Voluntary turnover rates and organizational performance in the US federal government: the moderating role of high-commitment human resource practices

Despite the growing body of literature on antecedents of employee turnover, little attention has been paid to the effect of voluntary turnover on organizational outcomes in public administration. Using panel data from the US federal government, this article tests the proposition that the relationship between voluntary turnover rates and organizational performance is negative but becomes curvilinear as turnover rates increase. Based on the contingency perspective of the turnover–performance link, this article further examines the moderating role of high-commitment human resource practices (HCHRP) in the relationships. Findings indicate that voluntary turnover has a positive relationship with organizational performance, but it turns out to be an inverted U-shaped curve as turnover rates increase from low to high levels. Furthermore, the moderating effect on the curvilinear relationship is especially pronounced for federal agencies with high levels of HCHRP.     

The effect of training on organizational performance: differences by age composition and cultural context

This paper examines the effects of two training-related measures (i.e. average days spent on training an employee per year and the extent of concentration) on three aspects of organizational performance: level of productivity, rate of innovation, and rate of turnover for organizations in Anglo, Germanic, Nordic, and Eastern European cultures, as defined by the Global Leadership and Organization Behavior Effectiveness project. Analysis of the 2004 Cranet survey data indicates that both training-related measures positively affected the level of productivity in Anglo nations, but that the effect of extent of concentration was smaller for organizations with older age profiles.     

Effectiveness of organizational efforts to lower turnover intentions: The moderating role of employee locus of control

In the current career climate characterized by change and turbulence, employees may demonstrate limited psychological attachment to their employers. Rousseau (1998) suggested that organizations can elicit psychological attachment from employees by reinforcing perceptions of organizational membership and demonstrating care and support for them. The effectiveness of these strategies, however, may depend on individuals' personality traits. In this study, we examined the moderating effect of locus of control in the relationship among four valued aspects of the work environment—information sharing, job significance, opportunity for learning, and availability of rewards for performance—and employees' intentions to stay. In two empirical studies, we found that information sharing, job significance, and locus of control interacted to positively affect intentions to stay and that opportunity for learning, availability of rewards for performance, and locus of control also interacted to increase intentions to stay. Implications of these results for theory building and practice are discussed. © 2009 Wiley Periodicals, Inc.     

Perceived organizational support and organizational identification: joint moderating effects of employee exchange ideology and employee investment

Organizational identification (OID) can be developed out of social exchange practices within an organizational setting. Drawing on social exchange theory, we propose that the effect of perceived organizational support (POS) on OID is stronger for employees with stronger exchange ideology. We further argue that employee investment in an organization may also create a social exchange process that positively influences OID. We expect that employee investment moderates not only the effect of POS on OID, but also the enhancing effect of exchange ideology on the effect of POS on OID. Specifically, POS has a stronger positive effect on OID when exchange ideology is high and employee investment is low. When employee investment is high, POS has a weaker effect on OID regardless of employees' exchange ideology. These effects were empirically supported by a survey. Theoretical and practical implications are also discussed.     

Linking organizational identification and employee performance in teams: the moderating role of team-member exchange

This study examined the influence of organizational identification on employee performance in teams. Drawing on social identity theory and self-verification theory, we predicted that organizational identification would have positive effects on employee in-role and organizational citizenship behavior (OCB) performance. Building on social exchange theory, the study further theorized that the quality of team-member exchange (TMX) would amplify the impacts of organizational identification on both types of performance. Using data from automotive dealer employees in China, we found positive relationships between organizational identification and both types of performance. In addition, TMX altered the impact of organizational identification on OCB.     

How organizational support impacts affective commitment and turnover among Italian nurses: a multilevel mediation model

This study examines multilevel relationships between perceived organizational support (POS), affective commitment and voluntary turnover among nurses. We explored the mediation role of affective commitment between POS and turnover behavior at both individual and work-unit levels. This cross-level study involved 945 Italian nurses from 60 work units. We hypothesized and showed that collective affective commitment fully mediated the impact of climate for POS on individual and collective turnover among nurses. This study helps explain the variance in turnover among nurses in healthcare organizations by analyzing the influence of unit-level climate on individual behavior. Results stress that social environments within wards are important in explaining the processes by which nurses decide to quit their work unit.     

The mediating role of organizational justice on the relationship between administrative performance appraisal practices and organizational commitment

This study investigates the relationships among administrative performance appraisal (PA) practices, perception of organizational justice and organizational commitment. The results obtained from 395 employees who work in manufacturing companies in Taiwan show that the implementation of administrative PA activities is highly associated with employee perception of organizational justice and that the level of perceived organizational justice is highly associated with the level of organizational commitment. The results also demonstrate that perceived organizational justice has a partial mediating effect on the relationship between administrative PA practices and organizational commitment. Theoretical and practical implications of these results are discussed.     

Subjective fit with organizational culture: an investigation of moderating effects in the work stressor-employee adjustment relationship

Occupational stress has been a concern for human resource managers in light of research investigating the work stressor-employee adjustment relationship. This research has consistently demonstrated many negative effects between stressors in the workplace and employee adjustment. A considerable amount of literature also describes potential moderators of this relationship. Subjective fit with organizational culture has been established as a significant predictor of employee job-related attitudes; however, research has neglected investigation of the potential moderating effect of subjective fit in the work stressor-employee adjustment process. It was predicted that perceptions of subjective fit with the organization's values and goals would mitigate the negative effect of work stressors on employee adjustment in an employee sample from three organizations (N = 256). Hierarchical multiple regression analyses revealed support for the stress-buffering effects of high subjective fit in the prediction of physical symptoms, job satisfaction, and intentions to leave. The theoretical and practical implications of the results are discussed.     

Double-edged effect of talent management on organizational performance: the moderating role of HRM investments

Abstract

More than a decade after the publication of the book The War for Talent, there has been growing interest in the role of talent management in achieving organizational success. Although past studies have empirically investigated the role of talent management and its positive association with organizational performance, few studies have integrated the bright and dark sides of talent management. Using a sample of 444 firms in South Korea, this study finds that talent management has a double-edged effect on firm outcomes, including innovation and voluntary turnover rate. Moreover, it finds that the effect of talent management considerably varies across organizational contexts. Specifically, this study identifies the conditions under which the negative role of talent management changes across different levels of human resource management investments. Demonstrating the dual direct effect and contextual effect of talent management, this study provides reference for future studies on talent management, specifically those that aim to discover the mechanisms influencing the distinguished role of talent management in organizational outcomes. This study further discusses the theoretical and practical implications.     

Transformational leadership behaviors,the empowering process,and organizational commitment: investigating the moderating role of organizational structure in Korea

Transformational leadership has received growing attention in leadership studies. However, open questions remain concerning its operationalization and its universal effectiveness. Drawing on transformational leadership theory and leadership contingency theory, this study explores these issues in an Asian context. Survey responses from 491 employees working for foreign subsidiaries in Korea were analyzed. Given their multi-dimensionality, transformational leadership behaviors were framed as a two-dimensional structure: organization-related behaviors (OBs) and person-related behaviors (PBs). Findings showed that both OBs and PBs were mediated by psychological empowerment to determine organizational commitment. More importantly, the findings indicated that the empowering process driven by both leadership behaviors is contingent on organizational structure. Specifically, centralization negatively moderated the empowering process of PBs. Formalization positively moderated the empowering process of OBs and negatively moderated that of PBs. These findings have noteworthy value by virtue of quantitatively revealing the organizational structure wherein the empowering process of transformational leadership behaviors is effectively induced in South Korea. Based on the results, significant theoretical and managerial implications are discussed.     

Examining organizational citizenship behavior of Japanese employees: a multidimensional analysis of the relationship to organizational commitment

Although there is now considerable research concerning organizational citizenship behavior (OCB), little is known about the possibility of the transposition of such a research topic to a Japanese context. This study proposes and substantiates a three-dimension model of OCB in the Japanese context, comprising voluntary involvement, generalized compliance, and personal industry. Furthermore, the examination of the relationship between organizational commitment and OCB indicates that affective commitment is positively associated with voluntary involvement and personal industry. Also, continuance commitment is positively related to generalized compliance and, simultaneously, negatively associated with voluntary involvement. Finally, theoretical and practical implications are discussed.     

Time precedence in the relationship between organizational climate and organizational performance: a cross-lagged study at the business unit level

This article presents a two-wave cross-lagged study (average interval of two years) on time precedence in the relationship between organizational climate and organizational performance in 171 branches of a financial services organization in the Netherlands. It is argued that four HR-induced organizational climate dimensions influence organizational performance. Additionally, it was also hypothesized that high organizational performance influences the four organizational climate dimensions through investments in HR practices and through signalling effects. Finally, it was reasoned that possibly both processes are present simultaneously. Results of testing a series of competing models in AMOS showed that organizational climate at time point 1 influenced organizational performance at time point 2 rather than the reverse, or both processes being present simultaneously.     

Accentuating the interconnection between business sustainability and organizational performance in the context of the circular economy: The moderating role of organizational competitiveness

Sustainability development has gained significant importance in the modern business environment. The primary objective is to conduct an explanatory and quantitative study of the impacts of the social, economic, and environmental dimensions on organizational performance, considering the moderating role of organizational competitiveness. Data were collected from Chinese, Italian, and Romanian small and medium enterprises (SMEs). The questionnaires were distributed by applying simple random sampling techniques. The study sample size consists of 320 SME employees. Hierarchical regression was used to investigate the moderating impacts of organizational competitiveness on the relationships of the social, economic, and environmental dimensions and organizational performance. The regression analysis shows a positive relationship between the study variables. Small and medium-sized enterprises are focusing more on sustainable business practices.     

Linking turnover to organizational performance: the role of process conformance

ABSTRACT

Despite substantial evidence for the negative effect of turnover on performance, several studies also note offsetting positive effects hereby recognizing an optimal rate of turnover. These mixed results stress the need to examine under which conditions turnover is more harmful or beneficial to the organization. Using panel data from 30 divisions of the same agency, this study examines the impact of process conformance – the extent to which there are prescribed standards and rules related to the task. Results support a non-linear, inverted U-shaped relationship for those tasks with a high process conformance.     

Employee development and voluntary turnover: testing the employability paradox

The employability paradox is a concern among employers. It states that development activities enhancing employees' employability also increase the risk for employee turnover. This study examined this paradox and probed the relationship between six development activities and voluntary turnover mediated by perceived employability. We tested both a turnover‐stimulating path via perceived external employability (i.e. perceived job alternatives with other employers) and a retention path via perceived internal employability (i.e. perceived job alternatives with the current employer) by using two‐wave longitudinal data from 588 employees. The results put the turnover risk into perspective: only upward job transition positively influenced turnover via perceived external employability. Also, the retention path via perceived internal employability was not supported: several development activities were positively related with perceived internal employability, but perceived internal employability did not influence turnover. We did, however, find a direct retention effect of skill utilisation. Overall, the results downplay the employability paradox.     

High-performance work systems and organizational performance: testing the mediation role of employee outcomes using evidence from PR China

This research investigates the relationship between high-performance work systems (HPWS) and organizational performance, and the mediating effect of employee outcomes. The paper is based on a sample of 168 firms of six ownership types and in various business sectors operating in China. The results of data analysis support the hypotheses. Organizational performance is positively predicted by HPWS and employee outcomes, and employee outcomes positively mediate the relationship between HPWS and organizational performance. This paper supports the theory that HPWS positively impacts organizational performance and explains the mechanisms through which HPWS enhances organizational performance. It also responds to the long-standing call for stressing the importance of employee-related factors in the HRM–performance linkage.     

The moderating effect of innovation on the relationship between environmental and financial performance: Evidence from high emitters in Australia

This study examines whether environmental-related innovation moderates the association between environmental and financial performance measured respectively as carbon emissions and return on assets (ROA). The sample comprises 119 companies subject to Australia's National Greenhouse Energy Reporting Act (NGER) for the period 2009–2017. The results show that environmental innovation positively moderates the relationship between environmental performance and financial performance. The findings also imply that the impact of environmental innovation in improving environmental performance is observable with a 1-year lag. The results are robust to the alternative financial performance measures of Tobin's Q and Altman's Z score. The findings have important implications for company managers and policymakers and provide useful information on innovation's role in enhancing environmental and financial performance.     

Putting employee involvement in context: a cross-level model examining job satisfaction and absenteeism in high-involvement work systems

The current study examines how high-involvement work systems (HIWS) influence employee responses to involvement initiatives. While existing research has linked HIWS to individual attitudes, we predict that an organization's HIWS moderate the relationship between employee involvement and job satisfaction and absenteeism. Using multilevel data (8454 employees from 1429 workplaces), we found that employee involvement and HIWS are positively related to employee job satisfaction. Additionally, the results support a cross-level interaction: at high levels of HIWS, employee involvement is negatively related to absenteeism, whereas at low levels of HIWS, the negative relationship is weaker. The implications of the findings are discussed.     

Intra-national variation in organizational commitment: evidence from the Chinese context

This study demonstrates how organizational commitment can differ at the sub-national level. We develop and test hypotheses based on levels of economic development and related shifts from collectivism to individualism. The data comprise 1017 retail employees drawn from two economically distinctly different parts of China. We find that organizational commitment is higher in ‘less economically developed’ regions. Affective and normative commitment (NC) negatively predicted turnover intentions, whereas continuance commitment related positively to turnover intentions. Unlike earlier findings using Western samples, this study finds the effect of NC on turnover intentions considerably stronger, suggesting that NC is more predictive of turnover intentions. As expected, our results indicate that continuance commitment is more predictive of turnover intentions in the ‘more economically developed’ regions.     

Causes of newspaper firm employee burnout in Korea and its impact on organizational commitment and turnover intention

This study assesses the degree of burnout among newspaper firm employees in Korea and investigates the causes and consequences of this phenomenon. A survey of reporters and non-reporting staff members from the 10 national daily newspaper firms in South Korea indicates that employees suffer from burnout. In particular, respondents claimed to have experienced a higher level of exhaustion than cynicism and a diminished sense of professional efficacy. Overload, a non-autonomous, non-supportive work environment, and dissatisfaction with the work itself, level of pay, co-workers, supervisors and promotion opportunities were also contributing factors. As a result of burnout, employees reported diminished commitment to the organization and increased turnover intention.