The Effect of Organizational Commitment on Employees’ Turnover Intention: In the Case of Ethiopian Trading Business Corporation (Alle Bejimla)
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Date
2019-06
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Addis Ababa University
Abstract
There is a growing interest in theory and practice with regard to organizational commitment and Turnover intention of employees. The Objective of this thesis is to study the effect of organizational commitment on Turnover intention; specifically, to assess the effect the Affective commitment, Normative commitment, and continuance commitment on Employee’s Turnover intention. A quantitative research design that involves quantifying of the variables of the study by way of generating numerical data was adopted. From the total of 272 employees within the case organization i.e. Alle Bejimla, a closed ended questionnaire was distributed for a sample of 162 employees selected using convenient sampling. Where 143 responses were collected and used for final data analysis. The data collected from the questionnaire were analyzed using descriptive statistics, correlation and regression analysis with the help of IBM’s Software Package for Social Science (IBM SPSS Statistic 20). The outcome of the analysis revealed that organizational commitment at the 1st order level construct is negatively related to turnover intention. Furthermore, while all three dimensions of commitment have a negative relationship to the dependent variable i.e. turnover intention; affective commitment was found to have a strong negative relationship with turnover intention while the other two had a moderate negative relationship. The study recommends that organizations should emphasis on minimizing the high level of turnover intention by engaging and committing the employees for better productivity.
Description
A Thesis Submitted in Partial Fulfillment of the Requirement for a Degree of Master of Business Administration (MBA) in Management at the Addis Ababa University College of Business and Economics
Keywords
Affective commitment, Continuance commitment, Employee commitment, Employee Turnover intention