Impact of Organizational Climate on Turnover Intention

Topics: Internal consistency, Organizational studies, Cronbach's alpha Pages: 30 (4061 words) Published: December 5, 2013
International Journal of Business Management &
Research (IJBMR)
ISSN 2249-6920
Vol. 2 Issue 3 Sep 2012 26-44
© TJPRC Pvt. Ltd.,



Sr. Assistant Professor, Shri Shankaracharya Institute of Technology and Management, Bhilai, (C.G.), India

Professor, Faculty of Management Studies, SSGI, Bhilai, (C.G.), India

The study aims to explore the antecedents of organizational climate and its impact on turnover intention of faculty members of various technical educational institutes of India. A 23-item instrument was generated following a critical review of the literature. The data was collected from 205 faculty members through structured questionnaires. Antecedents of Organizational climate viz Orientation, Supervision, Communication, Decision Making and Reward Management are independent variables and Turnover Intention is dependent variable. An 18 item instrument was generated with the help of Turnover Intention scale adapted from Donnelly and Ivancevich (1985) and Organizational Climate Questionnaire (OCQ) adapted from Litwin and Stringer (1968) measuring five factors. Principal component analysis with varimax rotation was used to determine construct validity and Cronbach’s coefficient alpha to determine the scale internal consistency. Regression analysis was used to determine the causal relationship between both the variables. The results state that among all the five antecedents of organizational climate only two antecedents viz. Orientation (X1) and Reward Management (X5) has significant impact on turnover intention The hypothesis was tested on representative faculty members of technical educational institutes across India.

KEYWORDS: Organizational Climate, Turnover Intention, Faculty Members, Technical Educational Institutes

Organizational Climate is a very important concept to study and to understand in the realm of organizational behavior. The origin and the use of this concept is as old as the original concept of management itself. However, since many decades various frameworks of organizational climate has been developed both conceptual as well as operational under different sets of situations and their research findings are highly diverse and often contradictory in nature. Retaining valuable employees is one of the most crucial issue for today’s competitive organizations as employees are considered as the most valuable asset and precious resource, which helps


Impact of Organizational Climate on Turnover Intention: An Empirical Analysis on Faculty Members of Technical Education of India

to sustain in the dynamic environment. It is usually in the organizations best interest to put its energy and time in retaining the quality employees that they already have instead of recruiting the new ones. However, increasing employee turnover has been a fashion now a days and the issue of employee turnover is the major reason for performance inefficiency in many organizations in India. Indian organizations are being forced to undergo considerable transformation in their working system in order to sustain in today’s competitive and dynamic environment. In this context, it would be important to explore the factors that have the most positive impact on the performance of the organization. Organizational performance largely depends on the presence of satisfied and committed employees. Among various factors, attitudes and feelings of the individuals regarding their jobs have been found to be significantly affecting their behaviors. (Herzberg, Mausner, Peterson and Capwell, 1957; Iaffaldano and Muchinsky, 1985; Locke, 1970; Schwab and Cummings, 1970; Petty, McGee and Cavender, 1984). Therefore, positive attitude towards job can be generated by a healthy organizational climate resulting to a positive behavior towards...

Links: outcomes at an individual, work group, and organizational as a whole. One of the important outcome and
also the focus of this study is turnover intention (Rousseau, 1988; Rentsch, 1990).
Faculty Members of Technical Education of India
Lewin (1951) proposed that behaviour of an individual within an organisation is a function of
Based on the above literature and the study of Litwin & Stringer (1968), which depicts the
practices and procedures in their
organization (Schneider, 2008).
members, groups and issues”. (Litwin
& Stringer, 1968)
Litwin & Stringer, 1968
al., 1998, Khatri 2000).
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