You are on page 1of 50

A Project

ON

“EMPLOYEE TURNOVER IN IT SECTOR”


Submitted to
University of Mumbai for partial completion of the
DEGREE OF BACHELOR IN MANAGEMENT STUDIES
(HUMAN RESOURCES)

Under the Faculty of Management


By

SEMESTER V
ROHIT DEELIP WAGH
ROLL NO.:- 66

Under the Guidance of


PROF. SAROJ IYENGAR

B.K.BIRLA COLLEGE OF ARTS


COMMERCE & SCIENCE KALYAN-W

2020-2021
B.K.BIRLA COLLEGE OF ARTS
COMMERCE & SCIENCE KALYAN-W

CERTIFICATE

This is to certify that Ms/ Mr. ROHIT DEELIP WAGH has word ked and duly

completed her/his project for the Degree of Master in Commerce under the Faculty of

Commerce and her/his project is entitled,“EMPLOYEE TURNOVER IN IT

SECTOR” under my Supervision.

Name and Signature of Guiding Teacher

Date of submission:
DECLARATION

I, the under signed Miss/Mr. ROHIT DEELIP WAGH here by, declare that the work embodied

in this project work titled “EMPLOYEE TURNOVER IN IT SECTOR” forms my own

contribute on to the research work carried out under the guidance of PROF. SAROJ IYENGAR

is a result of my own

research work and has not been previously submitted to any other University for any other Degree to this or
any other University.

Wherever reference has been made to previous works of others, it has been

Clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Name and signature of the Guiding Teacher


TABLE OF CONTENTS

Pages

Declaration ii

Acknowledgement iii

Table of Contents iv

List of Tables vi

List of Figure vii

Chapter I: Introduction 1-10

General Background 1

Statement of Problem 6

Objectives of the Study 9

Organization of the Study 10

Chapter II: Literature Review 11-20

Review of Theories 11

Affective Commitment 11

Continuance Commitment 12

Normative Commitment 13

Review of Empirical Studies 15

Theoretical Framework 19

Hypotheses of the Study 20

iv
Chapter III: Research Methodology 21-28

Research Design 21

Sample of the Study 22

Sources of Data 22

Definition of Variables 22

Method of Analysis 24

Chapter IV: Presentation and Analysis of Data 29-41

Analysis of Primary Data 29

Respondent's Profile 30

Summary of the Hypothesis 41

Chapter V: Summary, Conclusion and Discussion 42-45

Summary 42

Conclusion 45

Discussion 45

References

Appendices

v
CHAPTER I

INTRODUCTION

Employees are central to all organizational activities. The overall goal achievement of

any organization directly depends on the collective efforts of its employees.

Organizations are ready to bear the costs of acquiring the right job-person fit and

person-organization fit through the selection and screening process. Thus,

organizations invest a lot in terms of getting the right person who perfectly matched

with its strategic goals and culture. They invest in them in terms of training them

according to the organizational requirements and standards. Accordingly, minimizing

the employee turnover rate becomes a prime concern for these organizations.Turnover

is explained as the number of employees leaving an organization during a certain time

period divided by the number of employees in that organization during that period.

From the human resource perspective, turnover explains the rate at which employee

leaves a job. When an employee leaves an organization, someone else needs to be hired

in that place. This whole process is known as turnover. Turnover comes at a cost to the

organization. In fact, a certain level of turnover cannot be avoided, and in fact, it could

be beneficial to the organization as new people join organizations with new ideas that

in the process enriched the organizational other activities. A healthy turnover rate is

always desired by the top management of organizations to ensure healthy innovative

growth of organizations.

In many countries employee turnover is giving sleepless nights to human resource

managers. A widespread belief in many countries is that due to lack of manpower

employees have developed bad behaviors. Unfortunately, despite the turnover of

6
employees is such a serious problem around the world, there are many studies to

investigate this, but the employee turnover has not decreased. The high turnover rates

do not always mean that you have bad managers, or that it is a great place to work.

Mostly Companies with famous brands and the visibility of the industry are the target

of recruitment. Actually, it is not uncommon for hiring managers for recruitment to

employee’s objectives of the five leading companies in the industry. In that case, you

should consider only the reverse workers can stay because they have small number of

opportunities to leave. Companies often take deep interest in rates of employee

turnover because they replace an employee which is a costly part of doing business.

When a company needs to replace a worker it suffers the indirect and direct costs. All

work to be carried out during the process cost money, take a year or two. Furthermore,

there can be a loss of productivity during the time after the former leaves the workers

and the new employee is fully trained. For some companies, the replacement of

workers also could make it difficult to retain customers or clients with whom the

employees worked.

7
The success of any organization depends on its human resource for the organization to

perform effectively and efficiently. It is because of this background that employees are

very critical to the success or failure of any organization for this case the Kenyan

public sector.The turnover means that an organization may gain a new knowledge

employee who can become its competitive advantage. The loss of knowledge is a threat

for the organization which increases the significance of knowledge continuity. There is

dire need to encourage employees to remain in the organizations and to increase

productivity beyond that which is at a minimum accepted standard using scarce

resources (Kimanthi, 2000).

Employee turnover rates are considered to be one of the persistent problems in

organizations (Armstrong, 2009). Pine (2000) has observed that “The most serious

issue for employees today in all industries is hiring and keeping qualified and capable

employees”. The employees are crucial to the organization since their value to the

organization is essentially intangible and not easily replicated (Meaghan &

Nick,2002).Thus managers must recognize that employees are major contributors to the

efficient achievement of the organizations’ success (Abbasi&Hollman,2000).Managers

in organizations should control employee turnover for the benefit of the organizations’

success.

When considering the contemporary business world it is dynamic in nature and the

business organizations which are operated within the scope of this business world are

struggling to secure the competitive edge over its rivals. Galhena (2011) stated that the

organization which are functioning in its own industrial setting often pay rigorous

attention on how to gain competitive advantages over the rivalry among existing firms

and new entrants. Barney (1991) classified three basic types of resources which

8
provide competitive advantage as physical capital resources, organizational capital

resources and human capital resources. Barney & Wright (1997) stated that the firm's

people are its most important asset. Thus, employee retention is a must to obtain the

organizational expected success.Mathis & Jackson (2006) found that turnover is a

costly problem and further, argued that, the cost related to the labor turn over can be

classified as separation cost, replacement cost, training cost, and hidden cost. Thus, the

heavy cost is ultimately causes to decrease the profitability and the productivity of the

firm.

In Bangladesh, it is very important to manage turnover for both government and private

sector. In government sectors, although some fringe benefits are givento the employees

regularly do not satisfy them sufficiently. In private sectors, though salary and benefits

are high but security of job is less. Due to these reasons turnover rate inprivate sectors

are higher than public sectors. Turnover rate also varies from manufacturing to service

sectors.

The turnover intention has more than a few stages: judgment regarding quitting,

Intention to look for one more occupation also plans to give up. “What determines

member of staff turnover?” The respond to this problem has enormous importance to

the human being who may be view about quitting a work, and for the administrator

who is faced with lack of worker connection, the sky-scraping expenses occupied in the

orientation and guidance of fresh employees, and, not smallest amount, issues of

managerial efficiency. Whereas real quitting behavior is the most important hub of

significance to employers and researchers, purpose to quit is argued to be a physically

powerful substitute indicator for such behavior. Turnover is a mindful and conscious

willfulness to go away institute (Tett and Meyer, 1993) .The self-improvement purpose

9
of uphill comparisons may thus strengthen an individual’s turnover in an attempt to get

better his or her place in another institute. Certainly, folks who regularly make uphill

comparisons, focusing on how others are doing improved than oneself, have been

establish to put on show more work explore behaviors than those who normally make

descending comparisons (Buunk et al., 2003). at the same time as an individual who

regularly makes uphill comparisons may have a high regard for a human being

performing superior than oneself (Buunk et al., 2003), this upward comparison can also

persuade approach of greed and weakness (i.e. Diener and Fujita, 1997; Thornton and

Moore, 1993), growing his or her turnover intentions. Job contentment is creating that

has frequently be described, discussed and researched. There are a lot of theories

relating to the fundamental association between turnover intention, Job satisfaction and

earnings. For instance, work satisfaction be able to be seen as a consequence of a

profession satisfaction sequence; it know how to be seen as a reason of job satisfaction;

or else it be able to be seen as element of an instruction scheme in which the

assessment of outcome leads to decisions regarding whether or not changes are to be

completed (Thierry, 1997).

Organization turnover is a challenge of all organizations today, be public or private due

to negative consequences organizations face (Shamsuzzoha and Shumon, 2007).

Likewise, a Tanzania local government authority is not exception where the decline of

financial capacity is among other factors of turnover. High turnover in organization

indicates dissatisfaction of employees on what the organization provides as needs and

desires. Empirical studies done in both public and private organizations have come up

with similar results. Thus, the rate of employees’ turnover in public and private sectors

inTanzania is increasing (Minja 2011, Magalla2011).

10
Statement of Problems

Employee turnover is the rotation of workers around the labor market between firms,

jobs and occupations and between the states of employment and unemployment

(Abbasi & Hollman 2000). Turnover is defined as a ratio of the number of

organizational members who have left during the period being considered divided by

the average number of people in the organization during the period (Price 1977).

Not surprisingly, turnover continues to be a topic of interest among researchers from

disciplines such as management, psychology, economics and sociology. Shaw, Delery,

Jenkins and Gupta (1998) report over 1,500 studies on the subject. There have also

been several met a analyses on the employee of turnover (Cotton and Tuttle 1986;

Cohen 1993; Hom and Griffeth 1995; Griffeth et al. 2000). Yet, there still is no

universal agreement on the factors that explain why some employees leave and some

stay. However, there are number of factors that contribute to employee turnover which

are job satisfaction, job stress, employee turnoverand career commitment.

Spector (2003) commented that work stress is associated with various effects such as

decreased productivity, absenteeism and, ultimately, employee turnover. Bartol K

(1979) recommended that job stress is not the main reasons to employee turnover.

Other causes of turnover are needed to understand by human recourse managers for a

better picture. If job stress is greater than the intention to leave will also be greater and

vice versa.

Cohen (1993) and Steers et al., (1982) contended that highly committed employees

wish to remain with their employing organizations. Khatri et al., (1999) highlighted the

importance of employee turnoverin explaining turnover. Maxwell and Steele (2003)

discovered that the reward expectation, recognition, interpersonal relationships


11
and workload have a great impact on the level of commitments For example, the more

collisions and interpersonal relationships are worse, lower organizational employee

engagement procedures (Rizwan et al., 2013).Freund’s study found that social

workers’ career commitment had a significant influence on thinking of quitting the

organization. The committed employees have been found to be more creative; they are

less likely to leave an organization than those who are uncommitted (Porter et. al.

1974). Employee commitment is negatively related to outcome as turnover.

Simple logic suggests that assuming employees have viable job alternatives, if they are

satisfied with their current job they will stay, but if they aren’t they will leave

(Mitchell, Holtom, Lee, Sablynski and Erez 2001). However, scientific literature shows

that work attitudes (like job satisfaction) play only a relatively small role overall in

turnover (Hom and Griffeth 1995; Griffeth et. al. 2000). Van Breukelen, Vander Vlist

and Steensma (2004) also show a negative relationship between job attitudes

andturnover. Measuring job satisfaction at two different times before the measurement

of leaving orstaying, they find that there was stability in employees’ attitudes.

However, they report that afterthe variance explained by intentions to leave the other

variables did not explain much. Trevor (2001) analyzed interactions between actual

ease of movement employee such as education level and market conditions and found

that when unemployment rates were low job satisfaction had greater impact on

turnover decisions. Moreover, he found the effects of ability and occupation-specific

training.

Spector (2003) commented that work stress is associated with various effects such as

decreased productivity, absenteeism and, ultimately, employee turnover. Job stress can

be defined as the harmful physical and emotional responses that occur when the

12
requirements of the job do not match the capabilities, resources, or needs of worker.

Job stress can lead to poor health and even injury.Employee turnoveris a commitment

or obligation that restricts freedom of action (lien or enterprise). It also means how

much a person is emotionally attached to the place where he works. Employee

engagement is the key variable of research on the actual turnover or intention to leave.

Employee turnoveris generally defined as an attachment or identification with the body.

Employee turnoveris defined as potential of connection among employees and the

organization ( Boxx, W. R., Odom, R. Y., &Dunn, M. G., 1995).

Career commitment may be defined as one’s attitude towards one’s profession or

vocation (Blau, 1985).Career commitment is characterized by strong sense of

identification, persuasion, development and active involvement in individual career

goals.Satisfaction is different between people based on their interests. Some individuals

like repetitive jobs, rotating shifts, and no overtime. Conversely others like involving in

decision making, flexible work hours, and high-incentive earnings. The great majority

of undertaken in the concerned area have focused on the job stress, job satisfaction,

employee turnoverand career commitment as a measure employee of employee

turnover faced by government and private organizations. However, all this research are

done in abroad so, we will like to conduct this research in context ofNepal.

In view of this context and reality, this study has been undertaken and directed to

investigate the answer of the following questions.

1. Is there any relationship between job stress and employee turnover?

13
2. Is there any relationship between employee turnoverandemployee

turnover?

3. What is the relationship between career commitment and employee

turnover?

4. Does job satisfaction really affect on employee turnover?

5. Is employee turnover influenced by job stress and organizational

commitment?

6. Does career commitment and job satisfaction leads to employee

turnover?

7. What is the impact of job stress, organizational commitment, career

commitment and job satisfaction on employee turnover across

government and private employees?

Objectives of the Study

The main objective of this research is to know about the factors that affect the turnover

of employees from organization and how the organization is affected by employee job

behavior. The specific objectives of this study are:

1. To explore the relationship between organizational commitment, career

commitment, job satisfaction, job stress and employee turnover.

2. To analyze the impact of employee turnoveron employeeturnover.

3. To analyze the impact of career commitment on employee turnover.

4. To analyze the impact of job satisfaction on employee turnover.

5. To analyze the impact of job stress on employee turnover.

14
6. To assess the mean difference in organizational commitment, career

commitment, job satisfaction and job stress across male and female.

Organization of the Study

This study has been organized into five chapters. The first chapter is the introduction

chapter and provides general background, statement of the problem, objectives of the

study, and organization of the study. The second chapter is the review of literature and

includes review of theories, review of empirical studies, concluding remarks,

theoretical frameworks and hypothesis of the study. The third chapter is related to the

research methodology employed in this study. This chapter includes brief information

of research design, sample of the study, sources of data and tools used. The fourth

chapter is on data presentation and analysis. It includes tables, graphs and concluding

remarks. Finally, the fifth chapter presents summary, conclusion and discussion.

15
CHAPTER II

REVIEW OF LITERATURE

Review of Theories

The concept employee turnover has grown in popularity in the literature on industrial

and organizational psychology (Cohen, 2003). Early studies on employee

turnoverviewed the concept as a single dimension, based on an attitudinal perspective,

embracing identification, involvement and loyalty (Porter, Steers, Mowday & Boulian,

1974). According to Porter et al (1974) an attitudinal perspective refers to the

psychological attachment or affective commitment formed by an employee in relation

to his identification and involvement with the respectiveorganization.

Affective Commitment

AC is defined as the employee's positive emotional attachment to the organization.

Meyer and Allen pegged AC as the “desire” component of organizational commitment.

An employee who is affectively committed strongly identifies with the goals of the

organization and desires to remain a part of the organization. This employee commits

to the organization because he/she "wants to". This commitment can be influenced by

many different demographic characteristics: age, tenure, sex, and education but these

influences are neither strong nor consistent. The problem with these characteristics is

that while they can be seen, they cannot be clearly defined. Meyer and Allen gave this

example that “positive relationships between tenure and commitment maybe due to

tenure-related differences in job status and quality” In developing this concept, Meyer

and Allen drew largely on Mowday, Porter, and Steers' s (2006) concept of

commitment, which in turn drew on earlier work by Wiener (2005).

16
Continuance Commitment

Continuance Commitment is the “need” component or the gains verses losses of

working in an organization. “Side bets,” or investments, are the gains and losses that

may occur should an individual stay or leave an organization. An individual may

commit to the organization because he/she perceives a high cost of losing

organizational membership (cf. Becker's 1960 "side bet theory” Things like economic

costs (such as pension accruals) and social costs (friendship ties with co-workers)

would be costs of losing organizational membership. But an individual doesn’t see the

positive costs as enough to stay with an organization they must also take into account

the availability of alternatives (such as another organization), disrupt personal

relationships, and other “side bets” that would be incurred from leaving their

organization. The problem with this is that these “side bets” don’t occur at once but

that they “accumulate with age and tenure”.

17
Normative Commitment

The individual commits to and remains with an organization because of feelings of

obligation, the last component of organizational commitment. These feelings may

derive from a strain on an individual before and after joining an organization. For

example, the organization may have invested resources in training an employee who

then feels a 'moral' obligation to put forth effort on the job and stay with the

organization to 'repay the debt.' It may also reflect an internalized norm, developed

before the person joins the organization through family or other socialization processes,

that one should be loyal to one's organization. The employee stays with the

organization because he/she "ought to". But generally if an individual invest a great

deal they will receive “advanced rewards.” Normative commitment is higher in

organizations that value loyalty and systematically communicate the fact to employees

with rewards, incentives and other strategies. Normative commitment in employees is

also high where employees regularly see visible examples of the employer being

committed to employee well-being. An employee with greater employee turnoverhas a

greater chance of contributing to organizational success and will also experience

higher levels of job satisfaction. High levels of job satisfaction, in turn, reduces

employee turnover and increases the organization’s ability to recruit and retain talent.

Meyer and Allen based their research in this area more on theoretical evidence rather

than empirical, which may explain the lack of depth in this section of their study

compared to the others. They drew off Wiener’s (2005) research for this commitment

component

18
Affective Events Theory

Affective Events Theory is a model developed to explain how emotions and moods

influence job performance and job satisfaction. The model explains the internal

influences (e.g., cognitions, emotions, mental states) and their reactions to incidents

that occur in their work environment that affect their performance, organizational

commitment, and job satisfaction. The theory proposes that affective work behaviors

are explained by employee mood and emotions, while cognitive-based behaviors are

the best predictors of job satisfaction. The theory proposes that positive-inducing (e.g.,

uplifts) as well as negative-inducing (e.g., hassles) emotional incidents at work are

distinguishable and have a significant psychological impact upon workers' job

satisfaction. This results in lasting internal (e.g. cognition, emotions, mental states) and

external affective reactions exhibited through job performance, job satisfaction, and

organizational commitment.

Other research has demonstrated that the relationship between job satisfaction and

turnover is fully mediated by intention to quit; workers who report low job satisfaction

are likely to engage in planned quitting. However, this relationship does not account

for employees who report high job satisfaction, but quit unexpectedly. Although

extrinsic rewards, such as better job offers outside their current organization, may

influence their decisions, employees' personality factors may also impact their

decisions to exit early from otherwise ideal jobs under ideal working conditions.

Recipients often refer to specific events in exit interviews when voluntarily leaving

their current jobs. Minor events with subtle emotional effects also have a cumulative

impact on job satisfaction, particularly when they occur acutely with high frequency.

For example, perceived stressful events at work are often positively associated with

19
high job strain on the day that they occur and negatively associated with strain the day

after, resulting in an accumulation of perceived job-related stress over time. This is

consistent with the general understanding in vocational psychology that job satisfaction

is a distal, long-term outcome that is mediated by perceived job stress.

Herzberg's Theories

An alternative motivation theory to Maslow’s Hierarchy of Needs is the Motivator-

Hygiene (Herzberg’s) theory. The theories have overlap, but the fundamental nature of

each model differs. While Maslow’s Hierarchy implies the addition or removal of the

same need stimuli will enhance or detract from the employee’s satisfaction, Herzberg’s

findings indicate that factors garnering job satisfaction are separate from factors

leading to poor job satisfaction and employee turnover. Herzberg’s system of needs is

segmented into motivators and hygiene factors. Like Maslow’s Hierarchy, motivators

are often unexpected bonuses that foster the desire to excel. Hygiene factors include

expected conditions that if missing will create dissatisfaction. Examples of hygiene

factors include bathrooms, lighting, and the appropriate tools for a given job.

Employers must utilize positive reinforcement methods while maintaining expected

hygiene factors to maximize employee satisfaction and retention.

Review of Empirical Studies

This section consists of ideas presented by different scholars in various countries. This

table summarizes the relationship between variables chosen and employee leading to

turnover of employees working in different organizations.

The summary of the previous empirical studies is summarized in table 2.1 as below.

20
Table 2.1

Review of Empirical Evidences

Study Major findings


Significant differences were found in the reasons given for
Jason H. Hammerberg(2002) termination based on employment status and length of employment
in a chain of fifty-three departmental stores.
Explored the employee of turnover of the sewing machine
D M LIYANAGE and B L operators (SMOs) in apparel industry.
GALHENA(2011) Turnover is significantly and negatively correlated with job
satisfaction and organizational commitment.
Established the employee of employee turnover in Kerio Valley
Development Authority (KVDA) and explored the possible
remedies to the prevailing problem of high turnover rates in KVDA.
Micah Onyiego Nyakego(2014) Poor compensation structures, lack of Human Resource Career
Development Policies and low job satisfaction were the key factors
contributed to employee turnover at KVDA.
Found the relationship between job satisfaction, and turnover of
cabin crew of PIA Peshawar base. . The results of the study
Qadar Bakhsh ,Baloch Gohar, indicated that independent variables had varying relationship with
and Zaman Janat Jamshed(2014) the dependent variables.
A case study design of Kibaha district council and a sample size of
employees was drawn using purposive and random sampling
George Mrope and Yustin I. techniques.
Bangi(2014) Result from the study shows that cuts of incentives, allowances and
premiums are management practices leading to employee turnover.

Jason H. Hammerberg (2002) examined 1190 employee exit interviews from a chain of

fifty-three department stores to analyze the reasons given for leaving the organization.

The 41 different reasons for leaving the organization were organized into categories

based on similarities found. Significant differences were found in the reasons given for

termination based on employment status and length of employment. Full time and part

time employees most often left due to job-related reasons. Hourly employees most

often left due to non-job related reasons. Exiting employees who had worked in the

department store three months or less most frequently left without notice (27.8%),

21
while exiting employees who had worked 12 months or most frequently left due to job-

related reasons.

D M LIYANAGE and B L GALHENA (2011) explore the employee of turnover of the

sewing machine operators (SMOs) in apparel industry. The paper aims to identify the

impact of SMOs’ turnover on job satisfaction & employee turnoverand coping

strategies for retention of SMOs. The study used survey method where data were

collected through self-administered structured questionnaire from sample of 200 SMOs

employed in a leading garment factory in Sri Lanka. Factors analysis extracted two

components of employee of the turnover: controllable and uncontrollable factors.

Results revealed that the residency, civil status, recognition, work load, social image,

job alternatives and work life balance is the significant predictors of the SMOs’

turnover. Turnover is significantly and negatively correlated with job satisfaction and

organizational commitment. Sample t-test found a significant difference between the

civil status and residency with the turnover.

This study was done by Micah Onyiego Nyakego (2014) to establish the employee of

employee turnover in Kerio Valley Development Authority (KVDA) and to explore the

possible remedies to the prevailing problem of high turnover rates in KVDA. Equity

theory by John Stacy Adams which advocates that individuals will be better motivated

if they are treated equitably and demoted if they are treated inequitably was used. The

study adopted descriptive research design to generate data from the respondents of the

study. A sample size of 120 employees was selected from the targeted population of

600 employees using the stratified random sampling method. Questionnaires, interview

schedules and observation checklists were used to collect data for this study. The

collected data was subjected to methods of qualitative and quantitative analysis. From

the study findings, poor compensation structures, lack of

22
Human Resource Career Development Policies and low job satisfaction were the key

factors that contributed to employee turnover at KVDA. The study therefore,

recommends that the organization needs to review its compensation structure,

formulate and implement Human Resource Career Development Policies and put

strategies in place to enhance employee job satisfaction.

The present study was designed by Qadar Bakhsh, Baloch Gohar and Zaman Janat

Jamshed (2014) to find the relationship between job satisfaction, and turnover of cabin

crew of PIA Peshawar base. The target population of this study was the cabin crew of

PIA Peshawar base, including both the male and female employees. The strength of

total cabin crew at Peshawar base is 176. For the purpose of the present study a sample

size of 132 employees was take non random basis. The sample comprised male and

female respondents in the ratio of 75% of both genders. The study was conducted

through a self-administered questionnaire. The results of the study indicated that

independent variables had varying relationship with the dependent variables.

George Mrope and Yustin I. Bangi(2014)uses a case study design of Kibaha district

council and a sample size of 96 employees was drawn using purposive and random

sampling techniques. Quantitative data was collected through questionnaires are

summarized in tables and pie charts and analyzed. Result from the study shows that

cuts of incentives, allowances and premiums are management practices leading to

employee turnover. However, the study observed that employees’ pain resulting from

several unpleasant management practices make them to have negative attitudes towards

management practices. The execution of inclusive management style will work better

than autocratic approaches, and lead to employees’ positive attitude towards

management.

23
Theoretical Framework

Fig 2.1

Theoretical Framework of the Study

Job satisfaction

Career
Commitment Employee
Turnover
Job Stress

Government
Organizational Private
Commitment

From the above theoretical framework, we can conclude that there exists relationship

between dependent variable: employee turnover and independent variables: job

satisfaction, career commitment, job stress and organizational commitment. Employee

turnover is negatively related with job satisfaction, career commitment and employee

turnoverand positively related with job stress.

24
Hypotheses of the Study

H01: There is no significant relation between employee turnoverandemployee

turnover.

H02: There is no significant relation between career commitment and employee

turnover.

H03: There is no significant relation between job satisfaction and employee turnover.

H04: There is no significant relation between job stress and employee turnover.

H05: There is no significant impact of organizational commitment on employee

turnover.

H06: There is no significant impact of career commitment on employee turnover.

H07: There is no significant impact of job satisfaction on employee turnover.

H08: There is no significant impact of job stress on employee turnover.

H09: There is no significant difference in employee turnoveracross maleand

female.

H010: There is no significant difference in career commitment across male and

female.

H011: There is no significant difference in job satisfaction across male and female.

H012: There is no significant difference in job stress across g male and female.

H013: There is no significant difference in employee turnover across male and female.

25
CHAPTER III

RESEARCH METHODOLOGY

This chapter has been divided into five sections. First section deals with the brief

description of research design, while second section describes selection of sample and

the nature and sources of data. Section three explains the method of analysis employed

in interpretation of data. Subsequently, fourth section has been devoted to the

hypotheses development and finally fifth section deals with the limitations of the study.

Research Design

The research design adopted in this study consists of descriptive, correlational and

causal comparative research designs to deal with the various issues raised in this study.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The

major purpose of descriptive research is description of the state of affairs as it exists at

present. It is undertaken in order to ascertain and be able to describe the characteristics

of the variables of interest. The descriptive research design is selected for the study to

learn the factors responsible for employees’ turnover in government and private

organizations.

A correlational study is a quantitative method of research in which we have two or

more quantitative variables from the same group of subjects and we are trying to

determine if there is a relationship between the variables. The whole purpose of using

correlations in research is to figure out which variables are connected. The goal of

correlational research is to identify predictive relationships by using correlations or

more sophisticated statistical techniques.

26
The causal comparative research design is selected for the study to examine the

relationship between the dependent variable and the independent variables under this

study. The causal-comparative research investigates the possible causes affecting a

particular situation by observing existing consequences and searching for the possible

factors leading to the results. This research is also known as “ex post facto” or “after

the fact” research (i.e. data are collected after all the events of interest occurred). This

is because both the effect and alleged causes have already occurred. In other words,

causal-comparative research is that research in which the independent variable or

variables have already occurred and in which researcher starts with the observation of

the dependent variable or variables. Then, analyze the independent variables in

retrospect for their possible relations to, and effect on the dependent variable or

variables. This research design is selected for the study to examine the relationship

between the dependent variable and the independent variables.

Sample of the Study

Sources of Data

Definition of Variables

Job Stress: According to Spector (2003), job stress can be defined as the harmful

physical and emotional responses that occur when the requirements of the job do not

match the capabilities, resources or needs of the worker. Job stress can lead to poor

health and even injury. Job stress often stems from unexpected responsibilities and

pressures that do not align with a person’s knowledge, skills or expectations inhibiting

one’s ability to cope. Job stress can increase when workers do not fell supported by

supervisors or colleagues or feel as they have little control over work processes.

27
Career Commitment: The term “career” is more broadly applied and is commonly

considered to be the lifelong sequence of role-related experiences of individuals. In

general, career commitment is the development of personal career goals and

identification with and involvement in those goals .Career commitment may be defined

as one’s attitude towards one’s profession or vocation. Career commitment is

characterized by strong sense of identification, persuasion, development and active

involvement in individual career goals. According to Carson and Bedeian (1994),

“Career commitment can be defined as the motivation to work in a chosen vocation.”

Organizational Commitment: Employee turnoveris the individual’s psychological

attachment to the organization. The basis behind many of these studies was to find

ways to improve how workers feel about their jobs so that these workers would

become more committed to their organization. Employee turnoveris the feeling of

responsibility that a person has towards the mission and goals of an organization. When

an individual has employee turnoverhe or she is more likely to perform tasks and

responsibilities that will help an organization achieve a goal. Porter et. al. (1974)

describes employee turnoveras “an attachment to the organization, characterized by an

intention to remain in it; an identification with the values and goals of the organization;

and a willingness to exert extra effort on its behalf.”

Job Satisfaction: Job satisfaction is the level of contentment employees feel about

their work, which can affect performance. It is a pleasurable or positive emotional state

resulting from the appraisal of one's job or job experiences. One of the most widely

used definition in organizational research is that of Locke (1976), who defines job

28
satisfaction as a pleasurable or positive emotional state resulting from the appraisal of

one’s job or job experiences.

Methods of Analysis

Data analysis is a process for obtaining raw data and converting it into information

useful for decision making in research. For analyzing the data in our research, the

various statistical tools used are mean, median, mode, standard deviation, variance,

range, correlation and regression.

29
CHAPTER IV

PRESENTATION AND ANALYSIS OF DATA

Since this study aims to explain the employee of employee turnover in government and

private organization. It employs the various econometric and statistical tools and

techniques. For this purpose, required secondary and primary data was collected and

analyzed in systematic way so as to derive the empirical findings and compare the

hypothesis on employee turnover and determine the employee of employee turnover.

This chapter includes the presentation and analysis of these data. To make this study

more systematic, this chapter has been divided into three sections: first section includes

the relationship between firm investment and financial status along with presentation

and analysis of secondary data; second section contains presentation and analysis of

primary data; and the third section includes the concluding remarks on the findings.

Analysis of Primary Data

This section includes the empirical investigation which was conducted in the form of

Field Survey of respondents through structured questionnaire distributed to the samples

selected by using non probabilistic procedures. Questionnaire was developed and

distributed to 109 sample respondents to get their opinions with respect to major

factors influencing employee turnover in organization. All the respondents were

inquired in advance about their interest in participating in the survey. However, due to

the busy schedule, only 75 participants actively participated in the survey with the

response rate of 68.80 Per Cent. The responses received from these respondents have

been arranged, tabulated and analyzed in order to facilitate the descriptive analysis of

the study. This chapter is all about the empirical investigation during the study.

30
In the survey questionnaire, the respondents were requested to response in five ways:

Yes or No option, ranking option, expressing view option and likert scale option. In

order to collect the perceived importance of employee, 5-point Likert scale has been

used, where five being the most important (strongly agree) and one being the least

important (strongly disagree). For analysis purpose of ranking question,

options/choices were assigned weights according to the number of alternatives. If the

number of alternatives were five, the first preferred choice would get one point and the

least preferred choice would get five points. Any alternative, which was not ranked or

left to rank, did not get any point. The total points available to each choice were

converted into percentages with reference to the total points available for all choices.

The choice with the lowest mean score is ranked as the most important choice and the

one with the highest mean score is ranked as the least important. The sample of

questionnaire is presented in Annexure A.

Respondent’s Profile

The Table 4.1 displays the respondents profile from those participated in the

questionnaire survey on the strata of age, gender and the sector they belong to.

Questionnaire was developed and distributed to 75 sample respondents to get their

opinions with respect to major Employee of Employee’s Turnover in Organization. All

the respondents were inquired in advance about their interest in participating in the

survey at the time of collecting annual reports from respective organization. Out of 109

questionnaires distributed to selected samples, only 75 responses were received

representing 68.80 Per Cent in total. Individually, minority of these respondents (1.33

Per Cent) were of Below 20, 44 Per Cent were of 20-30, 24 Per Cent were of 30-40,

17.33 Per Cent were of 31-40 and 13.33 Per Cent were of above 50.

31
Table 4.1

Respondent’s Profile

Panel A: Age of the Respondents


Age Frequency Per Cent Cumulative Per Cent
Below 20 1 1.33 1.33
20-30 33 44 45.33
31-40 18 24 69.33
41-50 13 17.33 86.67
Above 50 10 13.33 100
Total 75 100
Panel B: Gender of the Respondents
Gender Frequency Per Cent Cumulative Per Cent
Male 46 61.33 61.33
Female 29 38.67 100
Total 75 100
Panel C: Sector of the Respondents
Sector Frequency Per Cent Cumulative Per Cent
Government 35 46.67 46.67
Private 40 53.33 100
Total 75 100

As in evident from the table, majority of these respondents (61.33 Per Cent) were male

and 38.67 Per Cent were female respondents.

In terms of respondents working in certain sector, 46.67 Per Cent were from

government organization and 53.33 Per Cent respondents were from private

organization.

Table 4.2

Opinion on Priority of Most Important Decision for Firms

Theoretically, different study revealed that the major factors affecting employee
turnover in organization are organizational disaffection, job stress, job dissatisfaction
and career dis affection. The results of ranking these three reasons according to their
priority are presented in Table 4.2.
Reasons for employee Rank1 Rank2 Rank3 Rank4 Total Weighted Mean Rank
turnover No. % No. % No. % No. % responses value weight
Organizational disaffection 14 18.67 18 24 21 28 22 29.33 75 201 2.68 3
Job stress 11 14.67 22 29.33 21 28 21 28 75 202 2.69 4
Job dissatisfaction 26 34.67 26 34.67 15 20 8 10.67 75 155 2.06 1
Career disaffection 24 32 9 12 18 24 24 32 75 192 2.56 2

32
The survey questionnaire tried to capture the preferences and views of employees of

different organization whether they consider these three decisions to prefer one more

important over others. The respondents were asked to rank three different important

reasons for the firms on a scale of one (most important) to four (least important).

Majority of respondents rated Job Dissatisfaction as the most important for the firms

with weighted mean rank value of 2.06, whereas career disaffection is ranked two with

weighted mean rank value of 2.56, organizational disaffection is ranked three with

weighted mean rank value of 2.68 and Job Stress is least important decision among

four alternatives of determining factors for the government and private organizations

with weighted mean rank value of 2.69.

Table 4.3

Reasons for Employee Turnover

This table summarizes the information about why employees are willing to leave the
organization due to different reasons: organizational commitment, career commitment,
job satisfaction and job stress. On this regard the respondents were asked to respond
yes or no for the following questions. The responses of the respondents are tabulated in
Table-4.3.
Questions No. %
Do you think employee turnoverhelps in reducing employee’s turnover?
Yes 66 88
No 9 12
Total 75 100
Do you think job stress is a major reason for employee’s turnover?
Yes 53 70.67
No 22 29.33
Total 75 100
Do you think job satisfaction is the major reason for decreasing employee’s turnover?
Yes 64 85.33
No 11 14.67
Total 75 100
Do you think career commitment leads to reduction of employee’s turnover?
Yes 64 85.33
No 11 14.67
Total 75 100

33
As evident from the table, majority of the respondents i.e. 88 Per Cent agree that

employee turnoverhelps in reducing employee’s turnover and 70.67 Per Cent believes

that job stress is the main cause of employee’s turnover. The majority of respondents

responded “yes” (85.33 Per Cent) stating that job satisfaction is the major reason for

decreasing employee’s turnover. 85.33 Per Cent of the respondents agree that career

commitment leads to the reduction of employee’s turnover.

Table 4.4

Major Decision for Turnover

This table 4.4 presents how many respondents choose the one of the reasons for leaving their

past jobs. They gave their core cause to leave the past jobs.

Major Reason Frequency % Cumulative Per Cent


Organizational disaffection 3 8.11 8.11
Job stress 4 10.81 18.92
Job dissatisfaction 12 32.43 51.35
Career disaffection 18 48.65 100.00
Total 37 100.00

As per the result of the table, out of 75 samples, only 37 respondents had left their job

and remaining 38 respondents were engaged in single job from the beginning. 8.11 Per

Cent respondents choosed organizational disaffection as the major reason for leaving

previous job and 10.81 Per Cent believed that job stress is the major cause. However,

32.43 Per Cent respondents were in the opinion that job dissatisfaction encouraged

them to leave their past jobs. Further, the table reveals that majority of the respondents

i.e. 48.65 Per Cent presented career disaffection as the ultimate cause for leaving

previous job.

34
Table 4.5

Survey on Career Commitment


Rank Wise No. of Responses Total Weighted Weighted
Statements
1 2 3 4 5 responses value mean
My career is central interest in my life. 5 6 9 15 40 75 304 4.05
Working in my current profession is important to me. 8 2 8 34 23 75 287 3.83
I think my profession is rewarding career to me. 3 7 13 31 21 75 285 3.8
Total weighted mean 11.68
Grand Weighted Mean 3.89

The tabulated responses of respondents in Table 4.5 exhibits that respondents with

weighted mean score of 4.05 strongly agreed that their career is central interest in their

life. As evident from the table, the respondents also perceived that working in their

current profession is important to them and profession is rewarding career to them with

the weighted mean score of 3.83 and 3.80. The grand weighted mean score is 3.89.

Table 4.6

Survey on Job Stress


Rank Wise No. of Responses Total Weighted Weighted
Statements
1 2 3 4 5 responses value mean
I am clear what is expected of me at work. 3 4 17 24 27 75 293 3.91
I am given supportive feedback on the work I do. 1 6 18 33 17 75 284 3.79
My working time can be flexible. 12 18 11 18 16 75 233 3.11
Total weighted mean 10.80
Grand Weighted Mean 3.6

As per the evident in Table 4.6, majority of respondents agreed on the statements that

they are clear what is expected of them at work and they are given supportive feedback

on their work with weighted mean of 3.91 and 3.79. However, the respondents also

agreed on that their working time can be flexible with weighted mean of 3.11. The

grand weighted mean calculated is 3.6.

35
Table 4.7

Survey on Job Satisfaction


Rank Wise No. of Responses Total Weighted Weighted
Statements
1 2 3 4 5 responses value mean
I enjoy my work most days. 2 4 16 34 19 75 289 3.85
I get full credit for the work I do. 1 13 18 23 20 75 273 3.64
I feel the level of responsibility I am given is acceptable. 2 4 11 34 24 75 299 3.99
Total weighted mean 11.48
Grand Weighted Mean 3.83

Further, the Table 4.7 reveals that they enjoy their work most days, they get full credit

for the work they do and they feel responsible for work they are given. They are

supportive on these statements with weighted mean of 3.85, 3.64 and 3.99 respectively.

The grand weighted mean is 3.83.

Table 4.8

Survey on Organizational Commitment


Rank Wise No. of Responses Total Weighted Weighted
Statements
1 2 3 4 5 responses value mean
I feel very loyal to this organization. 2 3 6 32 32 75 314 4.19
I find that my values and organization's value are very similar. 5 5 26 23 16 75 265 3.53
I am proud to tell others that I am part of this organization. 1 6 8 29 31 75 308 4.11
Total weighted mean 11.83
Grand Weighted Mean 3.94

The tabulated responses of the respondents in Table 4.8 exhibits that they strongly

agree on the statements that they are very loyal to the organization with weighted mean

of 4.19. In addition to that, values of employees and organization’s values are similar

with weighted mean of 3.53 and they are strongly supportive to the statement that they

are proud to tell others that they are part of the organization with weighted mean of

4.11. The grand weighted mean is 3.94.

36
Table 4.9

Survey on Employee Turnover


Rank Wise No. of Total Weight Weight
Statements Responses respons ed ed
1 2 3 4 5 es value mean
Are my wages and benefits competitive and do they meet the needs of a multi- 1 2 2 1
generation workforce? 7 2 1 4 1 75 245 3.27
1 3 1
My relation with colleagues motivates me to continue my job effectively. 2 2 7 6 8 75 291 3.88
There is no discrimination among the employees. 1 1 2 1
8 1 3 5 8 75 259 3.45
Total weighted Mean 10.60
Grand Weighted Mean 3.53

From the Table 4.9, it is found that the respondents agree that their wages and benefits

are competitive and meet the needs of a multi-generation workforce and their relation

with colleagues motivates them to continue their job effectively with weighted mean of

3.27 and 3.88. they feel there is no discrimination among the employees with weighted

mean of 3.45. The grand weighted mean is 3.53.

Correlation Analysis Among the Variables under Study

The table depicts the correlation analysis of the major variables under study. The

correlation analysis is conducted for the whole sample and for the firm classified on the

various classifications with 109 observations.

37
Table 4.10

Pearson’s Correlation Coefficients for all Sample Firms

The table depicts the correlation analysis of the major variables under study. The correlation analysis is
conducted for the whole sample. The sample includes 3 Government firms and 6 private firms. Career
commitment may be defined as one’s attitude towards one’s profession or vocation; Job stress can be
defined as the harmful physical and emotional responses that occur when the requirements of the job do
not match the capabilities, resources or needs of the worker ; Job satisfaction the level of contentment
employees feel about their work which can affect performance; employee turnoveris the individuals
psychological attachment to the organization; Employee turnover is the rotation of workers around the
labor market between firms, jobs and occupations and between the states of employment and
unemployment.
Variables CAREER C JOBSTRESS JOBSATIS ORG_C EMPLOYEE_T
CAREER_C 1
JOBSTRESS .360** 1
(0.002)
JOBSATIS .575** .568** 1
(0.01) (0.01)
ORG_C .465** .491** .511** 1
(0.01) (0.01) (0.01)
EMPLOYEE_T .426** .403** .532** .382** 1
(0.01) (0.01) (0.01) (0.001)

** Correlation is significant at the 0.01 level(2-tailed *. Correlation is significant at the 0.05 level (2-tailed).

Our hypothesis 1 is there is no relationship between job satisfaction and employee

turnover. But in our correlation result it shows positive correlation (the correlation

coefficient is 0.532).Therefore, our hypothesis is rejected and the relationship is found

to be significant at 99% confidence level. Our hypothesis 2 is there is no relationship

between job stress and employee turnover. But in our correlation result it shows

positive correlation (the correlation coefficient is 0.403). Therefore, our hypothesis is

rejected and the relationship is found to be significant at 99% confidence level.

Our hypothesis 3 is there is no relationship between employee turnoverand employee

turnover. But in our correlation result it shows positive correlation (the correlation

coefficient is 0.382). Therefore, our hypothesis is rejected and the relationship is found

to be significant at 99% confidence level. Our hypothesis 4 is there is no

relationship between career commitment and employee turnover. But in our

38
correlation result it shows positive correlation (the correlation coefficient is 0.426).

Therefore, our hypothesis is rejected and the relationship is found to be significant at

99% confidence level.

Table 4.11

Correlation Analysis among Gender

Panel A: Correlation Among Male


Variables CAREER_C JOBSTRESS JOBSATIS ORG_C EMPLOYEE_T
CAREER_C 1
.
JOBSTRESS .358* 1
0.015 .
JOBSATIS .533** .506** 1
0 0 .
ORG_C .452** .476** .472** 1
0.002 0.001 0.001 .
EMPLOYEE_T .364* .388** .543** 0.219 1
0.013 0.008 0 0.144 .
Panel B:Correlation Among Female
Variables CAREER_C JOBSTRESS JOBSATIS ORG_C EMPLOYEE_T
CAREER_C 1
.
JOBSTRESS .381* 1
0.041 . 0
JOBSATIS .670** .660** 1 .560**
0 0 . 0.002
ORG_C .464* .532** .560** 1 .665**
0.011 0.003 0.002 . 0
EMPLOYEE_T .521** .472** .586** .665** 1
0.004 0.01 0.001 0 .
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).

As per the result in table the correlation among female is greater than correlation

among male. The tables show that the effect of career commitment on employee

turnover is found to be more in female (.521) than in male (.364). The influence of job

stress is found to be more in female (0.388) than in male (.472).Females consider job

satisfaction as one of the important determinant of employee turnover with the

correlation result of (.586). Similarly, the female are influenced by employee turnover

more than male which is shown by the correlation result (.665).

39
Table 4.12

Regression Analysis
Model Constant CAREER_C JOBSTRESS JOBSATIS ORG_C R SQUARE
2.42 0.286**
1 0.119
(0.001) (0.002)
1.991 0.428**
2 0.178
(0.001) (0.001)
1.582 0.51**
3 0.275
(0.001) (0.001)
1.988 0.392**
4 0.149
(0.001) (0.001)
1.076 0.018 0.168 0.355 0.108
5 0.31
(0.026) (0.871) (0.182) (0.01) (0.421)

In Model 1, when introducing Career Commitment as the variable and by controlling

Job Stress, Job Satisfaction and Organizational Commitment, the impact is observed to

be positive with the coefficient value of 0.286 and significant at 99 Per Cent

confidence interval with explaining power of 11.9 Per Cent. Similarly in Model 2, after

controlling Career Commitment, Job Satisfaction and Organizational Commitment, the

impact of Job Stress on Employee Turnover is observer to be positive with the

coefficient of 0.428 significant at 99 Per Cent confidence level with RSQUARE value

of 0.178.

In Model 3, after controlling Career Commitment, Job Stress and Organizational

Commitment, the impact of Job Satisfaction is observed to be positive and significant

with the coefficient of 0.51 and RSQUARE value of 0.275. Model 4 presents the

impact of Employee turnoveron Employee Turnover is 0.392 and significant after

introducing all variables under study.

40
Table 4.13

Independent Sample t-test across Male and Female


Variable Groups N Mean Std. Deviation Std. Error Mean
MALE 46 3.8265 1.03757 0.15298
CAREER_C
FEMALE 29 3.9886 0.87973 0.16336
P Value=0.471
MALE 46 3.5291 0.79117 0.11665
JOBSTRESS
FEMALE 29 3.7131 0.80996 0.15041
P Value=0.338
MALE 46 3.7026 0.86136 0.127
JOBSATIS
FEMALE 29 4.0231 0.76117 0.14134
P Value=0.096
MALE 46 3.8263 0.85122 0.12551
ORG_C
FEMALE 29 4.1266 0.67578 0.12549
P Value=0.095
MALE 46 3.5578 0.84004 0.12386
EMPLOYEE_T
FEMALE 29 3.4948 0.77438 0.1438
P Value=0.741

The table reveals that there is no significant difference in career commitment across

male and female employees. Since p value is 0.471 i.e. greater than 0.05. As per the

evident in table, there is no significant difference in job stress across male and female

employees as the p value calculated is 0.338 i.e. greater than 0.05. there is also no

significant difference in job satisfaction and employee turnoveracross male and female

as the p values are 0.096 and 0.095 respectively. Furthermore, there is no significant

difference in employee turnover across male and female as the p value is 0.741.

41
CHAPTER V

SUMMARY, CONCLUSION AND DISCUSSION

Summary

In many countries employee turnover is giving sleepless nights to human resource

managers. A widespread belief in many countries is that due to lack of manpower

employees have developed bad behaviors. Unfortunately, despite the turnover of

employees is such a serious problem around the world, there are many studies to

investigate this, but the employee turnover has not decreased..

Employee turnover rates are considered to be one of the persistent problems in

organizations (Armstrong, 2009). Pine (2000) has observed that “The most serious

issue for employees today in all industries is hiring and keeping qualified and capable

employees”. The employees are crucial to the organization since their value to the

organization is essentially intangible and not easily replicated (Meaghan &

Nick,2002).Thus managers must recognize that employees are major contributors to the

efficient achievement of the organizations’ success (Abbasi&Hollman,2000).Managers

in organizations should control employee turnover for the benefit of the organizations’

success.

The study on this regard attempted to explain and analyze the employee of employee’s

turnover in government and private firms in Nepalese context with special emphasis on

several specific factors. The main objective of this research is to know about the factors

that affect the turnover of employees from organization and how the organization is

affected by employee’s behavior. The study is based on two types of data. The

secondary data consists of 109 observations from government and private

42
organizations. The research design adopted in this study consists of descriptive,

correlational and causal comparative research designs to deal with the various issues

raised in this study.

The major findings of the study are summarized as follows:

1. There is positive correlation between employee turnoverand employee

turnover as the correlation coefficient is found to be 0.532.

2. There is positive significant relationship between career commitment

and employee turnover as the correlation coefficient is found to be

0.426.

3. The relationship between job satisfaction and employee turnover is

found to be positive and significant i.e. 0.532. Sometimes even the

employees are satisfied in their workplace, due to other factors, they

leave their job.

4. There is positive correlation (0.403) between job stress and employee

turnover. When employee faces stress mentally and physically in their

job, they tend to leave the organization.

5. There is less impact of employee turnoveron employee turnover across

male and female employees. As per the research result, we concluded

that employee turnoverdo not importantly affect on the employees’

willingness to leave the job with regression coefficient of 0.392 and

explaining power 14.9 Per Cent.

6. The impact of career commitment on employee turnover is found to be

positive with regression coefficient of 0.286 and explaining power of

11.9 Per Cent.

43
7. The impact of job satisfaction on employee turnover is low across male

and female. Employees, both male and female tend to observe more

opportunities. Therefore, the role of job satisfaction is found to be

comparatively low.

8. There is less impact of job stress on employee turnover. As per our

result, even the employees are pressurized in their job, there is more

chances of employees to remain consistent with their job because of

growing competitive working environment.

9. There is insignificant difference in employee turnoveracross male and

female. Employee turnoverhave impact on male and female employees

in the same ratio regarding their job performance.

10. There is insignificant difference in career commitment across male and

female. Male and female employees both are devoted to their career and

as per our study it is found that career commitment leaves equal impact

on both of them.

11. There is insignificant difference in job satisfaction across male and

female. Both male and female seeks satisfaction in their workplace in

terms of salary, working condition, personal relation and so on.

Therefore, they want to be satisfied equally.

12. There is insignificant difference in job stress across male and female.

Stress occurred in the organization leaves equal pressure on the male

and female employees.

13. There is less difference in organizational commitment, career

commitment, job satisfaction and job stress on employee turnover. From

our research conclusion, all these independent variables have adverse

effect on employee turnover.

44
Conclusion

Based on the data analysis, by estimating employee turnover in government and private

organizations and then examining the employee of employee turnover on a

comprehensive set of characteristics and different behaviors of employees working in

organization and the whole sample under study. The findings indicate that employees

working in different sector of organization i.e. government and private are significantly

different from each other and are influenced by factors at different level. In particular,

government sector’s employees have highest level of job satisfaction, organizational

commitment, career commitment and job stress. Private sector’s employees have the

highest levels of job satisfaction and the lowest organizational commitment.

Job satisfaction is the level of contentment employees feel about their work, which can

affect performance. According to our study, there is higher correlation between job

satisfaction and employee turnover i.e. (0.532) at 99% confidence level. Similarly,

there is higher impact of job satisfaction on employee turnover i.e. (0.168).

Discussion

The data result is found to be in line with the findings of Spector (2003), who provided

alternative explanation and suggest that work stress is associated with various effects such as

decreased productivity, absenteeism and ultimately employee turnover. Our result also

concluded that there is positive relationship between job stress and employee turnover. If there

is greater job stress to the employees, then they tend to leave their job and employee turnover

increases.

The positive and significant correlation between employee turnoverand employee

turnover for all samples suggests that Nepalese employees feel that even though they

are committed to the organization they tend to leave their job. The result is
45
inconsistent with the findings of Cohen (1993) and Steers et. al. 1982 which states that

highly committed employees wish to remain with their employing organizations.

The positive and significant correlation (0.532) between job satisfaction and employee

turnover reveals that the satisfied employees are also prone to turnover their job. The

result is inconsistent with the findings of Hom and Griffeth (1995); Griffeth et.al.

(2000) stating that job satisfaction play only a relatively small role in employee

turnover.

Findings of this study revealed that there is positive relationship between career

commitment and employee turnover i.e. (0.526). Career commitment is characterized

by strong sense of identification, persuasion, development and active involvement in

individual career goals. The result is inconsistent with the findings of Blau (1985)

stating that career commitment has indirect relationship with employee turnover.

46
REFERENCES

Abbasi, S. & Hollman, K. (2000). “Turnover: The Real Bottom line”. Public Personnel
Management.

Armstrong, M. (2009). “Armstrong’s handbook of human resource Management


practice.”

Bakhsh, Q., Gohar, B. & Jamshed, Z. J. (2014). “Employee of Job satisfaction and
Employees Turnover Intentions.” Abasyn Journal of Social Sciences

Barney, J. & Wright, M., (1997). “On Becoming a Strategic Partner: The Role of
Human Resources in Gaining Competitive Advantage”. Center for Advance
Human Resource Studies, Cornel lves Hall, Ithaca, USA.

Barney, J. B. (1991). “Firm Resources and Sustained Competitive Advantage”.


Journal of Management.

Bartol, K. (1979). “Professionalism as a predict of organizational commitment, roles


stress and turnover: A multidimensional approach”. Academy of Management
Journal.

Blau, F. D., & DeVaro, J. (2007). “New evidence on gender differences in promotion
rates: An empirical analysis of a sample of new hires”. Industrial Relations: A
Journal of Economy.

Blau, G. J. (1985). “The measurement and prediction of career commitment”. The


British Psychological Society.

Boxx, W. R., Odom, R. Y., & Dunn, M. G. (1991). “Organizational values and value
congruency and their impact on satisfaction, commitment, and cohesion.”
Public Personnel Management.

Cohen, A. (1993). “Employee turnoverand Turnover". A Meta-analysis Academy of


Management Journal.

Cotton, J. L., & Tuttle, J. M. (1986). “Employee turnover: A meta-analysis and review
with implications for research”. Academy of Management Review.
Diener, E. and Fujita, F. (1997). “Social comparisons & subjective well being.”

Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). “A study of its causes and effects
to different industries in Pakistan."

Hammerberg, J.H. (2002). “ Reasons given for Employee Turnover in a full Priced
Department Store”

Harman, W. S., Lee, T. W., Mitchell, T. R., Felps, W. & Owens, B. P. (2007). ”The
Psychology of Voluntary employee Turnover”. Current Directions of
Psychological Science.

Khatri, N., Fern, C.T., Budhwar, P. (2001). “Explaining Employee Turnover in an


Asian Context”. Human Resource Management Journal.

Kimathi, J. N. (2000). “Employee Attitude Towards Promotion on Merit: A case study


of Kenya College of Communication Technology (KCCT).”

LIYANAGE, D.M. & GALHENA, B.L. (2011). “Employee of Turnover Intentionof


Sewing Machine Operators: Case from leading Apparel Company.”

Locke, E.A. (1976). “The Nature and causes of job satisfaction.”

Mathis, R.L., & Jackson, J.H. (2006). “Human Resource Management- Friend or Foe?”
Journal of Intellect.

Maxwell, G. & Steele, G. (2003). “Organizational commitment: A case study of


managers in Hotels”. International Journal of Contemporary Hospitality
Management.

Meaghan S. & Nick B. (2002).” Voluntary Turnover: Knowledge Management-friend


or Foe?”. Journal of Intellect.

Meyer, J.P. and Allen N.J. (1991).“A three-component conceptualization of


organizational commitment”. Human Resource Management Review.

Minja, U.S.(2011). “Factors influencing labour turnover in private sector organization


in Tanzania : The case study of the chamber of the commerce, industry and
agriculture.”
Mitchell, T.R., Holtom, B.C., Lee, T.W., Sablynski, C.J., and Erez, M. (2001). “Why
People Stay, Using Job Embeddedness to Predict Voluntary Turnover”.
Academy of Management Journal.

Mrope, G. & Bangi, Y.I. (2014). “Examining the Influence of Management Practice
and Attitudes on Employee Turnover: A Case of Kibaha District Council.” The
International Journal Of Business & Management.

Nyakego, M.O. (2014). “Employee of Employee Turnover in Kerio Valley


Development Authority in Kenya.” Research on Humanities and Social
Sciences.

Pine, B. (2000).”Lending a Hand, Restaurants USA.”

Porter et. al. (1974). “Organizational Commitment, job satisfaction, and turnover
among psychiatric technicians.” Journal of Applied Psychology.

Porter, L., Steers, R., Mowday, R., & Boulian, P. (1974). “Organizational commitment,
job satisfaction, and turnover among psychiatric technicians”. Journal of
Applied Psychology.

Price, J. L., (1977). “The Study of Turnover”. Iowa State University Press.

Rizwan. M., Shahid , M., Shafiq, H., Tabassum, S., Bari, R. & Umer, J. (2013).”Impact
of Psychological Factors on Employee Turnover Intentions”. International
Journal of Research in Commerce, Economics and Management.

Shamsuzzoha, A.H.M. & Md Rezaul Hasan Shumon (2007). “Employee Turnover – A


study of its causes and effects to its different industries in Bangladesh.”

Spector, P.E. (2003). “Individual differences in health and well-being in


organizations.”

Tett, R.P., & Meyer, J.P. (1993). “Job satisfaction, organizational commitment,
turnover intention, and turnover: Path analyses based on meta-analytic
findings”. Personnel Psychology.
Trevor, C. (2001). “Interactive Effects among Actual Ease of Movement Employee and
Job Satisfaction in the Prediction of Voluntary Turnover”. Academy of
Management Journal.

Van Breukelen, W., Vander Vlist, R., and Steensma, H. (2004).“Voluntary Employee
Turnover: Combining Variables for the Traditional Turnover Literature with the
Theory of Planned Behavior”. Journal of Organizational Behavior.

Weiner’s, M. (2005). “An attributional approach: Social Motivation, Justice and the
Moral."

You might also like