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The relationship between organisational commitment and intention to resign in a large employer in the telecommunications industry
Author(s)
Arendolf, Ronwan
Date Issued
2013
Type
Thesis
Publisher
Cape Peninsula University of Technology
Abstract
The researcher decided to replicate an existing study by Rahman, Naqvi and Ramay (2008) titled
“Measuring Turnover Intention: A Study of IT Professionals in Pakistan”. The study was applied to
new situations in order to determine generalisability to different subjects, age groups, races,
locations, cultures or any such variables. The replicated study builds on the original study, by making
it relevant today and applying it to a large business within the South African Telecommunications
industry. Reducing employee turnover is both strategic and very important in ensuring that an
organisation remains profitable. Therefore the main objective of this study is to analyse and verify
whether job satisfaction, organisational commitment and perceived alternative job opportunities are
correlated with turnover intention.
Employee turnover has become a serious management problem for the participating company due
to the financial and moral impact on its degree of competitiveness and sustainability prospects.
Today, organisations are finding it difficult to retain employees. Many skilled professionals are
leaving, which results in the loss of knowledge systems and discontinuity for the Telecommunications
industry. Thus, employee turnover demands management’s attention to do whatever it can to retain
skilled employees.
A quantitative research design using a survey was employed in the study. A survey is defined as “a
method for gathering information from a sample of individuals” (Scheuren, 2004: 9). A sample was
chosen from a population of employees who are working for the participating company, within the
Telecommunications industry. The population is N = 401 (unit of analysis), which is the number of
people employed at the participating company, where the researcher is currently employed.
The General Job Satisfaction Survey (JDS) developed by Hackman and Oldman (Cook & Rice, 2003:
37) was used to measure both JS and PAJO. Hypothesis 1 addressed the relationship between job
satisfaction and turnover intention. The Pearson product-moment correlation coefficient (PPMCC)
between job satisfaction and turnover intention was r = 0.812 with a p-value = 0.714*, indicating that
the correlation is positive but not significant. The Organisational Commitment Questionnaire
(revised) (OCQ) developed by Meyer and Allen (2005: 73) was used to measure employee
commitment. Hypothesis 2 addressed the relationship between organisational commitment and
turnover intention. The Pearson product-moment correlation coefficient between organisational
commitment and turnover intention was r = 0.572 with a p-value = 0.065*, indicating a positive but
not significant correlation. Hypothesis 3 addressed the relationship between perceived alternative
job opportunities and turnover intentions. The Pearson product-moment correlation coefficient
between perceived alternative employment opportunities and turnover intention was r = 0.953 with
a p-value = 0.081*, indicating a positive but not significant correlation.
It can be concluded that the correlation between the dependent variable and independent variables
in the replicated study was positive but not significant which is consistent with the original study
conducted by Rahman et al. (2008). The results reveal that in order for the participating organisation
to be competitive in the 21st century a firm grip needs to be taken on reducing turnover intentions.
Even though the correlation between the variables was not significant it supports previous studies
that have found a significant correlation between job satisfaction, organisational commitment,
perceived alternative job opportunity and its association with turnover intention. The replicated
study will be presented to the participating organisation in an attempt to add value. The audience
are managing executives and heads of departments, who are people that can make a difference
within their respective divisions. When there is buy-in from top management, this will ensure that
the need and urgency for retaining critical skills is filtered down to the lower levels. It will benefit the
participating organisation that has a philosophy of wanting to continuously improve.
It is recommended to the management of the participating company to pursue a retention strategy
highlighting commitment and job satisfaction to obtain a committed and satisfied workforce through
application of suitable human resource policies. These include training, career planning and
advancement opportunities, employee participation and compensation plans to reduce employee
turnover intention (Rahman et al., 2008: 79). By building a company’s business model around job
satisfaction, organisational commitment and perceived alternative job opportunities, morale can be
increased and commitment can be strengthened. When employees are satisfied they do not have
the need to look for work elsewhere, which will contribute to a successful and competitive
organisation.
“Measuring Turnover Intention: A Study of IT Professionals in Pakistan”. The study was applied to
new situations in order to determine generalisability to different subjects, age groups, races,
locations, cultures or any such variables. The replicated study builds on the original study, by making
it relevant today and applying it to a large business within the South African Telecommunications
industry. Reducing employee turnover is both strategic and very important in ensuring that an
organisation remains profitable. Therefore the main objective of this study is to analyse and verify
whether job satisfaction, organisational commitment and perceived alternative job opportunities are
correlated with turnover intention.
Employee turnover has become a serious management problem for the participating company due
to the financial and moral impact on its degree of competitiveness and sustainability prospects.
Today, organisations are finding it difficult to retain employees. Many skilled professionals are
leaving, which results in the loss of knowledge systems and discontinuity for the Telecommunications
industry. Thus, employee turnover demands management’s attention to do whatever it can to retain
skilled employees.
A quantitative research design using a survey was employed in the study. A survey is defined as “a
method for gathering information from a sample of individuals” (Scheuren, 2004: 9). A sample was
chosen from a population of employees who are working for the participating company, within the
Telecommunications industry. The population is N = 401 (unit of analysis), which is the number of
people employed at the participating company, where the researcher is currently employed.
The General Job Satisfaction Survey (JDS) developed by Hackman and Oldman (Cook & Rice, 2003:
37) was used to measure both JS and PAJO. Hypothesis 1 addressed the relationship between job
satisfaction and turnover intention. The Pearson product-moment correlation coefficient (PPMCC)
between job satisfaction and turnover intention was r = 0.812 with a p-value = 0.714*, indicating that
the correlation is positive but not significant. The Organisational Commitment Questionnaire
(revised) (OCQ) developed by Meyer and Allen (2005: 73) was used to measure employee
commitment. Hypothesis 2 addressed the relationship between organisational commitment and
turnover intention. The Pearson product-moment correlation coefficient between organisational
commitment and turnover intention was r = 0.572 with a p-value = 0.065*, indicating a positive but
not significant correlation. Hypothesis 3 addressed the relationship between perceived alternative
job opportunities and turnover intentions. The Pearson product-moment correlation coefficient
between perceived alternative employment opportunities and turnover intention was r = 0.953 with
a p-value = 0.081*, indicating a positive but not significant correlation.
It can be concluded that the correlation between the dependent variable and independent variables
in the replicated study was positive but not significant which is consistent with the original study
conducted by Rahman et al. (2008). The results reveal that in order for the participating organisation
to be competitive in the 21st century a firm grip needs to be taken on reducing turnover intentions.
Even though the correlation between the variables was not significant it supports previous studies
that have found a significant correlation between job satisfaction, organisational commitment,
perceived alternative job opportunity and its association with turnover intention. The replicated
study will be presented to the participating organisation in an attempt to add value. The audience
are managing executives and heads of departments, who are people that can make a difference
within their respective divisions. When there is buy-in from top management, this will ensure that
the need and urgency for retaining critical skills is filtered down to the lower levels. It will benefit the
participating organisation that has a philosophy of wanting to continuously improve.
It is recommended to the management of the participating company to pursue a retention strategy
highlighting commitment and job satisfaction to obtain a committed and satisfied workforce through
application of suitable human resource policies. These include training, career planning and
advancement opportunities, employee participation and compensation plans to reduce employee
turnover intention (Rahman et al., 2008: 79). By building a company’s business model around job
satisfaction, organisational commitment and perceived alternative job opportunities, morale can be
increased and commitment can be strengthened. When employees are satisfied they do not have
the need to look for work elsewhere, which will contribute to a successful and competitive
organisation.
Additional information
Thesis (MTech (Human Resource Management))--Cape Peninsula University of Technology, 2013
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