Academic journal article Journal of Business Economics and Management

Relationship between Retention Factors and Affective Organisational Commitment among Knowledge Workers in Malaysia

Academic journal article Journal of Business Economics and Management

Relationship between Retention Factors and Affective Organisational Commitment among Knowledge Workers in Malaysia

Article excerpt

1. Introduction

Recently researchers, managers and supervisors in organisations are very much concerned about employee retention and the employees' turnover which are two most important topics in organisational research. Low retention rate of employees ultimately give the result that extra time and money are spent on recruiting, selecting, and training new employees that could have been spent on other activities like performance improvement or career development of employees (Abbasi, Hollman 2000; Arkin 1997; Muchninsky 1997; Sighter, Adams 1999). Moreover, Sightler and Adams (1999) reported that organisations may experience a decrease in performance, efficiency, and morale, and an increase in the disorder of social networks, group cohesion, and communication due to low retention levels of employees in the organisations. The companies that cannot retain their employees may affect economics result of the organisations and finally become the competitors for the organisation as well (Day 2000).

To survive in this present competitive business environment, it is important for organisations to retain their committed employees because of the high cost of recruitment and selection (Pfeffer 1998), the lag and productivity loss during the assimilation period (Davies 2001), the likely loss of business opportunity (Walker 2001), poor customer relationship (Clarke 2001; Messmer 2000), and hidden cost of loss productivity (Das 2002). According to Storey (1992), employers seek to treat employees as valued assets who can be a source of competitive advantage through their commitment, trust, adaptability and high quality skills and knowledge. This empowerment ultimately increases the competitiveness of the business. Arthur (1994) concluded that by using commitment strategies, organizations had significantly higher performance and lower turnover, compared to those using control strategies.

According to Beck and Wilson (2001), although numerous researches have been studied about organizational commitment, but there is a doubt on how the factors purported to be associated with it contribute to its development or how these organizational factors can be managed to promote the development of organizational commitment. It is now widely accepted that retention factors, and trust within the organization are some of the organizational factors that have been associated with organizational commitment (Meyer, Allen 1997; Damayanti 2009). Commitment has also been related to valuable outcomes for both the employee and employer. Benefits for the employee may include improved well-being from, for example, increased moral strength and reduced stress to increased organizational commitment (Mayer, Allen 1997). Benefits for the employer from increased commitment can include decreased absenteeism, lateness and turnover, as well as improved productivity (Mathieu, Zajac 1990; Mayer, Allen 1997; Mowday 1998; Randall 1987). Nik Mutasim and Hizam (2002) studied commitment to profession and organization and tried to identify its conflicts or compatibility. This study suggested to conduct research on the concepts on other samples in Malaysia. Having the potential to product advantageous financial and psychological outcomes, organizational commitment is important for every type of organization. Interestingly not enough, or no study so far has examined knowledge workers' organizational commitment in Malaysia. Moreover, it is not clearly known what factors contribute to the organizational commitment of knowledge workers, especially IS/IT personnel in Malaysia.

The major challenges of all types of organizations across all management levels are retaining knowledge workers who have high competitive value (DeLong 2004; Frank, Finnegan, Taylor 2004; Jamrog 2004; Ready, Conger 2008; Somaya, Williamson 2008). According to Paul (2000) in this globalization era attracting and retaining highly skilled, independent, internationally marketable and mobile individuals are crucial for the organizations for its present and future success. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.