Turnover Intentions and its Drivers: A Study of Banking Sector

Authors

  • Malka Liaquat Assistant Professor, Institute of Management Science, The Women University, Multan, Pakistan
  • Mohsin Ali Lecturer, Management Sciences, National University of Modern Languages, Multan, Pakistan
  • Aisha Khursheed Lecturer, Business Administration, University of Education, Multan, Pakistan
  • Qurat ul Ain Lecturer, Business Administration, Foundation University Rawalpindi, Pakistan

DOI:

https://doi.org/10.47067/reads.v7i1.321

Keywords:

Intrinsic Rewards, Psychological Contract, Informational justice, Perceived Organizational Support, Turnover Intentions

Abstract

The current study aims to explore factors which influence perceptions of employees and shape their intentions to leave the organization. It utilizes psychological factors that serve as baseline for turnover intentions. Data of 404 employees were taken from banking sector and evaluated through structural equation modeling in AMOS. Results reveal interesting insights identifying intrinsic rewards as significant factor in countering the turnover intentions whereas, justice perception and organizational support do not play direct role in shaping employees perceptions. Results carry managerial and practical guidelines that can be useful for organizations for creating a strategic taskforce.

References

Adams, J. S. (1965). Inequity in Social Exchange. In L. Berkowitz (Ed.), Advances in Experimental Social Psychology, New York: Academic Press.

Armeli, S., Eisenberger, R., Fasolo, P., & Lynch, P. (1998). Perceived organizational support and police performance: The moderating influence of socioemotional needs. Journal of Applied psychology, 83(2), 288.

Becker, B. and Gerhart, B. (1996). The Impact of Human Resource Management on Organizational Performance: Progress and Prospects. Academy of Management Journal, 39(4), 779–801.

Bellou, V. (2009). Profiling the desirable psychological contract for different groups of employees: Evidence from Greece. The International Journal of Human Resource Management, 20, 810-830. doi: 10.1080/09585190902770711Blau, P. M. (1964). Social exchange theory. Retrieved September, 3(2007), 62.

Budhwar, P., & Debrah, Y. A. (2009). Future research on human resource management systems in Asia. Asia Pacific Journal of Management, 26(2), 197.

Buss, A. H. (1983). Social rewards and personality. Journal of Personality and Social Psychology, 44, 553-563.

Colquitt, Jason A. (2001). On the dimensionality of organizational justice: A construct validation of a measure. Journal of Applied Psychology 86 (3), pp. 425–445. doi: 10.1037//0021-9010.86.3.386

Devi, V. R., and Poojitha, V. (2012). HRD–A Source for Competitive Advantage. Review of Research, 1(7), 56-72.

Deci, E. L. (1971). Effects of Externally Mediated Rewards on Intrinsic Motivation. The Journal of Personality and Social Psychology, 18(1), 105-115.De Ruiter, M., Schalk, R., Schaveling, J., & Van Gelder, D. (2017). Psychological contract breach in the anticipatory stage of change: Employee responses and the moderating role of supervisory informational justice. The Journal of Applied Behavioral Science, 53(1), 66-88.

Eckerd, S., Hill, J., Boyer, K. K., Donohue, K., & Ward, P. T. (2013). The relative impact of attribute, severity, and timing of psychological contract breach on behavioral and attitudinal outcomes. Journal of Operations Management, 31(7-8), 567-578.

Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied psychology, 71(3), 500.

Elizur, D. (1984). Facets of work values: A structural analysis of work outcomes. Journal of Applied psychology, 69(3), 379.

Gould, S. (1979). An equity-exchange model of organizational involvement. Academy of Management Review, 4, 53-62.

Estreder, Y., Rigotti, T., Tomás, I., & Ramos, J. (2020). Psychological contract and organizational justice: the role of normative contract. Employee Relations: The International Journal, 42(1), 17-34. doi:10.1108/ER-02-2018-0039

Haar, J. M., & Spell, C. S. (2004). Programme knowledge and value of work-family practices and organizational commitment. The International Journal of Human Resource Management, 15(6), 1040-1055.

Hinkin, T. R., & Tracey, J. B. (2000). The cost of turnover: Putting a price on the learning curve. Cornell hotel and restaurant administration quarterly, 41(3), 14-21.

Holtom, B. C., Mitchell, T. R., Lee, T. W., & Eberly, M. B. (2008). 5 turnover and retention research: a glance at the past, a closer review of the present, and a venture into the future. The Academy of Management Annals, 2(1), 231-274.

Hussain, M., & Khan, M. S. (2019). Organizational justice and turnover intentions: probing the Pakistani print media sector. Evidence-based HRM: a Global Forum for Empirical Scholarship, 7(2), 180-197. doi:10.1108/ebhrm-04-2018-0030

James, G. L. (2020). Relationship Between Intrinsic Job Satisfaction, Extrinsic Job Satisfaction, and Turnover Intentions in Luxury Hotels.

Judge, T. A., Thoresen, C. J., Bono, J. E., and Patton, G. K. (2001). The Job Satisfaction- Job Performance Relationship: A Qualitative and Quantitative Review. Psychological Bulletin, 127, 376–407.Khan, S., Khan, M. H., Mohmand, A. M., & Misbah, S. (2020). Impact of HR Practices on Employee Turnover and Job Satisfaction: Evidence from Pakistani Universities. Review of Economics and Development Studies, 6(3), 607-624.

Kickul, J. & Lester, S. W. (2001). Broken promises: Equity sensitivity as a moderator between psychological contract breach and employee attitudes and behavior. Journal of Business and Psychology, 16, 191-217. doi: 0889-3268/01/1200-0191Kurtessis, J. N., Eisenberger, R., Ford, M. T., Buffardi, L. C., Stewart, K. A., & Adis, C. S. (2017). Perceived organizational support: A meta-analytic evaluation of organizational support theory. Journal of Management, 43(6), 1854-1884.

Levinson, H. (2009). Reciprocation: The relationship between man and organization.

Liaquat, M., & Zahra, S. (2015). Justice perception and turnover Intentions with moderating role of locus of control. European Academic Research, 2(12).

Maertz, C. P., Griffeth, R. W., Campbell, N. S., & Allen, D. G. (2007). The effects of perceived organizational support and perceived supervisor support on employee turnover. Journal of Organizational Behavior, 28(8), 1059-1075. doi:10.1002/job.472

Malone, T. W. (1981). Toward a theory of intrinsically motivating instruction. Cognitive science, 5(4), 333–369.

Morrison, E. W., & Robinson, S. L. (1997). When Employees Feel Betrayed: A Model of How Psychological Contract Violation Develops. The Academy of Management Review, 22(1), 226-256.

Mowday, R.T., Porter, L.W., & Steers, R.M. (1982). Employee- organizational linkages: The psychology of commitment, absenteeism, and turnover. New York: Academic Press.Nawaz, M. S., Siddiqui, S. H., Rasheed, R., & Iqbal, S. M. J. (2019). Managing turnover intentions among faculty of higher education using human resource management and career growth practices. Review of Economics and Development Studies, 5(1), 109-124.

Niehoff, B. P. & Moorman, R. H. (1993). Justice as a mediator of the relationship between methods of monitoring and organizational citizenship behavior. Academy of Management Journal, 6, 527-556.

Pohl, S., Bertrand, F., & Ergen, C. (2016). Psychological contracts and their implications for job outcomes: A social exchange view. Military psychology, 28(6), 406-417.

Restubog, S. L. D., Zagenczyk, T. J., Bordia, P., Bordia, S., & Chapman, G. J. (2015). If you wrong us, shall we not revenge? Moderating roles of self-control and perceived aggressive work culture in predicting responses to psychological contract breach. Journal of Management, 41(4), 1132-1154.

Rosen, C. C., Chang, C.-H., Johnson, R. E., & Levy, P. E. (2009). Perceptions of the organizational context and psychological contract breach: Assessing competing perspectives. Organizational Behavior and Human Decision Processes, 108(2), 202-217.

Rousseau, D. M. (2001). Schema, promise and mutuality: The building blocks of the psychological contract. Journal of occupational and organizational psychology, 74(4), 511-541.

Rousseau, D. M. (1995). Psychological contracts in organizations. Thousand Oaks, CA: Sage Publications, IncRousseau, D.M. (1989). Psychological and implied contracts in organizations. Employee Rights and Responsibilities Journal, 2, 121-139.Ryan, R. M., & Deci, E. L. (2000). Intrinsic and Extrinsic Motivations: Classic Definitions and New Directions. Contemporary Educational Psychology, 25(1), 54–67.

Santhanam, N., Kamalanabhan, T. J., Dyaram, L., & Ziegler, H. (2017). Impact of human resource management practices on employee turnover intentions: Moderating role of psychological contract breach. Journal of Indian Business Research, 9(3), 212-228. doi:10.1108/JIBR-10-2016-0116

Stumpf, S. A., Tymon, W. G., Favorito, N., & Smith, R. R. (2013). Employees and change initiatives: intrinsic rewards and feeling valued. Journal of Business Strategy, 34(2), 21-29. doi:10.1108/02756661311310422

Suazo, M. M. (2009). The mediating role of psychological contract violation on relations between psychological contract breach and work-related attitudes and behaviors. Journal of Managerial Psychology, 24, 136-160. doi: 10.1108/02683940910928856

Yadav, M., & Rangnekar, S. (2015). Supervisory support and organizational citizenship behavior. Paper presented at the Evidence-Based HRM: A Global Forum for Empirical Scholarship.

Yadav, M., & Rangnekar, S. (2015). Supervisory support and organizational citizenship behavior. Paper presented at the Evidence-based HRM: a Global Forum for Empirical Scholarship.

Zhao, H., Wayne, S. J., Glibkowski, B. C., & Bravo, J. (2007). The impact of psychological contract breach on work-related outcomes: A meta-analysis. Personnel Psychology, 60, 647-680.

Downloads

Published

2021-03-31

How to Cite

Liaquat, M. ., Ali , M. ., Khursheed , A. ., & Ain , Q. ul . (2021). Turnover Intentions and its Drivers: A Study of Banking Sector . Review of Economics and Development Studies, 7(1), 51-61. https://doi.org/10.47067/reads.v7i1.321