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DECLARATION
I, Mansi Mehta, PRN No. 8022053473, student of Faculty of Management Studies hereby
declare that I have successfully completed this project on “Organizational Commitment and
Its Impact On The Turnover Intentions Among The Private Bank Employees” in the academic
year 2022-24.
I declare that this submitted work is done by me and to the best of my knowledge; no
such work has been submitted by any other person for the award of degree or diploma.
I also declare that all the information collected from various secondary and primary
sources hasbeen duly acknowledged in this project report.
Mansi Mehta
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ACKNOWLEDGEMENT
Firstly, I am thankful to Prof. Dr. Sunita Sharma (I/c Dean, Faculty of Management Studies)
for bestowing me with this wonderful opportunity to understand this practical subject as a
part of the academic curriculum.
I would like to thank Dr. Sunita Sharma and also Asst. Prof. (Ms.) Smita. M. Trivedi for the
time they took out and the efforts they put into my learning and growth & for rendering
constructive & valuable suggestion & comments that have helped a lot in improving the
quality & context of the project & also helped me complete the project in limited time frame.
Gratified towards all those who spent their valuable time to participate in this research and
helped me in my journey of contemporary issue project completion.
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TABLE OF CONTENTS
1. Abstract 5
2. Introduction 6
3. Review of Literature 7
4. Purpose of Study 10
5. Objectives 11
6. Research Methodology 12
7. Data Analysis 15
8. Findings 30
9. Recommendations 32
10. Reference 32
11. Annexure 33
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ABSTRACT
In the FY 2022-23 and 2023-24, the turnover rate of the employees in the banking sector in
India had augmented and attend a critical level, particularly the private sector banks. This
study examines how organizational commitment influences the turnover intent of the
employees in Private sector banks. The tri-dimensional model of Meyer and Allen is used to
evaluate organizational commitment. In addition, Turnover Intention Scale-6 is used to
examine employee intents to leave the firm. This work reports on a quantitative study of the
Private bank employees. Data from 97 respondents are collected using questionnaire. Data
collected are analysed using both descriptive and inferential statistical techniques with
SPSS version 29 and Microsoft Excel. The results shows a significant impact of two
components of Organizational Commitment on the Turnover Intention. The relationships are
statistically significant except the one between turnover intention and continuance
commitment which is statistically insignificant.
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INTRODUCTION
This study is anchored on Miller and Allen’s (1984; 1991) multidimensional theory of
organizational behavior, which addressed the drawback of earlier theories of commitment.
The theory posits that commitment is made up of affective, continuance and normative
commitments. Affective commitment is the employee’s positive emotions of identifying with
the organization; continuance commitment is the employee’s desire to continue to be a
member of on organization due to costs associated with leaving; and normative commitment
is the employee’s desire to remain a member of an organization because of a feeling of
obligation (debt owed the organization).
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LITERATURE REVIEW
The objective of this study is to examine the effect of the work-family conflict and job
satisfaction on the organizational commitment of the women bank employees in Padang. The
research population was all women employees from selected 7 conventional banks in Padang
with a total of 378 employees. The sampling technique used in this study was purposive
sampling, employing 100 employees as the sample. The data used in this research is the
primary data. The technique used for data analysis is multiple regression analysis support with
SPSS Software version 16. Based on the results of data processing, it is concluded that: 1)
work-family conflict has no significant effect on the organizational commitment of women
bank employees in Padang. Job satisfaction has a positive and significant effect on the
organizational commitment of women bank employees in Padang.
2. Nida Shahid et al. (2020), Organizational commitment and its impact on the turn over
Intentions among employees, Journal of Pakistan Psychiatric Society, VOLUME 17, Accepted:
April 13, 2020.
Study was aimed to find out association of overall commitments and its three types (affective,
Normative, Continuous) with turnover intention. Moreover, based on correlation of such
variables, the impact of commitment on turn over intention was also measured among
doctors and university teachers of Peshawar. Alpha coefficient reliability of commitment scale
was 0.789 and of turn over scale was 0.604 which indicated that both the scales ware
internally consistent and reliable for the study. Study sample comprised more of male
participants than females representing heterogeneity. However, equal portion of doctors and
teachers was selected. A statistically significant correlation was found between commitment
and turnover intention (r= -.62). Overall commitment as well as all its components showed
negative relationship with turnover which suggests increase in commitment will decrease
employee's turnover intention.
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Organisational Commitment has become important for the commercial organisations due to
progressions in technology increase in the level of competition globally and rapid growth of
services sector in about all parts of the world. In every service sector organisation, the
employee plays an important role to accomplish the tasks, objectives, and targets to achieve
persistence in the globally competitive world. Thus, it becomes essential for the organisations
that their employees become committed and stay in the organisation. Organisational
commitment is defined as a warm desire to remain an employee of a particular organisation
and trust in, and accept the measures and objectives of his/her organisation. Organisational
commitment constitutes employees’ positive attitude towards their organisation and
committed employees has a substantial impact on improvement in the performance of their
organisation. The present study has been done to compare the organisational commitment
of male & female employees and married & single employees working in commercial banks.
A sample of employees working in public sector banks and private sector banks in Haryana
has been chosen for the present study. Stratified Random Sampling was used for this study.
The findings of the study suggested that the banking organisations should adopt the strategies
to improve the Organisational Commitment for the single employees so that they get more
motivated and attached to their organisation.
Employees are viewed as becoming committed to a particular course of action, rather than
to a particular entity; commitment is developed retrospectively. Price defined turnover as the
degree of individual movement across the membership boundary of a social system.
Coimbatore is an industrial hub, a Detroit of the great country of India. The enterprising thirst
has never seen a dip in the scale. The pump manufacturing industry in Coimbatore holds a
major portion of the total Indian market share. To understand the real situation in the pump
manufacturing companies based on the employees experience, whether the company takes
initiative to properly recognize and promote the employees with respective designation and
also is there any significant raise in their salary as per market situation that can adequately
fullfil their livelihood. The aim is to study the relationship between organizational
commitment and intentions among employees of select pump manufacturing companies in
Coimbatore. Both primary and secondary and data are used for data collection. From the total
population 135 respondents are randomly selected for the study adopting simple random
sampling method. Statistical tools such as percentage analysis, descriptive statistics, and
correlation and regression analysis are used. It is clear that there is a significant low
correlation between organisational commitment and turnover intentions. Regression results
show the relationship between organizational commitment and turnover intentions is
statistically significant. It is suggested that the organization shall adequately increase the
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feeling of obligation and commitment to repay to the organization to show-up their loyalty
towards the company.
The work overload is often considered as the most critical factor which effects the employees’
commitment and turnover intention toward organization, therefore, the current study aims
to evaluate effects of Work Overload (WO) on Organizational Commitment (OC) and Turnover
Intentions (TOI) of employees. The data was collected from 296 employees of selected banks.
The data was assessed through Pearson Correlation and Regression equation. It was found
that work overload negatively influenced organizational commitment while positively affects
employees’ turnover intentions. The findings of this study can help the decision makers to
effectively manage employees’ workload and to improve organizational commitment and
reduce employees’ turnover intentions. Such type of behavioral outcomes has the potential
to augment organizational performance.
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PURPOSE OF THE STUDY
The purpose of the study titled "Organizational Commitment and its Impact on the
Turnover Intention among the Private Bank employees" is to investigate the factors
contributing to the high employee turnover rates observed in the banking sector,
particularly in Vadodara, Gujarat, India.
This study aims to explore the relationship between organizational commitment and
turnover intention among banking sector employees, with a focus on understanding
how different dimensions of organizational commitment influence employees'
intentions to leave their current jobs.
Indian banks, especially those in the private sector, are seeing a significant number of
employees quitting.
Most of the attrition they saw was a result of voluntary resignations. HDFC Bank,
India’s largest private lender, saw its employee turnover rate over the last year rise to
34%, while Axis Bank was at nearly 35%. , Kotak Mahindra Bank 46%, Yes Bank 43%,
ICICI Bank 30.9%, and IndusInd Bank approximately 51%.
Given the alarming turnover rates reported by major banks such as HDFC Bank, Axis
Bank, Kotak Mahindra Bank, Yes Bank, ICICI Bank, and IndusInd Bank, it is crucial to
delve deeper into the underlying reasons behind these voluntary resignations.
Furthermore, with the evolving expectations of young employees, particularly
millennials and Gen Z, who prioritize flexibility and work-life balance, it is essential to
assess how organizational commitment impacts their decision to stay or leave their
current roles.
Ultimately, the findings of this study will provide valuable insights for banking industry
stakeholders, including HR professionals, managers, and policymakers, to develop
targeted retention strategies that address the diverse needs and preferences of
employees across different levels of the organization. By enhancing organizational
commitment and addressing key drivers of turnover intention, banks in Vadodara,
Gujarat, can mitigate attrition challenges and retain their skilled workforce more
effectively in the post-pandemic era.
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OBJECTIVES OF THE STUDY
1a. To study the relationship between affective commitment and turnover intention
among banking employees.
2a. To study the relationship between continuance commitment and turnover
intention among banking employees.
3a. To study the relationship between normative commitment and turnover intention
among banking employees.
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RESEARCH METHODOLOGY
Sampling Technique:
A convenience sampling technique has been used for the study.
Population:
The present study has been conducted on full-time employees of private-sector banks
in Vadodara, Gujarat.
Sample Size:
The sample size of the project is 97.
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Software used:
Microsoft Excel, SPSS
Data analysis methods used:
Descriptive statistics, percentage analysis, Correlation, Regression.
Reliability Analysis
Cronbach's Alpha coefficient of reliability measures the overall dependability of a metric and
goes from 0 to 1. If all of the scale items are completely unrelated to one another (i.e., they
are not correlated or have no covariance), then α = 0; if all of the scale items have a large
covariance, then as the number of scale items approaches infinity, will approach 1. Although
the standards for what constitutes a "good" coefficient are entirely subjective and dependent
on theoretical knowledge of the scale in question, many methodologists recommend a
minimum coefficient of 0.65 to 0.8 (or higher in many cases); coefficients less than 0.5 are
generally considered unacceptable.
<0.6 Poor
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Reliability Statistics
Cronbach’s Alpha N of items
Organizational 0.898 18
Commitment Scale
AC 0.897 6
CC 0.810 6
NC 0.730 6
TIS 0.819 6
Table: Alpha Coefficient of Reliability
Cronbach’s Alpha value in each case is more than 0.7 which shows that there is good
consistency and reliability in the responses.
H0: There is no significant correlation between affective commitment and the turnover
intention of the banking sector employees.
H1a: There is a significant negative correlation between affective commitment and the
turnover intention of the banking sector employees.
H0: There is no significant correlation between continuance commitment and the turnover
intention of the banking sector employees.
H1b: There is a significant negative correlation between continuance commitment and the
turnover intention of the banking sector employees.
H0: There is no significant correlation between normative commitment and the turnover
intention of the banking sector employees.
H1c: There is a significant negative correlation between normative commitment and the
turnover intention of the banking sector employees.
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DATA ANALYSIS
1. DEMOGRAPHIC ANALYSIS
Interpretation:
Age: The majority of respondents are relatively young, with over half of them falling
within the age range of 21 to 30 years. There is a smaller proportion of respondents
in the age range of 31 to 40 years, and very few respondents aged 41 to 50 years.
Gender: There is a slight majority of male respondents compared to female
respondents in the sample.
Work Experience in the current organization: The majority of respondents have
relatively short tenure in their current organization, with over half of them having 1
to 3 years of work experience. There is also a notable proportion of respondents with
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4 to 6 years of work experience, while fewer respondents have either less than 1 year
or more than 6 years of work experience in the current organization.
Name of the bank: HDFC has the highest number of respondents, with 46 individuals
representing 47.0% of the total. AXIS comes next, with 32 respondents, making up
33.0% of the total. ICICI has the smallest number of respondents, with 19 individuals
representing 20.0% of the total.
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2. DISTRIBUTION OF RESPONSES
Component 1
Affective Commitment
60
53
49
50 45
43
40 41 40
40 3637
30 31
30 26
24
22
20 16
14
11 11
10
4
2 2 2 2
0 0 0 1 0 0 0
0
1 2 3 4 5 6
Interpretation:
Across the items, there is a general trend of agreement or strong agreement with the
statements related to Affective Commitment, with the highest levels observed in
items AC_1, AC_3, and AC_4.
However, there are variations in the levels of agreement across different items,
indicating that respondents may perceive or feel differently about specific aspects of
affective commitment.
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Component 2
Continuance Commitment
70
56 58
60
50
41
40 37 37
3433
28 29
30 24 23 2525
21 21
20 13 13 13
7 9 7 7
10 4 4 4 6
0 0 2 1
0
1 2 3 4 5 6
Strongly
disagree 0 0.0% 0 0.0% 2 2.1% 4 4.1% 1 1.0% 4 4.1%
Disagree 4 4.1 7 7.2% 21 21.6% 37 38.1% 13 13.4% 37 38.1%
Neutral 24 24.7 23 23.7% 34 35.1% 28 28.9% 29 29.9% 25 25.8%
Agree 56 57.7 58 59.8% 33 34.0% 21 21.6% 41 42.3% 25 25.8%
Strongly
agree 13 13.4 9 9.3% 7 7.2% 7 7.2% 13 13.40% 6 6.2%
Interpretation:
Statements CC_1, CC_2, CC_5: Majority of respondents tend to agree or strongly agree
with these statements. This suggests a general alignment of opinion or belief in these
particular areas among the respondents.
A notable portion of respondents chose neutral, with percentages ranging from 25.8%
to 35.1%. This suggests uncertainty or indifference towards certain statements among
the respondents.
Statements CC_4, CC_6: These statements showed higher levels of disagreement.
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Component 3
Normative Commitment
70
57 59
60
51
48
50 45
39
40
31 30 31
30 2425 26 26
19
20
9 11 10 9
7 8 8
10 3
0 0 1 0 1 0 1 3
0
1 2 3 4 5 6
Strongly
disagree 0 0.0% 0 0.0% 1 1.0% 0 0.0% 0 0.0% 1 1.0%
Disagree 24 24.7% 7 7.2% 11 11.3% 1 1.0% 3 3.1% 3 3.1%
Neutral 25 25.8% 31 32.0% 30 30.9% 8 8.2% 26 26.8% 26 26.8%
Agree 39 40.2% 51 52.6% 45 46.4% 57 58.8% 59 60.8% 48 49.5%
Strongly
agree 9 9.3% 8 8.2% 10 10.3% 31 32.0% 9 9.3% 19 19.6%
Interpretation:
The responses indicate a generally positive sentiment towards the statements, with a majority
either agreeing or strongly agreeing in most cases. There is some variation in the levels of
agreement across different statements, with NC_5 showing the highest agreement
percentage (60.8%) and NC_1 showing the lowest (40.2%).
Neutral responses are relatively consistent across all statements, ranging from 25.8% to
26.8%, indicating a significant portion of respondents who neither agree nor disagree.
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Dependent Component
TIS
70 63
59
60 56
51 52
50 46
40 34
30 25 27
22 20
20 17 17
11 10 12 11
8 7 9
10 5 4 6
3 1 2 1 2 1 0
0
1 2 3 4 5 6
Never 25 25.8% 8 8.2% 10 10.3% 11 11.3% Highly unlikely 9 9.3% To a very large extent 5 5.2%
Rarely 51 52.6 59 60.8% 56 57.7% 46 47.4% Unlikely 63 64.9% To a large extent 27 27.8%
Occasionally 17 17.5 22 22.7% 17 17.5% 0 0.0% Neutral 20 20.6% To a moderate extent 52 53.6%
Frequently 3 3.1 7 7.2% 12 12.4% 46 35.1% Likely 4 4.1% To a small extent 11 11.3%
Always 1 1.0 1 1.0% 2 2.1% 11 11.3% Highly likely 1 1.00% To no extent 2 2.10%
Interpretation:
TIS_1 shows that 52.6% respondents perceive the event of “How often they have considered
leaving their job” as "Rarely" occurring, whereas TIS_5 demonstrates that 64.9% consider
event “How likely you are to accept another job at the same compensation level should it be
offered to you?” as "Unlikely" to happen.
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3. DESCRIPTIVE STATISTICS
Descriptive Statistics
Interpretation:
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Standard Deviation: 0.538
Interpretation: The values are less dispersed around the mean compared to affective
and continuance commitment, indicating relatively low variability in normative
commitment scores within the sample.
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4. CORRELATION ANALYSIS
H0: There is no significant correlation between affective commitment and the turnover
intention of the banking sector employees.
H1a: There is a significant negative correlation between affective commitment and the
turnover intention of the banking sector employees.
Correlations
TI AC
TI Pearson Correlation 1 -.668**
Sig. (2-tailed) <.001
N 97 97
AC Pearson Correlation -.668** 1
Sig. (2-tailed) <.001
N 97 97
**. Correlation is significant at the 0.01 level (2-tailed).
Table: Correlation of AC and TI
Interpretation:
The Pearson correlation coefficient between turnover intention (TI) and affective
commitment (AC) is -0.668. This indicates a strong negative correlation between
turnover intention and affective commitment.
In other words employees who exhibit higher levels of affective commitment to their
organization are less likely to have the intention to leave their jobs.
The significance level for both correlations is less than 0.001 (p < .001), indicating that
the observed correlation coefficients are statistically significant. This means that the
likelihood of observing such strong negative correlation coefficients due to random
chance alone is very low.
Therefore, the null hypothesis (H0) that there is no significant negative correlation
between turnover intention and affective commitment is rejected.
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2. Continuance Commitment (CC) and Turnover Intention (TI)
H0: There is no significant correlation between continuance commitment and the turnover
intention of the banking sector employees.
H1b: There is a significant negative correlation between continuance commitment and the
turnover intention of the banking sector employees.
Correlations
TI CC
TI Pearson Correlation 1 -.171
Sig. (2-tailed) .093
N 97 97
CC Pearson Correlation -.171 1
Sig. (2-tailed) .093
N 97 97
Table: Correlation of CC and TI
Interpretation:
The Pearson correlation coefficient between turnover intention (TI) and continuance
commitment (CC) is -0.171. This indicates a very weak negative correlation between
turnover intention and continuance commitment.
The negative correlation coefficient (-0.171) suggests that there is a slight tendency
for turnover intention to decrease as continuance commitment increases, and vice
versa.
The significance level for the correlation coefficient is 0.093 (p = .093), which is greater
than the conventional threshold of 0.05. This means that the observed correlation
coefficient is not statistically significant at the conventional significance level of 0.05.
Therefore, we fail to reject the null hypothesis (H0) that there is no significant negative
correlation between turnover intention and continuance commitment.
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3. Normative Commitment (NC) and Turnover Intention (TI)
H0: There is no significant correlation between normative commitment and the turnover
intention of the banking sector employees.
H1c: There is a significant negative correlation between normative commitment and the
turnover intention of the banking sector employees.
Correlations
TI NC
TI Pearson Correlation 1 -.530**
Sig. (2-tailed) <.001
N 97 97
**
NC Pearson Correlation -.530 1
Sig. (2-tailed) <.001
N 97 97
**. Correlation is significant at the 0.01 level (2-tailed).
Interpretation:
The Pearson correlation coefficient between turnover intention (TI) and normative
commitment (NC) is -0.530. This indicates a moderate negative correlation between
turnover intention and normative commitment.
The negative correlation coefficient (-0.530) suggests that there is a moderate
tendency for turnover intention to decrease as normative commitment increases, and
vice versa.
The significance level for the correlation coefficient is less than 0.001 (p < .001), which
is below the conventional threshold of 0.01. This means that the observed correlation
coefficient is statistically significant at the 0.01 level.
Therefore, the null hypothesis (H0) that there is no significant negative between
turnover intention and normative commitment is rejected.
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4. Strongest predictor of Turnover Intention
From these results, it's evident that both affective commitment and normative
commitment have significant negative correlations with turnover intention. However,
the correlation coefficient for affective commitment (-0.668) is higher in magnitude
compared to the correlation coefficient for normative commitment (-0.530).
Therefore, based on these correlation coefficients, affective commitment appears to
be the strongest predictor of turnover intention among the employees in this analysis.
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5. REGRESSION ANALYSIS
b
Model Summary
Std. Change Statistics
Adjuste
R Error of R
Model R dR F Sig. F
Square the Square df1 df2
Square Change Change
Estimate Change
1 0.705a 0.497 0.481 0.420 0.497 30.658 3 93 <0.001
a. Predictors: (Constant), NC, CC, AC
b. Dependent Variable: TIS
Table: Regression Analysis
Interpretation:
The regression model including the predictors NC, CC, and AC collectively explains a
substantial portion of the variance in Turnover Intention (TIS).
The R^2 value of 0.497 indicates that approximately 49.7% of the variance in TIS can
be explained by the predictors included in the model. The remaining 50.3% of the
variance in TIS may be attributed to other factors not included in this study.
The model is statistically significant overall, as indicated by the significant F Change
statistic (p < 0.05).
ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression 16.194 3 5.398 30.658 <.0001b
Residual 16.375 93 .176
Total 32.569 96
a. Dependent Variable: TIS
b. Predictors: (Constant), NC, CC, AC
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Interpretation:
P-value is <0.001. Hence, the model is significant (p < .0001), indicating that at least
one of the predictors (NC, CC, AC) is significantly related to the dependent variable TIS.
Testing of Hypothesis:
Null Hypothesis (H0): There is no significant relationship between Affective Commitment (AC),
Continuative Commitment (CC), Normative Commitment (NC), and Turnover Intention (TIS)
in the population.
Where:
β1, β2, β3 are the coefficients for Affective Commitment (AC), Continuative
Commitment (CC), and Normative Commitment (NC), respectively, in the regression
equation.
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 5.080 .329 15.427 <0.001
AC -.512 .086 -.552 -5.982 <0.001
CC .171 .079 .193 2.173 .032
NC -.330 .113 -.305 -2.923 .004
a. Dependent Variable: TIS
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Interpretation:
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FINDINGS
turnover intention.
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RECOMMENDATIONS
Given the moderate turnover intention and relatively short tenure, investing in
continuous training and development programs can help retain talent and foster
career advancement opportunities within the organization. Providing opportunities
for skill development and career progression can increase job satisfaction and reduce
turnover.
Implementing regular employee satisfaction surveys can help organizations identify
areas for improvement and address employee concerns proactively. Gathering
feedback on workplace culture, communication, and job satisfaction can inform
strategic decision-making and enhance employee engagement and retention.
As relevant from the results the commitment of an employee to organisational goals,
missions, and values is not enough to predict his/her stay in the organisation. There
are other variables both within and outside organisations apart from organisational
commitment that are predictor of employee intention to quit a job. The organisation
should look beyond forces in their internal environment, when considering how to
reduce employee’s turnover intentions and the actual employee’s turnover.
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REFERENCE
https://www.africanscholarpublications.com/wp-
content/uploads/2022/03/AJMSE_Vol23_No7_Dec2021-21.pdf
https://www.atlantis-press.com/article/125907931.pdf
https://www.iosrjournals.org/iosr-jbm/papers/AETM'15_MBA/2/16-MBA-144.pdf
https://ijrar.org/papers/IJRAR1903224.pdf
https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&ar
ticle=5086&context=dissertations
https://www.researchgate.net/publication/342789279_An_Empirical_Analysis_of
_Work_Overload_Organizational_Commitment_and_Turnover_Intentions_among
_Employees_of_Banking_Sector
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ANNEXURE
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I would not leave my organization right now
because I have a sense of obligation to the
people in it.
I owe a great deal to my organization.
3. How often are you frustrated when not given the opportunity at work to achieve your personal work-related
goals?
4. How often do you dream about getting another job that will better suit your personal needs?
5. How likely you are to accept another job at the same compensation level should it be offered to you?
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