Retention Strategies to Increase Organizational Commitment and Reduce Employee Turnover in Hospitality Sector of Karachi, Pakistan

Shaikh, Taha and Zahid, Marium (2016): Retention Strategies to Increase Organizational Commitment and Reduce Employee Turnover in Hospitality Sector of Karachi, Pakistan. Published in: International Journal of Academic Research in Business and Social Sciences , Vol. 7, No. 2 (8 February 2017): pp. 64-78.

Abstract

This study aims to explore the relationship between retention strategies and employee turnover. In addition to that, the effectiveness of these strategies to enhance organizational commitment of employees working in the hospitality sector (fast-food chain) of Karachi, Pakistan. The study considered five decades of managerial literature to explain the relationship between variables. Semi-structured matrix based survey questionnaire and open-ended unstructured interview questions as research instruments to investigate the relationship. The research philosophy has been interpretive and deductive research is used. The sample size in this study is 426 participants in survey and 34 interviews with the management from the entire chain of fast-food restaurants in different regions of Karachi. The sampling technique is non-probability "convenience sampling". The findings revealed that high employee turnover is due to part time employment and high number of temporary employees or drop out from college and universities. Moreover, there is a relationship between employee turnover and organizational commitment. The higher job satisfactions leads to increase employees' commitment. It is recommended to the management of restaurant that friendly environment and training workshops are essential to retain good quality employees.

• Item Type: MPRA Paper
• Language: English
• Keywords: Organizational Commitment; Job Satisfaction; Employee Turnover; Hospitality sector; Developing Economies
• Subjects: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General; L - Industrial Organization > L8 - Industry Studies: Services; L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism; L - Industrial Organization > L8 - Industry Studies: Services > L84 - Personal, Professional, and Business Services; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M0 - General; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration

References

. Abelson M. A. (1987). ‘Examination of avoidable and unavoidable turnover’ Journal of Applied Psychology, Vol. 72(3), 382-386.

. Allen N. J, & Meyer, J. P. (2001). Affective, Continuance, and Normative Commitment to the Organization: An Examination of Construct Validity. Journal of Vocational Behaviour, Vol. 49(3), 250-278.

. Beach R., Brereton D. & Cliff D. (2003). Workforce turnover in FIFO mining operations in Australia: An exploratory study, Centre for Social Responsibility in Mining, University of Queensland & Sustainable Minerals Institute. Retrieved from http://www.csrm.uq.edu.au.

. Cole, M. S., Harris, S. G. & Bernerth, J. B. (2006). ‘Exploring the implications of vision, appropriateness and execution of organizational change’, Leadership & Organizational Development Journal, Vol. 27(5), 352-367.

. Elangovan A. R. (2001). ‘Causal ordering of stress, satisfaction and commitment, and intention to quit: a structural equations analysis’, Leadership & Organization Development Journal, Vol. 22(4), 159-165.

. Faizan, R., & Zehra, N. (2016). Quality Work-Life as predictor to Organizational Commitment under contrasting Leadership Styles: I.T Responses from Pakistan's private software houses. Global Journal of Management and Administration, Vol. 16, (6), 9-23.

. Gill, A., Mathur, N., Sharma, S. J. & Bhutani, S. (2011). ‘The Effects of empowerment and transformational leadership on employee intentions to quit: A Study of Inn Workers in India’, International Journal of Management, Vol. 28 (1), 217-229.

. Griffith R. W., Hom P. W. & Gaertner S. (2000). ‘A Meta-analysis of antecedents and correlates of employee turnover: Update, moderator tests, and research Implications for the next millennium’, Journal of Management, Vol. 26(3), 463-488.

. Haque, A. U., & Aston, J. (2016). A Relationship between Occupational Stress and Organizational Commitment of I.T Sector's Employees in Contrasting Economies. Polish Journal of Management Studies. Vol. 14 (1), 95-105.

. Haque, A. U., Aston, J., & Kozlovski, E. (2016). Do causes and consequences of stress affect genders differently at operational level? Comparison of the IT sectors in the UK and Pakistan. International Journal of Applied Business. Vol. 1 (1), 1-7.

. Haque, A. U., Faizan, R., Zehra, N., Baloch, A., Nadda, V., & Riaz, F. (2015). Leading Leadership Style to Motivate Cultural-Oriented Female Employees in the Developing Country: I.T Responses from Pakistan. International Journal of Academic Research in Business and Social Sciences. Vol. 5 (9), 280-302.

. Haque, A.U & Yamoah, F. (2014). "Gender Employment Longevity: I.T Staff Response to Organizational Support in Pakistan," International Journal of Academic Research in Business and Social Sciences, vol. 4(12), 324-347.

. Howard, A. (2008). Organizational commitment in domestic violence agencies [online]. Chicago: University of Illinois. Retrieved from:< http://books.google.co.za/books?id=8E8M2Px8TWwC&printsec=frontcover#v=onepage&q&f=false >.

. Iqbal, A. (2010). ‘Employee turnover: causes, consequences and retention strategies in the Saudi Organizations’, The Business Review, 16(2), 275-281.

. Lum L., Kervin J., Clark K., Reid F. & Sirola W. (1998). ‘Explaining nursing turnover intent: job satisfaction, pay satisfaction or organizational commitment?’, Journal of Organizational Behavior, vol. 19(3), 305-320.

. Makhbul, Z. M., Rahid, M. R. & Hasun, F. M. (2011). ‘What made them go?’, Journal of Global Management, Vol. 1(1), 13-22.

. Mathis, R. L. & Jackson, J. (2011). Human Resource Management: Essential Perspective. 6th Edition. London: UK.

. Mobley W. H., Griffeth R. W., Hand, H. H. & Meglino, B. M. (1979). ‘Review and conceptual analysis of the employee turnover process’, Psychological Bulletin, Vol. 86 (3), 493-522.

. Mowday, R. T., Steers, R. M. and Porter, L. W. (1979). “The measurement of organizational commitment”, Journal of Vocational Behavior, Vol. 14, 224-247.

. Morrell K.M., Loan-Clarke J. & Wilkinson J (2004). ‘Organizational change and employee turnover’, Personnel Review, Vol. 33(2), 161-173.

. Nzukuma, K. C. C., & Bussin, M. (2011). ‘Job-hopping amongst African black senior management in South Africa’, SA Journal of Human Resource Management, Vol 9(1), 1-12.

. Phillips, J. A., & Cornell, G.T (2003). Accountability in Human Resource Management. Boston: Butterworth-Heinemann.

. Porter, M. (1980). Competitive Strategy: Techniques for Analysing Industries and Competitors. New York: Free Press.

. Shah C. & Burke G. (2003). Labour mobility: demographic, labour force and education effects and implications for VET, Report to ANTA, Centre for the Economics of Education and Training, Monash.

. Tang T. L. P., Kim J. W. & Tang D. S. H. (2000). ‘Does attitude toward money moderate the relationship between intrinsic job satisfaction and voluntary turnover?’ Human Relations, Vol. 53(2), 213-245.

. Wood, R.H. & Macaulay, G. H. (1991). Predicting is difficult, especially about the future: Human resources in the new millennium. International Journal Hospitality Management, Vol. 18, (4), 443-456.

. Zehra, N. (2016). Training & Development Barometer for Effective Transformation of Organizational Commitment and Overall Performance in Banking Sectors of KPK, Pakistan: Qualitative study of Workforce of Bank of Khyber. International Journal of Academic Research in Business and Social Sciences. Vol. 6 (6), 246-267.