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PERCEIVED ORGANIZATIONAL COMMITMENT AND ITS IMPACT TO THE TURNOVER INTENTION: INTRODUCTION

PERCEIVED ORGANIZATIONAL COMMITMENT AND ITS IMPACT TO THE TURNOVER INTENTION: INTRODUCTIONIn Malaysia, issue arises that hotel industry faces the challenges in recruiting and retaining good employees as the absenteeism and turnover are very high.Turnover is a persistent problem in organizations. It is common in every type and size of organizations at every level. In addition, employees’ turnover intention is a serious issue especially in the field of Human Resource Management. Moreover, it is costly for an organization to rehire the new employees as they need to spend a lot of money and time to retrain the new employees. In order to increase the productivity in organization, they should try to reduce the employees’ turnover.Turnover intention is among the strongest predictors of actual turnover.
Besides, organizational commitment is one of the most important antecedents to turnover intention. These findings emphasized the importance of organizational commitment in retaining employees and the appropriate use of intention to leave as the dependent variable because of the link to actual turnover. Organizational commitment refers to the degree to which employees believe in and accept organizational goals and desire to remain with the organization. The relationship between organizational commitment and turnover intention is another significant matter.
Low organizational commitment will cause the work related to attitudes and behaviour of employees become poor. Employees will be not satisfied when they cannot reach the commitment with the top management. This will lead to poor performance and low motivation of employees to continue for their work. Organization should take care of the acceptable needs from employees and try to satisfy them in order to increase their work motivation. The objective of this research is to examine whether there are significant relationship between organizational commitment and turnover intention. It’s mean, whether perceived organizational commitment will give impact on turnover intention.
Turnover intention is defined as an employee’s decision to leave an organization voluntarily. When turnover rate increase in an organization, it will reduce its reputation and increase the cost of rehiring new staff. Turnover intention is a main problem which is common in every type and size of an organization and is serious issues especially in the field of Human Resource Management. Furthermore, turnover is very costly for an organization especially advertising, recruiting, selecting, hiring and training needed for the newcomers. So, when an employee leaves an organization, the remaining employees need to do more task and responsible for duties. This will cause the employees to reduce their commitment and increase the turnover intention in the organization.
Moreover, the costs of employees turnover are hard to measure, as the effect on organization’s culture, employee morale and social capital. In addition, high turnover intention will cause the organization to lose employees with high degree of knowledge, skill and abilities.Turnover intention causes the organization spends significant sums of money to replace an employee who leave the organization. According to Huning & Thomson, turnover intention will also be determined by self image, job and other roles, as well as the predictability of future relationships inside the organization. Turnover intention is the problem faced by the human resource and organizational management. Besides, turnover not only increases the cost of employing staff but also diminishes the organization’s knowledge capital and weakens its reputation.
Last but not least, turnover intention will be impacted by the person organizational fit, job satisfaction and organizational commitment. The better the person organization fit the higher the job satisfaction, the higher the organizational commitment and the rate of turnover intention will be lower.

This post was written by , posted on February 4, 2014 Tuesday at 1:46 pm