Factors causing staff turnover in the SME manufacturing sector in northern Malaysia

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Date
2012
Authors
Wong, Guo Sin
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Abstract
Over the past decade, the issue of staff turnover has attracted the attention from various disciplines of researchers like social-psychologist, cognitive sciencist and economist. The purpose of present study was to examine the precursor of intention to leave that is withdrawal tendency. The components in the organisational factors and individual factors have been comprehensively studied in order to close the literature gaps. In this study, the focus is on the SME manufacturing sector in the northern region of Malaysia. A simple random sample was conducted among employees in 50 firms from SME manufacturing sector. The theoretical framework was to integrate the Mobley et. al.s’ turnover model with motivational factors. When assessed jointly, organisational factors such as supervisor style, job contents, rewards system, and intrinsic motivation demonstrated strongest predictors for withdrawal tendency. The multiple regressions exhibited that this model is 86.3% of variance in withdrawal tendency was explained by the predictors. The limitations in present study were the reliance on self–reported questionnaire data. The data of research had only collected at one point of time. This may be argued that possibility of reverse causality. The result contributed better understanding of factors influence the withdrawal tendency in Malaysia context. Besides, it provides useful information for practitioners in the effort of employee retention. The most important findings were supervision style and job contents held a substantially stronger relationship with withdrawal tendency. Then, emphasis should be placed on facilitating job contents and training for leadership style.
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Master
Keywords
Business administration , Staff turnover , SME manufacturing
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