Job Satisfaction, Organizational Commitment And Turnover Intention Of Sales Persons Of Private Sector Insurance Companies Of Coimbatore District

When an employee leaves the company of his or her own volition, it is called voluntary turnover. In this essay, I will discuss why voluntary turnover is a problem for many organisations and how to retain employees.

In this paper Team C has discussed the issue of poor employee retention concluding in a high employee turnover rate. This is an issue that can be common among some companies and that is a great example of

There are two types of turnover, voluntary turnover happens when the employee makes the decision to leave and involuntary turnover is when employees has no choice in their termination (Schmitz, 2012). Every month or sooner managers experience some of their exceedingly qualified employees leave the company. After realizing that their company is becoming less profitable is when they begin to wonder why and brainstorm on ways to retain them. In Information Technology, “the cost of recruiting new staff is high and the loss of continuity when staff leave can also be very expensive” (Bott, 2005, p. 111). In IT, human resources strive to maintain their highly skilled employees while employees’

Retention of employees is an ability to hold and retained employees that are talented and valuable to the organization. It is a great challenge to retain such employees from leaving the organization and joining the competitors. Employee retention and turnover of employees are two different things. Employees’ retention is referred as the period of the employee being employed in an organization. Whereby turnover intention referred as the number of employee wanted to leave the organization. In any healthcare organization, nurses are the majority employees and they are known to be the key person in healthcare industry (Brown, Fraser, Wong, Muise & Cummings,

All over the globe retaining employees is a most critical factor for the organisations. High employee turnover is more common in private sector as compared to public. In construction industry, to reduce employee turnover and to improve the productivity of an organisation, organisations have to be aware of the reasons why an employees quit the organisation?. Employee turnover can be explained as the expenses, in term of money, time, and quality of work, that an organisation bear while replacing an employee. If an organisation fails to satisfy the needs of its employees then it is obvious that the employees will look forward to fulfill their necessities. This chapter discuss the reasons why employees quit their jobs.

The reason that why, this research topic was selected because in our environment most of the workers are not satisfied with their jobs and most of them are quiet their jobs when they find relatively better job than that one. The reason is not that they are not competent but there are few factors the effect the commitment and satisfaction of the employee towards their job, some are employee workload, work stress, salary, job satisfaction, and work to family conflict. The research study was scrutinized the fact that employee turnover is positively effect on overall performance of the organization.

Denvir & McMahon (1992) reported that "High levels of attrition can become substantial and harmful to the organization. It obstacles relationships between employees and employers”. It results in heavy administrative costs and a considerable loss of productivity through the breaking up of teams who are used to working together and in a loss of expertize.

Turnover is when employees leave an organization either to seeking higher pay elsewhere or for any other reasons (Allen 1). Turnover in an organization is an important aspect that can affect the operations of a business. It has been proven over time to be one of the most expensive and one of the most difficult challenges that can face an organization. As such, Human Resource managers and other top management teams in every industry must pay attention to issues related to employee turnover. Turnover has also drawn the attention of academicians who develop an interest to do more research about it. The paper will focus on the effects of turnover on a business organization.

Turnovers lead to hidden costs such as new hiring’s, trainings of new recruits, a sudden reduction in organizational productivity during the learning curve of new employees, supervision required is getting increases and it affects other functions such as customer satisfaction, speed of service and etc. Therefore companies need to take corrective and preventive actions in terms of employee retention in view of achieve organizational goals (Hanif, Khalid and Khan,

These are the respective theories of motivation and how it may drive an employee commitment in an organization. Five approaches of amplification behavior; needs, reinforcement, cognition, job characteristics, and feelings/emotions – underlie the evolution of modern theories of human motivation. In this motivational theory effort, the following motivation theories were selected; need theories, equity theory, expectancy theory, and job design model given their emphasis and reported significance on employee retention.

Organizational commitment is critical to organizations due to the desire to retain a strong workforce. Organizations want to know why employees stay or leave their organizations so if correction is needed they have some tools to proceed with the correction. High turnover of employees in an organization can determine if an organization is successful or not. While turnover is related to all three areas of commitment researchers have determined that Affective commitment is one most associated with absenteeism and organizational citizenship (Williams J. 2004).

Behavioral theories of the causes of turnover (Richard Mowday, Lyman Porter, and Richard Steers - The psychology of commitment, absenteeism, and turnover - 1982) accompanied with conducting employee surveys particularly designed to assess basic predictors of turnover (such as job satisfaction), in addition to the support of human resource planners can give enough information to predict how many filled positions can possibly become vacant. This information is more accurate and can be useful mostly when a single organizational department has a large number of employees. Nevertheless, on practice it is less precise when making predictions

The primary subject matter of this case involves the job satisfaction and organizational commitment on a company’s workforce. The case depicts a firm’s concern about the value of individual motivation and their affective commitment to their organization. And this evaluated by using Maslow’s Hierarchy of Needs (1954), Herzberg’s Two-Factor Theory of Satisfaction (1959, 1968), Meyer and Allen’s measure of Organizational Commitment (1997), and Fishbein and Ajzen’s Theory of Reasoned Action and Planned Behavior (1975) that could make critical organizational outcomes to be best which are being negatively impacted.

Rotation of workers around the labour market between the status of employment and unemployment is called as Employee turnover (Abassi and Hollman 2000). Labour turnover has become a critical problem for service industries as it depends on human factor. Employees do not leave the organization without any significant reason. Taris et al. (2004), divided two motives for turnover i.e. the push and pull factors. The pull factors include inequity in compensation, availability of opportunities for future development over the external market and the employees who would resign to go into private business. The push factors have relationship with the dissatisfaction of work situation, lack of democratic managerial pattern and job stress. On the other hand, Griffieth (2000), viewed remuneration and remuneration related variables have intense effect on turnover. Griffieth demonstrated a relationship between remuneration, employee's performance and turnover and concluded that when an employee performs extremely well expects a high pay and when they are paid low they quit.

In this research paper, I focused on model of organization commitment developed y John P. Meyer and Natalie J. Allen. Organizational commitment is comprised with three elements; affective, continuance and normative commitment. Affective commitment is emotional affiliation of employees with the organization (charles Wankel, 2009: encyclopedia of business volume 1 pp 187). Affective commitment is consisting three factors; beliefs, willingness and desire toward the organizational goal (Porter, 1974). According to Mow day (1982) categorized the affective commitment with personal and structural characteristics, job and work experience. Continuance commitment refers to employee benefits attached with leaving organization or it is investment of employee in the organization. This investment of employee is given at the time of retirements or emotional attachment with other employees (Reichers, 1985). Normative commitment refer to the oblige feeling of an employee toward organization. It is value of loyalty and responsibility of employee regarding his commitment with the organization (Meyer and Allen, 1991).