The Impact of Job Satisfaction and Organizational Commitment on Employee Turnover Intentions in the Malaysian Manufacturing Industry
Abstract
One of the primary resources of an organization that can provide a worthy contribution to the achievement of the organization’s strategies is human resources. A significant problem in most manufacturing organizations is the desire to leave. Given this, the objective of this study will be to assess and measure the impact of job satisfaction and organizational commitment on employee turnover intention in the manufacturing sector. Of 200 questionnaires, 179 were filled out by a manufacturing organization (response rate = 89.5%). Demographic profiles were described using frequency count and percentages of the respondents. Descriptive and inferential statistics were adopted for the analysis of specific data gathered. Regarding inferential statistics, the measure used in the study was the Pearson Correlation Coefficient, which was used to determine the strength of the relationship between dependent and independent variables. According to the results of the analysis, it can be concluded that the independent variable job satisfaction is related to the sub-variable satisfaction with compensation and satisfaction with career development opportunities, which has a low negative correlation with employees' turnover intention. However, no significant relation was found between organizational commitment and the turnover intention of employees within the organization. This research offers valuable information to organizations within the manufacturing industry regarding the factors influencing turnover intention, including job satisfaction and organizational commitment.
Downloads
References
Akhtar, S. N., Hashmi, M. A., & Naqvi, S. I. (2010). A comparative study of job satisfaction in public and private school teachers at secondary level. Procedia-Social and Behavioral Sciences, 2(2), 4222–4228. https://doi.org/10.1016/j.sbspro.2010.03.668
Al-Suraihi, W. A., Samikon, S. A., Al-Suraihi, A.-H. A., & Ibrahim, I. (2021). Employee turnover: Causes, importance and retention strategies. European Journal of Business and Management Research, 6(3), 1–10. https://doi.org/10.24018/ejbmr.2021.6.3.893
Alam, A., & Asim, M. (2019). Relationship between job satisfaction and turnover intention. International Journal of Human Resource Studies, 9(2), 163. https://doi.org/10.5296/ijhrs.v9i2.14618
Ali, N. (2008). Factors affecting overall job satisfaction and turnover intention. Journal of Managerial Sciences, 2(2), 239-252.
Ausar, K., Kang, H. J., & Kim, J. S. (2016). The effects of authentic leadership and organizational commitment on turnover intention. Leadership & Organization Development Journal, 37(2), 181–199. https://doi.org/10.1108/lodj-05-2014-0090
Baruch, Y., & Peiperl, M. (2000). Career Management Practices: An empirical survey and implications. Human Resource Management, 39(4), 347–366. https://doi.org/10.1002/1099-050x(200024).
Bhattacharyya, D. K. (2023). Compensation management. Oxford University Press.
Daileyl, R. C., & Kirk, D. J. (1992). Distributive and procedural justice as antecedents of job dissatisfaction and intent to turnover. Human Relations, 45(3), 305–317. https://doi.org/10.1177/001872679204500306
DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2016). Fundamentals of human resource management. John Wiley & Sons.
Dziuba, S. T., Ingaldi, M., & Zhuravskaya, M. (2020). Employees’ job satisfaction and their work performance as elements influencing work safety. System Safety: Human - Technical Facility - Environment, 2(1), 18–25. https://doi.org/10.2478/czoto-2020-0003
Faloye, D. O. (2014). Organizational commitment and turnover intentions: evidence from Nigerian paramilitary organization. International Journal of Business and Economic Development (IJBED), 2(3), 23–34.
Ghuman, U. (2011). Building a model of group emotional intelligence. Team Performance Management: An International Journal, 17(7/8), 418–439. https://doi.org/10.1108/13527591111182661
Hedge, J. W., & Rineer, J. R. (2017). Improving career development opportunities through rigorous career pathways research. RTI Press.
Jumawan, J., & Mora, M. T. (2018). Pengaruh Pelatihan Dan Pengembangan Karier Terhadap Kinerja Karyawan Perusahaan Korporasi. Jurnal Riset Manajemen Dan Bisnis (JRMB) Fakultas Ekonomi UNIAT, 3(3), 343–352. https://doi.org/10.36226/jrmb.v3i3.153
Kang, E., & Lee, H. (2021). Employee compensation strategy as a sustainable competitive advantage for HR Education Practitioners. Sustainability, 13(3), 1049. https://doi.org/10.3390/su13031049
Maertz, C. P., & Boyar, S. L. (2012). Theory?driven development of a comprehensive turnover?attachment motive survey. Human Resource Management, 51(1), 71–98. https://doi.org/10.1002/hrm.20464
Memon, M. A., Salleh, R., Mirza, M. Z., Cheah, J.-H., Ting, H., Ahmad, M. S., & Tariq, A. (2020). Satisfaction matters: The relationships between HRM practices, work engagement and turnover intention. International Journal of Manpower, 42(1), 21–50. https://doi.org/10.1108/ijm-04-2018-0127
Marthalia, L. (2022). The importance of Human Resources (HR) management in the company. Journal of World Science, 1(9), 700–705. https://doi.org/10.36418/jws.v1i9.89
Maska, H. & Riyanto, S. (2020). The Influence of Job Embeddedness, Salary, and Organizational Commitment against the Turnover Intention of the Employees in the Marketing Division at Pharmaceutical Laboratories Industry in Jabodetabek. IOSR Journal of Business and Management. 22. 29-35. 10.9790/487X-2202062935.
Meira, J. V., & Hancer, M. (2021). Using the social exchange theory to explore the employee-organization relationship in the hospitality industry. International Journal of Contemporary Hospitality Management, 33(2), 670–692. https://doi.org/10.1108/ijchm-06-2020-0538
Meyer, J., & Allen, N. (1997). Commitment in the Workplace: Theory, Research, and Application. https://doi.org/10.4135/9781452231556
Mobley, W. H. (1977). Intermediate linkages in the relationship between job satisfaction and employee turnover. Journal of Applied Psychology, 62(2), 237–240. https://doi.org/10.1037/0021-9010.62.2.237
Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of Organizational Commitment. Journal of Vocational Behavior, 14(2), 224–247. https://doi.org/10.1016/0001-8791(79)90072-1
Murtiningsih, R. S. (2020). The impact of compensation, Training &Development, and organizational culture on job satisfaction and employee retention. Indonesian Management and Accounting Research, 19(1), 33–50. https://doi.org/10.25105/imar.v19i1.6969
Nadiri, H., & Tanova, C. (2010). An investigation of the role of Justice in turnover intentions, job satisfaction, and organizational citizenship behavior in the Hospitality Industry. International Journal of Hospitality Management, 29(1), 33–41. https://doi.org/10.1016/j.ijhm.2009.05.001
Nwokeocha, I. M. (2024). Rationalizing training and development in Corporate Organisation: Is staff development worth it? Journal of Pedagogical Inventions and Practices, 29, 15–23. https://doi.org/10.62480/jpip.2024.vol29.pp15-23
Perry, J. L., Mesch, D., & Paarlberg, L. (2006). Motivating Employees in a New Governance Era: The Performance Paradigm Revisited. Public Administration Review, 66(4), 505–514. http://www.jstor.org/stable/3843936
Purba, M. Y., & Ruslan, S. (2020). Influence Compensation, career development, and job satisfaction to turnover intention. Dinasti International Journal of Economics, Finance & Accounting, 1(4), 642–658. https://doi.org/10.38035/dijefa.v1i4.542
Puspita, I., & Susanty, A. I. (2017). Career Development And Work Motivation Drive Employee Turnover Intention in IT Consulting In Indonesia. Indian J.Sci.Res., 17(1), 257–263.
Ramalho Luz, C. M., Luiz de Paula, S., & de Oliveira, L. M. (2018). Organizational commitment, job satisfaction, and their possible influences on intent to turnover. Revista de Gestão, 25(1), 84–101. https://doi.org/10.1108/rege-12-2017-008
Rue, L. W., & Byars, L. L. (2003). Management: Skills and application. McGraw-Hill/Irwin.
Satardien, M., Jano, R., & Mahembe, B. (2019). The relationship between perceived organizational support, organizational commitment, and turnover intention among employees in a selected organization in the Aviation Industry. SA Journal of Human Resource Management, 17. https://doi.org/10.4102/sajhrm.v17i0.1123
Sorn, M. K., Fienena, A. R., Ali, Y., Rafay, M., & Fu, G. (2023). The effectiveness of compensation in maintaining employee retention. OALib, 10(07), 1–14. https://doi.org/10.4236/oalib.1110394
Siddharta, A. (2024, April 24). Malaysia: Annual employment in the Manufacturing Industry 2023. Statista. https://www.statista.com/statistics/809645/annual-employment-in-the-manufacturing-industry-malaysia/
Sirgy, M. J., Efraty, D., Siegel, P., & Lee, D.-J. (2001). A New Measure of Quality of Work Life (QWL) Based on Need Satisfaction and Spillover Theories. Social Indicators Research, 55(3), 241–302. https://doi.org/10.1023/a:1010986923468
Smith, A., Oczkowski, E., & Smith, C. S. (2011). To have and to hold: Modelling the drivers of employee turnover and skill retention in Australian organizations. The International Journal of Human Resource Management, 22(2), 395–416. https://doi.org/10.1080/09585192.2011.540162
Thaller, J., Duller, C., Feldbauer-Durstmüller, B., & Gärtner, B. (2023). Career Development in Management Accounting: Empirical Evidence. Journal of Applied Accounting Research, 25(1), 42–59. https://doi.org/10.1108/jaar-03-2022-0062
Thrassou, A., Santoro, G., Leonidou, E., Vrontis, D., & Christofi, M. (2020). Emotional intelligence and perceived negative emotions in intercultural service encounters. European Business Review, 32(3), 359–381. https://doi.org/10.1108/ebr-04-2019-0059
Tsai, Y., & Wu, S. (2010). The relationships between organizational citizenship behavior, job satisfaction, and turnover intention. Journal of Clinical Nursing, 19(23–24), 3564–3574. https://doi.org/10.1111/j.1365-2702.2010.03375.x
Vinkenburg, C. J., & Weber, T. (2012). Managerial career patterns: A review of the empirical evidence. Journal of Vocational Behavior, 80(3), 592–607. https://doi.org/10.1016/j.jvb.2012.02.001
Wasti, S. A. (2003). Organizational Commitment, turnover intentions and the influence of cultural values. Journal of Occupational and Organizational Psychology, 76(3), 303–321. https://doi.org/10.1348/096317903769647193
Weldeyohannes, G. (2016). Compensation Practice and Teachers Turnover Intention in Tigray.
Werther, W. B., & Davis, K. (1985). Personnel Management and Human Resources. McGraw-Hill.
Copyright (c) 2024 Chanyi Hou, Zulkefli Muhamad Hanapiyah
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.