International Journal of Business Management & Research (IJBMR) ISSN 2249-6920 Vol. 2 Issue 3 Sep 2012 26-44 © TJPRC Pvt. Ltd.,
IMPACT OF ORGANIZATIONAL CLIMATE ON TURNOVER INTENTION: AN EMPIRICAL ANALYSIS ON FACULTY MEMBERS OF TECHNICAL EDUCATION OF INDIA 1 1
SAKET JESWANI & 2SUMITA DAVE
Sr. Assistant Professor, Shri Shankaracharya Institute of Technology and Management, Bhilai, (C.G.), India 2
Professor, Faculty of Management Studies, SSGI, Bhilai, (C.G.), India
ABSTRACT 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
INTRODUCTION 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
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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 turnover intention. This empirical study aims to identify various antecedents of organizational climate and also to investigate their impact on turnover intention of faculty members of technical educational institutes of India. Five antecedents of organizational climate (Orientation, Supervision, Communication, Decision Making, and Reward Management) identified as independent variables with the help of through literature review of previous research in the associated field and broad discussion with faculty members. This study will shed some light for technical educational institutes that encounter high turnover rates of faculty members resulting from unfavorable organizational climate. Knowing more about faculty member’s intent to leave with relation to organizational climate is important to develop general guidelines to improve the relevant organizational climate factors that are found to be laking in the organizations.
LITERATURE REVIEW Organizational Climate Organizational climate is a concept of employees’ attitude and feelings towards their organization which has great impact towards their working ways and contributions; in consequence organizational climate causes organization performance because this relates directly to employees’ satisfaction and commitment towards organization. Organisational climate forms part of the broader climate concept, which includes aspects of the social environment that are consciously perceived by the organisational members (Patterson et al., 2004). The concept dates back to the early 1900s, with the work of Lewin et al. (1939) and Lewin (1951), who suggested that climate is a characterisation of the salient environmental stimuli and is an important determinant of motivation and behaviour. This has resulted in organisational climate being the direct or indirect subject of much organisational behaviour and emerging as a construct with many behavioural consequences. The subject gained momentum with the work of Litwin and Stringer (1968), who
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conceptualised climate in relation to its influence on motivation and behaviour. They stated that organisational climate is: “A set of measurable properties of the work environment, perceived directly or indirectly by people who live and work in this environment and assumed to influence their motivation and behaviour” (Litwin and Stringer, 1968) Litwin and Stringer (1968) conducted the first comprehensive study on organisation climate that was based on theory developed by McClelland et al. (1953) and focused on how climate affects human motives for achievement, power and affiliation. They developed the Litwin and Stringer Organisational Climate Questionnaire (LSOCQ), a theoretically based scale for measuring climate with the nine dimensions aimed at satisfying three management needs, namely accurately describe the situation, relating the dimensions to specific motivations and motivated behavior, and enable management to measure changes in the situation. In order to influence climate, numerous factors, such as physical structure and settings, procedures and practices, and leadership style, need to be considered. Litwin and Stringer’s (1968) model suggests that the concept of organisational climate needs to be integrated with other theories of organisational behaviour such as motivation. The integration of these organisational behaviour theories with organisational climate shows the relationship and importance of factors like leadership style, management practices, decision-making processes, technology, formal organisational structures and social structures on the formation of climate. An initial assumption of theory and research in the area of organizational climate was that social environments could be characterized by a limited number of dimensions. For example, Campbell, Dunnette, Lawler, and Weick (1970) identified four dimensions common to a number of climate studies (individual autonomy; degree of structure imposed on the situation; reward orientation; and consideration, warmth, and support). James and his colleagues (James & James, 1989; James & McIntyre, 1996; James & Sells, 1981) describe four dimensions they identified across a number of different work contexts: (1) role stress and lack of harmony; (2) job challenge and autonomy; (3) leadership facilitation and support; and (4) work group cooperation, friendliness, and warmth. James suggested that individuals developed a global or holistic perception of their work environment (e.g., James & Jones, 1974), which could be applied to any number of contexts and industries. However, over the years the number of climate dimensions identified as targets of assessment has proliferated, leading to confusion and slow theoretical progress. For example, Glick’s (1985) review of the field described an abbreviated list of climate dimensions including leader’s psychological distance (Payne & Mansfield, 1978), managerial trust and consideration (Gavin & Howe, 1975), communication flow (Drexler, 1977), open-mindedness (Payne & Mansfield, 1978), risk orientation (Lawler, Hall, & Oldham, 1974), service quality (Schneider, Parkington, & Buxton, 1980); equity (James, 1982), and centrality (Joyce & Slocum, 1979). Since Glick’s review, the development of new climate scales has continued. For example, the Business Organization Climate Index (Payne & Pheysey, 1971) was revised
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Impact of Organizational Climate on Turnover Intention: An Empirical Analysis on Faculty Members of Technical Education of India
in 1992 with the addition of scales measuring concern for customer service, the impact of information quality, and ability to manage culture (Payne, Brown, & Gaston, 1992). The lack of a theoretical basis for many climate instruments has resulted in much of the variation in climate dimensions employed in different measures. For example, Wilderom, Glunk, and Maslowski (2000) located and summarized 10 studies relating climate to organizational performance. They reported that different aspects of climate emerged as important in different studies. This diffuse pattern of results is likely to be due, in part, to the variety of methods of assessment of climate employed in these studies. The inability to draw clear research conclusions through a lack of theory and subsequent inconsistent operationalization of climate is compounded by the fact that most climate instruments have not been validated. With the exception of some domain-specific climates such as Schneider’s service climate (Schneider et al., 1998), there are few measures with demonstrated reliability and validity. One of the best-known general measures of organizational climate is the Organizational Climate Questionnaire (OCQ) by Litwin and Stringer (1968). It comprises 50 items that assess nine dimensions of climate. A number of studies (e.g., Sims & LaFollette, 1975; Muchinsky, 1976) have suggested that a six-factor structure is more appropriate and pointed out that the existing nine scales showed poor splithalf reliabilities. A review by Rogers, Miles, and Biggs (1980) showed that most studies had found six factors and that there was virtually no agreement among researchers regarding which items loaded best on the different factors. They concluded that the OCQ lacked validity and was not a consistent measurement device. For the purpose of this research study, in the light of various theories and models on organizational climate given by various theorist and management practioners and after the broad discussion with faculty members, five antecedents of organizational climate was identified as important and more prevalent among the educational settings. Antecedents of Organizational Climate On the basis of through literature review & broad discussions with faculty members, five antecedents of organizational climate have been identified with the help of Organizational Climate Questionnaire (OCQ) by Litwin and Stringer (1968): Orientation, Supervision, Communication, Decision making, and Reward management. 1.
Orientation: A concern with clearly defining the goals of the organization to the employees. (Locke, 1991)
2.
Supervision: the extent to which employees experience support and understanding from their immediate supervisor (Cummins, 1990; Eisenberger et al., 2002).
3.
Communication: The free sharing of information throughout the organization. (Callan, 1993; Hargie & Tourish, 2000)
Saket Jeswani & Sumita Dave
4.
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Decision making: Employees have considerable influence over decision-making activities in the organization. ( Miller & Monge, 1986; Hollander & Offerman, 1990)
5.
Reward management: Reward identifies the feeling of being rewarded fairly and equitably as well as the perceived organization’s promotion policies. If an employee feels that he or she is unlikely to obtain a good evaluation or promotion even after having great endeavours in such a working environment, he or she will probably search for another job elsewhere (Ing-Chung Huang et al, 2003).
Turnover Intention Employee Turnover is acting like an incurable disease now-a-days as it is becoming very difficult for the organizations to retain their valuable employees, which are the means of gaining competitive advantage. Intention to leave and actual turnover are often highly correlated. For this reason, researchers often use intent to leave as a proxy for turnover. Price (1977) developed a model of turnover which proposes that intention to leave is influenced by personal characteristics, role related characteristics, facility characteristics, turnover opportunities, and job characteristics. Mobley (1982), on the other hand classes the causes and correlates of turnover into a simple model, which presents the determinants into external economy, organizational variables and individual variables. Turnover intention is defined as a conscious and deliberate wilfulness to leave the organization (Tett and Meyer, 1993). High turnover often means that employees are unhappy with the work or compensation, but it can also indicate unsafe or unhealthy conditions, or that too few employees give satisfactory performance (due to unrealistic expectations or poor candidate screening). The lack of career opportunities and challenges, dissatisfaction with the job-scope or conflict with the management has also been cited as predictors of high turnover. Low turnover indicates that none of the above is true: employees are satisfied and their performance is satisfactory to the employer. This study on employee’s intention to quit, however, is zooming in at the organizational levels. One of the organizational variables used is organizational climate which potentially correlates to individual’s turnover intention. Employees tend to leave organizations that endure unfavourable organizational climate. Implementing employee retention strategies by changing organizational climate could be time-consuming and it would not probably show significant results in the short term. It is hoped that this study will shed some light for organizations that encounter high turnover rates resulting from unfavourable organizational climate. Knowing more about why people intent to leave is important to develop general guidelines to improve the relevant organizational climate factors that are considered short-coming in the organizations. Links between Organizational climate and Turnover Intention Research has suggested that climate perceptions are associated with a variety of important 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).
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Impact of Organizational Climate on Turnover Intention: An Empirical Analysis on Faculty Members of Technical Education of India
Lewin (1951) proposed that behaviour of an individual within an organisation is a function of the individual and the organisational environment as depicted by the following equation: Behaviour = f (P, E) Where, P is the characteristics of the individual; and E is the characteristics of the environment that the individual operates in. This formula summarises the essence of environmental influences on an individual’s behaviour. It is therefore also indicative of the effect that organisational climate has on behaviour. The behavior can be depicted as turnover intention of faculty members.
RESEARCH HYPOTHESIS Based on the above literature and the study of Litwin & Stringer (1968), which depicts the relationship between the five antecedents of organizational culture and turnover intention. The hypothesis generated based on literature review is tested on the sample population of faculty members of technical educational institutes of India. This study seeks to test the following hypotheses: H1: Orientation has a significant impact on turnover intention of faculty members. H2: Supervision has a significant impact on turnover intention of faculty members. H3: Communication has a significant impact on turnover intention of faculty members. H4: Decision Making has a significant impact on turnover intention of faculty members. H5: Reward Management has a significant impact on turnover intention of faculty members.
RESEARCH MODEL The purpose of this study is to investigate the links between antecedents of organizational climate and turnover intentions of faculty members of technical educational institutes of India. The study focus on determining the various antecedents of organizational climate those most significantly influence their decisions to quit or stay. In addition, the study sought to describe the importance of retaining efficient faculty members and developing strategies to enhance their retention practices. There are five antecedents of organizational climate, which have a direct relationship on turnover intention among the faculty members. A Organizational Climate – Turnover Intention Model is generated on the basis of literature review for the purpose to check the extent of sound organizational climate and its probable relationship with the decision to quit or stay as shown in fig 1.
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Saket Jeswani & Sumita Dave
Figure 1: Organizational Climate – Turnover Intention Model
INDEPENDENT & DEPENDENT VARIABLES An appropriate instrument is required for survey in order to conduct the study properly. This instrument needs some base and background. Table 1 & 2 depicts the Independent & Dependent Variables. Independent Variables
Organizational Climate – Climate has been described as an experientially based description of the work environment and, more specifically, employees’ perceptions of the formal and informal policies, practices and procedures in their organization (Schneider, 2008). “Climate can be defined as the perceived attributes of an organization and its sub-systems as reflected in the way an organization deals with its members, groups and issues”. (Litwin & Stringer, 1968)
Source
Litwin & Stringer, 1968
Dependent Variable Turnover intention is broadly defined as attitudinal (thinking of quitting), decisional (intention to leave), and behavioral (searching for a new job) processes proceeding voluntary turnover (Sager et al., 1998, Khatri 2000).
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Impact of Organizational Climate on Turnover Intention: An Empirical Analysis on Faculty Members of Technical Education of India
Table 2: Independent & Dependent Variables Table 2: Independent & Dependent Variables Items
Independent Variables
X1
Orientation (Clearly defining the goals of the organization)
X2
Supervision (The extent to which employees experience support and understanding from their immediate supervisor)
X3
Communication (The free sharing of information throughout the organization)
X4
Decision Making (Employees have considerable influence over decision-making)
X5
Reward Management (Feeling of being rewarded fairly and equitably as well as the perceived organization’s promotion policies)
Source Litwin and Stringer (1968)
Dependent Variable
Organizational Climate
RESEARCH INSTRUMENT The above study helps in developing the survey instrument. 3 items scale has been generated for turnover intention of faculty members adapted from Donnelly and Ivancevich (1985), which states that ‘Actively searching for a new job next year’, ‘thinking about quitting present job’, and ‘leave the job as soon as possible’ are the three instruments representing the turnover intention. 15 items scale has been generated for five antecedents of organizational climate (3 items for each antecedent) for eg. ‘clearly defined goals’ represents the orientation, ‘support from superior’ represents the supervision, ‘ free sharing of information’ represents communication, ‘autonomy in work related decisions’ represents decision making and ‘fair and uniform salary structure’ represents reward management. The 18 instruments comprises to form the research instrument of the study for developing the questionnaire in order to prove the hypothesis generated as shown in Table 3.
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Table 3: Research Instrument Table 3: Research Instrument Variable
Turnover Intention (Z)
Organizational Climate
(X)
Items
Z1
Scale Actively searching for a new job next year
Adapted from
Z2
Often think about quitting present job
Donnelly and Ivancevich (1985)
Z3
Leave as soon as possible
X11
Clearly defined goals
X12
Flexibility in solving problems
X13
Organization helps to achieve individual goals
X21
Support
X22
Understanding among employees
X23
Proper supervision and directions
X31
Free sharing of information among employees
Source
Adapted from
Organizational Climate Questionnaire (OCQ) by Litwin and Stringer (1968)
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Impact of Organizational Climate on Turnover Intention: An Empirical Analysis on Faculty Members of Technical Education of India
X32
Communication of future direction
X33
Free sharing of information between management and employees
X41
Autonomy in work-related decisions
X42
Work-related decisions without prior permission
X43
Involvement in institutional level decisions
X51
Fair and uniform salary structure
X52
Fair promotional policies
X53
Reward for achievements
RESEARCH METHODOLOGY The conclusive research design was applied in this study to identify the antecedents of organizational climate and to find out their relationship with faculty members intention to leave or stay. Non-probability convenience sampling method was adopted. The sample comprised 205 faculty members of technical educational institutes of India. The India was divided into 5 zones viz. East, West, North, South & Central. Various popular states of all the 5 zones were chosen for data collection. The data was collected from faculty members including Assistant Professors, Associate Professors and Professors.
Saket Jeswani & Sumita Dave
36
Procedure The data was collected through online survey (Questionnaire). The questions were asked on seven point likert scale from the respondents. The questionnaire consisted of three sections i.e. turnover intention and antecedents of organizational climate. Turnover intention was the dependent variable. Finally, the third section asked was about the respondents’ demographic characteristics. To increase the response rate, the employees were informed regarding the research objective and confidentiality. The response rate was 20.5% (205/1000) targeting sample size of 200 from each zone of India. (n = 205) Measures Based on the theoretical framework presented above, a new measure of organizational climate was developed with the help of Organizational Climate Questionnaire (OCQ) by Litwin and Stringer (1968). Both deductive and inductive processes were used for item generation (Hinkin; 1995, 1998). Item generation was initiated with the following steps: (1) a comprehensive review of the literature on psychological ownership, turnover intention and related terms, and (2) discussions with faculty members of various technical institutes. From the review of literature and group discussions, five antecedents of organizational climate was identified and considered as independent variables for the purpose of the study viz. Orientation, Supervision, Communication, Decision making, and Reward management. Turnover Intention of faculty members is considered as dependent variable. In the next step, 18 items were generated for data collection representing the five antecedents of organizational climate and turnover intention. Then the guidelines of Stanton, Sinar, Balzer, and Smith (2002) for item reduction were followed. Specifically, item reduction is often done on the basis of maximizing internal consistency. Accordingly, the scale’s internal consistency (Cronbach’s alpha) was maintained by selecting items based on reliability with each item removed, and the corrected item-total correlations. The instruments were prepared keeping in mind the faculty members of technical educational institutes of India. The survey questionnaire with a 7-point Likert-type scale ranging from 1 (strongly disagree) to 7 (strongly agree) was used.
VALIDITY & RELIABILITY OF INSTRUMENTS The 18 items were subjected to a principal component analysis with varimax rotation, the results of which are shown in Table 4. In line with expectations, the factor analysis yielded four components corresponding to the five variables. The result of factor analysis shows that Z1, Z2 and Z3 items of turnover intention are loaded under 3rd component with high loading values of 0.812, 0.827 and 0.824. X1, X2 & X3 variables i.e. Orientation, Supervision and Communication are loaded under 1st component. As loadings of orientation items X11, X12, X13 are 0.823, 0.784 & 0.797 respectively is high as compared to supervision & communication items, it is only considered for further analysis. Both the supervision &communication items will not be considered. X41 & X42 items of Decision Making are loaded under 4th component with loadings of 0.787 & 0.844 respectively, whereas X43 is weakly loaded (0.481), so will not be considered. X51, X52 and X53 items of Reward Management are loaded under 2nd component
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Impact of Organizational Climate on Turnover Intention: An Empirical Analysis on Faculty Members of Technical Education of India
with loadings of 0.827, 0.832 and 0.674 respectively. Therefore, after factor analysis, Turnover Intention will be considered as dependent variable whereas 3 items of orientation, 2 items of decision making and 3 items of reward management are considered as independent variables for further multivariate analysis. Reliability or internal consistency of the instruments is estimated with the help of Cronbach coefficient alpha to check whether the items are all measuring the same thing or not. The closer the value of Cronbach’s alpha to one, the higher the reliability estimate of the instrument. As the scale is multidimensional, consisting of numerous subscales, coefficient alphas are estimated for each subscale as shown in table 4 and the values depicts that the data gathered for all the subscales are reliable. Table 4: Validity Test (Factor Analysis) Table 4: Validity Test (Factor Analysis) Rotated Component Matrix Variable Turnover Intention
Orientation
Supervision
Communication
Decision Making
Reward Management
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
Items
1
2
3
4
Z1
-0.081
-0.125
0.812
-0.2
Z2
-0.178
-0.121
0.827
-0.081
Z3
-0.226
-0.234
0.824
-0.002
X11
0.823
0.105
-0.164
0.095
X12
0.784
0.099
-0.13
0.209
X13
0.797
0.323
-0.154
0.191
X21
0.731
0.402
-0.13
0.213
X22
0.756
0.333
-0.142
0.302
X23
0.737
0.419
-0.099
0.162
X31
0.546
0.442
-0.083
0.328
X32
0.678
0.177
-0.222
0.357
X33
0.614
0.246
-0.223
0.419
X41
0.336
0.161
-0.157
0.787
X42
0.234
0.221
-0.05
0.844
X43
0.479
0.293
-0.202
0.481
X51
0.217
0.827
-0.234
0.218
X52
0.309
0.832
-0.215
0.217
X53
0.437
0.674
-0.182
0.143
Cronbach’s Alpha 0.825
0.874
0.874
0.915
0.775
0.881
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Saket Jeswani & Sumita Dave
Organizational Climate was measured using 15 items instrument for all the five antecedents using Organizational Climate Questionnaire (OCQ) by Litwin and Stringer (1968). The Cronbach alpha was 0.950. Overall the internal consistency for all the 18 items was checked and the Cronbach alpha was 0.872 (Table 5).
Table 5: Reliability Statistics for Main Study (n=205) Cronbach's Alpha
N of Items
0.872
18
DATA ANALYSIS & INTERPRETATION The Statistical Package for the Social Sciences (SPSS) (Version 17) was used to facilitate analysis. The psychometric properties of the instrument were analyzed using principal component analysis with varimax rotation to determine construct validity and Cronbach’s coefficient alpha to determine the scale’s internal consistency reliability. Finally, the regression analysis was conducted to determine the impact of five antecedents of organizational climate on turnover intention (table 6, 7 & 8). The value of R Square is 0.238 i.e. 23.8% which reveals that data collected is reliable as shown in table 6 Table 6: Model Summary Table 6: Model Summary
Model 1 Predictors: (Constant), X5, X1, X4
R 0.488
R Square 0.238
Adjusted R Square 0.227
Std. Error of the Estimate 1.575
Table 7 reveals that organizational climate has a significant impact on turnover intention of faculty members as F value (20.955) is greater than Fcrit (2.649).
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Impact of Organizational Climate on Turnover Intention: An Empirical Analysis on Faculty Members of Technical Education of India
Table 7: ANOVA
Sum of Squares
Model
Mean Square
df
Significance p
F Fcrit
1
Regression
2.649 155.874
3
51.958
Residual
498.388
201
2.48
Total
654.262
204
20.955
0
Predictors: (Constant), X5, X1, X4 Dependent Variable: Z
Among all the five antecedents of organizational climate only two antecedents viz. Orientation (X1) and Reward Management (X5) has significant impact on turnover intention with p values of 0.000 & 0.027 (p<0.05) respectively as shown in table 8. Therefore research hypothesis H1 and H5 is accepted whereas null hypothesis (H0) is accepted for other three antecedents viz. Supervision (X2), Communication (X3) & Decision making (X4) i.e H2, H3 and H4 are rejected. Table 8: Coefficients
Unstandardized Coefficients
Model
1
Standardized Coefficients
t
Sig.
B
Std. Error
(Constant)
5.372
0.351
15.315
0
X1
-0.203
0.091
-0.18
-2.223
0.027
X4
0.086
0.129
0.073
0.667
0.506
X5
-0.424
0.108
-0.418
-3.927
0
Beta
Dependent Variable: Z
The beta coefficients for significant antecedents of organizational climate i.e. orientation and reward management are -0.203 and -0.424 respectively as shown in figure 2. The negative sign indicates the inverse relationships between the antecedents of organizational climate and turnover intention among faculty members.
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Saket Jeswani & Sumita Dave
Figure 2: Result of Hypothesis Test (H1 to H8)
CONCLUSIONS The study set out to develop a theory-driven multi-dimensional measure of organizational climate and then its impact on turnover intention of faculty members of technical educational institutes of India. The result of this empirical investigation support that organizational climate has a significant impact on turnover intention of faculty members. The study results revealed that orientation and reward management are the two antecedents of organizational climate, which has an inverse significant impact on turnover intention. i.e. if faculty members are clear about the organizational and individual goals and rewards within the institute is properly managed than it is less likely for the them to quit the organization. These findings had the support of a previous study by Singh (1985) who found that faculty members in a more open climate performed much better than faculty members in a less open climate and are less likely to leave the organization. The results from this empirical investigation may have significant implications for how positive organizational climate is conceived.
The results hopefully suggest that these two antecedent may
represent what constitutes a theoretically broadened and enriched understanding of organizational climate in relation to faculty members of technical educational institutes of India.
Suggestions In this competitive world, technical educational institutes require satisfied and committed faculty members to generate value for the institution. The result of this study was in the hypothesized directions in which perceived positive organizational climate decreases intention to leave. This relationship was in
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Impact of Organizational Climate on Turnover Intention: An Empirical Analysis on Faculty Members of Technical Education of India
line with previous findings reported and thus this study managed to validate the results obtained by past researchers. To create positive organizational climate, management of the educational institutes needs to focus more on two antecedents of organizational climate i.e. Orientation and Reward Management, as they have significant impact on intention to quit which is inversely related. Orientation techniques should be properly defined and practiced within the educational institutes like faculty members must be clearly defined with the goals of the institute. There must be provisions of flexibility in solving problems and at last management of the institutes needs to help the faculty members to achieve their individual goals. Sound policies regarding reward management needs to be formulated and implemented including fair and uniform salary structure among all the faculty members and fair promotional polices. Management of the educational institutes needs to formulate such strategies to instill a positive organizational climate and thus reduce turnover of faculty members.
Limitations A major limitation of this study is the population factor. Only faculty members of technical educational institutes of India were used leaving out students and non-academic staff. This poses a threat to generalizability of the study in relation to prediction of organizational climate in Indian institutes – the study may not be generalized for the entire academic community. It is not certain that similar results would be obtained when a study is conducted using all the subgroups (academic, non-academic and students) for estimation of organizational climate. Another limitation is dearth of current literature in the area of organizational climate in relation to turnover intention in educational settings.
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