The Effects of Organizational Culture on Employee Turnover

Author(s):  
Erik S. Wright
2019 ◽  
Vol 7 (2) ◽  
pp. 162
Author(s):  
Diajeng Puspa Arum Maharani ◽  
Firda Nadia Roshandi

Background: The Orthopaedic and Traumatology Hospital had an increase in employee turnover of 1.39% from January to June 2012. It occurred due to high resignation and employee unsatisfaction. Thus, an organizational culture that consists of clan, hierarchy, market, and adhocracy becomes one of the determinant factors for employee turnover.Aims: This study aims to analyze the correlation between organizational culture and the employees’ job satisfaction.Method: This study used descriptive quantitative with a cross-sectional design, and the data were analyzed with a correlation test. There were 52 employees as the data of this study. The instruments utilized were OCAI and JSS questionnaires.Results: Market-type organization correlated significantly with job satisfaction. Organizational culture type, such as clan-type organization, adhocracy-type organization, and the hierarchy-type organization did not correlate significantly with job satisfaction. The majority of employees perceived that the Orthopedic and Traumatology Hospital adopts a hierarchy-type organization orienting to regulation and leadership. On the other hand, they expected the hospital to apply clan-type organizations that concerned about teamwork and ownership.Conclusion: There is a correlation between the market-type organization and job satisfaction. Meanwhile, there is no correlation between the clan-type organization, adhocracy-type organization, hierarchy-type organization, and job satisfaction. The hospital should increase internal strength, such as teamwork, training, facilities, and policies that support work procedures and staff.Keywords: market, adhocracy, clan, hierarchy, employees’ job satisfaction.


Author(s):  
Livia Bran

Purpose This paper aims to talk about the importance of building and sustaining an organizational culture that supports knowledge sharing between all members of the organization. Design/methodology/approach The paper provides four tips for managers who want to build such a culture within their company, as well as two further tips on how to sustain one that is already built. Findings Building and sustaining a knowledge-sharing culture in a business organization may take a lot of time and effort on the part of management and employees alike, but it is definitely worth it, as companies can experience low employee-turnover rates and increased profits based on it. Originality/value This viewpoint is based on the author’s personal experience within various organizations.


Author(s):  
Nazifah Husainah ◽  
Harries Madiistriyatno

The purpose of this study was to determine the effect of organizational culture, career development, compensation and organizational commitment partially or simultaneously on employee turnover intention.  The population in this study amounted to 1,982 employees at twenty-five outlets of The Foodhall in DKI Jakarta Province, with a total sample of 355 respondents.  The research method used in this research is descriptive and explanatory survey methods.  The sampling method is probability sampling with proportional random sampling technique, and the data analysis method used is SEM (Structural Equation Modeling) with data analysis tools Lisrel 8.80. Based on the research results obtained the following findings: organizational culture, career development, and compensation partially and simultaneously have a significant effect on organizational commitment with a contribution of 58%.  Partially career development which is reflected in career doubt has a positive and dominant effect on organizational commitment.  Organizational culture, career development, compensation and organizational commitment either partially or simultaneously have a significant effect on employee turnover intention with a contribution of 81%.  Partially, organizational commitment has the most dominant influence on employee turnover intentions.  The results also show that organizational commitment is a fully mediating variable on the influence of organizational culture, career development, and compensation on employee turnover intention.  The managerial implication of this research is that the turnover intention of The Foodhall's employees in Jakarta, which is reflected in the dimension of stopping work, will decrease if The Foodhall in Jakarta is able to increase organizational commitment which is reflected in sustainable commitment, while organizational commitment will increase if The Foodhalls in Jakarta can improve career development.  employees who are reflected in career doubts which are supported by an increase in organizational culture which is reflected in the dimensions of results orientation and also supported by an increase in compensation given to employees which is reflected in the high level of indirect compensation.


2017 ◽  
Vol 97 (2) ◽  
pp. 247-269 ◽  
Author(s):  
Xiaohan Mei ◽  
Brian Iannacchione ◽  
Mary K. Stohr ◽  
Craig Hemmens ◽  
Marianne Hudson ◽  
...  

Research has determined that organizational culture is related to employee turnover, job commitment, and job satisfaction. Assessment of this culture requires an instrument that befits the type of organization under examination. Using exploratory factor analysis, Stohr and her colleagues were able to demonstrate that the Organizational Culture Instrument (OCI) had a solid reliability and validity profile. The current study reanalyzes these data, using confirmatory factor analysis and structural equation modeling. The findings indicate that there is statistical evidence to claim validation of the OCI and its seven theoretically based dimensions.


2017 ◽  
Vol 22 (3) ◽  
pp. 308-328 ◽  
Author(s):  
Soojin Kim ◽  
Lisa Tam ◽  
Jeong-Nam Kim ◽  
Yunna Rhee

Purpose The purpose of this paper is to identify associations amongst organizational justice, supervisory justice, authoritarian culture, organization-employee relationship quality and employee turnover intention. Design/methodology/approach An online survey (n=300) was conducted in South Korea. Findings Organizational justice and supervisory justice are positively associated with organization-employee relationship quality, while authoritarian organizational culture is negatively associated with it. In addition, there is a positive association between authoritarian organizational culture and turnover intention. Organizational justice and organization-employee relationship quality are negatively associated with turnover intention. Originality/value This study contributes to the lack of research on organization-employee relationship quality as a predictor of employee turnover intention and a mediator between authoritarian organizational culture and turnover intention.


2017 ◽  
Vol 2 (1) ◽  
pp. 19
Author(s):  
Harjoyo Harjoyo

ABSTRACT  PATH   ANALYSIS    OF    ORGANIZATIONAL    CULTURE,    COMPENSATION   AND    JOB SATISFACTION ON EMPLOYEES TURNOVER OF YUASA BATTERY INDONESIA, CO,-LTD.-TANGERANG. The study attempted to examine a phenomena and to gain empirical evident, as well as to get a brief data on the influence of organizational culture, compensation and job satisfaction on employee turnover. The study applied descriptive and inductive of multivariat regresion method it’s include 94 respondents as the samples. The samples were selected through proporsionate stratified sampling. The statistical tool were used is SPSS 17 software as the means to examine the data. The findings could be concluded as follows: (1) There was positive effect from all independent variables toward employee turnover within value influence 80,9%. (2) The results of this research indicated that job satisfaction was the greatest affecting to the employee turnover was as much as 59.1%. (3) Meanwhile there are positive influence of organizational culture was equal to 26.7%. (4) Then there are positive affecting of compensation was equal to 12.6%. Based on the analysis of the conclusions and implications of this research, there are several suggestions as follows:(1) Based on the calculation results of the questionnaire, organizational culture variables (X1) which consists of 4 dimensions and 12 indicators, dimensions of employee engagement have a presentation of the most low at 48.94%. It should be a concern for the company improve employee engagement as a problem-solving discussion, provides an opportunity to move forward, and so on. (2) The compensation variable (X2) consisting of 4 dimensions and 12 indicators, dimensions of the facility have a presentation that is equal to 51.33% lower. It should be a concern for the company improve employee facilities required such as parking areas, parks, sports facilities, so that employees feel comfortable in the company area. (3) The Job satisfaction variables (X3) which consists of 4 dimensions and 16 indicators, job security dimension has the lowest presentation that is equal to 52.38%. It is recommended that companies pay more attention to health and safety, and social security so employees do not feel anxious in doing the job.(4) The Turnover variable (Y) consisting of 4 dimensions and 13 indicators, dimensions of the work environment has a presentation of the work value that is equal to 53.19%. This is not apart from polluting production processes and pollution and generate waste hazardous and toxic material. Although the company has done with the implementation of an Environmental Management System ISO 14001 but is still expected to increase in the control of potential environmental pollution and threats, so that not only the employees in the company that would avoid the risk of pollution and contamination of the surrounding community but also will feel calm and do not disturb the existenceof the c ompany. Kata Kunci: Budaya Organisasi, Kompensasi, Kepuasan Kerja, Tingkat Trun Over Karyawan


2018 ◽  
Vol 11 (2) ◽  
pp. 1559-1562
Author(s):  
Rataba Rana ◽  
Muhammad Shaukat Malik

This study aims to determine and examine impact of Compensation Packages on employee’s turnover intentions with mediating effect of organizational culture. It has utilized a quantitative survey through the use of a questionnaire to empirically test the impact of the Compensation Packages on turnover intentions of employees with mediating effect of organizational culture. A total of 300 questionnaires were distributed and results were evaluated through primary and secondary data.The research finding reflects that the Compensation Packages are vital to reduce the employee turnover intentions at workplace. This research has identified the mechanism through which a favorable Compensation Packages system can be justified for employees so as to avoid high rates of turnover.  The results clearly show that, with reference to Pakistan’s banking sector, organizational culture has a very significant relationship with Compensation Packages, as well as an employees’ intention to quit.


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