EFFECT OF VALUE CONGRUENCE ON TURNOVER INTENTION IN THE BANKING SECTOR IN NAIROBI CITY COUNTY KENYA
Abstract
Purpose of the Study: The purpose of this study was to examine the effect of value congruence on turnover intention in the banking sector in Nairobi City County Kenya. The study was informed by the Path-Goal theory.
Statement of the Problem: The banking sector in Kenya has been experiencing high labour turnover rates, where employees are quitting one bank to find greener opportunities in other banks in the country and also outside the country (brain drain), and this has been as a result of longer working hours in some banks, increased workload, poor leadership style, job insecurity, poor working environment, dissatisfaction with salaries, and also lack of work-life balance.
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 Value Congruence and Turnover Intention were negatively and significant related. This implies that an additional unit of Value Congruence decreases the probability of turnover intention by 0.968 points holding other factors constant.
Conclusion: The study concluded that Value Congruence have negative and significant effect on turnover intention.
Recommendation: The study recommends the management of the banks to lead the way in the designing, measurement and evaluation of proactive employee engagement policies and practices that help attract and retain talent with skills and competencies necessary for growth and sustainability.
Keywords: Value congruence, Turnover, Intention, Banking sector, Nairobi, Kenya.
References
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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.
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).
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.
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, Y., Wen, Z., Peng, J., & Liu, X. (2016). Leader-follower congruence in loneliness, LMX and turnover intention. Journal of Managerial Psychology, 31(4), 864-879.
Cooper, D. R., & Schindler, P. S. (2012). Research methods. Boston, MA: Irwin.
Cropanzano, R., & Byrne, Z. S. (2000). Workplace justice and the dilemma of organizational citizenship. (Unpublished Dissertation).
Damghani, B. M. (2013). The Non‐Misleading Value of Inferred Correlation: An Introduction to the Cointelation Model. Wilmott, 2013(67), 50-61.
Deloitte (2014). Global Human Capital Trends 2014: Engaging the 21st-Century Workforce, Toronto: Deloitte University Press.
Eisenberger, R., & Stinglhamber, F. (2011). Perceived organisational support: Fostering enthusiastic and productive employees. Washington, DC: American Psychological Association.
Fairlie, P. (2017). Work engagement and employee well-being, London: Research Handbook on Work and Well-Being.
Fowler Jr, F. J. (2013). Survey research methods. Sage publications.
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.
Henn, C., & Opie, T. (2012). Work-family conflict and work engagement among working mothers: Personality as a moderator. International Journal of Psychology, 47, 501.
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).
House, R. J., & Mitchell, T. R. (1975). Path-goal theory of leadership (No. TR-75-67). WASHINGTON UNIV SEATTLE DEPT OF PSYCHOLOGY.
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.
Kim, K. Y., Eisenberger, R., & Baik, K. (2016). Perceived organizational support and affective organizational commitment: Moderating influence of perceived organizational competence. Journal of Organizational Behavior, 37(4), 558-583.
Kim, S. H., Laffranchini, G., Wagstaff, M. F., & Jeung, W. (2017). Psychological contract congruence, distributive justice, and commitment. Journal of Managerial Psychology, 32(1), 45-60.
Kim, W., & Hyun, Y. S. (2017). The impact of personal resources on turnover intention: The mediating effects of work engagement. European Journal of Training and Development, 41(8), 705-721.
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.
Lajoie, D., Boudrias, J. S., Rousseau, V., & Brunelle, É. (2017). Value congruence and tenure as moderators of transformational leadership effects. Leadership & Organization Development Journal, 38(2), 254-269.
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.
Leiter, M. P., Jackson, N. J., & Shaughnessy, K. (2009). Contrasting burnout, turnover intention, control, value congruence and knowledge sharing between Baby Boomers and Generation X. Journal of nursing management, 17(1), 100-109.
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.
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).
Olubiyi, O., Smiley, G., Luckel, H., & Melaragno, R. (2019). A qualitative case study of employee turnover in retail business. Heliyon, 5(6), e01796.
Owor, J. J. (2016). Human resource management practices, employee engagement and organizational citizenship behaviours (ocb) in selected firms in Uganda. African Journal of Business Management, 10(1), 1.
Phillips, A. S., & Phillips, C. R. (2016). Behavioral styles of path-goal theory: An exercise for developing leadership skills. Management Teaching Review, 1(3), 148-154.
Ren, T., & Hamann, D. J. (2015). Employee value congruence and job attitudes: the role of occupational status. Personnel Review, 44(4), 550-566.
Riaz, H., Akhtar, N., Moazzam, A., Luqman, R., Naz, H., & Tufail, H. S. (2017). Leadership effectiveness, turnover intention and the mediating role of employee commitment: a case of academic institutions of Pakistan. European Online Journal of Natural and Social Sciences, 6(4), pp-526.
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.
Sharom, N. Q., & Abd Aziz, S. (2019, October). The Relationship between Person-Environment Fit, Employee Attitudes and Outcomes. In e-PROCEEDINGS (p. 461).
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.
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.
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).
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.
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, Y., Wen, Z., Peng, J., & Liu, X. (2016). Leader-follower congruence in loneliness, LMX and turnover intention. Journal of Managerial Psychology, 31(4), 864-879.
Cooper, D. R., & Schindler, P. S. (2012). Research methods. Boston, MA: Irwin.
Cropanzano, R., & Byrne, Z. S. (2000). Workplace justice and the dilemma of organizational citizenship. (Unpublished Dissertation).
Damghani, B. M. (2013). The Non‐Misleading Value of Inferred Correlation: An Introduction to the Cointelation Model. Wilmott, 2013(67), 50-61.
Deloitte (2014). Global Human Capital Trends 2014: Engaging the 21st-Century Workforce, Toronto: Deloitte University Press.
Eisenberger, R., & Stinglhamber, F. (2011). Perceived organisational support: Fostering enthusiastic and productive employees. Washington, DC: American Psychological Association.
Fairlie, P. (2017). Work engagement and employee well-being, London: Research Handbook on Work and Well-Being.
Fowler Jr, F. J. (2013). Survey research methods. Sage publications.
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.
Henn, C., & Opie, T. (2012). Work-family conflict and work engagement among working mothers: Personality as a moderator. International Journal of Psychology, 47, 501.
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).
House, R. J., & Mitchell, T. R. (1975). Path-goal theory of leadership (No. TR-75-67). WASHINGTON UNIV SEATTLE DEPT OF PSYCHOLOGY.
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.
Kim, K. Y., Eisenberger, R., & Baik, K. (2016). Perceived organizational support and affective organizational commitment: Moderating influence of perceived organizational competence. Journal of Organizational Behavior, 37(4), 558-583.
Kim, S. H., Laffranchini, G., Wagstaff, M. F., & Jeung, W. (2017). Psychological contract congruence, distributive justice, and commitment. Journal of Managerial Psychology, 32(1), 45-60.
Kim, W., & Hyun, Y. S. (2017). The impact of personal resources on turnover intention: The mediating effects of work engagement. European Journal of Training and Development, 41(8), 705-721.
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.
Lajoie, D., Boudrias, J. S., Rousseau, V., & Brunelle, É. (2017). Value congruence and tenure as moderators of transformational leadership effects. Leadership & Organization Development Journal, 38(2), 254-269.
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.
Leiter, M. P., Jackson, N. J., & Shaughnessy, K. (2009). Contrasting burnout, turnover intention, control, value congruence and knowledge sharing between Baby Boomers and Generation X. Journal of nursing management, 17(1), 100-109.
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.
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).
Olubiyi, O., Smiley, G., Luckel, H., & Melaragno, R. (2019). A qualitative case study of employee turnover in retail business. Heliyon, 5(6), e01796.
Owor, J. J. (2016). Human resource management practices, employee engagement and organizational citizenship behaviours (ocb) in selected firms in Uganda. African Journal of Business Management, 10(1), 1.
Phillips, A. S., & Phillips, C. R. (2016). Behavioral styles of path-goal theory: An exercise for developing leadership skills. Management Teaching Review, 1(3), 148-154.
Ren, T., & Hamann, D. J. (2015). Employee value congruence and job attitudes: the role of occupational status. Personnel Review, 44(4), 550-566.
Riaz, H., Akhtar, N., Moazzam, A., Luqman, R., Naz, H., & Tufail, H. S. (2017). Leadership effectiveness, turnover intention and the mediating role of employee commitment: a case of academic institutions of Pakistan. European Online Journal of Natural and Social Sciences, 6(4), pp-526.
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.
Sharom, N. Q., & Abd Aziz, S. (2019, October). The Relationship between Person-Environment Fit, Employee Attitudes and Outcomes. In e-PROCEEDINGS (p. 461).
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.
Published
2020-11-19
How to Cite
Chelangat, E. C. (2020). EFFECT OF VALUE CONGRUENCE ON TURNOVER INTENTION IN THE BANKING SECTOR IN NAIROBI CITY COUNTY KENYA. African Journal of Emerging Issues, 2(13), 35-56. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/151
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