A Study on Relationship between Leadership styles and Employees' Intention of Turnover

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ACKNOWLEDGEMENT

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ABSTRACT

The problem of employee turnover has been of interest to researchers for many years. Organizational leaders seek to retain employees because of the costs associated with replacing employees, the disruptions turnover causes within the organization, and the value of tactical intellectual capital represented by the employee. Researchers postulate the most important reason that people leave their jobs was because of an inability to work well with their supervisor. High rates of employee turnover link to profitability loss, and, in the retail industry, customer loyalty. Researchers and practitioners conceptualize leadership in different ways. However, according to nearly all definitions, leadership involves the ability to or the process of influencing followers.

This study aimed to investigate the casual relationship between perceived style of leadership, in order to examine turnover intentions of employees in selected companies in Johor Bahru, Malaysia and how these variables are influenced by each other. Case studies of the manufacturing giants in Johor Bahru were analyzed and studied in detail. This gave important insight to the researcher in analyzing the leadership theories and strategies that are implemented by managers and organizational leaders. Of the findings presented, the most relevant yet unanticipated was the relationship of leadership to employee commitment, found to be directly associated to retention within the organization. Results of this study suggest that front line managers and supervisors of manufacturing operations who utilize employee centered leadership practices associated with effective leadership models are more likely to have higher employee retention than those who do not utilize these well-established best practices in leadership.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Study1

Turnover1

Relationship between leadership strategies and reduced employ turn over2

SMEs in Malaysia4

SMEs potential and growth5

Problem Statement6

Definitions6

Aims and Objectives8

Research Questions8

CHAPTER 2: LITERATURE REVIEW9

Search rationale9

Keywords9

Theoretical Foundation10

Traditional Turnover Theories Revisited11

Turnover Models11

Current Literature Turnover12

Employee Turnover Intentions13

Employee-Organization Fit14

Field and Turnover Intentions17

Systems Not Formulas19

Review of the literature on Turnover Intention Theory21

Review of Empirical Literature on Turnover Intentions22

Situational leadership theory24

CHAPTER 3: METHODOLOGY26

Rationale for a systematic review of literature26

Search Strategy27

Literature Search27

Advantages of secondary data:28

Inclusion and exclusion criteria29

Ethical Concerns30

Case study analysis32

Validity and Reliability33

Companies chosen for case study analysis34

CHAPTER 4: DISCUSSION35

Importance of strategic leadership practices35

Leaders as Role Models35

The Augmentation Effect37

Leadership Practices and Items Used to Measure the Practices37

Leadership Styles39

Leadership in Context40

Leadership and Meaning40

Empowerment leadership theory43

Servant leadership theory44

Managerial leadership practices and effect son employee turnover rate in management operations45

Motivation and job performance46

Relationship between diversity/dissimilarity and turnover intention47

Relationship among leadership styles, diversity/dissimilarity, work group effectiveness and ...