Turnover Intention and relationship between Leader-Member Exchange (LMX) and Employee Wellbeing Among Academicians in Malaysian Public Higher Education Institution

By

Table of Contents

CHAPTER 2: LITERATURE REVIEW1

Hypotheses1

Turnover Intention1

Turnover Antecedents4

Cost of Turnover7

Turnover Model10

Leader Member Exchange (LMX) Theory14

Affect of LMX towards Turnover Intention18

Organizational Commitment18

Organizational Design19

Concept of Employee Wellbeing (EWB)22

The Scope of Measurement of Employee Well being25

Component of Job Satisfaction27

Theoretical Framework29

REFERENCES32

CHAPTER 2: LITERATURE REVIEW

Hypotheses

Based on the theoretical framework, the hypothesis developed as following:

H1: The quality of LMX, measured by two dimensions including mutual respect and trust and leadership obligation will be correlated to turnover intention.

H2: The employee wellbeing is highly correlated to turnover intention.

H3: There is a significant relationship between LMX and employee wellbeing.

H4: The degree of employee turnover intention in an organization is influenced by LMX and the employee wellbeing.

Turnover Intention

The phenomenon of turnover intention is interpreted as the intention to deliberately, consciously, and will fully leave an organization. Jackofsky and Slocum (1987) defined turnover intention as an individual's mental consideration or behavioral intention to quit the present job within a year. Whereas, other defined turnover intent as the intention to leave or terminate membership or employment from an organization. Turnover is classified into voluntary and involuntary. Voluntary turnover means the employee terminates the employment relationship, while involuntary turnover means the employer decides to terminate the relationship(Barling, Christie & Turner, 2008).

Most researchers involved in turnover studies define turnover as the termination of employee's from employment. Turnover could be voluntary or involuntary, which in either way posses serious problems for the employer. Managers have implemented numerous initiatives to address some of the problems presented by turnover. Recognizing that employee turnover directly impacts financial results; companies are searching for strategies to confront the problem. Some of these strategies led to the proliferation of models of understanding relating to processes that have evolved over time. In the quest to address the issue of employee turnover in organizations, many models have been advanced (Wright et al, 2007).

Mowday, Porter, and Steers (1982) produced one of the earliest literatures that related turnover to subordinate commitment. Mowday et al. were able to show that reduced turnover has a very strong correlation with organization commitment. Mowday et al. also reported that there exist an indirect relationship between commitment and turnover because of the involvement of other factors or variables such as the desire to stay, the intention to search for a different job. Mobley, Griffeth, Hand, and Meglino (1979) attempted to create a model that would be used to make several predictions relating to employee retention. The idea originated from that of March and Simon (1958). March and Simon presented a decision to participate model, an idea borrowed from the work of Bernard (1938). March and Simon stated that increases in the balance of inducement utilities over contribution utilities decreases the propensity of the individual participant to leave the organization, whereas decreases in the balance has the opposite effect.

Mobley (1977) presented a model of turnover decision, which identifies a link in the satisfaction-turnover ...