Tally clerk 97 25.26%
Cashier 69 17.97%
others 33 8.59%
Work years
Below 1 year 123 30.03%
1-3 years 107 27.87%
3-5 years 103 26.82%
5 years up 51 13.28%
For the terms of work year, there are 32.03% of respondents who are working in
the first year, 27.87% of respondents are working in 1-3 years, 26.82% of respondents
are working in 3-5 years while 13.28% of respondents are working over than 5 years.
42
4.2 Analysis of the Level of Agreement
The purpose of this part is to determine the cognition of respondents on job
characteristic, job satisfaction, organizational commitment and employee turnover
intention. The method is analysis agreement level of respondents on the same factor
by Mean value and Std. Deviation. All items were rated on a five Likert scale with a
score of 5 indicating strong agreement and a score of 1 indicating strong
disagreement. All items are shown in Table 4.2.
Table 4.2 Level of Agreement of Respondents
Items Mean Std.Deviation Level of
Agreement
Skill variety 4.08 0.60 Agree
Task identity 3.99 0.63 Agree
Task significance 4.09 0.64 Agree
Job autonomy 3.90 0.71 Agree
Job feedback 4.01 0.64 Agree
Pay satisfaction 3.50 0.86 Agree
Supervisor satisfaction 3.73 0.81 Agree
Co-Worker satisfaction 4.04 0.68 Agree
Promotion satisfaction 3.77 0.74 Agree
Affective commitment 3.79 0.71 Agree
Continuance commitment 3.50 0.83 Agree
Normative commitment 3.61 0.78 Agree
Employee turnover Intention 2.85 0.99 Neutral
The first variable job characteristic includes 5 dimensions, they are skill variety
which has Mean value 4.08 and S.D. value 0.6, in the level of agree; Task identity
which has Mean value 3.99 and S.D. value 0.63, in the level of agree; Task
significance which has Mean value 4.09 and S.D. value 0.64, in the level of agree; Job
autonomy which has Mean value 3.90 and S.D. value 0.71, in the level of agree; Job
feedback which has Mean value 4.01 and S.D. value 0.64, in the level of agree.
Therefore, the result indicates that the respondents totally feeling agreement in job
43
characteristic.
Job satisfaction includes 4 dimensions, pay satisfaction which has mean value
3.50 and S.D. value 0.86; Supervisor satisfaction which has mean value 3.73 and S.D.
value 0.81; co-worker satisfaction which has mean value 4.04 and S.D. value 0.68;
Promotion satisfaction which has mean value 3.77 and S.D. value0.74. The table also
reports the summary statistics of means (3.76), standard deviation (0.77) and level of
agreement (agree) of job satisfaction. Therefore, the result indicates that the
respondents totally feeling agreement in job satisfaction.
The third variable organizational commitment measuring by 3 dimensions, the
mean value (3.63), S.D. value (0.77) and level of agreement come from measurement
affective commitment which has mean value 3.79 and S.D. value 0.71; Measurement
continuance commitment which has mean value 3.50 and S.D. value 0.83; Normative
commitment which with mean value 3.61and S.D. value 0.78. Therefore, the result
indicates that the respondents totally feeling agreement in organizational commitment.
Finally, employee turnover intention measures by 4 items, the mean value of
turnover intention turns out to be 2.85 and S.D. value turns out to be 0.99. The results
indicate that respondents have the neutral level of agreement of each item effect to
their turnover intention. From the point of view of the respondent to describe, they
totally feel neutral on turnover intention.
4.3 Data Analysis and Findings
In this study, data analysis included four kinds of statistical analysis, these are
correlation analysis, factor analysis, path analysis and hypothesis testing. In order to
facilitate the statistics, the abbreviation of nouns will be used to replace nouns in the
table later. Among them, JC refers to job characteristic, JS refers to job satisfaction,
OC refers to organizational commitment, ETI refers to employee turnover intention.
These variables measure by several dimensions, each dimension including 3 or 4
items. AVG is average of each dimension. Abbreviations used for analysis performed
as the following data in the Table 4.3.
44
Table 4.3 Definition of Variables
Latent Variables Observed Variables
JC Job Characteristic
AVGSV SV1- SV4
AVGTI TI1 – TI4
AVGTS TS1 – TS3
AVGJA JA1 - JA3
AVGJF JF1 - JF4
JS Job Satisfaction
AVGPS PS1- PS4
AVGSS SS1 – SS4
AVGCS CS1 - CS4
AVGPROM PROM1 – PROM4
OC Organizational
Commitment
AVGAC AC1 – AC4
AVGCC CC1 – CC4
AVGNC NC1 – NC3
ETI
Employee Turnover
Intention
AVGET
ET1
ET2
ET3
ET4
4.3.1 Correlation Analysis
Correlation is a statistical tool to determine the strength of relationship between
two suitability variables. Therefore, correlation matrix is an interpretation of the
correlations is based on a significant of the correlation between two or more variables.
The ranges of r value from -1 to +1, which used to describe a direction
relationship between two variables. Among them, minus means the relationship
between two variables is negative, and if the greater the absolute value of correlation
coefficient, the stronger the relationship. It shows that if one variable becomes bigger
and another variable will become to smaller. For plus sign means a positive
relationship between two variables, a variable tends to directly become bigger with
another variable, or smaller and smaller with this variable (direct relation). When
correlation coefficient equal to 0, it means the weakest relationship between two
variables.
The correlation matrix table is a comparison of needs, requirements, or functions
whereby the user identifies a relationship of either mutual benefit, conflict, or no
45
relationship. If the pearson relationship value of each pair variable is significant at
0.05 (*) or 0.01 (**), these variable have (positive or negative) relationship
significantly. Also, it can explain that these variables can be used to analyze in factor
analysis and SEM. Usually, if the relationship is not significant, that variables should
be reviewed again. Table 4.4 shows relationship among independent variable (job
characteristic), mediate variables (job satisfaction, organizational commitment), and
dependent variable (employee turnover intention).
Table 4.4 Correlation Matrix
Correlation Matrix between
Latent Variables JC JS OC ETI
JC 1.00
JS 0.58 1.00
OC 0.48 0.67 1.00
ETI -0.55 -0.38 -0.33 1.00
Note: Correlation is significant at the 0.01(**) level.
Based on the correlation matrix in Table 4.4, job characteristic (JC) has significant
correlation at 0.01 levels. It has positive correlation with job satisfaction (JS) by r
value 0.58 (p=0.01), organizational commitment (OC) by r value 0.48 (p=0.01). JC
has negative correlation with employee turnover intention (ETI) by r value -0.55
(p=0.01).
The job satisfaction (JS) has significant correlation at 0.01 levels. It has positive
correlation with organizational commitment (OC) by r value 0.67 (p=0.01). Job
satisfaction has negative correlation with employee turnover intention (ETI) by r
value -0.38 (p=0.01).
Organizational commitment (OC) has significant correlation at 0.01 levels. It has
negative correlation with employee turnover intention (ETI) by r value -0.33 (p=0.01).
4.3.2 Factor Analysis
In this part, the factor analysis used 3 kinds of tables. Table extraction of
communalities, Table total variance explained and table rotated component matrix.
46
The purpose of this part is to examine the degree of integration between each item.
Extraction of communalities shows in table 4.5.
Table 4.5 Extraction of Communalities
Variables Components Initial Extraction
Job Characteristic
AVGSV 1 0.665
AVGTI 1 0.606
AVGTS 1 0.685
AVGJA 1 0.510
AVGJF 1 0.690
Job Satisfaction
AVGPS 1 0.546
AVGSS 1 0.560
AVGCS 1 0.468
AVGPROM 1 0.631
Organizational Commitment
AVGAC 1 0.697
AVGCC 1 0.638
AVGNC 1 0.628
Employee Turnover Intention AVGET 1 0.453
The first, researcher tested the independent variable. In this study independent
variable is job characteristic which consisting five components: skill variety, task
identity, task significance, job autonomy and job feedback. The value ranges of these
five components are 0.510 to 0.690. According to literature of Hair et al., (1988), the
item does not fit well with other items in its components while the communities’
value less than 0.30. In other words, if it is more than 0.3 that means the items fit well
together, and extraction value the higher the better. Hence, the first variable is
permissible.
For mediator variables includes job satisfaction and organizational commitment.
Job satisfaction consists of four components: pay satisfaction, supervisor satisfaction,
co-worker satisfaction and promotion satisfaction. They have values from 0.468 to
0.631. Organizational commitment consists of 3 components: affective commitment,
continuance commitment and normative commitment. The value ranges from 0.628 to
0.697. Therefore, these two mediator variables are permissible.
47
For dependent variable in this study is employee turnover intention. It consists of
4 items, and the value is 0.453. Therefore, all the components in table extraction of
communalities are qualified.
Table 4.6 Total Variance Explained
Variable
Initial Eigenvalues Rotation Sums of Squared
Loadings
Total % of
variance Cumulative % total
% of
variance cumulative%
JC 2.676 53.513 53.513 2.676 53.513 53.513
JS 2.180 54.492 54.492 2.180 54.492 54.492
OC 1.828 60.946 60.946 1.828 60.946 60.946
Table 4.6 explains total variance of each variable which constitute by initial
eigenvalues and rotation sums of squared loadings. It describes the statistic for each
factor before and after the components was extracted. The first variable job
characteristic (JC) constitute by five components: skill variety (SV), task identity (TI),
task significance (TS), job autonomy (JA) and job feedback (JF). After rotation the
components combined into one group of job characteristic by total are 2.676,
percentage of variance and cumulative of job characteristic is 53.513%.
Job satisfaction (JS) constitute by 4 components, pay satisfaction (PS), supervisor
satisfaction (SS), co-worker satisfaction (CS), promotion satisfaction (PS). After
rotation the components combined into one group of job satisfaction by total are 2.180,
percentage of variance and cumulative of job characteristic is 54.492%.
Organizational commitment (OC) constituted by 3 components, affective
commitment (AC), continuance commitment (CC) and normative commitment (NC).
After rotation the components combined into one group of job satisfaction by total are
1.828, percentage of variance and cumulative of job characteristic is 60.946%.
The purpose of table 4.7 is to rotate factor loadings move meaningful and evenly,
the items of same group will be clear distinguish out from the other groups.
Researcher can give name new contribution to the components after grouping. Detail
information is show in the table 4.7.
48
Table 4.7 Summarized Result of Rotated Analysis
NO. Variables Component Factor loading
Factor 1 Factor 2 Factor 3
1 Job Characteristic
AVGSV 0.680
AVGTI 0.683
AVGTS 0.592
AVGJA 0.719
AVGJF 0.627
2 Job Satisfaction
AVGPS
0.780
AVGSS
0.782
AVGCS
0.786
AVGPROM
0.744
3 Organizational
Commitment
AVGAC
0.704
AVGCC 0.761
AVGNC
0.756
Tabachnich and Fidell (2001) cite 0.32 as a good rule of thumb for the minimum
loading of an item, 0.5 or more strongly loading items (0.5 or better) are desirable and
indicate a solid factor. All components are divided into 3 groups, the first group which
compose AVGESV, AVGTI, AVGTS, AVGJA and AVGJF are rotated significantly in
one component one is namely job characteristic (JC) factor. The factor loading obtain
are 0.680, 0.683, 0.592, 0.719 and 0.627 respectively.
The second group is job satisfaction (JS), constitute by AVGPS with factor
loading 0.780, AVGSS with factor loading 0.782, AVGCS with factor loading 0.786,
and AVGPROM with factor loading 0.744.
Thirdly, AVGAC, AVGCC and AVGNC are rotated significantly in variable three
and are grouped in organizational commitment (OC). The factor loading for each
component is: AVGAC equal to 0.704, AVGCC equal to 0.761 and AVGNC equal to
0.756.
4.3.3 Structural Equation Model (SEM)
In order to improve the accuracy of exploratory factor analysis and reduce the
measurement error, in this research structural equation modelling would be adopted.
The method aims to confirm and determine whether the proposed measurement model
49
fitted data by using confirmatory factor analysis (Hair et al., 1998). In this part
includes three tables. The first table goodness of fit consists of three kinds of data,
absolute fit measure, comparative fit measure, parsimonious fit measure.
Chi-Square = 30.16, df = 20, P-value = 0.06375, RMSEA = 0.035
Figure 4.1 Structural Equation Model
Table 4.8 goodness of fit statistics, absolute fit measure includes Normal Theory
Weighted Least Squares Chi-Square which is 30.16 (p = 0.067) in the standard p must
much than 0.05. Root Mean Square Residual (RMR) in this study was 0.011, if RMR
approach to zero means the model perfect fit with the conceptual framework. For root
Mean Square Error of Approximation (RMSEA) in this study is 0.035, accord with
the standard of less than 0.05. However, if RMSEA value more close to zero, the
result more matching with the framework. Minimum Fit Function Chi-Square (x²) in
this study was 30.89 (p = 0.057), degrees of Freedom was 20, the result through the
calculation (chi-square divided by df) was 1.545, it indicative of good fit.
For Comparative fit measure used Goodness of Fit Index (GFI) and Comparative
Fit Index (CFI) to assess whether the model under consideration is better than
competing models. The more close to 1 the more fit. In this study goodness of fit
0.63 0.43 0.57 0.59
0.60 0.42
0.47
0.51
0.46
0.50
-0.27
0.63
0.25
0.66 0.58
-0.22
Pay Satisfaction Supervisory Satisfaction Co-worker Satisfaction Promotion Satisfaction
Employee
Turnover
Intention
Job
Satisfaction
Organizational
Commitment
Job
Characteristic
Task Identity
Task Significance
Job Autonomy
Job Feedback
Skill Variety
Affective Commitment Continuance Commitment Normative Commitment
Employee
Turnover Intention
0.58
1.00
50
index is 0.99, almost approach to 1. Comparative fit index value was 1 and it achieved
the highest standard.
Table 4.8 Goodness of Fit Statistic
Absolute fit measure Criteria Value
Minimum Fit Function Chi-Square (x²) p > 0.05, 30.89 (p = 0.057)
Degrees of Freedom(df=20) x²/df < 2 30.89/20 = 1.545
Normal Theory Weighted Least Squares
Chi-Square p > 0.05, 30.16 (p = 0.067)
Root Mean Square Residual (RMR) Values < 0.021 0.011
Root Mean Square Error of
Approximation (RMSEA) Values < 0.05 0.035
Comparative fit measure Criteria Value
Goodness of Fit Index (GFI) Values > 0.95 0.99
Comparative Fit Index (CFI) Values > 0.90 1.00
Parsimonious fit measure Criteria Value
Adjusted Goodness of Fit Index (AGFI) Values > 0.95 0.96
Lastly, parsimonious fit measure in this study is Adjusted Goodness of Fit Index
(AGFI) which has standard much than 0.95. The adjusted goodness of fit index in this
study was 0.96 and within the scope of the standard.
The Parameters of statistic is showed in Table 4.9 which consisted by LAMBDA-
X, LAMBDA-Y, GAMMA and BETA total four components. Among them,
LAMBDA-X in this study is latent variable job characteristic, it shows the weight of
how the x side and namely. The observed variables that can measure latent variable
includes skill variety, task identity, task significance, job autonomy and job feedback
five dimensions.
The skill variety (AVGSV) has weight of 0.42 (Std=0.42, SE=0.11, t=5.17) of the
measurement on job characteristic. It indicates that the level of positive side of skill
variety could present 70% of positive level of job characteristic. The task identity
(AVGTI) has weight 0.47 (Std=0.47, SE=0.05, t=4.26) of the measurement on job
characteristic which shows the level of positive side of task identity could present
47% of positive level of job characteristic. The task significance (AVGTS) has weight
51
0.51 (Std=0.51, SE=0.14, t=4.12) of the measurement on job characteristic, which
shows the level of positive side of task identity could present 51% of positive level of
job characteristic. The job autonomy (AVGJA) has weight 0.46 (Std=0.46, SE=0.06,
t=4.14) of the measurement on job characteristic, which shows the level of positive
side of task identity could present 47% of positive level of job characteristic. The job
feedback (AVGJF) has weight 0.50 (Std=0.47, SE=0.03, t=17.18) of the measurement
on job characteristic which shows the level of positive side of task identity could
present 47% of positive level of job characteristic.
LAMBDA-Y in this study includes job satisfaction, organizational commitment
and employee turnover intention. Job satisfaction consists by 4 observe variable: pay
satisfaction (AVGPS) has weight of 0.59 of the measurement on job satisfaction. It
indicates that the level of positive side of pay satisfaction could present 59% of
positive level of job satisfaction. Supervisor satisfaction (AVGSS) has weight of 0.57
(Std=0.57, SE=0.05, t=11.43) of the measurement on job satisfaction. It indicates that
the level of positive side of supervisor satisfaction could present 59% of positive level
of job satisfaction. Co-worker satisfaction (AVGCS) has weight of 0.43 (Std=0.43,
SE=0.06, t=7.68) of the measurement on job satisfaction. It indicates that the level of
positive side of supervisor satisfaction could present 43% of positive level of job
satisfaction. The last dimension promotion satisfaction (AVGPROM) has weight of
0.63 (Std=0.63, SE=0.06, t=10.45) of the measurement on job satisfaction. It indicates
that the level of positive side of promotion satisfaction could present 63% of positive
level of job satisfaction.
For LAMBDA-Y organizational commitment includes 3 components, the
affective commitment (AVGAC) has weight 0.66, which indicates that the level of
positive side of affective commitment could present 66% of positive level of
organizational commitment. The continuance commitment (AVGCC) has weight 0.58
(Std=0.58, SE=0.05, t=11.79), which shows the level of positive side of continuance
commitment could present 58% of positive level of organizational commitment. The
normative commitment (AVGNC) has weight 0.58 (Std=0.58, SE=0.05, t=11.66),
which indicates that the level of positive side of normative commitment could present
58% of positive level of organizational commitment.
For BETA means the level of weight that the endogenous variable could measure
the endogenous variables. In this study, endogenous variables are the dependent
52
variables include job satisfaction, organizational commitment and employee turnover
intention. The BETA was among these 3 variables. The job satisfaction (JS) has
weight of 0.36 (st=0.63, SE= 0.12, t= 5.07) of measurement on organizational
commitment, which pointed out that job satisfaction could present the 63% of positive
level of organization. Job satisfaction (JS) has weight of -0.27 (Std=-0.27, SE= 0.11
t= -2.38) of measurement on employee turnover intention, which pointed out that job
satisfaction could present the -27% of negative level of employee turnover intention.
The organizational commitment (OC) has weight of -0.22 (Std=-0.22, SE= 0.10 t= -
2.08) of measurement on employee turnover intention, which pointed out that the
level of negative side of organizational commitment could present the -22% of
negative level of employee turnover intention.
Table 4.9 Parameters of Statistic
Variables Factor Loading
Std. Solution SE t
Measurement Model
LAMBDA-X
JC
AVGSV
AVGTI
AVGTS
AVGJA
AVGJF
0.42
0.47
0.51
0.46
0.50
0.42
0.47
0.51
0.46
0.50
0.11
0.07
0.14
0.06
0.03
5.17
4.26
4.21
4.14
17.78
LAMBDA-Y
JS
AVGPS
AVGSS
AVGCS
AVGPROM
0.59
0.57
0.43
0.63
0.59
0.57
0.43
0.63
---
0.05
0.06
0.06
---
11.43
7.68
10.45
OC
AVGAC
AVGCC
AVGNC
0.66
0.58
0.58
0.66
0.58
0.58
---
0.05
0.05
---
11.79
11.66
ETI
ET
1.00
1.00
---
---
BETA
JS OC 0.63 0.63 0.12 5.07
JS ETI -0.27 -0.27 0.11 -2.38
OCETI -0.22 0.22 0.10 -2.08
GAMMA
JCJS 0.60 0.60 0.07 8.92
JCOC 0.25 0.25 0.08 3.20
b
53
For GAMMA parameters means the weight of latent variable could present
exogenous variable. Job characteristic (JC) has weight of 0.60 (Std=0.63, SE= 0.07,
t= 8.92) of measurement on job satisfaction, which pointed out that the level of
positive side of job characteristic could present the 63% of positive level of job
satisfaction. The job characteristic (JC) has weight of 0.25 (Std=0.63, SE= 0.08, t=
3.20) of measurement on organizational commitment, which pointed out that the level
of positive side of job characteristic could present the 25% of positive level of
organizational commitment.
Table 4.10 Total Effects, Direct Effect and Indirect Effect of Model
Effect
Cause
JS OC ETI
TE IE DE TE IE DE TE IE DE
JC 0.60 --- 0.60 0.63 0.38 0.25 -0.30 -0.30 0.00
JS --- --- --- 0.63 --- 0.63 -0.40 -0.13 -0.27
OC --- --- --- --- --- --- -0.22 --- -0.22
Note: TE = Total Effect DE = Direct Effect IE = Indirect Effect
Table 4.10, describe the total effect, indirect effect and direct effect among each
variable. The job characteristic has positive direct effect to job satisfaction at 0.60;
also has positive both indirect effect to organizational commitment at 0.38 and direct
effect at 0.25; it has no direct effect to employee turnover intention and negative
indirect effect at -0.30.
Job satisfaction has positive direct effect to organizational commitment at 0.63,
has negative indirect effect to employee turnover intention at -0.13 and direct effect at
-0.27. Therefore, each variable has significant in structural model.
Figure 4.4 demonstrates the structural model parameters and summarizes the
degree to which the data fit the model where abbreviations were defined as follow:
The statistical analysis was using software LISREL 8.8 to accomplish. The casual
structure between dependent and independent variable are assumed be specified.
Observe variables measure latent variable. The straight arrows showed the effect of
54
independent variables on the dependent variables. According to the effect between
each other, and estimate whether each hypothesis establish.
4.3.4 Hypothesis Testing
An examination of the structural model tests for the estimated coefficients (paths),
which provide the basis for accepting or rejecting the proposed relationship between
latent variables. The summary of path analysis for hypothesis testing was showed as
in table 4.10.
H1: Job characteristic has positive effect on job satisfaction.
Based on the data of table 4.10, job characteristic had direct effect to job
satisfaction as β= 0.6, which was significantly strong positive relationship. Thus,
hypothesis 1 is supported which proved job characteristic has effect on job
satisfaction.
H2: Job characteristic has positive effect on organizational commitment.
Based on the data of table 4.10, job characteristic had direct effect to
organizational commitment as β= 0.25, and indirect effect asβ= 0.38, which was
significantly strong positive relationship. Thus, hypothesis 2 is accepted, job
characteristic has positive effect on organizational commitment.
H3: Job satisfaction has positive effect on organizational commitment.
According to table 4.10, Job satisfaction has direct effect on organizational
commitment as β= 0.63, which was positive relationship. Thus, accepted hypothesis 3
proved job satisfaction has effect on organizational commitment.
H4: Job satisfaction has negative effect on employee turnover intention.
Based on the data of table 4.10, job satisfaction had direct effect to employee
turnover intention as β= -0.14, it indirect effect to employee turnover intention as β =
-0.26, which was considered as strong negative relationship. Hypothesis was
supported, job satisfaction has effect on employee turnover intention.
H5: Organizational commitment has negative effect on employee turnover intention.
According to table 4.10, Organizational commitment has direct effect on
employee turnover intention as β= -0.22, which was negative relationship. Thus, the
hypothesis was supported, organizational commitment has negative effect on
employee turnover intention.
55
Table 4.11 Summarize of Hypotheses
Hypotheses Results
H1 Job characteristic has a positive effect on job satisfaction. Accepted
H2 Job characteristic has a positive effect on organizational commitment Accepted
H3 Job satisfaction has a positive effect on organizational commitment. Accepted
H4 Job satisfaction has a negative effect on employee turnover intention. Accepted
H5 Organizational commitment has a negative effect on employee
turnover intention. Accepted
As table 4.11 shows, all hypotheses are accepted and consistent with literature
review.
CHAPTER 5
CONCLUSION, DISCUSSION, IMPLICATION
This chapter summarized all results and discussed the results from hypothesis
testing with literature review and implication of research finding on factors
influencing the employee turnover intention. The main topics of this chapter were
presented as the following:
5.1 Conclusion
5.2 Discussion
5.2.1 Employee Turnover Intention
5.2.2 Organizational Commitment
5.2.3 Job satisfaction
5.2.4 Job characteristic
5.3 Implications of the Study
5.3.1 Managerial Implication
5.3.2 Theoretical Implication
5.4 Limitation of the Study
5.5 Recommendation for Future Research
57
5.1 Conclusion
This part summarized all the results which are declared in the previous chapter
and interpret the research findings as well. The underlying tenet of this study is to
investigate the impact of job characteristic, job satisfaction and organizational
commitment on employee turnover intention. The main purposes of this study were
fivefold (1) to study the effect of job characteristic on job satisfaction and
organizational commitment. (2) To study the effect of job satisfaction on
organizational commitment. (3) To study the effect of job satisfaction and
organizational commitment on employee turnover intention.
Based on the purposes of this study and literature review, this study developed the
model which includes four factors include job characteristic, job satisfaction,
organizational commitment and employee turnover intention. In addition, this study
developed the questionnaire from related literature researches and adjusted it to tally
with the actual situation. Thus, the survey method was distribution questionnaire
which include 5 parts to respondents and 384 qualified questionnaires were analyzed.
The major findings which reported in chapter 4 can summarized as below.
Most of the respondents were female with 60.70% while male respondent was
39.30%. The age of the respondents focus on 20 - 26 years (39.30%) and 27-32 years
(38.00%) old. Respondents have education level from high school to bachelor’s
degree, there were no respondents holding the degree higher than bachelor. Moreover,
74.70% of them are single. Nearly half (45.60 %) of the respondents' position is sales,
and more than a half (52.30%) of them get a low income between 9,000 Baht to
15,000 Baht per month. Thus, a conclusion can be arrived: most of the retail industry
employees are unmarried and young people in Bangkok, Thailand. Among them, the
mean value of items for job characteristic, job satisfaction and organizational are in
agree level of agreement, employee turnover intention in neutral agreement.
In order to have more accurate computation, reduce the error value, a suitable
statistics tool that is structural equation model (SEM) for this conceptual model. And
58
finally, the results obtained were: (Chi-square x² = 30.89, df = 20, p = 0.057; x²/df < 2;
RMSEA = 0.035; GFI = 0.99; CFI =1.00; AGFI= 0.96). The results showed a good fit
for the conceptual model. The results of table total effects and indirect effect showed
that job characteristic has positive direct effect on job satisfaction at 0.60; also has
positive both indirect effect on organizational commitment at 0.38 and direct effect at
0.25; Job satisfaction has positive direct effect on organizational commitment at 0.63,
has negative indirect effect on employee turnover intention at -0.14 and direct effect
at -0.26. Thus, each variable has significant in structural model and anastomosis with
hypothesis which put forward from literature combined with the actual situation.
5.2 Discussion
This section would discuss whether the results from the hypothesis testing
consistent to the literature review and the objectives of this study. Besides that, the
ultimate goal of this study is to reduce employee turnover intention of Bangkok’s
retail industry. The detail was discussed from four aspects including job
characteristic, job satisfaction, organizational commitment and employee turnover
intention.
5.2.1 Employee Turnover Intention
According to the literature review, the researcher indicated that when employee
cannot get happiness from their work then the dissatisfaction of job is high, they will
look for other opportunities which can give them happiness or satisfaction (Wright
and Bonett, 2007), so the satisfaction also can view as a significant predictors of
turnover intention (Joo and Park, 2010). Janet and Christopher (2008) indicated that
organizational commitment would have a negative linear relationship with employee
turnover intention, soon afterwards, they suggest that the employee who has a higher
level of organizational commitment is more likely to remain at work when compare to
the employee who has a lower level of organizational commitment. Job satisfaction
has a negative relationship with turnover intention (Schnake and Dumler, 2000).
59
The results of analysis revealed that job satisfaction and organizational
commitment can affect employee turnover intention. The result is consistent with the
above literature. It has mean value which represent the neutral level of agreement.
The result shows that employees are neutral when consider to leave the organization.
Neutral suggests that employees have not a clear attitude to stay with organization.
The results also revealed the relationship between organizational commitment and
employee turnover intention was positive. The detail was discussed in follow.
5.2.2 Organizational Commitment
Najafi et al., (2011) suggested that Organizational commitment refers to the extent
of psychological attachment or dedicating oneself towards the organization to whole
organization, it may change the behavior of employees (Lambert, 2003). The
commitment is potentially more beneficial to the company because to reduce the costs
of leaving (Suliman and Iles, 2000). Joo and Park (2010) thought that organizational
commitment would be negatively related to employee turnover intention. Similarly, a
larger number of researchers indicate that the relationship between an employee’s
turnover intentions and organizational commitment is negative (Lin and Chen, 2004;
Van Breukelen et al., 2004).
Organizational commitment includes three dimensions including affective
commitment, continuance commitment and normative commitment. Based on the
Matrix statistical data, the dimension which can present organizational commitment
was affective commitment by 66%, It means that, if the company needs a high
commitment of employee, then increase affective commitment must be the efficient
way. Both of continuance commitment and normative commitment can present 50%
of positive level of organizational commitment.
The relationship between dependent variables organizational commitment and
employee turnover intention was negative. Based on the outcome, organizational
commitment had the significant negative relationship, which it can present 22% of
positive level of employee turnover intention. So if the company needs a low level of
60
employee turnover intention, they should improve the organizational commitment,
specially should focus on affective commitment, because affective commitment most
important in three dimensions. Affective commitment has weight 0.66, which
indicates that the level of positive side of affective commitment could present 66% of
positive level of organizational commitment.
5.2.3 Job Satisfaction
Generally, job satisfaction is defined as the extent of employees like their work
(Agho and Price, 1992). Job satisfaction also has been used as a behavioral aspect of
employee toward the organization by many researchers (Turkyilmaz et al., 2011,
Sweeney, 2002). Several studies also indicated that job satisfaction is one of the most
important factors for turnover intention (McKnight et al., 2009; Rutner et al., Korunka
et al., 2008).The research has proposed a positive relationship between job
satisfaction and organizational commitment (Yousef, 2000). Also it has a negative
relationship with turnover intention (Alexandrov et al., 2007). Therefore, job
satisfaction has been shown to reduce turnover intentions (Alexandrov et al., 2007;
Jones et al., 2007) by the mediating construct organizational commitment. Hence, Lai
Wan (2007) and Sengupta (2011) indicate that the satisfied motivated employee works
hard for organization and positively influence organizational commitment.
This study focus on employee’s feeling regarding specific job aspects which
included 4 dimensions pay satisfaction, supervisor satisfaction, co-worker satisfaction
and promotion satisfaction. Based on the Matrix statistic data, the dimension which
has the most influence to job characteristic was promotion satisfaction. Therefore, it
can say that task significance can presented 63% of job satisfaction. It means that, the
more promotion they get, the more positive feeling that they have on their job. Thus,
the employee more committed with company. So that if the company needs to
increase employees’ organizational commitment, then increase promotion
opportunities will be the most efficient. The second dimension was pay satisfaction, it
can presented 59% of positive level of job satisfaction. Task identity had the value at
0.57, job autonomy had the value at 0.43.
61
For the relationship between dependent variables job satisfaction and
organizational commitment was positive relationship. Job satisfaction can presented
the 63% of positive level of organizational commitment. For the relationship between
job satisfaction and employee turnover intention, job satisfaction can direct presented
26% of negative level of employee turnover intention, and job satisfaction can
indirect presented 14% of positive level of 14% when organizational commitment as a
mediator. In this model, job satisfaction tallied a negative influence employee
turnover intention at 40%. Therefore, reduce employees’ dissatisfaction must be the
way to improve their satisfaction, sequentially, promote their organizational
commitment, and finally reduce the turnover rate.
5.2.4 Job Characteristic
Base on the objective of job characteristic model is to determine employee
working perception and reaction (Morgeson and Humphrey, 2006). It lets the
managers to know about employees’ feeling. Some researchers indicate that job
characteristics is not only influence the employees’ feelings but also their behavioral
outcomes (Chen and Chiu, 2011). There should be positive relationships between job
characteristics and job outcomes, such as job satisfaction and turnover intention
(Huang, 2011; Torraco, 2005). It analyzed the influence on the employee productivity,
job motivation, satisfaction and commitment (Huang, 2011). Employees' cognition of
job characteristics would affect their performance as well as inspire them (Morgeson
and Humphrey, 2006). The job design literature suggests that motivators (e.g. job
challenge, autonomy, responsibility, and achievement) lead to satisfaction and
commitment and eventually reduce employee’s intention to leave the organization
(Hossam, 2009). Similarly, many years later, some researchers prove that the
enrichment work that use the implementation method from model have a high level of
core dimension, the high level of those dimensions lead to high levels of motivation,
satisfaction and organizational commitment and performance, and lead to a low levels
of absenteeism, and turnover from employees (Hannif and Vo, 2011).
62
In this study, job characteristic involved skill variety, task identity, task
significance, job autonomy and job feedback. The results reveals had mean value
which can present the agree level of agreement. Based on the matrix statistic data, the
dimension which has the most influence to job characteristic was task significance,
but the difference was small compare with other four dimensions. Therefore, task
significance can presented 51% of job characteristic. It means that, the task has more
significance and employee occur more positive feeling on their job. Thus, the
employees have more satisfaction on their job. So that if the organization needs to
increase the job satisfaction of employee, then increasing task significance must be
the efficient way. The next was job feedback, it can presented 50% of positive level of
job characteristic. Task identity had the value as 0.47, job autonomy had the value as
0.46 and skill variety had value as 0.42. Hence, although improve task significance is
the most efficient way, but also have to consider other four dimensions at the same
time, because all of them have similar value.
Next step is about the relationship between job characteristic and job satisfaction,
organizational commitment. Based on the outcome, job characteristic had the
significance positive relationship, which it can presented 60% of positive level of job
satisfaction. For the relationship between job characteristic and job satisfaction, job
characteristic can direct presented 25% of positive level of organizational
commitment, job characteristic can indirect presented 38% of positive level of
organizational commitment when job satisfaction as a mediator. In this model, job
characteristic tally positive influence on organizational commitment at 63%. So if the
company needs a high level of job satisfaction of employee, they should improve the
job characteristic.
5.3 Implication of the Study
The finding from this study can help to understand the factors influence to
employee turnover intention of retail industry in Bangkok Thailand. A number of
implications can be derived for identifying important aspects of this study shown as
63
follow.
5.3.1 Managerial Implication
Fierce competition in the industry nowadays, one of the most important ways to
success is reduce total cost which includes the cost of production and management
costs. Booth and Hamer (2007) once indicated that employee turnover is seen as an
area of cost that can be measured and benchmarked. Because retailers must have a lot
costs associated with recruiting and training new employees. Invisibly, it makes the
company's operating costs increased. This research turned out that the mean value of
turnover intention turns out to be 2.85, employee of retail industry have the neutral
level of agreement to their turnover intention in Bangkok Thailand. The result is quite
dangerous for companies. The employee who has neutral doesn't wholeheartedly work
for the company. Thus, the employee who has a high turnover intention is not an
efficient employee (Wright and Bonett, 2007). Therefore, reducing employee turnover
intention is particularly important.
How to reduce employee turnover intention and create an extremely low actual
turnover? The findings of this research shows that job characteristic can indirect effect
to job satisfaction and organizational commitment. Furthermore, job satisfaction and
organizational commitment also have been confirmed that it was negatively related to
employee turnover intention. Therefore, manages could reduce employee turnover
intention from the following several aspects.
1. Improving job satisfaction of employee. The results of this study has been
proved that pay satisfaction, supervisory satisfaction, co-worker satisfaction and
promotion satisfaction, they can measure job satisfaction of employee in the great
degree. Thus, prove these factors for employee are meaningful. For example: manager
can give more opportunities for employee growing. In addition, manager can improve
job satisfaction by design the appropriate job for employees. The high level
agreement of job characteristic could lead to a high level job satisfaction.
2. Improving the organizational commitment of employee. It can improve
64
affective commitment, continuance commitment, normative commitment and 5
aspects of job characteristic. Based on organizational commitment has a negative
relationship with employee turnover intention, managers should improve it by
improving affective commitment. For example, set up good corporate image and
instill to employee positive values. Besides work, pay more attention to employee and
they feel warm, moved and not willing to leave. They believe that organization is the
most suitable for them and give them a bright future.
3. Improving job characteristic, design work to fit most of the employee's
competence and values. Give employees more freedom and pay more attention to
employees and his work. If the job is not suitable for employees, they are likely to feel
the job is difficult and painful. It caused a low productivity and negative influence on
job satisfaction or organizational commitment. Once the employees are satisfied with
their job and committed with organization, the possibility they quilt from organization
can be reduced.
5.3.2 Theoretical Implication
1. The results of the study confirm that the model of employee turnover intention
of retail industry in Bangkok, Thailand is fitted. Job characteristic, job satisfaction
and organizational could affect employee turnover intention in different degree.
Academician and researchers who are interested in the field of employee turnover
intention can application and adaption of this model.
2. Academicians and researcher should pay more attention on the antecedent
factors, such as job characteristic factor, employees’ job satisfaction and
organizational commitment. It can be extended more dimensions into job satisfaction
which could help other researchers understand employee turnover intention. This
study provides more proof to the factors which influencing employee turnover.
5.4 Limitation of the Study
1. Given the size of the sample used, it was not possible to include all the possible
65
factors in this study. As a result, only the most popular and well-researched factors
were examined.
2. The questionnaire was too long. Therefore, the respondents had to spend their
time to fill out the questionnaire. Some respondents may not take attention enough on
it.
3. The literature review and questionnaire of this study from western articles,
some questions may not very suit for the real situation of Thai employee. Some
respondents may not fully understand each question and not pay attention to it.
5.5 Recommendation for Future Research
1. For future research can develop the model based on this study. In order to make
the framework more comprehensive and can be used in more other areas, Job
characteristic and job satisfaction can be measured by more dimensions. For future
research can put more dimensions such as organizational satisfaction, put new
variables in model such as employees’ values.
2. The model can be compared in more different industries and countries, thus the
sample group of research can use other industries and countries. For example, it can
be used to study in employee turnover intention of insurance, Banking, manufacturing
industry in Thailand or other countries.
3. The future research should provide an appropriate quantity of questions to
ensure that they can pay attention to each item in the questionnaire. As much as
possible ask each respondent is serious to ensure that the data collected will be high
quality.
66
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APPENDICES
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APPENDICES 1: ITEM-OBJECTIVE CONGRUENCY (IOC) FORM
TOPIC: Factors Influencing Employee Turnover Intention: The Case of Retail
Industry in Bangkok, Thailand
The research objectives are mentioned as following:
1). To study the effect of job characteristic on job satisfaction and organizational
commitment .
2). To study the effect of job satisfaction on organizational commitment
4). To study the effect of job satisfaction and organizational commitment on employee
turnover intention.
Please read whether the research questions match with the objective or not? Kindly
tick in the box against each question
+1 If the question match with above objectives.
0 If you are not sure or cannot make a decision.
-1 If the question do not match above objectives.
ลกษณะงาน (Job characteristic)
No. ความหลากหลายของทกษะ(Skill Variety) 1 0 -1
1 ฉนสามารถใชทกษะทซบซอนในการท างานน
2 ฉนสามารถใชทกษะทม แกปญหาในการท างาน
3 การท างานนตองท างานรวมกบหนวยงานหลายดาน
4 โอกาสทจะใชทกษะ และความสามารถในการท างานมมาก
เอกลกษณเฉพาะของงาน(Task Identity) 1 0 -1
5 ฉนท างานสมบรณตงแตตนจนจบ
6 ฉนมโอกาสทจะท างานจากจดเรมตนไปถงทสนสด
7 เมอฉนเรมงานฉนตองท าใหงานจบ
88
8 สวนใหญงานทฉนไดรบมอบหมายจะลงมอปฎบตเอง อยางครบถวนไมมการสงตอใหกบผอน
ความส าคญของงาน(Task Significance) 1 0 -1
9 เมองานของฉนเสรจสมบรณ งานอนๆกจะสามารถด าเนนการตอไปได
10 งานของฉนไดรบความสนใจจากผรวมงานคนอนๆเสมอ
11 งานของฉนเปนสวนส าคญขององคการ
อสระในการท างาน(Job Autonomy) 1 0 -1
12 ฉนสามารถควบคมเนอหาของงานได
13 ฉนมอสระในการตดสนใจของวธการด าเนนการ
14 ฉนสามารถก าหนดระยะเวลาการจบงานไดส าหรบงานทไดรบมอบหมาย
การตอบกลบของงาน(Job Feedback) 1 0 -1
15 ฉนมองเหนผลงานไดทนทจากงานทฉนท า
16 หวหนาใหความคดเหนแกงานฉนอยางตอเนอง
17 ฉนมองเหนผลการปฎบตงานของฉนอยางชดเจน
18 เมองานของฉนผดพลาด ฉนสามารถรบรและแกไขไดทนท
ความพงพอใจตองาน (Job Satisfaction)
No. ความพงพอใจตอการจายคาตอบแทน(Pay satisfaction) 1 0 -1
19 เงนเดอนทฉนไดรบเหมาะสมกบปรมาณงานทฉนท า
22 เงนเดอนฉนเพยงพอทจะใชจายในชวตประจ าวน
21 ระยะเวลาของการขนเงนเดอนเหมาะสม
22 องคการฉนมอตราเงนเดอนทเหมาสม
ความพงพอใจทมตอหวหนางาน(Supervisor satisfaction) 1 0 -1
23 หวหนาไดแจงใหทราบลวงหนาหากมการเปลยนแปลงใดๆ
24 หวหนายนดทจะรบฟงปญหาตางๆในการท างานของฉน
25 หวหนาประเมนคะแนนประสทธภาพเพอเพมผลตอบแทนใหกบพนกงาน
89
26 หวหนายกยองผทท าผลงานด
ความพงพอใจตอผรวมงาน (Co-worker Satisfaction) 1 0 -1
27 ความสมพนธระหวางฉนกบคนงานอนๆในบรษทนดมาก
28 เพอนรวมงานสวนใหญใหการยอมรบฉนในฐานะสมาชกของบรษทน
29 เพอนรวมงานสวนใหญไดชวยฉนปรบตวใหเขาองคการน
30 เพอนรวมงานไดชวยงานฉน ในรปแบบตางๆ
ความพงพอใจตอการโปรโมท (Promotion Satisfaction) 1 0 -1
31 งานปจจบนของฉนมโอกาสในการพฒนาอาชพเพอใหมประสทธภาพในบทบาทของฉน
32 องคการไดใหโอกาสฉนรวมท างานในงานระดบทสงกวา
33 องคการไดใหโอกาสฉนเพยงพอในการเรยนรและการเจรญกาวหนา
34 มโอกาสมากมายทน ในการกาวสต าแหนงงานทสงขน
ความผกพนธตอองคการ (Organizational commitment)
No. ความผกพนดานความรสก (Affective Commitment) 1 0 -1
35 ฉนคอนขางภมใจทสามารถบอกคนอนวาไดท างานในองคการน
36 ฉนรสกวาตนเองมสวนรวมในการเปน"เจาของ"องคการนแทนทจะเปนเพยงพนกงาน
37 องคการนมความหมายพเศษส าหรบฉน
38 ฉนรสกวาผลงานบางอยางทฉนท า ไมไดท าเพอตวเองแตท าเพอองคการ
ความมงมนตอเนอง (Continuance Commitment) 1 0 -1
39 ฉนคดวาการออกจากองคการนจะท าใหฉนสญเสยสงส าคญไปอยางมาก
40 ชวตจะตองมเรองมากมายสะดดลงหากฉนตดสนใจทจะออกจากองคการในขณะน
41 มตนทนสงหากฉนจะออกจากองคการในขณะน
42 ฉนอยในองคการนเนองจากองคการอนๆไมสามารถใหอะไรกบฉนไดมากกวาทน
ความมงมนกฎเกณฑ (Normative Commitment) 1 0 -1
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43 ฉนไดรบการปลกฝงคานยมวาตองสงรกภกดตอองคการ
44 ฉนไมอยากท าใหองคการสญเสยหากฉนออกจากน
45 ฉนรสกวาฉนมหนาททจะสนบสนนองคการตอไป
ความตงใจทจะลาออก(Employee Turnover Intention)
No. ความตงใจทจะลาออกของพนกงาน(Employee Turnover Intention) 1 0 -1
46 ฉนมกจะมความคดทจะไปท างานอนทแตกตางอยเสมอ
47 ฉนอาจจะมองหางานอนในเรวๆน
48 ฉนมกจะคดอยเสมอวาจะเลกท างานคาปลก
49 ฉนอาจจะลาออกจากงานนในอนาคตอนใกล
Sign: __________________
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APPENDICES 2:
ENGLISH RESEARCH QUESTIONNAIR
The factors influence on employee turnover intention: the case of retail industry
in Bangkok, Thailand
Explanation: The purpose of this questionnaire is collecting the data about turnover
intention from the employee of retail industry. All answers from you may to improve
the employee turnover of retail industry in Thailand. The data collected will be kept
secretly and will not have effect on you. My sincere thanks for your help of this
survey!
Note: Please tick √ appropriate box □
Part 1: Personal information
1. Gender: □ Male □ Female
2. Age:(years old): □ 20-26 □ 27-32
□ 33-39 □ 40 or over
3. Education level: □High school □Vocation diploma
□Bachelor’s degree □Bachelor up
4. Marital status: □Single □Married
□Divorced □Others_________
5. Monthly income (Thai baht): □9,000-15,000 □15,001-20,000
□20,001-25,000 □25,000 Above
6. Job categories: □Sales □Tally clerk
□Cashier □Others __________
7. How many years you work in this company?
□Below 1 year □1-3 years
□3-5 years □More than 5 years
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Please indicate the degree level which you perceive in the following statements by
tick√(part 2 to part 5), and 5=strongly agree, 4=agree, 3=neutral, 2=disagree,
1=strongly disagree
Part 2: Job characteristic
NO. Skill variety 5 4 3 2 1
8 I get to use a number of complex skills on this job.
9 I can use the skills that I have to handle the problem in my job.
10 The job involves doing a number of different tasks.
11 I have chance to using a wide variety of different skills and talents.
Task identity
12 I do a complete task from start to finish.
13 I have chance to do an entire piece of work from beginning to end.
14 Once I start a task I have to finish it.
15 I never work just do half and then assign to others.
Task significance
16 Only when my job gets done, other jobs can be completed.
17 My job is always to get the attention of co-workers.
18 My job is an integral part of the organization.
Job Autonomy
19 I control the content of my job.
20 I have freedom to decide how I perform assigned tasks.
21 I can set my own schedule for completing assigned tasks.
Job Feedback
22 The work shows me with information about my performance.
23 Supervisor provides me with constant feedback about my activity.
24 I am clearly competent view of my work performance
25 I can timely know whether my job is efficiency.
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Part 3: Job Satisfaction
NO. Pay satisfaction 5 4 3 2 1
26 My salary is reasonable for amount of work in my organization.
27 My salary can be sufficient to pay my living expenses.
28 The period of Salary increase is appropriate.
29 My organization has an appropriate salary scale.
Supervisor satisfaction
30 My supervisor gives advance notice of changes.
31 My supervisor is willing to listen to my work-related problems
32 My supervisors inflate performance ratings in order to maximize rewards to their employees.
33 My supervisor praises people who do good work.
Co-worker satisfaction
34 My relationships with other workers in this company are very good.
35 Most of my co-workers have accepted me as a member of this company
36 My co-workers have done a great deal to help me adjust to this organization.
37 My Co-workers have helped me on the job in various ways.
Promotion satisfaction
38 My current job offers me the right professional development opportunities to be effective in my role.
39 Organization gives me opportunities join in handle higher level job.
40 Organization gives me adequate opportunities to learn and growth.
41 There are plenty of opportunities to advance here.
Part 4: Organizational commitment
NO. Affective commitment 5 4 3 2 1
42 I am quite proud to be able to tell people the company for whom I work.
43 I feel a sense of “ownership” for this organization rather than being just an employee.
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44 This organization has a great deal of personal meaning for me.
45 I feel that I am making some contribution, not for myself but for the organization as well.
Continuance commitment
46 I think leaving from this organization would require considerable personal sacrifice.
47 Too much in life would be disrupted if I decide to leave the organization now.
48 It too costly to leave the organization now.
49 I stay in this organization because other organization can't give me more than here.
Normative commitment
50 I've been instilled values is must keep loyal to an organization
51 I don't want to lead to the loss of the organization because of my leaving.
52 I feel I have the obligation to continue to contribute organization.
Part 5: Employee Turnover Intention
NO. Employee Turnover Intention 5 4 3 2 1
53 I always imagine working at a different workplace.
54 I will probably be looking for another job soon.
55 I often think of giving up the present job.
56 I will quit this job sometime in the near future.
Thank you!
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APPENDICES 3: แบบสอบถาม
“ปจจยทมอธพลตอความตงใจทจะลาออกของพนกงานในกรณการคาปลก
กรงเทพฯประเทศไทย”
แบบส ารวจน มวตถประสงคเพอรวบรวมขอมลทเกยวกบความคดเหนทมตอความตงใจทจะ
ลาออกจากงานของพนกงานคาปลก ค าตอบของทานมสวนชวยการแกปญหาพนกงานลาออกได ทงน ขอมลนจะถกเกบเปนความลบและจะไมมผลกระทบตอผตอบแบบสอบถามใดๆทงสน ทางผส ารวจขอขอบพระคณทานในการรวมมอการกรอกแบบส ารวจในครงน
หอการคาไทย สวนท 1 ค าถามทวไปเกยวกบผตอบแบบสอบถาม โปรดท าเครองหมาย √ ลงใน □ หนาขอความทตรงกบความเปนจรง
1. เพศ: □ ชาย □ หญง
2. อาย: □ 20-26 ป □ 27-32 ป
□ 33-39 ป □ 40 ปขนไป
3.ระดบการศกษาสงสด: □ มธยมศกษา □ อนปรญญา
□ ปรญญาตร □ สงกวาปรญญาตร
4.สถานภาพ: □โสด □สมรส
□หยาราง □อนๆ___________
5.รายไดของทานตอเดอน: □9,000-15,000 บาท □15,001-20,000 บาท
□20,001-25,000 บาท □25,000 บาทขนไป
6.ต าแหนง: □ พนกงานขาย □ เสมยน
□ แคชเชยร □ อนๆ___________
7. ระยะเวลาทคณอยกบองคกรน: □ ต ากวา 1 ป □ 1-3 ป
□ 3-5 ป □ 5 ปขนไป
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ค าชแจง: จากสวนท2ถง5โปรดท าเครองหมาย √ ลงในชองดานขวามอทตรงตามความคดเหนของทานมากทสด โดยหมายเลข 5=เหนดวยอยางยง 4=เหนดวย 3=ปานกลาง 2=ไมเหนดวย 1=ไมเหนดวยอยางยง
สวนท 2 ลกษณะงาน(ความเขาใจกบงาน)
ท ความหลากหลายของทกษะ 5 4 3 2 1
8 ฉนสามารถใชทกษะทซบซอนในการท างานน
9 ฉนสามารถใชทกษะทม แกปญหาในการท างานได
10 การท างานนตองท างานรวมกบหนวยงานหลายดาน
11 โอกาสทจะใชทกษะ และความสามารถในการท างานมมาก
เอกลกษณเฉพาะของงาน 5 4 3 2 1
12 ฉนท างานสมบรณตงแตตนจนจบ
13 ฉนมโอกาสทจะท างานจากจดเรมตนไปถงทส นสด
14 เมอฉนเรมงาน ฉนตองท าใหงานจบ
15 สวนใหญงานทฉนไดรบมอบหมายจะลงมอปฎบตเองอยางครบถวน ไมมการสงตอใหกบผอน
ความส าคญของงาน 5 4 3 2 1
16 เมองานของฉนเสรจสมบรณ งานอนๆกจะสามารถด าเนนการตอไปได
17 งานของฉนไดรบความสนใจจากผรวมงานคนอนๆเสมอ
18 งานของฉนเปนสวนส าคญขององคการ
อสระในการท างาน 5 4 3 2 1
19 ฉนสามารถควบคมเนอหาของงานได
20 ฉนมอสระในการตดสนใจของวธการด าเนนการ
21 ฉนสามารถก าหนดระยะเวลาการจบงานได ส าหรบงานทไดรบมอบหมาย
การตอบกลบของงาน 5 4 3 2 1
22 ฉนมองเหนผลงานไดทนทจากงานทฉนท า
23 หวหนาใหความคดเหนแกงานฉนอยางตอเนอง
24 ฉนมองเหนผลการปฎบตงานของฉนอยางชดเจน
25 เมองานของฉนผดพลาด ฉนสามารถรบรและแกไขไดทนท
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สวนท 3 ความพงพอใจ
ท ความพงพอใจตอการจายคาตอบแทน 5 4 3 2 1
26 เงนเดอนทฉนไดรบเหมาะสมกบปรมาณงานทฉนท า
27 เงนเดอนฉนเพยงพอทจะใชจายในชวตประจ าวน
28 ระยะเวลาของการขนเงนเดอนเหมาะสม
29 องคกรฉนมอตราเงนเดอนทเหมาะสม
ความพงพอใจทมตอหวหนางาน 5 4 3 2 1 30 หวหนาไดแจงใหทราบลวงหนาหากมการเปลยนแปลงใดๆ 31 หวหนายนดทจะรบฟงปญหาตางๆในการท างานของฉน
32 หวหนาประเมนคะแนนประสทธภาพเพอเพมผลตอบแทนใหกบพนกงาน
33 หวหนายกยองผทท าผลงานด ความพงพอใจตอผรวมงาน 5 4 3 2 1 34 ความสมพนธระหวางฉนกบพนกงานอนๆในองคกรนดมาก 35 เพอนรวมงานสวนใหญใหการยอมรบฉนในฐานะสมาชกขององคกรน 36 เพอนรวมงานสวนใหญไดชวยฉนปรบตวใหเขากบองคกรน
37 เพอนรวมงานไดชวยงานฉน ในรปแบบตางๆ
ความพงพอใจตอการโปรโมท 5 4 3 2 1
38 งานปจจบนของฉนมโอกาสในการพฒนาอาชพเพอใหมประสทธภาพในบทบาทของฉน
39 องคกรไดใหโอกาสฉนรวมท างานในงานระดบทสงกวา
40 องคกรไดใหโอกาสฉนเพยงพอในการเรยนรและการเจรญกาวหนา
41 ทนมโอกาสมากมาย ในการกาวสต าแหนงงานทสงขน
สวนท 4 ความผกพนธตอองคกร
ท ความผกพนดานความรสก 5 4 3 2 1
42 ฉนคอนขางภมใจทสามารถบอกคนอนวาไดท างานในองคกรน
43 ฉนรสกวาตนเองมสวนรวมในการเปน"เจาของ"องคกรนแทนทจะเปนเพยงพนกงาน
44 องคกรนมความหมายพเศษส าหรบฉน
45 ฉนรสกวาผลงานบางอยางทฉนท า ไมไดท าเพอตวเองแตท าเพอองคกร
ความมงมนตอเนอง 5 4 3 2 1
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46 ฉนคดวาการออกจากองคกรนจะท าใหฉนสญเสยสงส าคญไปอยางมาก
47 ชวตจะตองมเรองมากมายสะดดลง หากฉนตดสนใจทจะออกจากองคกรในขณะน
48 ฉนตองเรมตนใหมทงหมด หากฉนจะออกจากองคกรน
49 ฉนอยในองคกรนเนองจากองคกรอนๆไมสามารถใหอะไรกบฉนไดมากกวาทน
ความมงมนกฎเกณฑ 5 4 3 2 1
50 ฉนไดรบการปลกฝงคานยมวาตองจงรกภกดตอองคกร
51 ฉนไมอยากท าใหองคกรสญเสยหากฉนออกจากทน
52 ฉนรสกวาฉนมหนาททจะสนบสนนองคกรตอไป
สวนท 5 ความตงใจทจะลาออก
ท ความตงใจทจะลาออกของพนกงาน 5 4 3 2 1
53 ฉนมกจะมความคดทจะไปท างานทอนอยเสมอ
54 ฉนอาจจะมองหางานอนในเรวๆน
55 ฉนมกจะคดอยเสมอวาจะเลกท างานปจจบน
56 ฉนอาจจะลาออกจากงานนในอนาคตอนใกลน
ขอขอบพระคณคะ
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BIOGRAPHY
Miss Xiangping Wu was born on October 17, 1984 at Guangxi province of China.
She received her Bachelor Degree of Business Administration majoring in General
Management from North Bangkok University, Thailand in 2010.