Job Satisfaction, Organizational Commitment, and Turnover Intention: A Case Study on Employees of a Retail Company in Malaysia

High employee turnover rate in Malaysia-s retail industry has become a major issue that needs to be addressed. This study determines the levels of job satisfaction, organizational commitment, and turnover intention of employees in a retail company in Malaysia. The relationships between job satisfaction and organizational commitment on turnover intention are also investigated. A questionnaire was developed using Job Descriptive Index, Organizational Commitment Questionnaire, and Lee and Mowday-s turnover intention items and data were collected from 62 respondents. The findings suggested that the respondents were moderately satisfied with job satisfaction facets such as promotion, work itself, co-workers, and supervisors but were unsatisfied with salary. They also had moderate commitment level with considerably high intention to leave the organization. All satisfaction facets (except for co-workers) and organizational commitment were significantly and negatively related to turnover intention. Based on the findings, retention strategies of retail employees were proposed.





References:
[1] Bureau of Labor Statistic, "Job Openings and Labor Turnover
Summary," (Online document), 2012 June 31, (cited 2012 June 25),
Available: http:// www.bls.gov/jlt/jlt_labstatgraphs_april2012.pdf
[2] Malaysian Employers Federation, "The MEF salary and fringe benefits
survey for executives 2003". Kuala Lumpur, Malaysia: Malaysian
Employers Federation, 2004.
[3] Hewitt Associates, "Strategies for Cost Management of the HR
Function", Timely Topics Survey Results, 2007.
[4] Bernadette Kenny, "The Coming Crisis In Employee Turnover,"
(Online document), 2007 April 24,(cited 2012 May 20), Available:
http://www.forbes.com/2007/04/24/employees-turnover-careers-leadcareers-
cz_bk_0425turnover.html
[5] Mohd Nazari Ismail and S. H. Lim, "Effects of attitudes, job
characteristics, and external market on employee turnover: A study of
Malaysian information technology workers (Unpublished doctoral
dissertation)", University of Malaya, 2007.
[6] B. Coe, "Executive turnover in the retailing sector in Gordon, Peter J.
and Kellerman, J. Bert, Advances in Marketing", Southwest Marketing
Association, 1990.
[7] Malaysian Employers Federation, "MEF salary survey for nonexecutives
2011". Kuala Lumpur, Malaysia: Malaysian Employers
Federation, 2004.
[8] Research and Market, "Malaysia Retail Report Q1 2010", (Online
document), 2009 November, (cited 2012 May 10), Available:
http://www.researchandmarkets.com/reports/1095996/malaysia_retail_re
port_q1_2010.
[9] B. Bigliardi, A. Petroni, and A.I. Dormio, "Organizational socialization
career aspirations and turnover intentions among design engineers",
Leadership & Organization Development Journal, vol. 26, no. 6, pp.
424 - 441, 2005.
[10] A.C. Bluedorn. The theories of turnover: causes, effects, and
meaning.JAI Press, Greenwich, CT, 1982.
[11] R.K.Chiu and A.M. Francesco, "Dispositional traits and turnover
intention. Examining the mediating role of job satisfaction and affective
commitment", International Journal of Manpower, vol. 24, no.3, pp.
284-298, 2003.
[12] H.G. Rainey and M.P. Sung, "Antecedents, mediators, and consequences
of affective, normative, and continuance commitment. Empirical tests of
commitment effects in federal agencies", Sage Journals, vol. 27, no. 3,
pp. 197-226, 2007.
[13] S.L. Peterson, "Managerial turnover in US retail organizations", Journal
of Management Development, vol. 26, no. 8, p.p. 770-789, 2006.
[14] S.L.McShane and M.A.Von Glinow.Organizational Behavior (4th
Edition). McGraw Hill International, 2008.
[15] P.E.Spector. Job satisfaction: Application, assessment, cause and
consequences.Thousand Oaks. CA: Sage, 1997, pp. 1.
[16] K.S. Law, C.S. Wong, and W.H. Mobley, "Toward a taxonomy of
multidimensional constructs", Academy of Management Review, vol. 23,
pp. 741-755, 1998.
[17] R. Mowday, L.W. Porter, and R.M. Steer. Employee-organization
linkages: The psychology of commitment, absenteeism, and turnover.San
Diego, CA: Academic Press, 1982.
[18] J.T. Yang, "Effect of newcomer socialisation on organisational
commitment, job satisfaction, and turnover intention in the hotel
industry", The Service Industries Journal, vol. 28, no. 4, pp. 429-43,
2008.
[19] V. Duraisingam, K. Pidd and A. M. Roche, "The impact of work stress
and job satisfaction on turnover intentions: a study of Australian
specialist alcohol and other drug workers", Drugs: Education,
Prevention and Policy, vol. 16, no. 3, pp. 217-31, 2009.
[20] H.C. Chen, C. Chu, Y.H. Wang, and L.C. Lin, "Turnover factors
revisited: a longitudinal study of Taiwan-based staff nurses",
International Journal of Nursing Studies, vol. 45, no. 2, pp. 277-85,
2008.
[21] G. J. Lee and H. Rwigema, "Mobley revisited: dynamism in the process
of employee turnover", International Journal of Human Resource
Management, vol. 16, no. 9, pp. 1671-90, 2007.
[22] L.J. Hayes, L. O-Brien-Pallas, C. Duffield, J. Shamian, J. Buchan,F.
Hughes, H.K.S. Laschinger, N. North, and P.W. Stone, "Nurse turnover:
a literature review", International Journal of Nursing Studies, vol. 43,
no. 2, pp. 237-63, 2006.
[23] M.C. McCulloch and D.B. Turban, "Using person-organization fit to
select employees for high-turnover jobs", International Journal of
Selection and Assessment, vol. 15, no. 1, pp. 63-71, 2007.
[24] H.M. Tzeng, "The influence of nurses- working motivation and job
satisfaction on intention to quit: an empirical investigation in Taiwan",
International Journal of Nursing Studies, vol. 39, no. 8, pp. 867-78,
2002.
[25] J.C.T. Yin and K.P.A. Yang, "Nursing turnover in Taiwan: a metaanalysis
of related factors", International Journal of Nursing Studies,
vol. 39, no. 6, pp. 573-81, 2002.
[26] H. Zhou, L.R. Long, and Y.Q. Wang, "What is the most important
predictor of employees- turnover intention in Chinese call centre: job
satisfaction, organisational commitment or career commitment?",
International Journal of Services Technology and Management, vol. 12,
no. 2, pp. 129-45, 2009.
[27] B. Jiang, R.C. Baker, and G.V. Frazier, "An analysis of job
dissatisfaction and turnover to reduce global supply chain risk: evidence
from China", Journal of Operations Management, vol. 27, no. 2, pp.
169-84, 2009.
[28] R.T. Rust and G.L. Stewart, "The satisfaction and retention of frontline
employees: a customer satisfaction measurement approach",
International Journal of Service Industry Management, vol. 7, no. 5, pp.
62-80, 1996.
[29] R.W. Griffeth, P.W. Hom, and S.Gaertner, "A meta-analysis of
antecedents and correlates of employee turnover: Update, moderator
tests, and research implications for the next millennium", Journal of
Management, vol. 26, no. 3, pp. 463-488, 2000
[30] T.A. Judge, D. Heller, and M.K. Mount, "Five-factor model of
personality and job satisfaction: a meta-analysis", Journal of Applied
Psychology, vol. 87, no. 3, pp. 530-41, 2002.
[31] C. Ostroff, "The relationship between satisfaction, attitudes, and
performance: An organizational level analysis", Journal of Applied
Psychology, vol. 77, no. 6, pp. 963-974, 1992.
[32] T. Lam, T. Baum, and R. Pine, "Study of managerial job satisfaction in
Hong Kong-s Chinese restaurants", International Journal of
Contemporary Hospitality Management, vol. 13, no. 1, pp. 35-42, 2001.
[33] A. Arndt, T.J. Arnold, and T.D. Landry, "The effects of polychronicorientation
upon retail employee satisfaction and turnover", Journal of
Retailing, vol. 82, no. 4, pp. 319-30, 2006.
[34] A.M. Saks, "Antecedents and consequences of employee engagement",
Journal of Managerial Psychology, vol. 21, no. 7, pp. 600-19, 2006.
[35] G.H. Lucas, "The relationship between job attitudes, personal
characteristics, and job outcomes: a study of retail store managers",
Journal of Retailing, vol. 61, no. 1, pp. 35-62, 1985.
[36] R.M. Schulz, W.J. Bigoness, and J.P. Gagnon, "Determinants of
turnover intentions among retail pharmacists", Journal of Retailing, vol.
63, no.1, pp.89-98, 1987.
[37] K. McNeily and R.E. Goldsmith, "The moderating effects of gender and
performance on job satisfaction and intentions to leave in the sales
force", Journal of Business Research, vol. 22, no. 3, pp. 219-32, 1991.
[38] J.K. Sagerand A. Menon, "The role of behavioural intentions in turnover
of salespeople", Journal of Business Research, vol. 29, no. 3, pp. 179-
88, 1994.
[39] P. Lok and J. Crawford, "The effect of organizational culture and
leadership style on job satisfaction and organizational commitment: A
cross-national comparison", Journal of Management Development, vol.
23, no.4, pp. 321-338, 2004.
[40] J.D. Rogers, K.E. Clow and T.J. Kash "Increasing the job satisfaction of
service personnel", Journal of Services Marketing, vol. 8, no. 1, pp 14-
26, 1994.
[41] J.P. Meyer and N. J. Allen, "The measurement and antecedents of
effective, continuance and normative commitment to the organization",
Journal of Occupational Psychology, vol. 63, pp. 1-18, 1990.
[42] Mohd Nazari Ismail and S.H. Lim "Effects of attitudes, job
characteristics, and external market on employee turnover: A study of
Malaysian information technology workers (Unpublished doctoral
dissertation)", University of Malaya, 2007.
[43] J. Cook and T. Wall, "New work attitude measures of trust,
organizational commitment and personal need non-fulfilment", Journal
of Occupational Psychology, no. 53, pp. 39-52, 1980.
[44] S. Swailes, "Organizational commitment: A critique of the construct and
measures", International Journal of Management Reviews, vol. 4, no.2,
pp. 155-178, 2002.
[45] J.P. Meyer and N.J. Allen, "Commitment in the workplace: Theory,
research and application", Thousand Oaks, CA: Sage Publications,
1997.
[46] C. B. Handy. Understanding Organization. Penguin Education, 1976.
[47] J.E. Mathieu and D.M. Zajac, "Review and meta-analysis of the
antecedents, correlates, and consequences of organizational
commitment", Psychological Bulletin, no. 108, 171-194, 1990.
[48] T.J. Bergmann, S.W. Lester, K.P. De Meuse, and J.L. Grahn
"Integrating the three domains of employee commitment: an exploratory
study", Journal of Applied Business Research, vol. 16, no. 4, pp. 15-26,
2000.
[49] B. James, R. Madupalli, R. Brian, and A.W. John, "The relationship of
facets of salesperson job satisfaction with affective organizational
commitment", Journal of Business & Industrial Marketing, vol. 22, no.
5, pp. 311-321, 2007.
[50] P.C. Smith, L.M. Kendall, and C.L. Hulin, "The measurement of
satisfaction in work and retirement", Chicago: Rand McNally, 1969.
[51] M. S. Amarjit Kaur, "The effect of teacher background characteristics,
workplace conditions and compensation on job satisfaction(Unpublished
doctoral dissertation)", Open University Malaysia, 2005.
[52] B. Schneider and H. Peter Dachler, "A note on the stability of the Job
Descriptive Index", Journal of Applied Psychology, vol. 63, no. 5, pp.
650-65, 1978.
[53] R.T. Mowday, R.M. Steers, and L.M. Porter "The measurement of
organizational commitment", Journal Vocational Behavior, vol. 14, pp.
224-247, 1979.
[54] T. W. Lee and R. T. Mowday, "Voluntary leaving of organization: An
empirical investigation of Steers and Mowday-s model of turnover",
Academy of Management Journal, vol. 30, pp. 721-743, 1987.
[55] J.F. Hair, W.C. Black, B.J. Babin, and R.E. Anderson. Multivariate Data
Analysis: Global Edition (7th Edition), Pearson Higher Education,
London, 2010.
[56] T.Y. Lew, "Affective organizational commitment and turnover intention
of academics in Malaysia", International Conference on Business and
Economics Research, vol. 1, pp. 110-114, 2011.
[57] Kanwaldeep Kaur and H.S. Sandhu, "Career stage effect on
organizational commitment: Empirical evidence from Indian banking
industry", International Journal of Business and Management, vol. 5,
no. 12, pp. 141-152, 2010.
[58] J. Cotton and J. Tuttle, "Employee turnover: a meta-analysis and review
with implication for research", Academy of Management Review, vol.
11, no. 1, pp. 55-70, 1986.
[59] J.I. Price, "Reflections on the determinants of voluntary turnover",
International Journal of Manpower, vol. 22, no. 7, pp. 660-624, 2001.
[60] M.A. Shields and M. Ward, "Improving nurse retention in the National
Health Service in England: The impact of job satisfaction on intention to
quit", Journal of Health Economics, vol. 20, pp. 677-701, 2001.
[61] J. P. Meyer, D. J. Stanley, L. Herscovitch, and L. Topolnytsky,
"Affective continuance and normative commitment to the organization:
A meta-analysis of antecedents, correlates, and consequences", Journal
of Vocational Behavior, vol. 61, pp. 20-52, 2002.
[62] A. Cohen, "Commitment before and after: An evaluation and
reconceptualization of organizational commitment", Human Resource
Management Review, vol. 17, pp. 336-354, 2007.
[63] T. M. Georgeand M. N. Jerry.Compensation (9th Edition). McGraw Hill
International, 2008.
[64] L. Savery and J. Luks, "The relationship between empowerment, job
satisfaction and reported stress levels: Some Australian evidence",
Leadership & Organization Development Journal, vol. 22, no. 3, pp. 97-
104, 2001.