Aisha Talib Thesis VvFinal

Khadim Ali Shah Bukhari Institute of Technology (KASBIT)
Impact of Human Resource Management

on Employee Turnover: A Comparison Case
Study of Bank Alfalah Limited
A project submitted to the Department of Human Resource

Management Faculty of Management Sciences
In partial fulfillment of the requirements for the degree of

Masters of Business Administration (MBA)
Under the supervision of

Mr. Karamat Ullah Hussani
Deputy Dean, Faculty of Management Sciences
Submitted By:
AYESHA TALIB
ID NO: 5163
Copyright 2012, All Rights Reserved

Impact of Human Resource Management on Employee Turnover: A Comparison Case
Dedication
I dedicate this
research work to
my parents who
have offered lot of
prayers and
rendered their
AYESHA TALIB - 5163 - MBA (HRM)
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complete possible
support throughout
all phases of its
completion.
Letter of Transmittal
Dear Sir
This Project/thesis here to attached, entitled, Impact of Human Resource
Management on Employee Turnover: A Comparison Case Study of Bank
Alfalah Limited prepared and submitted by AYESHA TALIB bearing ID # 5163

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for fulfillment of the requirements for the degree Masters in Business
Administration, is hereby recommended for appropriate action.
AYESHA TALIB
ID # 5163
MBA (HRM)
Certificate
I am pleased to certify that Ms. AYESHA TALIB D/O TALIB ALI KHAN has
satisfactorily carried out the research work, under my supervision on the topic of
IMPACT OF HUMAN RESOURCE MANAGEMENT ON EMPLOYEE TURNOVER
BANKING SECTOR.

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I further certify that has distinctive original research and her thesis is worthy of
presentation to the faculty of management science KASBIT INSTITUTE OF
INFORMATION TECHNOLOGY Karachi for the degree of MBA.
Mr. Karamat Ullah Hussani

Deputy Dean, Faculty of Management Sciences,
KASBIT
Acknowledgement
In the name of ALLAH, the most Beneficial the

ever Merciful
All praise and thanks to ALLAH and prayers and peace

be upon his Prophet Mohammed.
Perfection was watch word I had in my mind when I started working on this
thesis. However, people generally agree that man can approach excellence but
never actually achieve it. Exquisite Perfection is rather trait of God, and by His
Grace, I tried very hard to make thesis meritorious.

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It would be privileged to say special thanks to all teachers who became part of
my proposal and provided valuable information & support.
I wish to express my grateful appreciation to my supervisor Sir. Karamatullah

Hussani, Faculty of HRM, KASBIT Institute for his guidance, appreciation,
encouragement and valuable time throughout the period and for bearing with
me. Without his guidance this thesis would not have been possible.
Further I would like to thanks Sir Eesar khan for their support.
I would thank to all individuals who directly or indirectly were involved in the
completion of this project & also our institute for giving us this opportunity which
help us to improve our skills.
Finally, profound thanks are extended to my parents, siblings, family & friends
for their unwavering support, who pushed me through each step of my academic
journey and thesis preparation.
AYESHA TALIB
Author
Abstract
The primary purpose of this study is to help banking sector to identify on what
aspects they have to improve to lessen the employee turnover rate. The
respondents were the banking sector located in that area. Self-administered
questionnaires were distributed to the respondents to gather data. Results have
verified income, working relationship with co-workers, and balance with work
and personal life as key factors that would really affect the decision of the
employee to stay or transfer to a better company or seek for a more stable job.
Those factors alone could be the cause of high turnover and could diminish the

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companys employee standards if the employees keep on changing. The

researchers would suggest that future researches should include the way of
living style and the culture of the city. The above stated are vital in knowing the
kind of employee the company would employ and could tailor trainings,
seminars and team building activities that would improve their quality of work in
their company. The researchers would also like to suggest that future studies
involving this problem include the stand of college students and high school
graduates as with regards to working in bank as a long term career option to
broaden up the scope of the research. Empirical studies of public employee
turnover, particularly using turnover as an independent variable, are rare; and
most of the literature assumes turnover to have a negative impact on
organizations. This study examines a provocative but little supported hypothesis
that has recently emerged in the private sector literaturethat turnover may
provide positive benefits to the organization, at least up to a point. Using data
from several hundred public organizations over a nine-year period, we test the
proposition that moderate levels of turnover may positively affect organizational
performance. We find that while turnover is indeed negatively related to
performance for the organization's primary goal, it does have the hypothesized
nonlinear relationship for a secondary output that is characterized by greater
task difficulty. Findings of the study suggest that the extent of controllable
turnover is much greater than uncontrollable turnover and that poor
management practices are the major source of employee turnover.

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Abbreviations
CC: Career Commitment
CP: Career Progression
EI: External Inflow
HA: Human Asset
HR: Human Resource
HRM: Human Resource Management
II: Internal Inflow
IT: Involuntary Turnover
JS: Job Satisfaction
OB: Organizational Behavior
OLB: Organization Learning Behavior
PA: Performance Appraisal
RJ: Realistic Job
STR: Staff Turnover Ratio

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Table of Contents
i)
Dedication
1
ii) Letter of
Transmittal
2
iii)
Certificate
..3
iv)
Acknowledgement
..4
v)
Abstract
.5
vi)
Abbreviations
..6
viii) Table of
Charts
..11
1.0
INTRODUCTION
.13
1.1 Background of the Study.........................................................................13
1.2 Problem Statement..................................................................................14
1.3 Introduction to the Organization..............................................................14
1.4 Purpose of the Research..........................................................................14
1.5 Objectives................................................................................................15
1.6 Hypothesis...............................................................................................15

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1.7 Significance of the Study.........................................................................16
1.8 Scope of the Study...................................................................................16
1.9 Limitations...............................................................................................17
2.0 LITERATURE
REVIEW
..19
2.1 Human Resource Management Practices.................................................19
2.2 Turnover
.22
2.3 Voluntary Turnover...................................................................................24
2.4 Turnover Intention....................................................................................25
2.5 The Consequences of Employee Turnover...............................................27
2.6 The Effect of HR Practices on Organizational Commitment.....................27
2.7 The Effect of HR Practices and Organizational Commitment on Turnover

Intention 29
2.8 Compensation and Market Opportunities................................................30
2.9 Employee Retention.................................................................................30
2.10 Employee Turnover and the Labor Relations..........................................32
2.11 Actual/Perceived Alternate Opportunities Comparison........................34
2.12 Intentions to Leave................................................................................35
2.13 Job Satisfaction......................................................................................36
2.14 Employee Characteristics......................................................................37
2.16 Work Conditions.....................................................................................38
2.17 Training and Career Progression............................................................39
2.18 Career Commitment and Progression....................................................40

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2.15 Organizational Size................................................................................40
2.22 Prediction...............................................................................................41
2.20 Influence of Co-workers.........................................................................42
2.21 Performance Appraisal (PA)...................................................................43
2.19 Unionization...........................................................................................44
3.0
METHODOLOGY
.46
3.1 Research Design......................................................................................46
3.2 Sample Design.........................................................................................46
3.2.1 Population.............................................................................................46
3.2.2 Sample
.46
3.3 Data Collection Methods..........................................................................46
3.3.1 Primary Data Gathering........................................................................46
3.3.2 Secondary Data Gathering...................................................................46
4.0 DATA
ANALYSIS
.48
4.1 Hypothesis 1............................................................................................48
To determine the impact of performance appraisal on employee turnover...48
Interpretation.................................................................................................48
4.2 Hypothesis 2............................................................................................49
To determine the impact of work load on employee turnover.......................49
Interpretation.................................................................................................49
4.3 Hypothesis 3............................................................................................50

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To identify the impact of less training on employee turnover........................50
Interpretation.................................................................................................50
4.4 Hypothesis 4............................................................................................51
To study the impact of job satisfaction on employee turnover......................51
Interpretation.................................................................................................51
4.5 Hypothesis 5............................................................................................52
To find the impact of employee retention on employee turnover..................52
Interpretation.................................................................................................52
4.6 Hypothesis 6............................................................................................53
To determine the impact of employee characteristics on employee turnover53
Interpretation.................................................................................................53
4.7 Hypothesis 7............................................................................................54
To study the impact of low salary on employee turnover..............................54
Interpretation.................................................................................................54
4.8 Hypothesis 8............................................................................................55
To determine the impact of HR policies on employee turnover.....................55
Interpretation.................................................................................................55
5.0 CONCLUSION &

RECOMMENDATIONS.
.57
5.1 Conclusion...............................................................................................57
5.2 Recommendation.....................................................................................58
REFERENCES
..59
ANNEXURE
.70
a)Survey Questionnaire.................................................................................71

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b)Data Sheet..................................................................................................72
Table of Charts
4.1.1 Z Test of Hypothesis for the Mean of Hypothesis
148

249

350

Page 12

451

552

653

754

855

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CHAPTER # 1
INTRODUCTION

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1.0 INTRODUCTION
This introductory chapter describes the background, objectives, focus and scope
of the study, discusses why turnover is an important issue for the mining
industry and briefly reviews other research that has been conducted in the area.
While there is some employee turnover that may be healthy for organizations,
excessive employee turnover can be extremely costly and will negatively impact
revenues and profits. I believe that the overall culture of an organization has a
lot to do with employee satisfaction and turnover. Although achieving zero
percent employee turn-over is unrealistic, high turnover can cause major
drawbacks to an organization.
1.1 Background of the Study

There may be several factors involved why employees leave their job. It could be
a voluntary turnover where employee chooses to leave. Some of these reasons
include better career opportunities, increased compensation and broaden the
current tasks. Involuntary turnover occurs when employee are asked to leave for
reasons including poor performance or an inappropriate behavior, company
benefits, employee attendance and job performance are all factors play an
important role in employee turnover. When a company replaces a worker then
company incurs direct and indirect expenses. These expenses include the cost of
advertising, headhunting fees, human resources fee and new hiring cost. Most
companies find that employee turnover can be reduced when they affect overall
company. By offering employees benefits such as reasonable flexibility with work
and family balance, performance reviews and performance based interviews
along with traditional benefits such as paid holidays or sick days and companies
are better able to manage their employee turnover rates. By reducing employee
turnover rates, companies can gain advantages like profitability, productivity
and competitive advantages. With all these issues in mind the aim of this
research is to develop and test a model for organization performance. The model

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will analyze which factors affect employee turnover and what is the effect of
employee turnover on the organization.
With all these issues in mind the aim of this research is to develop and test a
model for organization performance. The model will analyze which factors affect
employee turnover and what is the effect of employee turnover on the
organization.
1.2 Problem Statement

Organizations do experience employee turnover from time to time, which may
have some impact on the organizations performance. As I observed and
analyzed the employees of the fund department, I realized that the employees
have a couple of issues that are causing the high turnover. These include but not
limited to; compensation, training, motivation and job satisfaction. It seemed
that there is some sort of communication breakdown, between the employees
and the managers.
1.3 Introduction to the Organization

Bank Alfalah Limited is a private bank in Pakistan owned by the Abu Dhabi
Group. Bank Alfalah was incorporated on June 21, 1992 as a public limited
company under the Companies Ordinance 1984. Its banking operations
commenced from November 1, 1992. The bank is engaged in commercial
banking and related services as defined in the Banking companies ordinance,
1962.
Bank Alfalah Limited was launched on June 21, 1992 as a public limited company
under the Companies Ordinance 1984. The bank commenced its operations on
November 1, 1992. The bank introduced commercial banking and related
services as defined in the Banking Companys Ordinance, 1962.
After a few years, the bank introduced its new identity of H.C.E.B after the
privatization in 1997. The management of the bank had implemented strategies
and policies so the bank would become a major player in the market. With a

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partnership with the Abu Dhabi Group the position of the bank became stronger
which allowed the bank to invest more in technology to increase its range of
products and services.
EMPLOYEES: 7500
BRANCHES: 421
GROWTH RATE: 25%
TURNOVER RATE: 1%
PERFORMANCE APPRAISAL: EVERY YEAR ON AVERAGE BASES
1.4 Purpose of the Research

The purpose of this concurrent mixed method study would be to better
understand the research problem by converging both quantitative and
qualitative data. In the study, both questions and interviews will be used to
measure the relationship between employee turnover and the organization. At
the same time the perceived organizational performance will be explored using
questionnaires interviews with employee of organization in Karachi, Pakistan.
1.5 Objectives
To determine the impact of performance appraisal on employee
turnover.
To determine the impact of work load on employee turnover.
To identify the impact of less training on employee turnover.
To determine the impact of HR policies on employee turnover.
To study the impact of job satisfaction on employee turnover.
To find the impact of employee retention on employee turnover.
To determine the impact of employee characteristics on employee
turnover.
To study the impact of low salary on employee turnover.

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1.6 Hypothesis
HO: There is no difference between performance appraisal and
employee turnover.
H1: There is a difference between performance appraisal and employee
turnover.
HO: There is no relationship between work load and employee turnover.
H2: There is a relationship between work load and employee turnover.
HO: There is no difference between less training and employee
turnover.
H3: There is a difference between less training and employee turnover.
HO: There is no relationship between job satisfaction and employee
turnover.
H4: There is a relationship between job satisfaction and employee
turnover.
HO: There is no relationship between employee retention and employee
turnover.
H5: There is a relationship between employee retention and employee
turnover.
HO: There is no difference between employee characteristics and
employee turnover.
H6: There is a difference between employee characteristics and
employee turnover.
HO: There is no relationship between low salary and employee turnover.
H7: There is a relationship between low salary and employee turnover.
HO: There is no relationship between HR policies and employee
turnover.
H8: There is a relationship between HR policies and employee turnover.
1.7 Significance of the Study

The study will broaden our understanding of the impact of human resource on
employee turnover on the organization performance in the proposed model.
Since the traditional view of employee turnover is very narrow, current study will
add to existing body of knowledge by signifying:

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The importance of examining the effect of employee turnover on the

organization could be helpful for human resource management to reduce
employee turnover.
By using this study managers can mitigate the effect of turnover on operating
performance.
This study is important because, by directing this inquiry into important areas
of the effectiveness of workplace education and training in terms of
employees turnover, the findings derived from the study will be expected to
be useful in understanding the effect of training on employee turnover and in
developing management retention strategies in the focus organization as well
as other organizations operating in the same sector in general.
By using this study different organization can reduce the rate of employee
turnover and increase their productivity and profitability.
1.8 Scope of the Study

High turnover often means that employees are unhappy with the work or
compensation, but it can also indicate unsafe or unhealthy conditions, or that
too few employees give unsatisfactory performance (due to unrealistic
expectations, inappropriate processes or tools, or poor candidate screening). The
lacks of career opportunities and challenges, dissatisfaction with the job-scope
or conflict with the management have been cited as predictors of high turnover.
Low turnover indicates that none of the above is true: employees are satisfied,
healthy and safe, and their performance is satisfactory to the employer.
However, the predictors of low turnover may sometimes differ than those of high
turnover. Aside from the fore-mentioned career opportunities, salary, corporate
culture, management's recognition, and a comfortable workplace seem to
impact employees' decision to stay with their employer.

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1.9 Limitations
The study will focus on banking sector in Karachi. Thus, the study is limited to
those banking sector who have given their approval. The respondents taken
are those who are currently working for the company.
Data is collected from account officer, officer, and assistant manager of the
organization.
The data is collected from office worker not from field workers.
Research has widely has been limited to single-display usage i.e. it focuses on
only one employee turnover and its impact on human resource and productivity
in the organization.
Respondent may be bias in their responses as they do not want to share their
views regarding the policies and procedure of the organization.

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CHAPTER # 2
LITERATURE
REVIEW

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2.0 LITERATURE REVIEW
2.1 Human Resource Management Practices

In the associations or companies, human asset administration (HRM) practices as
a mediator between HRM scheme and HRM outcome. (Sheppeck and Militello,
2000; Hamdia Mudor & Phadett Tooksoon, 2011) aim HRM scheme into four
groups: paid work ability and work principles, supportive natural environment,
presentation estimation and reinforcement and market association whereby
(Guest, 1997; Hamdia Mudor & Phadett Tooksoon, 2011) splits up in to three
categories: differentiated on discovery, aim on value and cost-reduction.
However, there are numerous delineations in before researches on HRM scheme,
but all schemes utilized to accomplish the identical organizational aim through
HRM practices. (Siva Subramanian and Kroeck, 1995; Hamdia Mudor & Phadett
Tooksoon, 2011) verify the diverse viewpoint of human asset administration as
the notion of fit or integration. Based on (Guest, 1997; Hamdia Mudor & Phadett
Tooksoon, 2011) proposes the diverse kinds of human asset administration can
be classify in two proportions as interior and external fit. External fit interpret
HRM as strategic integration whereby interior fit as a perfect of practices.
Several researches trial to analyze which fit is appropriately. (Yound tet al., 1996;
Hamdia Mudor & Phadett Tooksoon, 2011) who observe the external fit, their
outcome displays more specific fit between high presentation HRM practices and
value strategy. (Stavrou-Costea, 2005; Hamdia Mudor & Phadett Tooksoon, 2011)
furthermore contended that the productive human asset administration can be
the major component for the achievement of a firm.
As sustained by (Lee and Lee, 2007; Hamdia Mudor & Phadett Tooksoon, 2011)
HRM practices on enterprise presentation, namely teaching and development,
teamwork, compensation/ incentive, HR designing, presentation appraisal, and
worker security assist advance firms enterprise presentation encompassing
employees productivity, merchandise value and firms flexibility.
(Ruwan, 2007; Hamdia Mudor & Phadett Tooksoon, 2011) empirically assessed
six human asset (HR) practices (realistic job, data, job investigation, work family

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balance, vocation development, reimbursement and supervisor support) and

their probable influence on the Marketing Executive Turnover. Results of
regression displayed that the HR practices on job investigation are powerful
predictors of Marketing Executive Turnover. A long the identical line, (Abang,
May-Chiun and Maw, 2009; Hamdia Mudor & Phadett Tooksoon, 2011) two
constituents of human asset (HR) practices namely, teaching and data expertise
have direct influence on organizational performance. In supplement, (Zaini,
Nilufar and Syed, 2009; Hamdia Mudor & Phadett Tooksoon,2011) four HRM
practices displayed that teaching and development, group work, HR designing,
and presentation appraisal have affirmative and important leverage on
enterprise performance. (Altarawmneh and al-Kilani, 2010; Hamdia Mudor &
Phadett Tooksoon, 2011) analyze the influence of human asset administration
(HRM) practices on employees revenue intentions. The outcomes displayed that
job investigation had an important result on employees revenue However, no
statistical clues was discovered considering the consequences of other HRM
practices on employees revenue intentions. The study proposes that
inducement designs founded on pays, bonuses, wages enhancement, and
presentation appraisal accounts could be helpful schemes to be reassessed in
the satisfaction in terms of employee retention surveyed. This paper utilizes
HRM practices in exact interior fit as a perfect set of practices which recognize
three variables; supervision, job teaching, and yield practices accepted to
leverage job approval and in the direction of revenue of the workers, as some of
the practices of high the presentation employed scheme practices by preceding
HRM investigators for example (Bradley, Petrescu and Simmons, 2004; Hamdia
Mudor & Phadett Tooksoon, 2011).
In Human Resource (HR) research and practice, employee retention or turnover,

involves the suspect of organization staff movement. Research in this area by
the mainstream Organizational Behavior School has evolved to the research of
factors impinging on employee turnover. The positive or negative consequences
from these factors may either issue in staff retention or turnover (Zhang, 2005;
Zheng WeiBo, Sharan Kaur and Tao Zhi, 2010).

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In the research on staff retention, voluntary turnover attracts attention, because

staff movement such as recruitment (EI) exterior inflow, personnel allocation,
position adjustment (II)internal inflow, employment displacement and dis
employment (involuntary turnover)IT are all controlled by the organization.
However, the loss of employees any person who have relatively high human
finance value who select to withdraw an organization can start serious loss and
problem, particularly after the turnover numbers are on the surge (Zhang et al.,
2006;Zheng WeiBo, Sharan Kaur and Tao Zhi,2010).
Studies on the voluntary turnover model have attracted much attention amongst
authoritative and practitioners for a long time, taking in voluntary turnover of
familiarity and management talents couple principle research dimensions
(Eriksson, 2001; Potter and Timothy, 2003; Zheng WeiBo, Sharan Kaur and Tao
Zhi, 2010). Talented employees regularly contain the organizations core human
capital, taking in it valued to emphasize their turnover behavior consequence on
an organizations competitive advantage (Lee and Steven, 1997; Shaw, 1999;
HoukesInge, 2001; Zheng WeiBo, Sharan Kaur and Tao Zhi, 2010).
The noticeable loss of an organizations talent has stimulated researchers and

practitioners comparable to identify the factors that enable organizations to
promote effective talent retention and organization performance (Dalton et al.,
1982; Allen and Rodger, 1999; Lee et al., 2004; Zheng WeiBo,Sharan Kaur and
Tao Zhi,2010).
This examines centers on the main triumph of scholars regarding talent

retention, the process of creating a retention model, and the relative
performance crosswise of leavers and non-leavers. This examine also explores
the contextual factors impinging on organization performance and individual
withdrawal decision-making as well as organization performance. Over the
years, many research studies have been pursued on turnover intention and
actual turnover behaviours in the workplace. Through bulk of these studies,
turnover intention has been detected as the bulk noteworthy predictor of actual
turnover behaviour in organizations (Armitage & Connor, 2001; Benson, 2006;
Elangovan, 2001; Hom & Griffeth, 1991; Igbara & Greenhaus, 1992; Jaros, 1997;

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Jaroset al., 1993; Kelty, 2005; Kim & Hunter, 1983; Lambert, 2001; Thamsanqa
John Dhladhla, 2011). Therefore, this chapter purposes to start by visiting the
nature of voluntary turnover and turnover intention. It afterward imagines the
nature and appearance of head behaviour in the task context, and how
the head behaviour relates to factors such as perceived psychological
empowerment, employment satisfaction and organizational undertaking among
employees. In including these traditionally
disparate paddocks of research, this phase also discusses the nature
and appearance of employees perceived psychological empowerment on their
storeys of employment satisfaction and organizational undertaking, as well as
the appearance of job satisfaction on commitment. These also include
the dialogue of the appearances of these three factors (psychological
empowerment, satisfaction, and commitment) on employees turnover
intentions.
2.2 Turnover
There survive some key subjects that want to be deliberated when delineating
employee turnover; the involuntary person employed earnings, the voluntary
employee earnings, organizational leaving behaviors, public phenomena of
earnings, intent to move out and limitation of person employed earnings study.
Traditionally, a person employed earnings has been classified to be either

voluntary (control of the employee) or involuntary (beyond manipulate of the
employee), (McBey & Karakowsky, 2000; Morrell, Loan-Clarke & Wilkinson, 2001;
Price, 1977; Wilfrid Rodrigues 2008). Allen (2000; Wilfrid Rodrigues, 2008) states
that involuntary earnings broadly chatting takes the position for justifications,
which are unconnected of the afraid person employed such as when
organizations earn deficits or unavoidable expenditures, and suppose they want
to cut charges, re-structure or downsize. This scenery is carried by Mowday,
Porter, and Stone (1978; Wilfrid Rodrigues 2008,) who states that involuntary
earnings may embrace circumstances, for instance, poor recital of the governing
body, arduous economic intervals, and/or dismissal or separate someone

Page 25
contributing elements, for instance, temporary/permanent disability or even

death.
In show up, voluntary earnings cite to employees picked to depart from the
organization. The key divergence being the distinction between a person
engaging and person employed begun course of action. In equivalence to
voluntary earnings which is person employed moved ahead, people employed
who are involuntarily discredited from their paid job have no declare in the
determination taken to terminate their employment (McEvoy & Cascio, 1987;
Wilfrid Rodrigues, 2008). However, insertion of these circumstances in a study of
organizational cessation will intend the relationship between voluntary and
involuntary earnings may be notably diluted, bestowed the contributing
elements of involuntary earnings where the person employed has been impelled
to move out is in all likelihood to be beyond the manipulate of the employee.
Heoretically and in actual enterprise, a large percentage of organizations
correlate voluntary person employed earnings to being an avoidable cost to the
business. In support, Morrell, Loan-Clarke, and Wilkinson (2004; Wilfrid
Rodrigues, 2008) suggests that voluntary earnings earns noteworthy cost that
could be lessened by better human supply organization, giving chances, certified
coaching and/or rewards. Due to the critical natural world of earnings, it is
valued to consider the bounds to which a case of voluntary earnings may be
classified as avoidable (Abelson, 1987; Campion, 1991; Wilfrid Rodrigues,
2008). A query that should be requested by organizations is: Can voluntary
earnings per se, be avoided? This could give the governing body with a manner
of arranged intervention. Further debate on this subject is stressed in the
rationale for continued earnings research.
The person employed earnings time span comprises the fundamental thought
ordinarily famous as organization leaving behaviours(OLB). Hemingway and
Smiths (1999; Wilfrid Rodrigues, 2008) study reports that under certain
contributing elements, the immediate reaction of employees is to way
themselves strongly and intellectual from disagreeable and unsafe work

Page 26
environments. Hughes and Bozioneloss (2007; Wilfrid Rodrigues,2008) study

provides farther established items suggesting that absenteeism, extreme unwell
move out, disruption in work-life balance, lateness, regular per annum move out
are variable indicators that link to the family of leaving responses. Given that all
these variables could suggest voluntary person employed earnings, a more
exact definition saying the uniqueness of person employed earnings is sought.
Price (1977; Wilfrid Rodrigues, 2008) suggests that examiners employ employee
turnover to intend voluntary cessation of membership of a governing body by
an person employed of that organization. The writer farther clarifies his efforts to
make the remark voluntary explicit to empower future conducted, orderly
examine since the word voluntary configurations the rudimentary divergence
wherein the control of the employee is saved or forfeited. The location of the
people employed, family member to their membership in organizations is of
involvement to managers, examiners as well as the organization. Price (2001;
Wilfrid Rodrigues,2008) farther elucidated that people employed who can be left
in the constituents boundary of an governing body are delineated as
components, while people employed left exterior the boundary are nonmembers.
Change in the constituents position of the person employed is ordinarily referred
to as turnover. However, managers attribute the time span employee turnover
to intend voluntary cessation of a paid job bond of an organization by a person
employed of that organization (Shovel & Bonitos, 2002; Wilfrid Rodrigues,
2008).
2.3 Voluntary Turnover

Voluntary turnover is one of the
well understood distributes of serious attention to both overseers and
organizations. The ordinary usage of the thought of voluntary
turnover broadly articulating connotes that the people any person who withdraw
the school do so at their have initiative. As an issue voluntary turnover is defined
as the process by which a someone staff willingly and voluntarily terminates

Page 27
their membership to the school (Bluedon, 1978; Thamsanqa John Dhladhla,

2011). When population decide to voluntarily withdraw an school, the
overall competence of the school may suffer for some intents (Bluedon, 1982;
Price, 2001; Price, 1977; Thamsanqa John Dhladhla, 2011).10 Firstly,
the school loses the familiarity and abilities that the moving out staff possesses.
Secondly, the school must expend time, currency and resources to procure
and decide replacements. Thirdly, this same money in time and currency, and
resources must be organized to train those replacements. In the ideal
circumstances, the action and resources to procure and train novel personnel are
well used after the replacements performance surpass the performance of
departed employees. Nonetheless it is regularly feasible that the substitutes are
not without hold back as very productive as those any person, who voluntarily
withdrew the school (McElroy, Morrow, & Rude, 2001; Thamsanqa John Dhladhla,
2011).
Therefore, grasp the intents why personnel voluntarily withdraw can give
overseers and schools a perimeter in transforming toiling relationships. In
an action to overcome the competitions and ameliorate
the dangers connected with voluntary departure of high rehearsing and qualified
personnel, some studies have been pursued for decades to determine
why personnel voluntarily withdraw schools (Bluedon, 1982; Thamsanqa John
Dhladhla, 2011).
However, organizational researchers have been trained to enlist turnover intent

because putting accent on the staff voluntary turnover judgment itself alone
might be too late to prevent personnel from exiting the school (BeomCheol, Lee
& Carlson, 2010; Thamsanqa John Dhladhla, 2011). As an issue
overseers, schools, and researchers must somewhat examine the factors that
are compel behind the expansion of the intention to turnover/quit so that
whatever strategies are enlisted can be able to diminish or curb the wrapping
up of membership by employees.

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2.4 Turnover Intention
The intention to continue or withdraw the school is the final cognitive rung in the
decision making process of voluntary turnover (Dewettinck & Van Ameijde, 2007;
Lambertet al., 2001; Steel & Ovalle, 1984; Steel & Lounsbury, 2009; Thamsanqa
John Dhladhla, 2011). Therefore, by detecting the determinants of employees
intention to quit, turnover behaviours could be predicted more precisely
and estimates to prevent turnover could be extracted in enhance (Hwang & Kuo,
2006;Van Schalkwyk, Du Toit, Bothma, & Rothmann, 2010; Thamsanqa John
Dhladhla,2011). A plethora of definitions have come about due to
the revived spare-time activity of researchers in turnover intention behaviours.
Turnover intention refers to the willingness
of personnel to withdraw the school for another employment and their intention
to start tracking down for a novel employment (Benson, 2006; Mobley, Horner, &
Hollingsworth, 1978; Tett & Meyer, 1993; Thamsanqa John Dhladhla, 2011).
Lambert (2001; Thamsanqa John Dhladhla, 2011) defines turnover intention as
an employees longing to relinquish organizational employment ties within a
given time frame.
Turnover intention is the strength of an individuals principle that

he/she will continue with or leave the school in which he/she
is now enlisted (Elangovan, 2001; Ferres et al., 2004; Hom & Griffeth, 1991; Lee,
2000; Thamsanqa John Dhladhla, 2011). Similarly, Guimaraes (1999; Thamsanqa
John Dhladhla, 2011) outlook turnover, intention as the individuals
perceived prospect that they will be staying or withdrawing the employer
organization. Sager, Griffeth, and Hom (1998; Thamsanqa John Dhladhla,
2011) recommend that turnover intentions are seen as a
mental judgment (connotation) intervening between an
individuals views (affect) regarding an employment and
his/her afterwards behaviour to either continue or leave. In this method that
turnover intention reflects the employees affective reactions towards
the school and organizational heads (Magner, Welker, & Johnson, 1996;
Thamsanqa John Dhladhla, 2011). Turnover intention represents an attitudinal
orientation or a cognitive manifestation of the behavioural judgment to quit

Page 29
(Elangovan, 2001; Ferreset al., 2004; Fishbein & Ajzen, 1975; Thamsanqa John
Dhladhla, 2011). It is a conscious and deliberate willfulness
to withdraw the school, and poses a dangerous threat to the effectiveness of
the schools, because it leads to voluntary turnover of
high rehearsing organizational personnel on whose long-term undertaking,
motivation and loyalty the success of the school depends (Chiu, Lin, Tsai, &
Hsiao, 2005; Tett & Meyer, 1993; Ugboro, 2006; Thamsanqa John Dhladhla,
2011).
Since Fishbein and Ajzens (1975; Thamsanqa John Dhladhla,2011) theory

and some other studies have shown turnover intention to be the precursor to
actual turnover behaviour, thus, in lead to trade with turnover
in schools, overseers, practitioners, and researchers ought also examine the
factors that are precursors to turnover intentions (Allen, Weeks & Moffit, 2005;
Firthet al.,2004; Ferreset al, 2004; Lee, Lee, & Lum, 2008; Shoptaugh, Phelps, &
Visio, 2004; Thamsanqa John Dhladhla,2011).Identifying the antecedent factors
of turnover intention is noteworthy for grasp and
consequently chastising turnover behaviour (Ferres, Connell, & Travaglione,
2004;Vandenberg & Nelson, 1999; Thamsanqa John Dhladhla,2011). According to
Houkes, Janssen, De Jonge, and Bakker (2003; Thamsanqa John Dhladhla, 2011),
some literature on turnover intention recommends that connecting to work-
related factors, conditions of employment are noteworthy justifications of
turnover intention. Since turnover intentions have a lead impact on actual
turnover definite employment views are considered to be causally antecedent to
turnover intentions. Empirical task has found the role of variables such
as employment satisfaction, perceptions
of calm, employment tightness, absenteeism, commitment,
and director encourage in predicting turnover intentions and turnover
behaviours (Richeret al, 2002; Sionget al., 2006; Thamsanqa John Dhladhla,
2011). Gutknecht (2005) and Firth et al. (2004; Thamsanqa John Dhladhla, 2011)
found that turnover intention is largely changed by factors such
as employment dissatisfaction and lack of undertaking to the organization.
Lambert (2001; Thamsanqa John Dhladhla, 2011) also tells that the factors
that consequence turnover intentions and actual turnover

Page 30
include option employment opportunities, employment satisfaction,

organizational undertaking, task setting compels, and staff characteristics.
Using road analysis, Siong et al., (2006; Thamsanqa John Dhladhla, 2011) found
that employees undertaking to the school, employment satisfaction,
job tightness, director encourage, self-esteem, and the perceived stressors in
the employment accounted for 52per 100 of the variance in intention to quit.
Several other studies have also detected actual job-related views such as
perceived head behaviour (Bertelli, 2007; Dewettinck & Van Ameijde, 2007;
Kelty, 2005; Lee, 2000; Siong et al., 2006; Thamsanqa John
Dhladhla,2011), employment satisfaction (Firthet al., 2004; Gutknecht, 2005;
Holt, Rehg, Lin & Miller, 2007; Kelty, 2005; Siong et al., 2006; Thamsanqa John
Dhladhla,2011), psychological empowerment (Benson, 2006; Kelty, 2005;
Thamsanqa John Dhladhla,2011), and organizational commitment (Holtet al.,
2007; Kelty, 2005; Ladebo, 2005; Lee, 2000; Lok & Crawford, 2004; Siong et
al.,2006; Thamsanqa John Dhladhla,2011), to have lead impact.
2.5 The Consequences of Employee Turnover
Employee turnover has become the

most broadly contemplated phenomenon within organizational habit
innovation (Curtis & Wright, 2004; Lema & Durndez, 2007; March & Simon,
1958; Steel & Ovalle, 1984; Torlak & Koc, 2007; Wheeler, Richter & Sahadevan,
2004; Wilfrid Rodrigues, 2008). To date, literally thousands of articles onto
attendant turnover possess been composed within books spanning a thick range
of variables (Bernardin, 1977; Cohen, Granot-Shilovsky & Yishai, 2007; Vakola,
Tsaousis & Nikolaou, 2004; Wilfrid Rodrigues,2008). The popularity of employee
turnover innovation has stemmed, within portion, from innovation that
has analyzed both the positive impacts (Hicks-Clarke & Iles, 2000; Savolainen,
2000; Wilfrid Rodrigues, 2008) and damning impacts (Dalton & Todor, 1993;
Townsend, 2007; Wagar & Rondeau, 2000; Wilfrid Rodrigues, 2008) of attendant
turnover. The consecutive debate states the need for the persisted

Page 31
learn of attendant turnover via checking both the positive

and damning impacts of attendant exit.
2.6 The Effect of HR Practices on Organizational

Commitment
Organizational commitment is the extent of employees goodwill towards exerts
their effort for the organizations success and the degree of install between the
employees values and the organization values (29; NURITA JUHDI, FATIMAH
PAWAN, 2007). According towards Wright, McMahan and McWilliams (42; NURITA
JUHDI, FATIMAH PAWAN, 2007) HRM traditions are
the passages that organizations consume towards mould attendant behavior,
perception and attitudes.
This implied that whether HR policies are properly formulated and implemented,
the organizations should be able towards accomplish their targets that are
mainly dependent onto human capital. Because human capital nowadays
becomes the central asset within organizations, managing them within a way
that is able towards earn them behave, act and think in the method that
employers need is pertinent. The question is what kind of employees perception
and behavior that can considerably affect corporation results.
Yeung and Berman (43; NURITA JUHDI, FATIMAH PAWAN, 2007) highlighted that
company performance is greatly touched via HR practices that can directly
influence organizational commitment among employees. This look is within line
with the originally proposition made via Hilltop and Despres (19; NURITA JUHDI,
FATIMAH PAWAN, 2007) that HR traditions has a powerful impact on
organizational commitment and they regarded it as an important
criterion towards quantity HRM effectiveness.

Page 32
Good management of attendant operation, career,

training, payment and appointment shall be interpreted
confidently via attendants and within curve, they will reciprocate with tall
commitment towards the organizations (41; NURITA JUHDI, FATIMAH PAWAN,
2007)
Further, career industry was found insignificantly related towards affective

commitment among attendants (34; NURITA JUHDI, FATIMAH PAWAN, 2007) and
Chan (12; NURITA JUHDI, FATIMAH PAWAN, 2007) who carried out
a poll among attendants within Australia located no
significant correlation between training/career management and organizational
commitment.
On the contrary, it was negatively related towards affective

commitment within another learn (37; NURITA JUHDI, FATIMAH PAWAN, 2007).
As posited by Huselid (20; NURITA JUHDI, FATIMAH PAWAN, 2007) and Whitener
(41; NURITA JUHDI, FATIMAH PAWAN, 2007), employee development may
not possess landmark impact on organizational commitment. In
this learn, appointment is reflected via the install between the persons
expertise and job.
Poor install implies inappropriate appointment that findings in mismatch

between the employees proficiency and the job requirement. Based onto a
sample of 291 employees from 45 firms, Caldwell, Chatman and OReilly (9;
NURITA JUHDI, FATIMAH PAWAN, 2007) found that rigorous recruitment and
careful selection procedures resulted within tall grade of organizational
commitment.

Page 33
2.7 The Effect of HR Practices and Organizational

Commitment on Turnover Intention
Researchers such as Ajzen and Fishbein (4;NURITA JUHDI,FATIMAH

PAWAN,2007) and Igbaria and Greenhaus (21;NURITA JUHDI,FATIMAH
PAWAN,2007) said that intentions are the bulk current reasons for of actual
behaviour.
Intentions are noteworthy for organizations and researchers because

once populations have actually implemented the behavior to quit; there
is tiny prospect of gaining access to them to understand their prior situation.
Other studies (28, 39, 27, 2, 13, 33; NURITA JUHDI, FATIMAH PAWAN, 2007)
also journal unvarying positive relationships that exist between turnover
intentions and actual turnover behavior. In supplement to
these research, Bluedorns (7; NURITA JUHDI, FATIMAH PAWAN, 2007) research
of 23 studies found that individuals turnover intentions fitted their actual
turnover behavior. Previous studies demonstrated that intentions to quit are
changed by scarcity of undertaking (16, 32; NURITA JUHDI, FATIMAH PAWAN,
2007).
Thus overseers deficiency to compensate attention to increasing commitment of

employees. This outlook is shared by Parasuraman (31; NURITA JUHDI, FATIMAH
PAWAN, 2007) who confirms in his examine that organizational undertaking can
be adapted to predict turnover intentions. The findings from Igbaria et al (22;
NURITA JUHDI, FATIMAH PAWAN, 2007) highlight the importance of
organizational commitment as the bulk current predictors of intention to stay.
Eisenberger et al (15; NURITA JUHDI,FATIMAH PAWAN,2007) contended that HR

practices that are well treated and implemented are able
to enhance organizational undertaking and decrease intentions of resigning
among employees because people tend to respond positively to top-
management undertaking and support. As expounded quicker on the pivotal

Page 34
role of HR practices in performing the human finance that can heighten

organizational undertaking and consequently reducing intention to
quit by personnel, organizational commitment can be supposed as the factor
that mediates the relationship between HR practices and turnover intention.
2.8 Compensation and Market Opportunities

Market possibilities correspond to the number of prescribed job boasts (Griffeth
et al. 2000; Guy Par, Michel Tremblay, Patrick Lalonde, 2001). It
is anticipated that both reimbursement situation and market possibilities will
have a direct influence on organizational firm promise and revenue intentions.
Salary has been discovered to be positively associated to organizational
commitment and contrary to revenue aims amidst IT staff (e.g., Igbaria and
Greenhaus, 1992; Guy Par, Michel Tremblay, Patrick Lalonde, 2001).
Similar outcomes are foreseen for yearly bonus, marking bonus and
keeping bonus.
(Meyer and Allen, 1990; Guy Par, Michel Tremblay, Patrick Lalonde, 2001)
discovered continuance firm promise and need of alternate job boasts to be
positively associated. In outcome, Hypothesis 7
forecasts that reimbursement situation and market possibilities will have
direct consequences on organizational firm promise and revenue intentions.
Specifically, wages, yearly bonus, marking bonus, and keeping bonus are
hypothesized to all be positively associated to continuance firm promise and
contrary associated to revenue aims, while the number
of prescribed job boasts will be contrary associated to
continuance firm promise and positively associated to revenue intentions.
2.9 Employee Retention

The undesired decrease of competent staff is exorbitant to an association in both
direct and indirect terms. The approximated cost for chartering a expert for
one facts and numbers processing company were more than $ 9000 for a

Page 35
hypothetical $ 18000/year place, with higher salary places entailing

higher chartering charges (Shapiro, 1989; Meenakshi Gupta, 2000).
Before one endeavors to request a comprehensive answer to

the difficulty of keeping, it may perhaps be correct to investigate the
causative components that outcome in hefty migration of scarce human
resources. The diverse causes that boost a worker to depart his present job
are generally associated with approval level. The push components pertain to
the dissatisfaction determinants, which in worker values as prime motivators
to critical relatives with his company. They are the work
environments, reimbursement bundle; low employee keeping is most critical
topic opposite business managers as an outcome of
the lack of accomplished work, financial development and worker turnover.
Retention is characterized as the proficiency to contain up on those workers you
desire to hold, for longer than your competitors (Johnson, 2000; Madiha Shoaib,
Ayesha Noor, Syed Raza Tirmizi & Sajid Bashir, 2009).
The investigation of keeping should be advised at more than just

a lone grade because the influences of keeping can arises at
multiple grades (Klein et al., 1994; Klein and Kozlowski, 2000; Raudenbush and
Bryk, 2002; Yammarino and Dansereau, 2004; Madiha Shoaib, Ayesha Noor, Syed
Raza Tirmizi & Sajid Bashir, 2009).
A number of investigations have discovered that organizing revenue is dispute

for associations, as distinct associations utilizing distinct advances to keep
workers (American Management Association, 2001; Madiha Shoaib, Ayesha Noor,
Syed Raza Tirmizi & Sajid Bashir, 2009).
Retention is advised as all-around module of an organizations

human asset strategies. It commences with the employing of
right persons and extends with performing programs to hold them committed
and pledged to the association (Freyermuth, 2004; Madiha Shoaib, Ayesha Noor,
Syed Raza Tirmizi & Said Bashir, 2009).

Page 36
Today the claims of employees have been expanded very much as ever before. It
is in periods of every facet, not only wages and perks but furthermore work
know-how and heritage context in which it occurs. Providing a prolific, flexible
and dynamic work natural environment can be a critical asset in appealing and
keeping precious employees.
In alignment to evolve a productive keeping design for todays paid work market,
it is crucial to recognize the changing desires and expectation. If the keeping
schemes are not correctly embedded in the enterprise methods, the all effort
since recruitment will finally verify futile (Earle, 2003; Madiha Shoaib, Ayesha
Noor, Syed Raza Tirmizi & Sajid Bashir, 2009).
During the last ten years, the personnel/HRM area has moved from
a micro aim on one-by-one HRM practices to argument on how HRM as a more
holistic management approach may contribute to the
competitive advantage of the organizations. Three different perspectives
have been used in recent researches on the relationship between HRM practices
and organizational presentation, organizational keeping and organizational
strategies.
(Bjork man and Pavlovskaya: 2000; Muhammad Azhar Sheikh, Wusat-ul-Qamar &
Fariha Iqbal ) A number of investigations have discovered that organizing
revenue is a challenge for organizations, as different organizations using
different approaches to retain employees (American Management Association,
2001; Muhammad Azhar Sheikh, Wusat-ul-Qamar & Fariha Iqbal). Employee
retention is also likely to be important for firm performance. If the business is not
adept to keep its workers, it will not be able to capitalize on human assess
developed within the organization. (Shekshnia, 1994; Muhammad Azhar Sheikh,
Wusat-ul-Qamar & Fariha Iqbal) Retention is considered as all around module of
an organizations human resource strategies. It commences with the recruiting
of right people and continues with practicing programs to keep them committed
and pledged to the association (Freyermuth, 2004; Muhammad Azhar Sheikh,
Wusat-ul-Qamar & Fariha Iqbal).

Page 37
2.10 Employee Turnover and the Labor Relations

Unions can be examined as vehicles for the collective speaking of employees'
dissatisfactions. Previous study has illustrated that unionism is clearly associated
with worker stability. (Freeman and Medoff, 1984; DANIEL G. SPENCE 1986),
reviewing their own and others' investigates of one-by-one behavior
and commerce aggregates, demonstrated that unionization is consistently
and considerably associated with keeping of workers if salary rates and
other renowned predictors of employee go out are controlled for.
The command of salary rates is critical in order to differentiate
the consequences of unions in periods of voice from any monopoly effects due
to amalgamation command of matching jobs.
The study (Freeman and Medoff, 1984; DANIEL G. SPENCE, 1986) reconsidered is
without exception based on investigates of very large facts
and numbers groups like the National Longitudinal Survey. Such facts
and numbers groups constrain the exact connections that can be revised and the
grades of investigational which such connections can be examined.
In specific, very little study lives on the consequences of unionization on quitting

rates in organizations. (Becker, 1978; DANIEL G. SPENCE, 1986) undertook such
an association grade study, analyzing the consequences of unionization on rates
of quitting for individuals in low-wage occupations in short-term, general care
hospitals. Contrary to outcomes at other grades of investigation, Becker
discovered a feeble, marginally important connection (p < .10) between
unionization and rate of revenue while commanding for
monopoly consequences and a broad kind of other known predictors
of worker exit.

Page 38
The generalizability of study like (Becker's, 1978; DANIEL G. SPENCE, 1986) is

limited; such work is generally exact to the
occupation, association, and district studied.
However, when a researcher controls facts and numbers assemblage, a study is

more likely to encompass predictors of go out that are
not apprehended in investigations using existing facts and numbers bases.
For demonstration, Becker analyzed the consequences of edge advantages on
rates of quitting in supplement to the consequences of wages. (Freeman and
Medoff, 1984; DANIEL G. SPENCE,1986) documented that
a foremost condemnation of study on unions' consequences in terms of voice is
that most living facts and numbers groups manage not encompass data on a
principal monetary pay for example edge advantages and therefore manage not
fully control for monopoly effects. Another important condemnation of study on
voice consequences of unions is (Ulman and Sorensen's, 1984; DANIEL G.
SPENCE, 1986) demonstration that, for unionized workers, the consequences of
hits and the risk of hits supply other options to quitting in addition to voice
recognized through the union grievance mechanism.
Thus, unquestionably considering the consequences of worker voice on figures of

exits needs more than considering the result of unionization. It requires exploring
the consequences of means, if amalgamation mandated or not, that
organizations put in location to enhance their employees' possibilities for voicing
dissatisfaction. This set about necessitates assembling facts and numbers
expressly for this reason rather than of utilizing a living facts and numbers base.
This study employed a facts and numbers assemblage scheme alike to
that utilized by (Becker, 1978; DANIEL G. SPENCE, 1986).

Page 39
2.11 Actual/Perceived Alternate Opportunities

Comparison
The relationship between actual and perceived option opportunities to employee

turnover on a someone crosswise has been researched since (March and
Simons,1958; Wilfrid Rodrigues,2008) seminal task on alleviate of movement.
In afterwards years much of the research put accent on the link between
employment satisfactions, perceived alternative opportunities and staff turnover.
It was simply in resultant years that, researchers started to strengthen on the
role of both actual and perceived alternative opportunities
in delineating someone staff turnover decisions.
In the 1990s research by (Kirshenbaum and Mano-Negrin, 1999; Wilfrid

Rodrigues, 2008) gestured that an
actual employment area offers advanced confirmation of actual staff turnover
behaviour than perceived option employment market opportunities. In
their examine, on medical cubicles, the authors adapted estimates of perceived
and actual employment opportunities in internal and external strive markets.
The authors concluded that actual employment opportunities were

an advanced set of predictors of actual turnover behaviors in both internal and
external market then either perceived internal or external employment market
opportunities.
In evaluate, an updated meta-analysis by (Griffeth et al., 2000; Wilfrid Rodrigues,

2008) concluded that perceived option employment area does
modestly predict staff turnover.

Page 40
It arises that where actual opportunities are an advanced predictor of turnover,

there is numerous evidence of the link between perceived option opportunities
and actual turnover. In summary, literature recommends that actual job area has
a forceful link to turnover and is a factor changing employee turnover where
perceived option can moderately predict employee turnover.
2.12 Intentions to Leave
In the past, empirical study on employee turnover has concentrated solely on
actual turnover. However, study on seen alternate possibilities has
been discovered to be affiliated with aims to stop but not the genuine turnover.
In support, (Hellmans, 1997; Wilfrid Rodrigues, 2008) study documented that
the connection between intentions to stop is usually more powerful to
job approval and not genuine turnover. In their study, (Mobley et al., 1979;
Wilfrid Rodrigues, 2008) asserted that though the relationship between aims to
stop and turnover is reliable, it only accounted for less than a quarter of the
variability in turnover. One of the possible causes is that aims manage not
account for impulsive demeanor and also that revenue aims are
not inevitably pursued through to lead to actual turnover. Additionally, it is clear
that there are functional adversities to conduct revenue study amidst
workers who have stopped an organization.
However a study undertook by (Firth et al., 2004; Wilfrid
Rodrigues,2008), proposes that managers can leverage behavioral patterns
in workers and leverage the employees aim to quit. The study by (Ming, Siong,
Mellor, Moore, and Firth,2006; Wilfrid Rodrigues,2008) farther sustained the
hypothesis that lack of administration support performances an important

Page 41
function in decreasing job approval and expanding
stress premier to expanded aim to quit. This shows that publications have
established a powerful connection between aims to stop and seen alternative.
However, the connection between aims to stop to genuine revenue is feeble and
could be advised as a less conclusive component in leveraging worker turnover.
2.13 Job Satisfaction

The connection between job approval and revenue has been
consistently discovered in numerous revenue investigations spanning over two
decades. Research conducted by (Mobley et al., 1979; Wilfrid Rodrigues,
2008) claimed that job approval on its own is contrary connected to revenue but
suggested very little interpretation of the variability decreases mobility of worker
revenue, especially for job beginners, off the job teaching raises the prospect of
job mobility for employees.
Interestingly, (Bonnal, Mendes, and Sofer, 2002; Wilfrid Rodrigues, 2008)

discovered that accomplished apprenticeship has
distinct benefit in decreasing voluntary revenue, voluntary job to job loss and
involuntary job termination rates. However incomplete apprenticeships tended
to boost the stop rate relation to those who obtained prescribed training. It
is, thus discerned that apprenticeship
reduces worker revenue mobility regardless of the detail that apprenticeship
training is proposed to supply general and therefore more transferable
training. In summation, organizations require rationalizing and tailor make
the kind of training supplied in alignment to decrease intent
to revenue and genuine turnover. In evaluation (Griffeth et al., 2000; Wilfrid
Rodrigues, 2008) illustrated that job approval humbly forecast turnover. In

Page 42
a latest New Zealand founded study, (Boxall et al., 2003; Wilfrid Rodrigues,
2008) discovered that the major cause for persons departing their employment
was for more intriguing work elsewhere. The investigations undertook over an
expanded time span of time have diverging outcomes and propose that job
satisfaction has a decisive connection to turnover. However, job approval as a
singular variable will not leverage worker turnover and is reliant on
other financial and psychological variables in alignment to own predicative and
explanatory power (Lum, Kervin, Clark, Reid & Sirola, 1998; Wilfrid Rodrigues,
2008).
2.14 Employee Characteristics

A vast array of documents and surveys have proliferated the worker turnover
literature. But regardless these riches of science, there emerge to
be merely a minority employee features that meaningfully
predict worker turnover. The variables looked at via (Cotton & Tuttle, 1986;
Mobley et al. 1979; Wilfrid Rodrigues, 2008) included age, tenure, gender,
martial condition, education, figure of dependents, intelligence, behavioral
intentions and race. The dubbed authors concurred that age,
gender, figure of conditional and tenure were found to be negatively related to
turnover i.e. female staff, whoever were young, with fewer years of experience
in the institute and with lower figure of dependents were more possible to
turnover or conversely the senior a person, the less possible they are to retire an
institute as the duration of service is one of the best single predictors of
turnover.
In advocate, a research waged via (Rhodes, 1983; Wilfrid Rodrigues,

2008) recounted that overall vocation satisfaction is positively related with age.
Older employees emerge to exhibit greater satisfaction with their employment
than younger workers. (Griffeth et al., 2000; Wilfrid Rodrigues, 2008) in
their research additional a fresh dimension via mentioning evidence that gender
moderates the age-turnover relationship; women are more possible to retain

Page 43
their vocation the senior they obtain, than men. (Griffeth et al., 2000; Wilfrid
Rodrigues, 2008) meta-analysis re-examined various physical characteristics
that may be linked to turnover. Their science signaled that there were no
differences in the quit rates of men and women. The research mentioned
evidence that there is small evidence of the employees sex being linked to
turnover. They also found no link between intelligence and turnover, and zero
between race and turnover. While the audit of (Cotton and Tuttle, 1986; Wilfrid
Rodrigues, 2008) reported a moderate relationship between
martial condition and turnover i.e. married staffs were fewer possible to
turnover likened with unmarried employees. In attachment,
science accomplished in the Australian aviation industry by (Reudavey, 2001;
Wilfrid Rodrigues, 2008) diagnosed a positive relationship existed between
behavioral intentions, education and turnover signaling that those
employees whoever followed and averaged higher floors of education
and whoever exhibit intent to retire the institute were more possible to retire the
organization. In summary, merely the age and tenure variables may maybe
meaningfully predict turnover.
2.16 Work Conditions

The category of variables looked at were factors related to labor conditions,
namely salaries,
vocation performance, labor description, vocation satisfaction, salaries
satisfaction, supervision, co-workers releases, promotional opportunities and
career commitment.
Investigating one of the majority controversial variables of turnover

namely salaries, highlighted figure of debatable studies.
Research waged via (Mobley et al., 1979; Wilfrid Rodrigues, 2008), points
out that the role of salaries in turnover were stirred and that often there was no
relationship between salaries and turnover. A research of
mental medical experts, waged via (Tang et al., 2000; Wilfrid Rodrigues,
2008) looked at the relationship between opinions towards cash and voluntary

Page 44
turnover. The main findings of this research is that voluntary turnover is high
among staff who quality cash (high wage), despite their vocation satisfaction.
Employees with high vocation satisfaction and whoever placed a

low quality on cash had significantly cheaper turnover.
In compare, those whoever do not quality cash highly and have low vocation
satisfaction tended to have the worst turnover. The exception to
the govern being that for several persons; salaries cannot be the sole
criterion as shortly as they decide to extend within an existing job. Conversely,
investigation waged via (Martin, 2003; Wilfrid Rodrigues, 2008) points out that
there is an inverse relationship between salaries and turnover, which
is institutes with higher wages had cheaper turnover. Clearly this emphasizes
that staff placing a high quality on salaries predicted actual turnover
compared to staff at the cheaper end of the employment
hierarchy whoever favourite to retain their jobs.
Research via (Griffeth et al., 2000; Wilfrid Rodrigues, 2008) recorded that wage
and wage-related variables have a definite impression on turnover. The analysis
included studies that looked at the relationship between salaries and
employees vocation performance and turnover. Their research concluded
that as shortly as high performers are insufficiently rewarded, they quit. The
rationale being that where union agreements displace person incentives, their
introduction may lead to higher turnover among high performers.
2.17 Training and Career Progression

Training and employees development has habitually been advised as one of the
important variables influencing turnover. It is has been observed by Lockwood
and (Ansari, 1999; Wilfrid Rodrigues, 2008) in their study that
participants outlook teaching as part of technological change and work
challenge. Employees address those employees development types a
motivational entails of producing oneself more marketable (Hansson, 2007;
Wilfrid Rodrigues, 2008). The trials that workers face in the new work

Page 45
environment are to accept that downsizing and amalgamations are a detail of

life.
The workers see that future paid work rank would count on commitment to
teaching and employees development (Forrier & Sels, 2003; Wilfrid Rodrigues,
2008). While considering the influence of teaching on job mobility, (Sieben and
Grip, 2004; Wilfrid Rodrigues, 2008) concluded that while teaching has
no influence on job mobility, teaching that is wholly paid by the one-by-
one is probable to be a prelude to job search. In compare, when
employers yield for teaching the contradictory connection to job mobility and
job seek is more likely. However, an in-depth study by (Martin, 2003; Wilfrid
Rodrigues, 2008) identified a convoluted connection between revenue and
training/staff development. The study established a connection between
organizations that enhanced the abilities of living
employees and availed from smaller worker turnover.
(Improved teaching possibilities lead to smaller revenue as well as intent to
turnover). However, multi-skilling of employees directed to high revenue, as
the outlook to find work in another location expanded, premier to the idea that
we essentially train employees for their next job. In support, (Dekkar, Grip, and
Heijke, 2002; Wilfrid Rodrigues, 2008) further clarified that both on the
job teaching and off the job teaching have a important result on
job seek mobility. While on the job teaching reduces mobility
of worker revenue, especially for job beginners, off the job teaching raises
the prospect of job mobility for employees. Interestingly, (Bonnal, Mendes, and
Sofer 2002; Wilfrid Rodrigues, 2008) discovered that accomplished
apprenticeship has distinct benefit in decreasing voluntary revenue, voluntary
job to job loss and involuntary job termination rates. However incomplete
apprenticeships tended to boost the stop rate relation to those who obtained
prescribed training. It is, thus discerned that apprenticeship reduces
worker revenue mobility regardless of the detail that apprenticeship training
is proposed to supply general and therefore more transferable training. In
summation, organizations require rationalizing and tailor make the kind of
training supplied in alignment to decrease intent to revenue and genuine
turnover.

Page 46
2.18 Career Commitment and Progression

(Chang, 1999; Wilfrid Rodrigues, 2008) examined the relationship between
career commitment, organizational commitment and turnover intention. The
study demonstrated that when persons are pledged to the administration they
are less eager to leave the company. On the other hand, workers
with low vocation and organizational firm promise had
the largest revenue aims because they did not care either about the business or
their present careers. Furthermore individuals with high vocation
firm promise and reduced organizational firm promise also tended
to depart because they manage not accept as factual that
the administration can satisfy their vocation desires or goals.
The study further clarified that persons become affectively pledged to

the administration when they see that the administration is chasing interior
promotion possibilities, supplying correct teaching and that supervisors
provide recommendations about vocations (staff development). A latest study
undertook by (Alatrista and Arrowsmith, 2004; Wilfrid Rodrigues,2008) validated
the idea that vocation commitment counts on the direct work environment.
Employees treasured and searched recognition for the work
they manage and anticipated to be treated fairly and with esteem by the
direct supervisors. If these criteria were contacted, then workers favoured
to extend their advancement in the organization. If
not, workers would request alternate paid work opportunities and
thereby boost intent to turnover.
2.15 Organizational Size

Kirschenbaum and Mano-Negrin (1999; Wilfrid Rodrigues, 2008) indicated that
turnover is affected by Organizational size, with size being the key indicator of
an organizations labour market. They opined that organizational size impacts on
employee turnover primarily through wage rates as well as through career
progression pathways. On the other hand Tanova, (2003; Wilfrid

Page 47
Rodrigues,2008), says that highly developed organizations could produce lower

quit rates since promotional opportunities have a strong negative influence on
departures for career related reasons besides paying substantial higher wages
for desired and qualified employees.
2.22 Prediction
Employee turnover is the issue of an employees judgment to quit employment.

These decisions can be classified below three headings. Firstly, decisions which
are impulsive and extracted on the spur of the moment by personnel any
person who have an everyday view to employment. Secondly, decisions which
are preempted by external setting or non-work related.
Lastly, numerous decisions are momentous signifying a turning point in an
employees task of life career (Elangovan, 2001; Morrell et al. 2004; Wilfrid
Rodrigues, 2008). This amount of an employees motivation process popularly
examined as being the end point of staff turnover provides
the area to detect reasons for of turnover, consequently facilitating
the probable to predict and calm staff turnover (Wiley, 1997; Wilfrid Rodrigues,
2008).
Simplistically, researchers have explored to detect the aspects that influence

future decisions to quit. (Hicks-Clarke & Iles, 2000; Yousef, 2000; Wilfrid
Rodrigues, 2008) this would deliver an school with the speck of predictive power.
Organizations would afterward utilize the estimates to plan resourcing and
influence selection processes. However, the staff turnover phenomenon has
proved elusive to prediction. Some variables such as affective
commitment, employment tenure and age have gestured a conclusive link
to staff turnover, where other variables such as task conditions, employment
satisfaction, and intent to withdraw have not been detected as conclusive
variables.

Page 48
Ironically, in cases where the variables have gestured predicative vitality, it is

contentious how useful this can be to schools seeking to prevent turnover. Given
that the consequence of these variables is bulk very productive after
the judgment to turnover is organized by an employee. It is, thus, a complex
situation, wherein, the operational validity of the variable is negated by the
reduced warning time span given to the school to take corrective motion and the
limited time there is to afterward modification an employees judgment to quit
(Sutherland, 2002; Wilfrid Rodrigues,2008).
Circumstantially, evidence shows that knowledge gathered shortly in the past an

individual decides to quit, is probable to offer inference that are more reliable.
Research undertook by Sheridan and Abelson (1983; Wilfrid
Rodrigues,2008) shows that this information is precious and that it is not easily a
function of there being insufficient time to leverage the method, but a corollary
of the cusp environment of the worker revenue decision. Observing from an
organizational lens, this may signify that the proposition is dependable, when
the worker is so close to quitting, it is futile for organizational intervention.
However, publications remarks that it is tough to leave behind the aim for an
inclusive form of estimation of employee revenue, since some of
the components of the proposition form can be useful to positively leverage and
correct absenteeism or lateness and obviate job dissatisfaction (Cohen & Golan,
2007; Wilfrid Rodrigues,2008). In all fairness, organizations are unlikely to
over absolutely assess, forecast and command worker revenue,
but proceeded study has made diverse forms of revenue which have sought
to advance and command the administration of worker revenue regardless of
their limitations.
The preceding written knowledge has described the problems of guess of person
employed turnover. However the futility of the physical exercise is taken as

Page 49
a contest by researchers to carry on finding a type of assessment which may or

may not be generally acceptable.
The subsequent prologue examines and critiques key types that have
been created as a foundation to guess hindrance and manipulate of person
employed turnover ratio.
2.20 Influence of Co-workers
A study started by (Kirshenbaum and Weisberg, 2002; Wilfrid

Rodrigues,2008) analyzed workers job place travelled
to alternatives in relative to the revenue process. The finding indicated that co-
workers aims have a foremost influence on the place travelled to choices.
They resolved that a feeling about co-workers aim to change
jobs actions a pattern of communal force for other workers to change jobs.
It is thus significant to succinctly condense those variables that were

significantly associated to turnover. Several
authors documented a powerful self-assurance in the connection between some
of the individual characteristics and variables studied and worker turnover. Age,
tenure, learning, employees development and behavioral aims were all
highly associated to worker turnover.
Similarly, highly important outcomes were discovered for

the connections between employee revenue
and salaries, organizational firm promise, job approval and distinct facets of
job approval encompassing approval with supervision, satisfaction with work
and yield satisfaction. In periods of external components, coworkers paid
work insight and amalgamation occurrence were highly dependable indicators
of worker turnover.

Page 50
2.21 Performance Appraisal (PA)
Regular PA is likely to be bound with enhanced recital and bigger job satisfaction
(Cook & Crossman, 2004; Wilfrid Rodrigues,
2008). Furthermore, examine suggests the PA tends to purpose on appraiser
appreciating of the circumstances and tools validity rather
than appraising the scenery of the appraise who are the themes of PA. PA will not
be effectual if not it is supposed to be unbiased and equitable by
both person engaging and employee. Eventually, wrong usage of PA would be
reflected in extensive dissatisfaction amid person employed (Thompson &
Dalton, 1970; Wilfrid odrigues, 2008). This is broadly chatting the gap
between prospects and effects in the psyche of the people employed that fuels
dissatisfaction. One of the justifications for unfair usage acknowledged is that
managers are not coached for their job as appraise and face annoyance with
constructive recital evaluations.
A study carried out by (Poon,2004; Wilfrid

Rodrigues,2008) stressed another aspect of PA, that when people
employed supposed PA to be manipulated for affective justifications such
as private fondness
or reprimanding, they qualified lessened job contentment and indirectly
these awareness effected employees purposes to quit. In contrast when people
employed supposed PA to be
manipulated for endorsing positive assembly weather, employees
job contentment and earnings intentioned were not affected.
In resolution, the results are indicative that PA if politicized and supposed by
the people employed to effect from private bias and punishment motives, then
this would obliquely have undesirable upshots on employees
job contentment and earnings intentions.

Page 51
2.19 Unionization
(Head and Lucas,2004; Wilfrid Rodrigues,2008) in their study on non-union
industry highlighted how unskilled employees are subjected to a hard form of
human resources practice and lack of job protection due to the absence of a
collective representative forum. An anti-union task way of life endorsed the hire
and fire policy, obviously gesturing a high crosswise of strive mobility.
They described that organizations having a type of collective representation
could converse and settle distributes in
a pallid context gesturing a forceful confidence in the relationship between staff
turnover and union presence was reported. Union presence was negatively
related to turnover gesturing that personnel within organizations that
have smaller diagram or no union presence are more probable to
turnover. (Martin,2003;Wilfrid Rodrigues,2008) in his examine detected that
unionism is connected with smaller turnover as an issue of unions securing
various collective superiority in lead to improve
the prettiness for people enlisted of staying in their jobs. There is a remove
establishment of employment relationship between personnel and union
representatives.
Employees explored vindication from their union and analyze their grievance
through structured communication channels. In both these studies, relationship
between smaller turnover and unionization has been well
established by researchers engaging both industry and someone crosswise data.

Page 52
CHAPTER # 3
METHODOLOGY

Page 53
3.0 METHODOLOGY
The survey research method will be the basic research design. Researcher
research methodology is based on 3 components that are sample methodology,
data collection methodology and analysis of data methodology.
3.1 Research Design

The purpose of the study will be descriptive in nature.
The type of investigation is correlation.
The research interference will be moderate.
The study setting is non-contrived and researcher will be field experiment.
The unit of analysis of individual.
The time horizon is cross sectional.
3.2 Sample Design
3.2.1 Population
People associated with the employee turnover in Pakistan.
3.2.2 Sample
An analysis of approximately 50 persons working different departments in bank

Alfalah of Karachi is selected
3.3 Data Collection Methods

Data collection for research is based on both methods 1st primary data and 2nd
secondary data.
3.3.1 Primary Data Gathering
Primary data collection was based upon Surveys in which Questionnaires were
used to gather data.
3.3.2 Secondary Data Gathering
Website of Bank Alfalah

Page 54
CHAPTER # 4
DATA ANALYSIS

Page 55
4.0 DATA ANALYSIS
4.1 Hypothesis 1
To determine the impact of performance appraisal on

employee turnover
HO: There is no difference between performance appraisal and employee

turnover.
H1: There is a difference between performance appraisal and employee turnover.
4.1.1 Z Test of Hypothesis for the Mean of Hypothesis 1

Page 56
Interpretation
The null hypothesis has been rejected because the P= 0 value is lesser than 0.05
(Level of significance) and the alternate has been accepted.
4.2 Hypothesis 2
To determine the impact of work load on employee turnover
HO: There is no relationship between work load and employee turnover.
H2: There is a relationship between work load and employee turnover.

Page 57
Interpretation
4.3 Hypothesis 3
To identify the impact of less training on employee turnover
HO: There is no difference between less training and employee turnover.
H3: There is a difference between less training and employee turnover.

Page 58
Interpretation
4.4 Hypothesis 4
To study the impact of job satisfaction on employee turnover
HO: There is no relationship between job satisfaction and employee turnover.
H4: There is a relationship between job satisfaction and employee turnover.

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Interpretation
4.5 Hypothesis 5
To find the impact of employee retention on employee

turnover
HO: There is no relationship between employee retention and employee

turnover.
H5: There is a relationship between employee retention and employee turnover.

Page 60
Interpretation
4.6 Hypothesis 6
To determine the impact of employee characteristics on

employee turnover
HO: There is no difference between employee characteristics and employee

turnover.
H6: There is a difference between employee characteristics and employee

turnover.

Page 61
Interpretation
4.7 Hypothesis 7
To study the impact of low salary on employee turnover
HO: There is no relationship between low salary and employee turnover.
H7: There is a relationship between low salary and employee turnover.

Page 62
Interpretation
4.8 Hypothesis 8
To determine the impact of HR policies on employee turnover
HO: There is no relationship between HR policies and employee turnover.
H8: There is a relationship between HR policies and employee turnover.

Page 63
Interpretation

Page 64
CHAPTER # 5
CONCLUSION &
RECOMMENDATIO
N
5.0 CONCLUSION & RECOMMENDATIONS
5.1 Conclusion
Employee turnover is a significant problem for the majority of human service
agencies. However, it can be reduced through analysis, planning and change.

Page 65
High employee turnover and underperforming employees are major

organizational liabilities that need to be minimized, closely monitored and
continuously improved. Once you understand who is leaving and
underperforming in your organization and why, you can also develop an
affordable plan with new strategies to reduce your cost of turnover. You can then
reinvest your resources into high performing employees so they can provide high
quality services to your clients
A conclusion from this study is that employees seem to increasingly want a

flexible work schedule. Flexible work schedule was cited as one of the main
reasons for deciding to remain with the Company if offered employment with
another organization. In addition, this factor was mentioned by numerous
authors in the literature reviewed as a significant factor in the employee
turnover efforts. The researcher is forming the conclusion that flexible work
schedule will increasingly be an important issue in the efforts to retain an
organizations critical employees.
The conclusion based on the research findings is that even though supervisors
agreed there were risks associated with trying to retain the critical employees, it
was evident that the benefits outweigh the costs and risks associated with such
effort. Given the awareness of the potential risks, supervisors have taken the
necessary steps in trying to reduce these risks.
The benefits of retaining the critical employees include the ability of the
company to achieve its strategic business objectives and to gain a competitive
advantage over its current and potential competitors. Supervisors were willing
to invest to retain their critical employees rather than to risk reducing
productivity and profitability given the turnover of a critical employee. These
conclusions indicate that organizations should identify their critical employees;
understand their needs with regards to career, family, education, and
community; and be able to continuously meet the expectations and needs of
these employees. It is through proactive efforts that the organization can reduce
the likelihood of losing the critical employees. Managers should examine the

Page 66
sources of employee turnover and recommend the best approach to fill the gap
of the source, so that they can be in a position to retain employees in their
organization to enhance their competitiveness in the this world of globalization.
Managers must understand that employees in their organizations must be
treated as the most liquid assets of the organization which would make the
organization to withstand the waves of globalization. This asset needs to be
monitored with due care, otherwise their organizations would cease to exist.
Employees should be given challenging work and all managers should be hired
on the basis of know-how by following laid down procedures of the organization
and this would make organization to have competent managers at all levels of
management and hence good supervision noted pay and pay-related variables
have a great effect on employee turnover.
Management must compensate employees adequately. They should pay

employees based on their performance and in addition they should give
employees incentives like individual bonus, lump sum bonus, sharing of profits
and other benefits. Hence, if these are put in place they would minimize
employee turnover.
5.2 Recommendation
Researcher sets the following recommendations.
The Management should introduce better overtime pay and workers encouraged
to take up the Opportunity.
The Managers should involve workers in decision making.
The management of Company should review its pay package, fringe benefits and
opportunities for growth in order to retain its workforce.
The Management should implement the findings of employee turnover in order to
reduce its effects.
The Management should streamline the promotion procedures and should be
followed strictly.
Worker friendly leadership styles be used by all managers in the company.
Supervisors should engage in frank, open discussions with employees about their
long-term future with the organization. In some cases, employees may discover
that they have more potential with the organization than they had thought.
Telling an employee that he or she is personally valued by the organization can
have a powerful, positive, long-term impact. It is often exactly what employees
are starving to hear.

Page 67
Continually challenge employees to use more of their skills and abilities. Rotate
them through different jobs or work assignments. Provide additional training.
Also, enrich their jobs by providing them with more decision-making authority.
Once lost, an employee's lack of trust in management is very difficult to restore.

To do so requires persistent, continuous openness, and honesty. Increased face-
to-face communication is key.
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Page 80
ANNEXURE
a) Survey Questionnaire
The primary goal of this survey is to evaluate the impact of human resource
management on employee turnover. You are requested to give your opinion you consider
to be most right.
Name: _______________________________ Gender : Male
Female
Designation:___________________________
Department:__________________________
Age: __________________________________ Income: 20-25,25-30
In Years In Thousands
1 2 3 4 5 Work Experience S M W D Martial
+ In Years Status
Note: please mark() only one option as per your perception.
YES NO
Q1: Are you satisfy the working condition? _____ _____
If NO then why_________________________________________________________________.
Q2: Mention major factor which create high turnover in your organization in past
____________.
NOTE: Please Tick ( ) any option as per your choice of understanding:

Page 81
Q3:Which factor you feel create dis satisfaction in your work?

Working Condition b. salary c. environment
d. peers group relation e. Any Please Specific _______________________________.
Q4: Why do you leave your last job because
Career growth b. Salary c. boss relation d. working condition.
NOTE: Please Tick ( ) any option as per your choice of understanding:
5 = Strongly Agreed.
4 = Agreed.
3 = Neither Agreed/ Nor Dis-agreed.
2= Disagreed.
1 = Strongly disagreed.
Are you agree with the HR policies of the organization?
5 4 3 2 1
Do you agree that the Human Resource Practices and
supervisory support engagement give better organizational outcomes?
5 4 3 2 1
Do you agree that Human resource management strategy
stable the organizational size and status?
5 4 3 2 1
Do you agree that the performance appraisal is helpful
for improving personnel skill and decrease the employee turnover rate?
5 4 3 2 1
Do you agree that the performance rating is helpful for
the management to provide employee counseling?
5 4 3 2 1
Do you agree that the supervisor support positively
effect the employees performance?
5 4 3 2 1
7. Do you agree that the productivity depend upon the
work environment?
5 4 3 2 1
8. Do you agree that the human resource practices to manage
the employees?
5 4 3 2 1
9. Do you agree that the training program resolve the
employee turnover?
5 4 3 2 1
10. Do you agree that the low salary increases the employee
turnover rate?
5 4 3 2 1
11. Do you agree that the appreciation of co-worker and
supervisor effects the employee turnover?
5 4 3 2 1
12. Do you agree that the employee characteristics effect
the organizational performance due to the employee turnover?
5 4 3 2 1
13. Do you agree that the high work load effects the employee
turnover?
5 4 3 2 1
***** THANKYOU FOR YOUR CORPORATION*****

Page 82
b) Data Sheet

Page 83

Page 84

Page 85

Page 86

Aisha Talib Thesis VvFinal

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Khadim Ali Shah Bukhari Institute of Technology (KASBIT)

Impact of Human Resource Management

A project submitted to the Department of Human Resource

In partial fulfillment of the requirements for the degree of

Under the supervision of

Copyright 2012, All Rights Reserved

This Project/thesis here to attached, entitled, Impact of Human Resource

Management on Employee Turnover: A Comparison Case Study of Bank

Alfalah Limited prepared and submitted by AYESHA TALIB bearing ID # 5163

AYESHA TALIB - 5163 - MBA (HRM)

for fulfillment of the requirements for the degree Masters in Business

Administration, is hereby recommended for appropriate action.

AYESHA TALIB - 5163 - MBA (HRM)

Mr. Karamat Ullah Hussani

In the name of ALLAH, the most Beneficial the

All praise and thanks to ALLAH and prayers and peace

AYESHA TALIB - 5163 - MBA (HRM)

I wish to express my grateful appreciation to my supervisor Sir. Karamatullah

AYESHA TALIB - 5163 - MBA (HRM)

companys employee standards if the employees keep on changing. The

AYESHA TALIB - 5163 - MBA (HRM)

CP: Career Progression

EI: External Inflow

HA: Human Asset

HR: Human Resource

HRM: Human Resource Management

II: Internal Inflow

IT: Involuntary Turnover

JS: Job Satisfaction

OB: Organizational Behavior

OLB: Organization Learning Behavior

PA: Performance Appraisal

RJ: Realistic Job

STR: Staff Turnover Ratio

AYESHA TALIB - 5163 - MBA (HRM)

1.2 Problem Statement..................................................................................14

1.3 Introduction to the Organization..............................................................14

1.4 Purpose of the Research..........................................................................14

AYESHA TALIB - 5163 - MBA (HRM)

1.7 Significance of the Study.........................................................................16

1.8 Scope of the Study...................................................................................16

2.3 Voluntary Turnover...................................................................................24

2.4 Turnover Intention....................................................................................25

2.5 The Consequences of Employee Turnover...............................................27

2.6 The Effect of HR Practices on Organizational Commitment.....................27

2.7 The Effect of HR Practices and Organizational Commitment on Turnover

2.8 Compensation and Market Opportunities................................................30

2.9 Employee Retention.................................................................................30

2.10 Employee Turnover and the Labor Relations..........................................32

2.11 Actual/Perceived Alternate Opportunities Comparison........................34

2.12 Intentions to Leave................................................................................35

2.13 Job Satisfaction......................................................................................36

2.14 Employee Characteristics......................................................................37

2.16 Work Conditions.....................................................................................38

2.17 Training and Career Progression............................................................39

2.18 Career Commitment and Progression....................................................40

AYESHA TALIB - 5163 - MBA (HRM)

2.15 Organizational Size................................................................................40

2.20 Influence of Co-workers.........................................................................42

2.21 Performance Appraisal (PA)...................................................................43

3.2 Sample Design.........................................................................................46

3.3 Data Collection Methods..........................................................................46

3.3.1 Primary Data Gathering........................................................................46

3.3.2 Secondary Data Gathering...................................................................46