PERCEIVED ORGANISATIONAL SUPPORT AND TURNOVER INTENTION IN THE BANKING SECTOR IN NAIROBI CITY COUNTY KENYA
Purpose of the Study: The purpose of this study was the effect of perceived organisational support on turnover intention in the banking sector in Nairobi City County Kenya. To be engaged in a job is not just being cognitively attentive to the job, or feeling and expressing positive emotions on the job, or doing specific job tasks simply for the sake of doing them. When employees are not fully engaged in the organisation, not happy and satisfied with their work, they are more likely to shift their passions to searching and connecting with potential employers.
Statement of the Problem: The Kenyan banking industry has witnessed considerable human capital flight despite the growth in profitability for the past decade. Failure to attain the desired career goals most often yields to employee frustration in the banking sector and eventually leads to employee turnover.
Research Methodology: A cross sectional survey design was used on a population comprising top-level and middle-level management which totals to 1,760 where a sample of 326 respondents, the data was collected using questionnaires and analysed using SPSS version 22 where an analysis of descriptive statistics, correlation and logistic regression analyses was done.
Result: Logistic regression of coefficients results showed that Perceived Organisation Support and Turnover Intention were negatively and significant related. This implies that an additional unit of Perceived Organisation Support decreases the probability of turnover intention holding other factors constant.
Conclusion: The study concluded that perceived organisation support have negative and significant effect on turnover intention.
Recommendation: The study recommended that policy makers should formulate policies than embrace employee engagement which could be implemented by existing banks to give them a competitive advantage and for the new banks in setting structures that support employee engagement.
Keywords: Perceived, Organizational Support, Turnover, Intention, Banking sector, Kenya.
Allen, D.G., & Shanock, L.R. (2013). Perceived organisational support and embeddedness as key mechanisms connecting socialization tactics to commitment and turnover among new employees, Journal of Organisational Behaviour, 34(3), 350-369.
Aon Hewitt (2014). Trends in Global Employee Engagement, Lincolnshire, IL: Aon Hewitt
Aydin, A., Sarier, Y., & Uysal, S. (2013). The Effect of School Principals' Leadership Styles on Teachers' Organizational Commitment and Job Satisfaction. Educational sciences: Theory and practice, 13(2), 806-811.
Bakker, A. B., Oerlemans, W. G., & Ten Brummelhuis, L. L. (2013). Becoming fully engaged in the workplace: What individuals and organisations can do to foster work engagement. The fulfilling workplace: The organisation’s role in achieving individual and organisational health, 55-69.
Baran, B. E., Shanock, L. R., & Miller, L. R. (2012). Advancing organizational support theory into the twenty-first century world of work. Journal of Business and Psychology, 27(2), 123-147.
Basak, E., Ekmekci, E., Bayram, Y., & Bas, Y., (2013). Analysis of factors that affect the intention to leave of white-collar employees in Turkey using structural equation modelling. In Proceedings of the World Congress on Engineering and Computer Science (Vol. 2).
Biron, M., & Boon, C. (2013). Performance and turnover intentions: A social exchange perspective. Journal of Managerial Psychology.
Blau, P. M. (1964). Social exchange theory. Retrieved September, 3(2007), 62.
Bonenberger, M., Aikins, M., Akweongo, P., Bosch-Capblanch, X., & Wyss, K. (2015). What Do District Health Managers in Ghana Use Their Working Time for? A Case Study of Three Districts. PloS one, 10(6), e0130633.
Caesens, G., Marique, G., Hanin, D., & Stinglhamber, F. (2016). The relationship between perceived organizational support and proactive behaviour directed towards the organization. European Journal of Work and Organizational Psychology, 25(3), 398-411.
Caesens, G., Stinglhamber, F., & Ohana, M. (2016). Perceived organizational support and well-being: a weekly study. Journal of Managerial Psychology, 31(7), 1214-1230.
Chan, S. H. J., & Lai, H. Y. I. (2017). Understanding the link between communication satisfaction, perceived justice and organizational citizenship behavior. Journal of business research, 70, 214-223.
Chen, S., Westman, M., & Hobfoll, S. E. (2015). The commerce and crossover of resources: Resource conservation in the service of resilience. Stress and Health, 31(2), 95-105.
Cook, K. S., Cheshire, C., Rice, E. R., & Nakagawa, S. (2013). Social exchange theory. In Handbook of social psychology (pp. 61-88). Springer, Dordrecht.
Dawley, D. D., Andrews, M. C., & Bucklew, N. S. (2008). Mentoring, supervisor support, and perceived organizational support: what matters most?. Leadership & Organization Development Journal.
Ekeh, P. P. (1974). Social exchange theory: The two traditions. London: Heinemann.
Gichohi, P. M. (2014). The role of employee engagement in revitalizing creativity and innovation at the workplace: A survey of selected libraries in Meru County-Kenya. Library Philosophy and Practice, 0_1.
Holtom, B. C., & Burch, T. C. (2016). A model of turnover-based disruption in customer services. Human Resource Management Review, 26(1), 25-36.
Hossain, S. M., Roy, M. K., & Das, P. K. (2017). Factors Affecting Employee's Turnover Intention in Banking Sector of Bangladesh: An Empirical Analysis. ASA University Review, 11(2).
Kalidass, A., & Bahron, A. (2015). The relationship between perceived supervisor support, perceived organizational support, organizational commitment and employee turnover intention. International Journal of Business Administration, 6(5), 82.
Kam, C., Morin, A. J., Meyer, J. P., & Topolnytsky, L. (2016). Are commitment profiles stable and predictable? A latent transition analysis. Journal of Management, 42(6), 1462-1490.
Kangure, F. (2015). Relationship between job characteristics and employee engagement among state corporations in Kenya, (Unpublished Dissertation).
Kariuki, P. W. (2015). Factors affecting employee turnover in the banking industry in Kenya: a case study of Imperial Bank Limited (Doctoral dissertation, United States International University-Africa).
Khaled, D., Mohammad R. N. (2014). Examining the relationship between perceived organizational justice and dimensions of organizational commitment. International Journal of Advanced Biological and Biomedical Research, 2(7), 2319-2326.
Kombo, D. K., & Tromp, D. L. (2006). Proposal and thesis writing: An introduction. Nairobi: Paulines Publications Africa, 10-45.
Korsakiene, R., Stankevicˇienė, A., Šimelytė, A. & Talaˇkienė, M. (2015). Factors driving turnover and retention of information technology professionals. Journal of Business Economics and Management, 16 (1), 1-17.
Kurtessis, J. N., Eisenberger, R., Ford, M. T., Buffardi, L. C., Stewart, K. A., & Adis, C. S. (2017). Perceived organizational support: A meta-analytic evaluation of organizational support theory. Journal of Management, 43(6), 1854-1884.
Lee, Y., Kwon, K., Kim, W., & Cho, D. (2016). Work engagement and career: proposing research agendas through a review of literature. Human Resource Development Review, 15(1), 29-54.
Madden, L., Mathias, B. D., & Madden, T. M. (2015). In good company: the impact of perceived organizational support and positive relationships at work on turnover intentions. Management Research Review, 38(3), 242-263.
McNall, L. A., Scott, L. D., & Nicklin, J. M. (2015). Do positive affectivity and boundary preferences matter for work–family enrichment? A study of human service workers. Journal of Occupational Health Psychology, 20(1), 93.
Moeller, C., & Chung-Yan, G. A. (2013). Effects of social support on professors’ work stress. International Journal of Educational Management, 27(3), 188-202.
Mokaya, S. O., & Kipyegon, M. J. (2014). Determinants of employee engagement in the Banking industry in Kenya; case of cooperative bank. Journal of Human Resources Management and Labor Studies, 2(2), 187-200.
Montgomery, D. C., Peck, E. A., & Vining, G. G. (2012). Introduction to linear regression analysis (Vol. 821). John Wiley & Sons.
Muduli, A., Verma, S., & Datta, S. K. (2016). High performance work system in India: Examining the role of employee engagement. Journal of Asia-Pacific Business, 17(2), 130-150.
Mugenda, A. G. (2013). Qualitative research methods.
Mwangi, E. K. (2016). Factors Influencing Staff Retention In The Banking Industry In Kenya. A Case Study Of Equity Bank Limited. Strategic Journal Of Business & Change Management, 3(2).
Ren, T., & Hamann, D. J. (2015). Employee value congruence and job attitudes: the role of occupational status. Personnel Review, 44(4), 550-566.
Robbins, S. P., & Judge, T. (2016). Behavior organizational. Translatey by Parseian A, Arabi M. 1ST edition, Tehran, Institute of Operational.
Saks, A. M., & Gruman, J. A. (2014). What do we really know about employee engagement? Human Resource Development Quarterly, 25(2), 155-182.
Sang, H., Guyo, W., & Odhiambo, R. (2014). The moderating influence of employee engagement on the relationship between labour productivity and performance based reward. International Journal of Advanced Research in Management and social Sciences, 9 (3), 10-23.
Shuck, B., & Rocco, T. S. (2014). Human resource development and employee engagement. Employee engagement in theory and practice, 116-130.
Shuck, B., Collins, J. C., Rocco, T. S., & Diaz, R. (2016). Deconstructing the privilege and power of employee engagement: Issues of inequality for management and human resource development. Human Resource Development Review, 15(2), 208-229.
Singh, S. A., & Masuku, B. M. (2014). Assumption and testing of normality for statistical analysis. American Journal of Mathematics and Mathematical Sciences, 3(1), 169-175.
Stinglhamber, F., Marique, G., Caesens, G., Hanin, D., & De Zanet, F. (2015). The influence of transformational leadership on followers’ affective commitment: The role of perceived organizational support and supervisor’s organizational embodiment. Career Development International, 20(6), 583-603.
Tse, H.H.M., Huang, X. & Lam, W. (2013). Why does transformational leadership matter for employee turnover? A multi-foci social exchange perspective. The Leadership Quarterly, 24(5), 763-776.
Van Den Besselaar, P., & Sandström, U. (2016). Gender differences in research performance and its impact on careers: a longitudinal case study. Scientometrics, 106(1), 143-162.
Wachira, J. M. (2013). Relationship between employee engagement and commitment in Barclays bank of Kenya. Unpublished Masters Theses UoN.
Wahab, E., Goh, C. H., Shamsuddin, A., & Abdullah, N. H. (2014). The effect of perceived organizational support (POS) and affective commitment (AC) on employees' turnover intention: A study of Malaysian manufacturing company. Social Sciences Research, 545-552.
Wang, J. (2016). The Antecedents of Employee Engagement: a Comparative Analysis between Finland and Asia.
Wittmer, J. L., Martin, J. E., & Tekleab, A. G. (2010). Procedural Justice and Work Outcomes in a Unionized Setting: The Mediating Role of Leader‐Member Exchange. American journal of business.
Yamagishi, T. (1993). Exchange relations and exchange networks: Recent developments in social exchange theory. Theoretical research programs: Studies in the growth of theory, 296.