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Research methodology

Abstract

An employee’s intention to leave his organization has been included in various stress models. Predominantly, intent to leave captures the perceptions and evaluation of job alternatives among employees. Many researchers have cited the intent to leave among various employees to be one of the major predictors of employees’ turnover. Much literature today has focused on turnover intentions from different views.  This paper analysis the results of a qualitative study on remuneration effects on intention to leave of managers using job satisfaction as a moderator. Results showed that five elements of remuneration including base salary, benefits and terms of employment, stock purchase plan and short term variable remunerations had a significant impact on the intentions to turnover of managers.

Chapter 3 : Research methodology

Research questions

The research conducted attempted to answer the following questions

What are the various compensation packages used by organizations?

What are the factors that contribute to turnover intentions?

How do organizational compensation packages impact on employee turnover intentions?

Method

The type of research determines the kind of research methodologies appropriate.  The method then determines the appropriate methods then can be applied in underpinning the research work and collecting data. The choice of a qualitative method for this study was informed by the objective of my research work. The purpose of this study work was to understand the relationship between two variables; remuneration and intent to turnover. Comparatively, the purpose of quantitative research is mainly to validate a theory by analyzing the results numerically or conducting an experiment.  This would not be appropriate for my research work since the study aimed at seeking to arrive at a theory that analysis the behavior observed.  In this way, the study required a more inductive approach.  Additionally, the body of knowledge in the field and research questions also dictated the research methodology employed.

As compared to providing a phenomenon that can be generalized to a population, my research study aimed at describing a current situation for the particular group.  The research study involved the collection of data from an organization.  The case study necessitates the use of qualitative research methodology. Personal interviews were also chosen for the research study. This is the most appropriate method to try to determine the effect of remuneration on turnover intentions.  Since ethnographic considerations are taken, I was determined to get the manager’s version of reality, as compared to accepting one generic version of reality like the quantitative researcher would do. Since this is a study of the impact of compensation on the turnover intentions of departmental managers, the results can only be inferred from this organization or, at the most, to organizations that are very much like this one

The research was carried out through the interview as the tools for data collection. The researcher first developed a letter of introduction developed for this study and sent through the mail to all of the ten managers of dg3 -diversified global graphic group. The details of the interview were discussed in advance with two managing partners during a personal interview. It was necessary to determine if any missing significant factors of the compensation plan of dg3 -diversified global graphic group that not included on the instrument. They failed to identify any missing factors on the instrument. However, they provided additional details information on a recent development that affected two compensation variables included in the instrument. The first was the manager’s option to purchase an additional stake. It was included in the second five-year contract. They limit was up to 20%, in their unit in which they received the associated cash flow. The paid one-month break was the second addition. The re-indoctrination into the company was also part of this. Both of these additional benefits were designed to help retain managers for another contract period.

Data collection

For this research study, I used the semi-structured interview approach as the tool for data collection. The choice of the method was informed by various factors. First, the consideration that the success and validity of an interview rest on the extent to which participants’ opinion is truly reflected in the study by the researcher.  A semi-structured interview was conducted because they allowed the participant more freedom to express they views in their terms. Such interviews also provide the opportunity to generate rich, reliable and comparative qualitative data.  Additionally, data generated can be analyzed in various ways to generate findings. As the researcher, the data collection method helped me to prepare ahead of time for the activity to appear competent during the interview.

When conducting the interview, I used a paper-based interview guide for the major part of the activity. While it is possible to note down the interview response to capture participants’ answers, it may become difficult to focus on conducting an interview and writing notes. This approach can result in low quality of the interview and also detract the development of rapport between interviewee and interviewer. These two are essential in unstructured interviews. With this in mind, I used a tape recorder to tape-record interviews and later transcript them for analysis.  The use of tape recording was appropriate given that the inclusion of open-ended questions that required divergence from the interview guide. I designed the interview schedule with key questions. The questions were grouped thematically to be used for reference if necessary. With this type of data collection tool, it was possible to capture as much relevant data as possible due to the in-depth responses gathered from the interviewees. The respondents were selected based on the criteria mentioned above. Before giving conducting the interview, the purpose of study and questions were explained to the respondents so they could easily respond to questions. Ten interview transcripts were selected for analysis.

Gaining access

One of the various problems I faced as a researcher was the gaining of access to the organization. The purpose of wanting to gain access to organization further made it difficult given that to carry out an in-depth qualitative research study into organizations often takes a considerable amount of time. The topic I focused on was also a more sensitive one that required a considerable access to organizations information due to the kind of issue that I was investigating.  My research study also involved exclusively the departmental managers from various departments who are involved in the routine activities in the business.

In large for-profit enterprises such as dg3 -diversified global graphic group, it becomes more difficult to gain access as managers time is valued very highly particularly for time taking activities such as unstructured interviews.   However, I first used the formal access by achieving an agreement with the company.  The details of the agreement included the specific terms including what, when and how I was going to collect data from the organization and what would be provided by the company in return. The second one was the personal access which meant getting to know relevant managers executives and individuals.  The third step involved fostering individual rapport that involved developing a good understanding and collaboration with the managers.

Participants

Ten managers from the organization were interviewed on the impact that compensation had on their intentions to leave the organization in order to examine whether the compensation plans determined their intentions to leave.  The managers were from the Human Resources department, Finance department, marketing department, purchasing department, engineering department, customer relations department, Accounting Department, IT Department, Research and Development and the Sales department.   All the participants in the study possessed similar characteristics.  Because they held managerial positions in the international organization, they all had master’s degrees in management and other related fields. They were all aged between 29years and 53 years.

Ethics

Given our modern research setting, there is growing reliance on computers, databases, registries and the Internet. The protection of participants’ privacy is now one of the greatest challenges in research. The need for confidentiality is often weighed against the need to share personal information with the potential to benefit the public good. For this qualitative research study; I obtained an informed consent from the participants allowing for the confirmation of autonomy among the research participants. This was the first step before I could consider going ahead with the study. This was an important step in the communication process between all the research participants. This was before the start of the research and was expected to continue throughout the study. The main purpose of obtaining informed consent from the research participants was the provide necessary information to the participants as well as empower them to make a voluntary decision about whether to participate in the study

The Informed consent was in the form of a document signed by the participants that was important in relaying all pertinent and relevant research information including the risks and benefits that would accrue as a result of participating in the study. This was an important step in allowing each participant to make an informed decision regarding whether to participate in the activity. Subsequently, the informed consent also gave the participant the opportunity to withdraw from the activity at any time when they desired. I took the responsibility of ensuring that the participants were provided with and fully understood the various aspects of the research before consenting to take part. I explained the reasonably foreseeable risks, the expected benefits to the participants, advantageous alternatives to participating, the rights of confidentiality and privacy and compensation for injuries in case they occurred during the study. The participants were also directed to the persons they would contact if they had any questions and concerns. This way, the individual recognized that participating was entirely voluntary.

Another ethical consideration during the research activity was that of privacy and confidentiality.  Privacy is the desire of a person regarding their interest in controlling the access of others to his information. It was made clear that the participant would not be forced to reveal any information to the researcher that they did not wish to reveal.  One of the conditions on which informed consent rests is that the privacy would be respected.  Given the positions of the interviewees in the company and the impact that the information would have on both the company and individuals, the duty to maintain privacy and confidentiality was a necessity. In this regard, I considered using participant codes to label data as compared to the use of individual names while keeping a separate list of code-to-name match-ups. When conducting the interview, I made use of the participant’s first name only when recording or publishing data.  This was done to protect the participants. The published data will not also include other identifiers such as gender, age and other information directly attributable to the participants.

There was a desire to strictly maintain confidentiality among the participants. The steps taken towards the issue helped establish trust between the research participant and the interviewer. It also reduced the worry on the part of the departmental managers while maintaining the participant’s dignity.  The research participant felt respected, and it gave them more control and autonomy during the study. However, they were comfortable with the idea of using direct quotes from the interview conversations in the research study.

Sample Data

For this study, it was more appropriate to find a sample size comprising only department managers within the organization. No formula is generally used to determine sample size. There are trade-offs between depth and breadth given limitations of time and money.   The dg3 -diversified global graphic group was selected for this study as the main source for obtaining results to fill the gap in the existing literature. In order to collect the data regarding the intention to leave, a sample of 10 respondents was interviewed.  The sample included three female managers and seven male managers. The sample was selected from the headquarters owing to the convenience of costs and close proximity. The participation was voluntary, and nothing was offered in return to the participants.   The sample was appropriate for this study as it would help in answering my research questions.

Chapter 4: Results and Findings

Result analysis

The interview conducted by three interviewers was recorded for further analysis. The first part of the interview session collected different personal and Demographic variables. The first part was designed to obtain the respondent’s information about age, gender, income, education, status. The second Section included the latent variables that were significant in the research study. These variables include adequacy of salaries wages and allied benefits, adequacy of incentives and the quality of reward system. They have an impact on job stress, job satisfaction, person-organization fit and Organizational commitment towards intention to leave. The interview transcripts of 10 respondents were analyzed. After obtaining going through the interview transcripts, the next step entailed the data coding according to themes, ideas and categories and then marking with a code label for easier retrieval at a later stage for further comparison.  The procedure was that of ‘constant comparison’ where every time a part of the transcript was selected, it could be compared with all the rest to ensure consistency and assessing the relevance of the passage coded. The results were then transferred to a data table and listed in major categories.

Result

A total of 10 interviews were conducted on the population of Organization’s where usable transcripts were analyzed for a response rate. Considering the nature of the methodology, the target population, compensation and turnover in the very busy organization, the response rate was considered within an acceptable range. It signified that the compensation package of a company was highly influential on the desire of managers to stay with the organization. Thus, the results are in line with the hypothesis that the eight monetary factors in dg3 -diversified global graphic group compensation plan have a significant positive impact on the intentions to turnover of managers. Five of the eight compensation variables: deferred compensation, vacation/time off, base salary, stock option, ownership stake/equity, showed a significant positive relationship with the compensation plan. They, therefore, have a significant impact on the manager’s desire to stay with the organization. The analysis supports the hypothesis that the eight individual monetary elements identified in the compensation plan for dg3 -diversified global graphic group managers have significant positive impact on their retention, accordingly reducing their intention to turnover. A considerable percentage of the variation in the compensation package positively impacts on turnover intentions and can be predicted by the monetary elements. The analysis supports some of the earlier research that the compensation an organization offer clearly influences regarding the decisions that employees make concerning the company and turnover. In addition, Steers and Porter support the premise that organizations that provide the greatest compensation retain the most employees. Thus, “high reward levels lead to high satisfaction, which in turn leads to lower intent turnover.

Discussion

Organizational productivity is a central issue. Among the factors that determine the productivity of an organization is employee turnover. Nowadays the issue is one of those which are considered to be the most difficult issues in the company. The effect of intention to leave has received tremendous attention from human resource professionals, senior executives, and other industrial psychologists. It has proven to be one of the most costly and serious issues, particularly in the field of human resource management. Different remuneration plans have different impacts on satisfaction and turnover to leave. Of course, prior findings reveal a mixed picture concerning the relationship between various PRP schemes and turnover intentions. The analysis of the research study showed that the impact of the organization’s compensation plan determined the managers’ intentions to turn over through various ways. The effect of organization compensation plan on intentions to turnover affects managers’ commitment to the organization, job satisfaction, job stress and Person organization fit.

Job satisfaction

Job satisfaction affects the organizational commitment of managers in the (organization). The research revealed that job satisfaction was an independent and significant predictor of managers’ intention to leave after controlling for demographic variables. Compensation showed a significant influence on job satisfaction. The components of compensation include both include monetary and non-monetary components. Some various types of compensations provided by the organization include employee’s base salary and other additional benefits, such as retirement plans, performance bonuses, and health insurance. Managers feel more motivated to help their organization succeed when the employer shares its profits with employees through profit-sharing plans, bonuses, and other arrangements. The organization provided bonuses to some managers, such as the sales and accounts department managers for achieving the targeted sales and profits. Therefore, some department managers were left out in the element of compensation. These managers showed lower levels of job satisfaction compared to the other managers.

Accordingly, job satisfaction has a great impact on the intentions to leave among the department managers. Compensation evidently impacts on employees motivation and consequently on job satisfaction. This is more so when performance is related to compensation. The impact on job satisfaction comes in the form of the enjoyable and exciting, emotional condition which one get in their work.  Therefore, the ability to impact on managers Job satisfaction can significantly reduce intentions turnover by a great extent as well as increase the motivation. Various studies have an indentified different instrument for managing job satisfaction such as pay, working environment and recognition.  However, employees’ satisfaction does not entirely depend on the level of job satisfaction. (Gurkova et al, 2013) Satisfaction and dissatisfaction not only depend on the job but also upon employee’s expectation of job defined pay as payment that  include various components of the compensation plan such as  benefits, basic salary, pay for doing extra work , bonuses and incentives.

Employees are very satisfied and committed to their job when they are more satisfied. Given that compensation include both intrinsic rewards and extrinsic rewards, the impact on the intention to leave is very significant.  Money has for long been known as an indicator of motivation.  This indicates that pay is, therefore, an important component for the retention of employees because if they feel inequality in pay between their profession and others, they get dissatisfied and disappointed with their work. Accordingly, less pay, as compared to work done, is among the extrinsic factor which is responsible for job dissatisfaction.  In fact, some researchers have defined pay as what an employee gets his work after fulfilling his duty. The package is inclusive of the type of financial and non-financial rewards.

Organizational commitment

Organizational commitment is the potential of connection between an employee and his organization. When the relationship is high, the organizational commitment will be high, and if it is weak then the commitment will be low. The relationship makes obvious that when employees of the company assume that their loyalty is admired, they are motivated and will continue to be in the organization. (Marwan, 2012) When the organizational commitment is greater, the intention to leave is less. There is a significant relationship between Organizational commitment and intention to Leave. Organizational commitment has been regarded as a multi-dimensional construct with many potential antecedents that can affect employee intention to leave.

Despite organizational commitment being regarded as a relative strength of an employee’s identification with an organization normally characterized by a strong acceptance and belief in the organization’s purpose, goals and objectives it can also be identified in the willingness on the side of the employee to exert substantial effort on behalf of the firm, and the strong aspiration to remain a member of the organization. The compensation plan of the organization showed an impact on the intention to leave among the departmental managers. (McCausland & Theodossiou, 2005)   In general there exist three dimensions of commitment which are affective commitment, continuance commitment, and normative commitment. The types are independent in nature and are reflected by employees at different levels in the organization. Defined as the believing and acceptance of the goals and values of the organization and having desire to be part of the company. Committed managers showed stronger intentions to serve their organizations and are low at intentions to turnover.

Job stress

Stress at work has become a universal element as the nature of work goes through drastic changes over the few decades. One of the factors that contribute to work stress is the financial insecurity of associated with a job. Job stress is related to compensation. Job stress causes many employees to say that stress is to have a range of workplace problems, tardiness or absenteeism, conflicts with coworkers, such as difficulty concentrating and poor work quality. (Severt, 2007) Various researchers have found that low pay is one of the leading cause of stress overall for many employees. While more money does not guarantee an increase in job satisfaction, not having enough significantly contributes to workplace stress. Job stress begins with the demand and opportunity from the environment for an employee and ends with the employee’s response to that demand and opportunity.

The study suggests a new way of thinking concerning employee compensation. Simply offering employees, more compensation can itself increase performance.  Money cannot be considered as a greater compensation for greater performance per se, but can be used by the employer to effectively reduce the impact of the most prevalent source of stress. Some of the managers interviewed cited that the main cause of intention to leave was the inability to meet their financial demands for their families and other needs. This had mainly to do with non-work factors such as family and relationships. However, it was evident that the job stress was widely experienced and so pervasive and affected other areas such as management styles and workplace relationships.  The amount of compensation also influenced how managers felt concerning their job security (Jambrak & Williams, 2014).  Managers who were highly compensated had lower intentions to leave while managers who received lower levels of compensation had higher intentions to leave.

Managers who were less well-paid were likely to be unhappy with their earnings. This was more when the workload was considerably higher compared to the compensation. The feeling of not being fairly compensated in relation to workload negatively affected their levels of stress. The more stressed managers were more inclined to change jobs. (Van & Cockeran, 2013) Evidently, Managers just like other employees get frustrated when there is an imbalance in the work and their personal life.  The major take away from this study is that compensation should be considered an investment rather than a cost to the organization. Apart from improving employees’ stress levels, appropriate compensation provides an additional benefit to the organization. (Villanueva & Djurkovic, 2009)  Employees are likely to be more willing to voice potentially important ideas and less afraid to speak up when they see any problems. In general, the physical and psychological mental condition of the managers interviewed was mainly influenced by the situation of pressure when resources were unable to fulfill the demand of the individuals.  This impacted on the intentions to leave the organization.

Person organization fit

Person organization fit refers to the congruence between the values and norms of an organization and those of its employees. Results indicate that Person organization fit had a negative effect on manager’s turnover intention. The fitness between a manager’s values and organizational values is associated with affective and behavioral outcomes.  The higher the dissatisfied a manager was in his compensation, the higher, the higher were the intentions to leave. (Simon & Hasselhorn, 2010) The level of compensation determined how a manager fitted in the organization.  Managers with higher intentions to leave cited their inability to congruently match their values with those of the organization. Most believed that they deserved more than what they were receiving from the organization.

The person-organization fit element also determined the levels of organizational commitment and job performance and longer tenure. The Person organization fit or the compatibility between managers and the organizations is a key determinant of their willingness to stay in the organization.  Accordingly, Managers like other employees have a strong need to fit in their organization.   It is central for them to find jobs that fit, they prefer to leave work environments that do not fit and they cherish organizations that fit.

Implications for this study

When even one the employee leaves the organization, the turnover leads to high costs and low productivity. The cost is higher when the employee has special skills or is in a supervisory position. The cost of turnover of a manager to an organization is even greater. It is, therefore, important for organizations to determine the causes of an employee’s intention to leave and look at the situation before it can cost the organization. Therefore, organizations must aim to provide a reasonable working environment to reduce the intent to leave the organization and avoid costs associated with turnover. Drawing from the findings of this study, organizations that develop an appropriate compensation and reward programs can reduce the level of managers’ intentions to leave. Therefore, a well-structured plan with a good balance of rewards, wages and benefits is capable of supporting an organization to ensure sustainability in the future and remain competitive in the labor market. In fact, compensation can accentuate the negative or positive aspects of other contributing factors. (Williams & Carraher, 2008) For example, it’s much easier for managers who were highly compensated to put up with the employer since they were extremely well-paid.

Human resource managers can influence employees’ intention to leave the organization by formulating a compensation plan that impacts on job satisfaction, organizational commitment person-organization fit, and job stress. These factors determine the intentions of employees to stay or leave the organization. (Villanueva & Djurkovic, 2009) The relationship between compensation and intentions to leave is therefore reflected in these and other elements in organization’s employees. All these elements have influenced the motivation levels of employees.  The employer can also look at the three factors to determine the intentions to leave in employees. However, the level of the compensation awarded to an employee should be based on individual merits. A compensation plan ought to reflect the fairness of the system. Human resources managers are therefore required to create programs to offer incentives and motivate employees.

 The research study supports various studies conducted by different researchers on intentions to leave. A study by Murphy and Williams on the intentions to leave by managers showed that employees are mostly influenced by the non-traditional attributes of the plan including stock option, deferred compensation, and ownership stake as compared to the traditional attributes of the compensation plans involving insurance, base pay, and retirement plans (Murphy &Williams, 2004)  A study conducted by Laschinger, the relationship between job satisfaction and turnover intentions of employees can be mediated by the use of various techniques available to promote job satisfaction and commitment to an organization. Laschinger conducted a study cross-sectional analysis of data from a mail survey of graduate nurses (Laschinger, 2012) Another study conducted by Hung and Ching, to predict intent to leave and explained that compensation plan has an impact on job satisfaction and organizational commitment and consequently on intent to leave. (Hung & Ching, 2007) Accordingly, a compensation plan can be used to influence and measure job satisfaction.

Chapter 5

Conclusion

The purpose of the research study was to examine whether dg3 -diversified global graphic group compensation plan determined the turnover intent of departmental managers. The research focused on the intentions of managers to seek out new employment and how the compensation packages provided by the organization impacted on their intention to turnover. An investigation was carried out on the current management compensation practices in the organizations while identifying the relationship between the levels of management compensation and the intention to leave the organization. The study attempted to answer three research questions that guided the study to determine the various compensation packages used by organizations, the factors that contributed to turnover intentions among manager and organizational compensation packages impact on managers’ turnover intentions.

The dg3 -diversified global graphic group was selected for this study as the main source for obtaining results to fill the gap in the existing literature. In order to collect the data regarding the intention to leave, a sample of 10 respondents was interviewed.  The sample included three females and seven males. The sample was selected from the headquarters owing to the convenience of costs and close proximity. The sample was appropriate for this study as it would help in answering my research questions.

For this research study, semi-structured interview approach was used as the tool for data collection. The choice of the method was informed by various factors. First, the consideration that the success and validity of an interview rest on the extent to which participants’ opinion is truly reflected in the study by the researcher.  A semi-structured interview was conducted because they allowed the participant more freedom to express they views in their own terms. Such interviews also provide the opportunity to generate rich, reliable and comparative qualitative data.  Additionally, data generated could be analyzed in various ways to generate findings.

Ten managers from the organization were interviewed on the impact that compensation had on their intentions to leave the organization in order to examine whether the compensation plans determined their intentions to leave. The interview was conducted by three interviewers. It was recorded for further analysis. The first part of the interview session collected different personal and Demographic variables. The first section was designed to obtain the respondent’s information about age, gender, income, education, status. The second Section included the latent variables that were significant in the research study. These variables include adequacy of salaries wages and allied benefits, adequacy of incentives and the quality of reward system. They have an impact on job stress, job satisfaction, person-organization fit and Organizational commitment towards intention to leave

The analysis of the research study showed that the impact of the organization’s compensation plan determined the managers’ intentions to turn over through various ways. The effect of organization compensation plan on intentions to turnover affects managers’ commitment to the organization, job satisfaction, job stress and Person organization fit. Job satisfaction had a great impact on the intentions to leave among the department managers. Compensation evidently impacted on employees motivation and consequently on job satisfaction. This is more so when performance was related to compensation. The impact on job satisfaction came in the form of the enjoyable and exciting, emotional conditions at work.

Job stress impacted the physical and psychological mental condition of the managers interviewed that mainly influenced by the situation of pressure when resources were unable to fulfill the demand of the individuals. (Webber & Bessell, 2010) The Person organization fit or the compatibility between managers and the organizations was also a key determinant of their willingness to stay in the organization. Organizational commitment is the potential of connection between an employee and his organization. Where the relationship was high, the organizational commitment was high, and when it was weak then the commitment was low. The relationship made obvious that when managers of the company assumed that their loyalty was admired, they were motivated and were likely to continue to be in the organization. When the organizational commitment was great, the intention to leave was less. There was a significant positive relationship between managers’ commitment and intention to leave.

Intention to leave by managers is greatly affected the compensation plan the organization. (Menefee & Murphy, 2004) This research study was conducted successfully referring to the application of the model and the results generated. Throughout this research, it was clear that an effective investigation can be conducted to get the best results. However, this study had its limitations. Future researchers can take this study as a benchmark to come up with a better research study. It in turn may significantly reduce the intention to leave, and subsequent turnover, saving the company the high financial efforts and cost in recruitment, replacement and training of replacement staff.

References

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Webber, M., Sarris, A., & Bessell, M. (2010). Organisational Culture and Work-Life Balance: Influence on Work-life conflict and attitude. Journal Of Organisational Psychology, 3(1), 54-65

Williams, Williams, L. J., & Carraher, S. M. (2008). A model and measure of compensation satisfaction. Journal Of Occupational & Organizational Psychology,81(4), 639-668.

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in nursing essay writing service services. If you need a similar paper you can place your order from research paper services.

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