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Job Satisfaction and Employee Turnover Intention: What ...

Job Satisfaction and Employee Turnover intention : What does organizational culture Have To Do With It? Elizabeth Medina Columbia University Masters of Arts Fall 2012. Page | 1. Table of Contents Abstract .. 3. Introduction .. 4. Literature 5. Job Satisfaction and Turnover intention .. 5. Job Satisfaction and culture .. 6. Job Satisfaction , culture and Turnover intention .. 9. Summary .. 10. Data .. 11. Sample and Data 11. Descriptive Statistics .. 12. Methodology and Results .. 17. Initial 17. Results: Model 1 .. 18. Results: Model 2 .. 19. Results: Model 3.

Page | 3 Abstract This study explores the relationship between job satisfaction and employee turnover intention in the context of organizational culture, using …

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Transcription of Job Satisfaction and Employee Turnover Intention: What ...

1 Job Satisfaction and Employee Turnover intention : What does organizational culture Have To Do With It? Elizabeth Medina Columbia University Masters of Arts Fall 2012. Page | 1. Table of Contents Abstract .. 3. Introduction .. 4. Literature 5. Job Satisfaction and Turnover intention .. 5. Job Satisfaction and culture .. 6. Job Satisfaction , culture and Turnover intention .. 9. Summary .. 10. Data .. 11. Sample and Data 11. Descriptive Statistics .. 12. Methodology and Results .. 17. Initial 17. Results: Model 1 .. 18. Results: Model 2 .. 19. Results: Model 3.

2 23. Results: Model 4 .. 24. Final Model .. 26. Results: Model 5 .. 26. Discussion .. 27. Conclusion .. 30. Works Cited .. 33. Appendix .. 36. Page | 2. Abstract This study explores the relationship between job Satisfaction and Employee Turnover intention in the context of organizational culture , using data from the Quality of Work Life (QWL) module, a sub-section of the General Social Survey (GSS). Job Satisfaction , the independent variable, assesses overall job Satisfaction , while the dependent variable, Turnover intention , measures intent to find a new job, with another employer, within the next year.

3 While organizational culture varies by industry, employer and even by department, it is important in all working environments. organizational culture influences Employee 's job Satisfaction , and in prior studies, high job Satisfaction has been associated with better job performance. High performing cultures have also been shown to produce excellent results, attract, motivate, and retain talented employees, and adapt readily to change. Job Satisfaction is inversely related to Turnover intention and low Turnover has been shown to increase organizational productivity and performance.

4 This study finds that job Satisfaction is inversely associated with Turnover intention and that organizational culture moderates the magnitude of this relationship. Sub-group analyses reveal that job Satisfaction is more predictive of Turnover intention for younger workers. These findings have significant implications for the changing composition of workforce due to the aging population. Page | 3. Introduction For the past few decades, Employee retention has been of interest to researchers and employers in various fields. To remain competitive in the rapidly expanding global economy and to keep pace with technological advances requires a workforce with robust institutional knowledge; therefore, Employee retention is of great importance to business and academic communities (Benko & Weisberg, 2007; Becker, 2007; The Future of Work 2020, 2007).

5 Prior research has shown that job Satisfaction is strongly and inversely associated with Employee 's intention to leave an organization (Egan, Yang & Bartlett, 2004; Lambert, Hogan & Barton, 2001; MacIntosh & Doherty, 2010; Schwepker, 2001; Silverthorne, 2004). In other words, more satisfied employees are less likely to seek a new job, with a new employer. For this reason, studying the factors associated with job Satisfaction is practical and valuable. Two general categories are believed to influence Employee job Satisfaction : demographic characteristics and organizational culture .

6 Demographic characteristics include age, gender, education, income, and tenure of employment. organizational culture is difficult to define succinctly, but it is generally described as the shared thoughts, feelings and behaviors of a group (Christensen, 1999; Schein, 1990; Schein, 1996; Sheridan, 1992; Sims, 2002). Research in a variety of settings suggests that organizational culture has a meaningful influence on job Satisfaction and, in turn, Employee Turnover intention . The purpose of this study is to explore the relationship between job Satisfaction and Employee Turnover intention in the context of organizational culture .

7 More specifically, the following research questions guided this study: Does increased job Satisfaction predict decreased Employee Turnover intention ? Page | 4. o Do demographic characteristics, such as, age, influence the relationship between job Satisfaction and Turnover intention ? Does the level of Satisfaction with organizational culture moderate the relationship between job Satisfaction and Employee Turnover intention ? o Does increased Satisfaction with organizational culture decrease Employee Turnover intention ? While most studies exploring the relationship between job Satisfaction and Turnover intention have examined employees in a single or handful of occupations, few have explored this relationship across a variety of industries and occupations.

8 This analysis contributes to the literature by examining the relationship between job Satisfaction and Employee Turnover intention on a nationally representative sample of adult workers, over a time-span of eight years. Additionally, this study explores how Satisfaction with organizational culture influences job Satisfaction , and its subsequent impact on Employee Turnover intention . Literature Review Job Satisfaction and Turnover intention Researchers have developed a variety of conceptual frameworks to model the Turnover process. As noted by Lambert et al.

9 (2001), scholars speculate that Employee Turnover can be predicted using comprehensive measures of job Satisfaction ; otherwise stated, high job Satisfaction is associated with low Employee Turnover . Moreover, research shows that the relationship between job Satisfaction and actual Employee Turnover is moderated by intentions. Schwepker (2001) noted that positive and statistically significant relationships have been reported in dozens of studies exploring leaving intentions and actual leaving behavior. In other words, intention to leave a job is an immediate precursor to actually leaving.

10 For this reason, Page | 5. Turnover intention has been incorporated into most Employee Turnover models in the published literature. Turnover intention is defined as an Employee 's intent to find a new job with another employer within the next year. Generally, it is accepted that job Satisfaction and Employee Turnover intention are inversely related. The established, inverse relationship between job Satisfaction and Employee Turnover intention is very important to research in organizational behavior. One of the main goals of Turnover research is to measure actual Employee Turnover , however, Employee Turnover data is often inaccessible to researchers.


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