Exploring turnover among middle managers in a non-western context.

• Author: Ovadje, Franca
• Position: Survey

1. INTRODUCTION

   Organizations are finding it increasingly difficult to retain their top performers. While some level of turnover is considered healthy (it encourages organizational renewal, etc.), high levels of voluntary turnover (that is the loss of employees that an organization would like to retain, Vandenberg & Nelson, 1999) can be costly. Koys (2001) found some support for a negative relationship between turnover and customer satisfaction, with turnover affecting customer satisfaction. McElroy et al. (2001) found that both involuntary and voluntary turnover were associated with declines in customer satisfaction. Extant research also provides support for a negative relationship between turnover and organizational performance (Ulrich, et al. 1991; Ostroff, 1992; Simons & Hinkins, 2001; Holtom et al. 2008). Huselid's (1995) study suggests that there is a negative relationship between turnover and sales, market value and profitability. The sustained interest in turnover research is probably due to turnover's consequences. Previous Studies on Turnover Intention

   Several studies have been carried out on turnover and its antecedents. Several job attitudes have been found to be associated with turnover. Cohen (1993) showed that organizational commitment was negatively associated with turnover intention. Khatri et al. (2001), Iverson & Deery, (1997) found support for a negative relationship between job satisfaction and turnover. Griffeth et al. (2001) found in their metaanalysis that the best predictors of turnover were the proximal precursors: job satisfaction, organizational commitment, comparison of alternatives, etc. Their study also showed that organizational commitment was a better predictor of turnover than overall satisfaction. Several demographic variables (such as age, tenure) have also been found to be associated with turnover (Cotton & Tuttle, 1986).

   While it may seem that there is a plethora of turnover research (more than 1500 studies according to Holtom et al. 2008), some gaps exist in the literature. Few studies have investigated the relationship between turnover and Perceived Organizational Support (POS), Management Style and Turnover Culture. POS is the belief by employees that the organization they work for cares about their well being (Eisenberger, et al. 2002). These variables may be particularly important in a non-western context.

   Another gap in the literature is the relationship between satisfaction with the supervisor's or manager's style, and turnover intention. Work on leader-member exchange suggests that the quality of the relationship between the leader and the member is important for satisfaction with the work situation. Wayne et al. (1997) argued that the quality of the social exchange between the leader and the subordinate is associated with their behaviours but should not influence decisions to quit since subordinates are likely to view the relationship as temporary. However, Eisenberger et al. (2002) found a negative relationship between satisfaction with supervision and turnover. More research is required on this phenomenon. Management style may be very important for quit intentions in a context where personal relationships are of primary importance.

   Not all turnover intentions are driven by dissatisfaction. Little is known for example, about the impact of turnover culture on turnover intention. Turnover culture refers to the accepted belief that turnover is appropriate (Iverson, 1997). Employees may job hop not because of dissatisfaction with aspects of the work situation but because they believe it is the best way to a successful career.

   Most empirical studies of turnover were carried out in western contexts (mainly the US and UK). It is not clear that the results of these studies are generalizable to other contexts such as an African context characterized by collectivism, high power distance and high poverty levels. Griffeth et al (2000) questioned the generalizability of research findings across situations and populations. The study by Chen & Francesco (2000) on organizational commitment and turnover intention in China suggests that context is important for understanding turnover. POS and satisfaction with Management Style are likely to be more important correlates of turnover intention in a collectivist society than in a western society. In collectivist societies, group members expect support from the community. They define themselves in terms of membership of a group. POS is likely to have a huge impact on the decision to stay or leave in collectivist societies. Maertz, Stevens & Campion (2003) questioned the applicability of existing turnover models to Mexico. Holtom et al. (2008: 258) called for a more international focus in turnover research. They argued that "given the importance of ties in collectivist cultures, the social nature of staying or leaving may be particularly salient therein."

   The study is situated in a non-western context, Nigeria. Nigeria is the most populous African nation. Although it is a heterogeneous society, a national culture can be gleaned. Research by Hofstede (1991), Gannon (1994), suggests that Nigeria, and indeed Africa, has certain cultural characteristics. Unlike western cultures which are individualistic, Nigeria is a collectivist society; there is strong in-group identification. People define themselves in terms of membership of a community. They are willing to sacrifice personal comfort, interests, etc. for the community's goals. Group members look to the others for assistance in meeting their financial, emotional and social needs. According to Jackson (2004), collectivist societies have a strong orientation to the community.

   In the GLOBE study (House et al. 2004) Nigeria had the highest score on humane orientation: the level of sensitivity and concern for others. In Africa, you are your brother's keeper: you become a person through others (Ubuntu). Group members take care of one another in good and bad times (Gannon, 1994). The group may be a family (broadly defined to include the extended family), the clan or village. According to Ovadje & Ankomah in Budhwar & Debrah, (2001), caring is an important characteristic of the Nigerian culture.

   Leaders are expected to care for the group, to sacrifice their personal goals for the common good if necessary. Commitment and trust within the in-group is very high. Relationships are so highly valued that maintaining good relationships is important than keeping the rules. The employee feels alienated in an impersonal work environment (Ovadje & Ankomah, 2001).

   From the foregoing, it is clear that the collectivist context is significantly different from a western context. When people join an organization, they may attribute to the organization the characteristics of their social group. They also have certain expectations of the organization. If these expectations are not met, dissatisfaction may result and this may lead to the decision to quit. Employees in collectivist societies like Nigeria are likely to identify with the organization. They expect the organization to take care of their welfare and provide more nurturing relationships (Anakwe, 2002). A study of turnover intention in a collectivist context should provide additional insights into the phenomenon.

   The results of the study should contribute to the literature in a number of ways. First, the study is situated in a different context--a relatively under-researched group. Secondly, we study several hypothesized antecedents of turnover intention. This should enable us explore the relative importance of these variables in explaining turnover intention. The results of the study should be of interest to global managers as well as managers in organizations in non-western contexts. In an increasingly global world, the knowledge of what works in different contexts is critical for the success of global organizations. Retention strategies based on research conducted in western contexts may not work in subsidiaries in other contexts. This study provides some insights into what matters for quit intentions in a non-western cultural context. These insights should help human resource managers of global organizations adapt their employee value proposition to suit the needs of employees in non-western contexts, specifically, collectivist contexts.

2. THEORETICAL FRAMEWORK AND HYPOTHESES

   According to Barnard (1938), an organization is in equilibrium if it can motivate enough members to belong. To this end, organizations provide some inducements to encourage participation and production. These inducements include pay and benefits, a good working environment, etc. In return, employees are expected to make some contributions to the organization (March and Simon, 1958). They weigh the inducements offered by the organization against their contributions in making a decision to stay or to go. If an employee is satisfied with the employment situation, he is likely to want to remain in the organization. On the other hand, dissatisfaction with aspects of the work situation is likely to lead to the intention to quit.

   Theory Development

   According to Ostroff (1992), the level of satisfaction of employees, and their attitudes are important factors in determining intentions. For example, one reason why people work is to satisfy extrinsic motives. Satisfaction with pay and benefits would be an important factor in the decision as to stay or to leave. This can be expected to be especially important in regions where poverty levels are very high.

   In a collectivist society, attitudes are likely to drive turnover intentions much more than extrinsic factors. Since relationships count in such societies, a feeling of membership of a community is expected to be more important than satisfaction with pay. In the traditional Nigerian society for example, no one worked for a salary. Most of the communities were agrarian. During the clearing and harvesting seasons each farmer...