INTRODUCTION
Research has explored the link between employee turnover intentions and leadership strategies, yet significant gaps remain, particularly concerning employees' perceptions of management's decision-making Craig and Gustafson (1998) highlighted the need to understand this relationship from the employee's viewpoint A critical issue stemming from this gap is management's failure to address moderating factors, such as job satisfaction and employees' views on their direct managers' ethical decision-making Consequently, organizations face increased costs associated with turnover, which are often linked to declining job satisfaction driven by negative perceptions of managerial decisions (Chhabra & Mishra, 2008).
Previous research has identified various factors contributing to employee turnover, yet there remains a significant gap in understanding the impact of management on turnover rates This area of leadership study requires further exploration to identify strategies that organizations can implement to reduce employee turnover intentions The long-term costs associated with high turnover, including damage to an organization's reputation and employee relations, often outweigh the initial expenses of hiring and training new staff (Back, 2007) This issue is particularly prevalent in organizations pursuing globalization, where poor treatment of employees can erode stakeholder confidence (Fisher & Lovell, 2009) Additionally, job fit plays a crucial role in job satisfaction and employee perceptions, which can be problematic in organizations with high turnover rates, especially in promote-from-within structures (Wheeler et al., 2007).
Wheeler et al (2007) emphasized the significance of job fit, aligning with Chan's (2006) assertions, and highlighted that managers recruited from external applicant pools tend to excel in direct management roles, enhancing their potential for promotion within organizations.
Sonnonberg (1994) challenges the views of Wheeler et al (2007) and Chan (2006) by arguing that ethical decisions and leadership success are not influenced by job fit Recent literature indicates that ethical leadership is crucial for workplace performance, positioning managers as moral leaders, which aligns with the current research proposal (Collins, 2006) Therefore, understanding the relationship between job fit and employee perceptions of management's decision-making is essential for addressing employee satisfaction and turnover intentions (Craig & Gustafson, 1998).
Numerous studies on leadership strategies emphasize the importance of organizational culture, employee empowerment, and securing buy-in from subordinates through intellectual stimulation and personalized attention (Hoffman & Frost, 2006) A significant challenge for many companies is the financial burden associated with hiring, training, and equipping new employees, which can place additional strain on organizations (Chhabra & Mishra, 2008).
The issue of perceived ethical concerns in management decisions has been linked to increased employee turnover intentions (Motivated Employees, 2009) This study employed a quantitative, correlational research design to explore the relationship between employees' perceptions of management decision-making and their turnover intentions in various companies in Ho Chi Minh City Key moderating variables analyzed included job satisfaction, employee perceptions, and tenure, as previous research suggests these factors significantly influence turnover intentions.
This quantitative, correlational study aimed to explore the relationships between independent variables—job satisfaction, tenure, and employee perception of the organization—and the dependent variable, turnover intentions The analysis focused on three key areas: the impact of employee perception of leaders' ethical decision-making on turnover intentions, the effect of employee tenure on turnover intentions, and the relationship between job satisfaction and turnover intentions The correlational structure effectively highlighted the connections between these independent variables and turnover intentions, forming the foundation of the research.
Chhabra & Mishra (2008) emphasized the importance of enhancing relationships between employees and their direct managers, noting that poor job satisfaction can lead to higher turnover intentions, adversely impacting organizational culture and productivity Further research into employee perceptions of management could provide valuable insights into the effects of a promote-from-within strategy versus hiring external candidates, particularly concerning ethics, decision-making, and subordinate perceptions.
Chan (2006) examined the belief that external candidates are often viewed as superior for direct management positions and have greater opportunities for promotion from these roles This perspective aligns with findings by Cocheo (1998), highlighting a trend where talented individuals leave organizations in search of better promotional prospects when their current roles become stagnant.
Joel Nelson's research (2012) aimed to identify moderating variables that negatively impact job satisfaction and increase turnover intentions among line-level workers The findings provide leadership with strategies to enhance current capabilities and mitigate the effects of these variables, addressing the costly consequences of employee turnover in the service industry, particularly when specialized skills are required Fisher & Lovell (2009) also supported this perspective.
“Losing competent and efficient workers in the service industry increases the costs associated with recruiting, training, and outfitting new employees in the short-term
High turnover can pose significant threats to an organization's brand value and stakeholder perceptions, as highlighted by Joel Nelson's research in 2012.
The study "LEADERSHIP, PERCEPTION, AND TURNOVER INTENTIONS" explores the relationships between managers' decision-making perceptions, job satisfaction, and turnover intentions Notably, tenure with the organization showed no significant correlation with these variables, which contrasts with previous research suggesting a strong link between tenure, job satisfaction, and turnover intentions (Pettijohn et al., 2008; Chhabra & Mishra, 2008).
The limitations of Joel Nelson's research include sample size, sampling method, and geographical constraints To address these issues, I plan to conduct a new study focused on the situation of Vietnamese organizations, involving higher education employees such as office staff and agents This research will expand the sample population by including multiple organizations rather than just one, and will utilize an e-survey method for data collection instead of the hardcopy approach used by Nelson Additionally, three questionnaires will be employed in the data gathering process to enhance the research initiative.
The study reuses the Perceived Leader Integrity Scale (PLIS), General Job Satisfaction (GJS), and a tailored demographic survey for the research initiative, as established by Craig & Gustafson (1998) and Kiefer et al (2005).
This research focuses on the relationships between independent variables such as perceptions of leader decisions, job satisfaction, and tenure, and the dependent variable of employee turnover intentions The formulated questions aim to highlight the correlations identified in the research design.
1 What is the relationship, if any, between an employee’s perception of management’s ethical decision-making and turnover intentions?
2 What is the relationship, if any, between an employee’s tenure and turnover intentions?
3 What is the relationship between job satisfaction and employee turnover intentions?
LITERATURE REVIEW, THEORETICAL FRAMEWORK
Leadership style delineation
This section focuses on defining various leadership styles, including transformational, charismatic, transactional, and top-down strategies Understanding the subtle nuances and key differences among these styles is crucial for making informed recommendations While many strategies may overlap, distinct characteristics set each style apart, as highlighted in the literature Furthermore, moderating variables in the individual studies provide additional insights for researchers investigating challenges related to these leadership strategies.
Transformational Leadership
Transformational leadership, rooted in the foundational concepts by Burns (1978), has evolved through the exploration of leadership strategies Subsequent researchers have distinguished between the key characteristics of transformational and transactional leadership This initial research sparked interest among scholars, leading to studies like those by Feinberg et al (2005), who examined the correlations between moderating variables of transformational leadership strategies and subordinate agreement The findings of Feinberg et al significantly contributed to the understanding of transformational leadership dynamics.
Transformational leadership is significantly influenced by the correlation between leadership styles and their effects on employees, as highlighted by Feinberg et al (2005) Similarly, Hoffman and Frost (2006) identified key components of transformational leadership, including intellectual stimulation, charisma, and individual consideration Notably, these components can intersect with other leadership strategies, particularly the charismatic element, which overlaps with charismatic leadership approaches.
Molero, Cuadrado, Navas, and Morales (2007) explored the impact of transformational leadership on employee satisfaction and performance, highlighting its significance as a central element of their research Their findings provide a baseline for comparing transformational and transactional leadership styles, drawing on previous studies and theories Additionally, they identified a strong connection between transformational leadership and various other styles, such as democratic, task-oriented, and relations-oriented leadership, emphasizing the overlap of these elements McLaurin and Amri (2008) further examined the similarities and differences among transformational, transactional, and charismatic leadership styles, noting that transformational leadership employs strategies like employee empowerment, role modeling, and vision creation to foster a positive work environment.
The researchers emphasize the importance of gaining employee buy-in, as it significantly influences job satisfaction through empowerment and vision creation While elements such as intellectual stimulation, inspirational motivation, and individual considerations are crucial to transformational leadership strategies, they are not the primary focus of this research (McLaurin & Amri, 2008) This distinction is made to clarify the specific transformational elements selected for the proposal.
Zagorsek, Rimouski, and Skeletal (2009) explored the impact of transactional and transformational leadership styles on organizational learning, emphasizing that these styles are influenced by specific situations and circumstances They highlighted the significance of transformational leadership techniques and their correlation with leadership behavior and information transfer within organizations, particularly in firms that promote from within rather than hiring externally This focus on organizational learning is crucial for enhancing leadership practices Additionally, Mancheno-Smoak, Endres, Potak, and Athanasaw (2009) revealed important findings regarding job satisfaction in relation to transformational leadership, which is a key independent variable in their research Their study utilized statistical modeling to analyze the relationships between independent and dependent variables, gathering data through questionnaires directed at human resources and managers in Fortune 500 companies in the U.S The results support the notion that cultural values influence job satisfaction and underscore the effectiveness of transformational leadership strategies.
Charismatic Leadership
Charismatic leadership strategies are important to the research because of the overlapping elements that play a significant role in gaining buy-in from employees
Jayakody (2008) explored the impact of cultural dynamics on charismatic leadership styles, distinguishing them from other leadership approaches His findings emphasized the relevance of these styles across various industries and cultures, while also acknowledging the significant influence of cultural differences on the effectiveness of leadership strategies This perspective aligns with insights from McLaurin and Amri (2008), highlighting the importance of generalizing these theories to assess their applicability within organizations and markets.
McLaurin and Amri (2008) explored the similarities and differences between charismatic and transformational leadership styles, highlighting the effectiveness of transformational leadership in fostering employee engagement and reducing turnover They analyzed the foundational elements of each leadership strategy, clarifying their definitions and purposes This analysis is crucial for understanding job fit and the hiring practices of organizations, which may involve recruiting external candidates or promoting from within (Cocheo, 1998; Chan, 2006) Additionally, the role of charisma in transformational leadership is significant, as emphasized by Jung and Sosik (2006), underscoring its importance in the research.
Humphreys, Zhao, Gladstone, and Basham (2010) highlighted the characteristics and drawbacks of charismatic leadership, emphasizing the need to distinguish it from transformational leadership due to their overlapping features This analysis is crucial for understanding the limitations of charismatic leadership and its impact on transformational strategies Cocheo (1998) and Chan (2006) noted that without adopting more effective leadership approaches that foster employee buy-in, managers risk undermining organizational cohesion, as pointed out by Humphreys et al.
Transactional Leadership
Early concepts of transformational and transactional leadership strategies aimed to distinguish between these two approaches Research highlights the significance of overlapping elements and the need to assess specific attributes of managers within a promote-from-within structure versus external candidates (Bass, 1985) Molero et al (2007) identified two main research goals: comparing transformational leadership with other styles and examining its impact on employee satisfaction and performance Leadership is a central theme, and linking findings to practical recommendations is crucial Molero et al.'s work effectively illustrates the interconnections between transformational and transactional leadership strategies Their use of a quantitative statistical model and questionnaires for data collection aligns with the research variables The initiative's findings allowed researchers to evaluate the relevance of these variables in relation to job satisfaction and turnover intentions (Creswell, 2005).
Zagorsek et al (2009) explored the impact of transactional and transformational leadership styles on organizational learning, highlighting their significance in understanding the dynamics between first-level managers and line-level employees.
This research focuses on the interactions between first-level managers and line-level employees in firms that adopt a promote-from-within strategy It emphasizes the significance of organizational behavior and information transfer, particularly how leadership styles influence information flow and employee actions in such organizations compared to those hiring externally (Chan, 2006) The study highlights that transactional interactions between managers and workers are prevalent in the workplace, suggesting that firms with a promote-from-within approach align more closely with transactional leadership strategies rather than transformational ones at the first-level interactions (Laohavichien, Fredendall, Centrell, 2009) Understanding these interactions is crucial for developing effective strategies to secure employee buy-in, as they are influenced by hiring practices and the management's ability to adapt to changing environments (Cocheo, 1998).
Top-down Leadership
Top-down leadership strategies are prevalent in organizations with strict hierarchies and play a crucial role in promoting internal candidates from line-level positions to first-level management roles, as highlighted by Semler (2008).
In 2008, a shift in employee expectations emerged, with a growing desire for leadership and guidance over traditional top-down management styles Semler's research highlights the significance of leadership conceptualization and employee perceptions of leaders, suggesting that these factors influence workplace relationships and advocate for flattening hierarchies as an alternative to conventional leadership strategies The debate surrounding organizational hierarchy design reveals differing opinions among researchers and strategists, particularly between Carnell, who supports a top-down approach for efficient task completion, and Semler, who promotes transformational and charismatic leadership attributes without explicitly endorsing transformational strategies as effective tools for organizational efficiency.
Jenkins and Jensen (2010) highlighted the impact of organizational tenure on job satisfaction, emphasizing its significance in understanding the relationship between job satisfaction and leadership strategies Semler (2008) noted that complex hierarchies often lead to a disconnect between employees and rigid top-down leadership, whereas environments that promote trust, communication, and participation are more effective Employees with longer tenure experience various cultural changes within the organization, which can distort their perception of its identity and contribute to higher turnover rates This continuity issue complicates the establishment of a unified organizational direction among stakeholders Ultimately, top-down leadership and strict hierarchies can hinder the development of a supportive environment, increasing turnover intentions and associated costs (Semler, 2008).
Hoover (2010) explores the factors influencing leadership decisions, particularly in the context of hiring practices, which is central to understanding leadership strategies This study uniquely examines how the decision-making processes of promote-from-within line-level management differ from those of leaders selected from external applicant pools, and how these decisions impact the perceptions of line-level employees The research aims to assess whether a promote-from-within approach negatively influences employee turnover intentions, providing insights that could help leadership make informed adjustments to reduce turnover costs These findings are significant due to the existing gap in literature regarding the interplay between managerial decision-making and organizational structure, as well as the potential connections between hierarchical structures and the decision-making processes of first-level managers in organizations that prioritize internal promotions.
Job Satisfaction
Recent studies emphasize the relationship between job satisfaction and salespersons' perceptions of ethical behavior, particularly its impact on turnover intentions, aligning with findings from Pettijohn et al (2008) This information is crucial for understanding the variables selected for the research, as well as the criteria for choosing the sales force, mirroring the approach taken by Pettijohn et al.
The research conducted by Pettijohn et al differs from previous studies due to its unique moderating variables and industry focus, providing a valuable contrast that enhances the understanding of job satisfaction Participants' responses to a Likert-type survey were used to measure job satisfaction, although the researchers acknowledged certain limitations in their study They identified gaps in the existing literature and aimed to address these in future research, specifically focusing on the perceptions of direct subordinates regarding the decisions made by their managers.
Talent management and leadership strategies are crucial for enhancing an organization's talent pool and retaining top employees, which directly impacts job satisfaction Chhabra and Mishra (2008) emphasize the significance of both talent management and employee retention in formulating recommendations and encouraging further research A key focus of this study is the costs associated with employee turnover, as highlighted by Chhabra and Mishra, who argue that prioritizing retention strategies is essential before addressing recruitment efforts.
Okpara and Wynn (2008) highlight the significance of an ethical climate in talent management and its impact on job satisfaction Effective leadership plays a crucial role in enhancing employee commitment and job satisfaction by promoting an ethical work environment, which is essential for reducing turnover rates.
Wynn) Furthermore, Okpara and Wynn stated, “findings imply that organizational leaders can favorably influence organizational outcomes by encouraging, engaging, and rewarding ethical behavior,” again influencing job satisfaction and turnover (p
Okpara and Wynn emphasize the need to enhance their research by incorporating additional variables, particularly focusing on the significance of tenure and workers' perceptions in their study.
In a study by Mancheno-Smoak et al (2009), statistical modeling was employed to analyze the relationships between independent and dependent variables, utilizing data collected through a questionnaire targeting human resources employees and managers from Fortune 500 companies in the U.S The findings support the hypothesis that cultural values influence job satisfaction and highlight the effectiveness of transformational leadership strategies Gaining buy-in from subordinates is crucial for organizations, with the success of these strategies varying based on leadership styles and individual personalities Traditional top-down leadership may prove less effective compared to transformational approaches.
Dixon and Hart (2010) highlighted the need for further research on leadership strategies, particularly addressing gaps in the existing literature related to leadership and turnover intentions Their study revealed that while job satisfaction is a significant factor influencing turnover intentions, it is also dependent on employee tenure and perceptions Additionally, the moderating effects of independent variables on turnover intentions remain insufficiently explored Conversely, it is crucial for managers to effectively address issues that could negatively impact employees and contribute to increased turnover within the organization.
Brundage and Koziel (2010) propose strategies to reduce employee turnover by focusing on performance management and compensation, which, while top-down, aim to enhance job satisfaction (Semler, 2008) Although these strategies may yield short-term gains in employee engagement and satisfaction, the long-term consequences of ending incentives can lead to a decline in performance metrics and a resurgence of low morale, highlighting the critical relationship between incentives and job satisfaction (Johnson, Dickinson, & Huitema, 2008).
Mentoring is a crucial aspect of transformational leadership strategies, as highlighted by Brimdage and Koziel It plays a significant role in empowerment and facilitation, while also emphasizing the importance of organizational culture and talent development These strategies address existing gaps in literature concerning direct management and employee perceptions, enhancing the ability to formulate effective interactions between managers and subordinates This is particularly relevant for service industry firms that prioritize internal promotions to fill management positions.
Tenure
Sarker et al (2003) highlighted the impact of tenure on job satisfaction, emphasizing its significance in research Their focus on the relationship between these two independent variables establishes a foundational understanding of how they interact Additionally, moderating variables are crucial for validating previous findings, particularly in firms with a promote-from-within structure, as they influence employee perceptions of job satisfaction and tenure While Sarker et al recognized tenure as a factor affecting job satisfaction, its importance diminishes in high-turnover firms, where the length of time becomes less significant.
Lovett and Cole (2003) examined job satisfaction with an emphasis on job differentiation and the interaction between these variables, similar to the work of Sarker et al (2003) Their findings are particularly relevant as they explore the relationship between tenure and the tasks completed by employees within a firm, contributing valuable insights to the research This study focuses on employees' interactions and perceptions of their direct managers within the organization.
Lovett and Cole emphasized that various factors could influence job satisfaction and suggested broadening the research to incorporate these additional variables.
Jenkins and Jensen (2010) explored the relationship between tenure and leadership strategies, emphasizing that the duration of employment significantly influences job satisfaction, a finding echoed by Sarker et al (2003) Their qualitative analysis reveals that tenure impacts team commitment, which in turn affects overall job satisfaction They argue that while tenure is crucial, relying solely on the perspectives of long-tenured employees can lead to a "blinding effect," potentially hindering organizational effectiveness This insight is vital for the proposed research initiative, as it challenges the notion presented by Sarker et al (2003) that longer tenure universally correlates with increased job satisfaction.
Turnover Intentions
The dependent variable in this research is turnover intention, which is a significant concern for organizations due to its associated costs (Chhabra & Mishra, 2008) Levin and Kleiner (1992) explored turnover and absenteeism, providing qualitative insights into factors contributing to employee dissatisfaction and how effective leadership can mitigate these issues Their concepts are crucial as they offer a foundational understanding of leadership strategies aimed at reducing employee turnover While absenteeism is not the primary focus, turnover remains a relevant variable, and the recommendations derived from Levin and Kleiner's work are still applicable today They emphasize that leadership can control certain variables, making the identification of issues essential for effective resolution.
Tuzun (2007) offers a unique perspective on turnover intentions by focusing on service providers and the motivations of agents to leave their organizations It is crucial to clearly distinguish between management-related issues and personal career choices when surveying turnover intentions, as this differentiation can significantly impact the research findings This contemporary study aims to clarify the often ambiguous term "turnover intention," which is vital for the research's success Additionally, Coder (2007) highlights the importance of recognizing triggers that may lead to employee turnover, providing valuable insights for leadership to identify signs that could indicate an increase in turnover rates.
Research indicates a significant link between positive leadership strategies and the development of an ethical climate within organizations (Fogel, 2007) This connection is crucial for understanding turnover intentions, as it highlights the relationship between direct managers and their subordinates Employees' perceptions of turnover intentions are central to this study Fogel emphasizes the importance of supportive leadership in fostering an ethical climate, which is particularly relevant when considering the implications of a promote-from-within hiring strategy for direct management roles Notably, it has been observed that tenured employees, rather than top performers, often ascend to management positions, as high achievers frequently leave organizations in search of better opportunities (Hsiao & Kleiner, 2002).
Dixon and Hart (2010) focused on workgroups, leadership styles, and diversity to explore their correlation with employee turnover intentions, contrasting with Fogel's (2007) research They recommend expanding the study to include qualitative assessments of working conditions and additional leadership styles to address gaps in their findings Their suggestions emphasize the need to incorporate more variables that influence turnover intentions, which were overlooked in the initial analysis Ghosh and Waldman (2010) contributed to this discourse by examining the relationships between leadership and turnover intentions, underscoring the importance of these correlations in enhancing the research proposal.
Ghosh and Waldman (2010) found that a quantitative analysis of incentives and standard promotion structures leads to better outcomes than alternative models Their findings challenge the views on transformational leadership and long-term organizational goals (Semler, 2008), emphasizing short-term performance gains through increased incentives While these concepts may yield immediate success, they are less effective over time compared to transformational strategies that prioritize employee empowerment and strong working relationships (Brundage & Koziel, 2010; Molero et al., 2007) Employee turnover intentions are influenced by available opportunities, work environments, and management relationships; without a balanced approach to leadership and growth opportunities, organizations may struggle with persistent turnover issues.
Effective leadership plays a crucial role in mitigating turnover intentions by addressing issues that negatively impact employee perceptions of management Brundage and Koziel (2010) highlight strategies for reducing turnover, emphasizing the importance of performance management and compensation as short-term, top-down approaches In contrast, long-term transformational strategies, such as mentoring, are essential for empowering employees and enhancing internal capabilities, ultimately fostering a strong talent pool within the organization.
To reduce turnover intentions, it is essential to develop long-term strategies that address this issue Researchers suggest implementing strategies such as diversifying work and creating a positive organizational climate that encourages innovation and experimentation, which can help mitigate the costly impacts of employee turnover (Piccolo & Colquitt, 2006).
Perceptions
Direct management positions are crucial for the effective daily operations of service companies, as direct managers play a key role in implementing strategies developed at higher organizational levels They are also responsible for effectively communicating important information to employees.
High employee turnover significantly impacts organizations by depleting their talent pool and increasing the need for frequent training, which in turn raises operational costs and limits resources for process improvement (Piccolo & Colquitt, 2006; Chhabra & Mishra, 2008) There is a notable gap in the literature regarding leadership strategies, particularly how employees' perceptions of managerial decisions, along with their tenure and job satisfaction, relate to their intentions to leave Achieving an optimal balance among these factors could lead to reduced turnover costs, ultimately benefiting service companies.
The perception of managers by employees is a key variable in understanding how workers interpret situations and assess the ethicality of managerial decisions, influenced by the organization's ethical climate (Belak et al., 2010) It is crucial to differentiate between managers' views of employees and employees' perceptions of managers' ethical behaviors and decision-making, as the latter is the primary focus of this research, contrasting with studies centered on managerial sentiments towards staff (Rooney, Gottlieb, & Newby-Clark, 2009).
Research by Howard and Cordes (2010) highlights mechanisms influencing perception that can lead to employee withdrawal and negatively impact job satisfaction, which are predictors of turnover intentions They identified negative outcomes such as turnover intentions, absenteeism, and work alienation, emphasizing the relationship between these factors and employee satisfaction and tenure Additionally, they explored the link between perceptions of injustice and turnover intentions, revealing that ethical decision-making and organizational ethical climates also play a role The authors noted that turnover incurs significant costs related to hiring, training, and equipping new employees, while unfair practices contribute to turnover intentions However, a gap remains in connecting the concepts of fairness and ethics (Chhabra & Mishra, 2008).
Conclusion
This study aims to identify correlations among various prescribed variables by analyzing survey responses from participants It builds on existing literature regarding leadership strategies, job satisfaction, perceptions, tenure, and turnover intentions to establish a solid research foundation While previous findings highlight significant relationships between leadership strategies and turnover intentions, gaps remain concerning employees' perceptions, direct management strategies, and hiring practices, indicating a need for further exploration The research seeks to enhance understanding of leadership strategies within Vietnamese companies, specifically examining the impact of direct managers on their staff.
Coder (2007) identified a link between employee satisfaction and turnover intentions, highlighting the significance of tenure and the moderating effects of job differentiation and change (Lovett & Cole, 2003) This interplay among variables reveals gaps in analyzing leadership hiring practices, particularly the differences between promote-from-within structures and those that hire direct managers from external pools (Bloodgood et al., 2010) While extensive research has been conducted on leadership, turnover intentions, and job satisfaction, it often incorporates additional variables that enhance our understanding of leadership strategies and contribute to organizational development.
The theoretical framework is grounded in a comprehensive literature review, integrating constructs to guide the development of research hypotheses These hypotheses aim to explore the relationships among the research variables.
Figure 1: Perceived Variable Correlations for study
According to Creswell (2005), hypotheses in quantitative research are predictive statements made by the investigator This article explores the predictions related to independent variables such as job satisfaction, perceptions of management decisions, and tenure, revealing significant insights relevant to the study The hypotheses aim to guide the proposal's direction, focusing on the selected variables and providing potential answers to previously posed questions Consequently, the following hypotheses outline the proposal's direction and predictions.
H1: Perceptions of a manager’s ethical decision-making has a positive effect on employee turnover intensions
H2: Tenure has a negative effect on employee turnover intensions
Job satisfaction significantly influences employee turnover intentions, with lower satisfaction levels leading to higher likelihood of employees considering leaving their jobs.
This study aimed to explore the relationships between job satisfaction, employee perceptions, and tenure as independent variables, and their impact on employee turnover intentions as the dependent variable Understanding leadership strategies and the unique attributes of direct managers is crucial for organizations Recognizing differences in education, experience, and leadership approaches can enhance job satisfaction and overall effectiveness (Wheeler et al., 2007) These variables significantly influence the costs and operational efficiencies related to staffing and training, highlighting the need for research on keywords such as leadership, perceptions, tenure, and turnover intentions (Chhabra & Mishra, 2008).
RESEARCH METHODOLOGY
Research Methodology
Describing the research method and design is crucial for understanding the data collection and analysis of relationships between independent and dependent variables in quantitative research This study utilized a quantitative correlational design to effectively analyze sample data gathered through Likert-type surveys The rationale for this structure was to address the research questions by testing hypotheses related to the chosen variables Data was collected using three questionnaires: the Perceived Leader Integrity Scale (PLIS), General Job Satisfaction (GJS), and a tailored demographic survey, ensuring a comprehensive approach to the research initiative.
This research builds on previous leadership studies by examining employee perceptions of leaders and their impact on turnover intentions, addressing the significant costs associated with high turnover in organizations The decision to explore this area is reinforced by Craig and Gustafson’s (1998) development of the Perceived Leader Integrity Scale, which highlights various avenues for further investigation into leadership dynamics and their effects on employee retention.
The quantitative research method was suitable for this study as it provided codified raw data that highlighted participants' perceptions, contrasting with a qualitative approach that relies on subjective conclusions (Cozby, 2007) The research emphasized specific statistical analyses of variable relationships, which Neuman (2006) identified as a fundamental aspect of quantitative research, aligning with the findings of Lin, Lin, and Lin.
In 2007, the research focused on statistically measuring the relationships between independent and dependent variables, which required a quantitative approach A qualitative method was deemed unsuitable as the research aimed to quantify specific relationships between defined variables, a goal not aligned with qualitative research methods (Creswell, 2005).
The research aimed to examine variable relationships, contrasting with qualitative research that explores phenomena and unknown attributes within organizations or societal elements (Salkin, 2006) The chosen quantitative methods typically progress linearly, starting from problem identification, through data collection, to the analysis of these variable relationships (Neuman, 2006).
Correlational designs are effective for measuring the association between variables, which is central to this research proposal, as highlighted by Creswell (2005) and Burns & Grove (2005) The study emphasizes quantitative methods over qualitative approaches, as the former is better suited for identifying trends and relationships between variables (Creswell, 2005; Leedy & Ormrod, 2005) The research utilizes established surveying tools, including the Perceived Leader Integrity Scale (PLIS) and the General Job Satisfaction Scale (GJS), to address leadership ethics and job satisfaction (Craig & Gustafson, 1998; Kiefer et al., 2005) Additionally, demographic questions, including tenure with the organization, are included as significant independent variables in the study.
Sampling Design
Creswell noted that a minimum of around 30 responses is required for effective correlational analysis In this study, multiple linear regression (MLR) was utilized as one of the analytical methods, as highlighted by Tabachnick and colleagues.
According to Fidell (2007), as referenced by Nguyễn Đình Thọ (2012), the sample size in multiple linear regression (MLR) is influenced by the significance level, test power, and the number of independent variables An empirical formula for determining the sample size in MLR is given by: \( n \geq 50 + 8p \).
In which: tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
n is the minimum sample size
p is the total of independent variables
It means that the sample size of this research is about 74 However, if EFA wants to be used, the sample size would be determined by:
1) The minimum sample size And
2) The number of variables (Nguyễn Đình Thọ, 2011)
Hair et al (2006) recommend a minimum sample size of 50 for Exploratory Factor Analysis (EFA), with an ideal size of 100, or a ratio of 5:1 (observations to items) In this study, with 12 items in the questionnaires, a required sample size of 60 was determined Consequently, the author successfully obtained 168 valid responses, exceeding the necessary sample size.
Data Collection procedures
Data of this study was gathered using the e-questionnaire surveys which were distributed to staffs or agents of some companies and organizations located in
Ho Chi Minh City, Vietnam The way to collect data was sending questionnaires directly to the respondents via email and received the answers directly via internet
The decision to utilize existing surveys was driven by the availability of validated research tools that align with the selected variables, allowing for the enhancement of leadership research through reliable data collection instruments The research focuses on key variables such as turnover intentions, tenure, perceptions, and job satisfaction, which required the instruments to accurately reflect these aspects The study employs the 5-question, 4-point Likert-type Perceived Leader Integrity Scale (PLIS) developed by Craig and Gustafson.
(1998) focused on employee perception of leaders The 6-question, 7-point Liker- type scale General Job Satisfaction survey (GJS) created and tested by Kiefer et al
In 2005, a study examined the relationship between job satisfaction and turnover intentions using the General Job Satisfaction (GJS) scale, which was adapted from the Job Diagnostic Survey by Hackman et al (1975) The research incorporated existing surveys alongside a tailored 4-question demographic questionnaire designed to gather information on tenure and other identifying characteristics of the sample population.
Table 1: The Sources of Measurement Scale
Constructs Items Label Adapted from
1./ Generally speaking, I am very satisfied with this job
Satisfaction survey (GJS) created and tested by Kiefer et al
2./ I am generally satisfied with the kind of work I do in this job
3./ Most people on this job are very satisfied with the job
1./ I frequently think of quitting this job TURN1
2./ People on this job often think of quitting
3./ You will change your job immediately if having chances
Employee perception of leaders Perceived
1 Would use my mistakes to attack me personally
Integrity Scale survey (PLIS), created by Craig and Gustafson
3 Makes fun of my mistakes instead of coaching me as to how to do my job better
4 Would deliberately exaggerate my mistakes to make me look bad when describing my performance to his/her superiors
5 Would limit my training opportunities to prevent me from advancing
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Data Analyze Procedure
The study utilized statistical analysis methods to address its hypotheses, employing the Statistical Package for Social Science (SPSS) software for data analysis and presentation Raw data was imported into SPSS, where it was coded according to the study's objectives Various statistical tools were applied, including Reliability Analysis, Descriptive Statistics, Exploratory Factor Analysis (EFA) to assess factor correlations, and Multiple Linear Regression to evaluate the model's constructs.
Descriptive statistics were employed as the primary statistical technique in this research analysis Data gathered from questionnaires was processed using SPSS version 18.0, utilizing four distinct statistical methods for various objectives These methods included frequency analysis, descriptive statistics, validity and reliability testing, correlation analysis, and multiple linear regression analysis.
Utilizing Google Docs' online survey tool for data collection significantly reduces common data cleaning errors, such as missing or invalid entries The survey primarily consisted of multiple-choice and scaled questions, allowing respondents to select the most appropriate answers.
Therefore, data cleaning was mainly done for all questions The reverse-scored questions had been reviewed to double check if they were logically answered
The evaluation criteria led to the elimination of irrelevant questionnaires Since all questions were marked as "required," respondents were unable to submit the survey without fully answering each question, resulting in no missing answers Ultimately, the author obtained 168 usable responses from a total of 180 received.
Reliability testing was conducted to assess the measurement items of the variables in the questionnaires, focusing on the internal stability and consistency of the questions This evaluation was determined using the Cronbach's alpha coefficient, as outlined by Nunnally and Bernstein.
1994) According to Hair et.al (2007), the Rules of Thumb about Cronbach Alpha Coefficient as follows:
Table 2: Rules of Thumb about Cronbach’s Alpha Coefficient Size
Alpha Coefficient Range (α) Strength of Association
Source: Hair et al (2007), “Research Methods for Business”
If a variable's coefficient value exceeds 0.7, the questions are deemed reliable and suitable for measuring the intended concept.
Descriptive statistic was actually used to report the characteristics of the data such as mean, frequency, standard deviations, percentage and range (Sekara, 2000)
This study employed descriptive statistics to analyze the data, focusing on the balance of samples concerning gender and age by examining the frequency and percentage of each variable This approach is effective for comparing the demographic groups of respondents.
Factor Analysis (FA) is a key technique used to uncover the underlying structure in data by determining the correlations among numerous variables This method clusters interdependent variables, summarizing extensive information into factors based on their relationships (Hair et al., 2007).
Factor analysis aims to enhance data comprehension through exploratory or confirmatory approaches (Hair et al., 2007) This study employed exploratory factor analysis (EFA) to identify factors that maximize variance explanation and assess internal reliability Consequently, the dimensions of employee turnover intentions—tenure, job satisfaction, and perception—within Vietnamese companies and organizations were explored.
This study employed Multiple Linear Regression analysis to investigate the simultaneous impact of independent variables—tenure, job satisfaction, and employee perception—on the dependent variable of employee turnover intentions (Cavana et al., 2001) The analysis aimed to determine whether these independent variables significantly contributed to the variance in turnover intentions Three hypotheses (H1, H2, and H3) were formulated and analyzed through regression analysis to explore potential relationships between the independent and dependent variables within the study's context.
The Standardized Coefficient Beta (Beta) is utilized to assess the impact of various variables on the independent variable of turnover intention Consequently, this analysis tool is employed to test the hypotheses.
ANALYSIS RESULT
Demographics
The study collected data on participants to identify common traits and key characteristics linked to turnover intentions, with tenure at the organization serving as an independent variable Demographic information gathered included gender, age, education level, and organizational tenure Among the 168 survey participants, 40.5% were male and 59.5% were female.
Frequency Percent Valid Percent Cumulative Percent
A significant finding from the sample population revealed that 75% of participants held a university degree, with 17% possessing a Master's degree and 1.2% having a PhD or higher, while none reported having only a high school education or lower This demographic trend contrasts with other studies, as office positions typically require higher educational qualifications compared to roles in factories or workshops.
Frequency Percent Valid Percent Cumulative Percent
Referencing back to the education demographic question, the responses to approximate age align with the timeline necessary after college or university
Most participants have over one year of experience working for companies or organizations, resulting in a majority being over 23 years old, with the largest age group falling between 23 and 39 years This information is detailed in Table 5.
Frequency Percent Valid Percent Cumulative Percent
Total 168 100,0 100,0 tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The data reveals a significant shift in employee tenure within the organization: 10.7% of the sample population has been with the company for less than 2 years, 15.5% for 3 years, 25% for 4 years, 21.4% for 5 years, 14.3% for 6 years, and 13.1% for 7 years or more.
Frequency Percent Valid Percent Cumulative Percent
Reliability and Validity of Scales
Cronbach’s alpha coefficient is a widely used method for evaluating the internal consistency of measurement scales It aids in identifying and removing unreliable observed variables, ensuring the reliability of the scale Before applying the Exploratory Factor Analysis (EFA) method, it is crucial to eliminate junk variables, as their presence can lead to misleading factor structures Variables with an item-total correlation value below 30 should be discarded A measurement scale is deemed acceptable if the Cronbach's alpha coefficient ranges from 70 to 80, while a coefficient of 60 or higher indicates acceptable reliability (Nunnally & Bernstein, 1994).
Table 7 presents high Cronbach’s Alpha values, indicating strong associations among the variables: Job Satisfaction (α = 805), Turnover Intention (α = 788), and Perception (α = 871), which align with the recommendations by Hair et al.
Table 7: Cronbach’s Alpha Measures of Variables in the Study
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted JOB SATISFACTION: Cronbach’s Alpha = 0,805
The calculated Cronbach alpha coefficients indicate that the measurement scales, which include all 11 observed variables, demonstrate satisfactory reliability Therefore, these scales are suitable for exploratory factor analysis in the subsequent step to assess their validity.
Dimensions of Employee Turnover Intension
In this stage, the data analysis was to explore the correlation exists between tenure, perception and job satisfaction variables and employee turnover intentions
The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is utilized to assess the partial correlations among variables, with a KMO value ranging from 0.50 to 1 indicating the applicability of Exploratory Factor Analysis (EFA) (Nguyễn Đình Thọ, 2011) Additionally, Bartlett's test of sphericity evaluates whether the correlation matrix is an identity matrix; a result of p < 0.05 suggests that the variables are correlated, confirming the suitability of EFA.
The Kaiser-Meyer Olkin (KMO) measure of sampling adequacy indicated that the sample was suitable for factor analysis, with a KMO value of 0.815 Additionally, the significant p-value of 0.000, which is less than 0.05, confirmed the sample's significance for conducting factor analysis.
Table 8: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy ,815
To identify the factors influencing Turnover Intention, an Exploratory Factor Analysis was conducted using Principal Component Analysis (PCA) and Varimax Rotation The results, presented in Table 9, revealed two key factors that emerged as dimensions relevant to this study's context.
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 3 iterations
All items were associated with two dimensions, as their components exceeded 0.5, and none were rejected The third dimension, Tenure, was a single value and did not require further examination This led to the following conclusion.
Factor 1 would consist of items PER01, PER02, to PER26, and was defined to be “PERCEPTION” (PER)
Factor 2 includes items JSAT2, JSAT1, and JSAT3, which collectively represent the concept of "Satisfaction" (SAT).
Factor 3 would consist of items TEN and was defined to be “WORKING TIME” (TENURE)
Accordingly, having the same method to analyze, the dependent variable
“EMPLOYEE TURNOVER INTENSIONS” (TURN) was combined from TURN01, TURN02, TURN03 with KMO= 686 and its significant value p = 0,000
The results indicate that all components exceeded 0.5, as shown in Table 10, demonstrating the strong applicability of EFA analysis Furthermore, the scale of the dependent variable meets the criteria for reliability, discriminant validity, and convergent validity.
Table 10: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy ,686 Bartlett's Test of Sphericity Approx Chi-Square 155,404 df 3
Extraction Method: Principal Component Analysis a 1 components extracted.
Hypothesis testing
4.4.1 Assumption testing tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The standardized residual plots for the specified dimensions were analyzed to identify any error term values As illustrated in Figure 3, the histogram closely resembled the normal curve, with a standard deviation of 0.991 (σ = 1), indicating that the regression assumptions were met Additionally, the P-P Plot and Scatter Diagrams (Figures 4 and 5) showed that all residuals clustered around the standardized predicted values.
The observed values clustered around a straight line, confirming that the normality assumption was upheld This validation allows for the application of linear regression analysis to examine the relationship between the independent and dependent variables in the model.
The ANOVA table evaluated the model's acceptability from a statistical standpoint, revealing that the regression row indicated a significant amount of variation explained by the model In contrast, the residual row highlighted the variation not accounted for According to the results in Table 12, the Sum of Squares for Regression (SS r) at 139,953 was substantially greater than the Sum of Squares for Residual (SS e) at 129,549, leading to the conclusion that the regression model was appropriate and effectively explained by the specified independent variables.
Model Sum of Squares df Mean Square F Sig
Total 269,502 167 a Predictors: (Constant), PER, TENURE, JSAT b Dependent Variable: TURN
Multi-linear regression was employed to analyze employee turnover intentions as the dependent variable, with tenure, job satisfaction, and perceptions as independent variables The three original dimensions were summed and analyzed separately in relation to employee turnover intentions The correlation analysis led to the development of a model, which can be represented by a specific formula.
The researcher used Enter method to input all variables at once and find out the acceptable variables The MLR analysis results are presented in Table 12, 13, and Table 14
The output in table 13 shows the value of adjusted R 2 (0,511) is smaller than
The adjusted R² value of 0.511 indicates that 51.1% of the variance in the dependent variable can be explained by the three independent variables in the model This suggests that the model is reliable and not exaggerated, contributing to its overall safety and validity.
R R Square Adjusted R Square Std Error of the
1 ,721 a ,519 ,511 ,88878 a Predictors: (Constant), PER, TENURE, JSAT b Dependent Variable: TURN
The coefficients presented in Table 14 are utilized to examine the linear relationship between the dependent variable TURN and the independent variables JSAT, PER, and TEN, determining the existence of such a relationship.
B Std Error Beta Tolerance VIF
The variance inflation factors (VIF) ranged from 1.097 to 1.369, indicating that multi-collinearity is not a concern, as values above ten would warrant attention Consequently, both multi-collinearity and autocorrelation remained within acceptable limits, ensuring that they did not unduly affect the regression estimates.
With the significance level of 5% chosen in normal studies, if p-value < 0,05, we could conclude that independent variables have impacts on dependent variables
The results in Table 14 indicate that the p-values for three variables—JSAT, TENURE, and PER—are less than 0.05, demonstrating their statistical significance in the regression model and their impact on employee turnover intention.
The regression analysis revealed that employee turnover intention (TURN) is significantly influenced by three key factors: job satisfaction (JSAT), tenure (TEN), and employees' perception of management's ethical decision-making (PER) Specifically, job satisfaction has a strong negative impact on turnover intention, with a Beta value of -0.458, while tenure also negatively affects turnover intention, albeit to a lesser extent, with a Beta of -0.165 In contrast, the perception of management's ethical decision-making positively influences turnover intention, reflected by a Beta value of 0.292.
The results of testing three hypotheses are showed in Table 15, in which three hypotheses, namely H1, H2, H3, were supported (p-value < 05)
Table 15: Results of testing the hypotheses
H1: Perceptions of a manager’s ethical decision-making has a positive effect on employee turnover intensions
H2: Tenure has a negative effect on employee turnover intensions
H3: Job satisfaction has a negative effect on employee turnover intentions
The regression equation could be re-written as follows:
Standardized beta coefficients reflect the degree of influence that each independent variable has on the dependent variable Consequently, the linear regression equation can be reformulated using these standardized beta values.
TURN = 0,292PER - 0,165 TENURE – 0,458JSAT tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
-0,458 The research model is revised and presented as in Figure 2
Figure 2: the revised research model
Summary
The analysis of the independent variables to determine interrelationships helped address a key element in the overall relationship through regression analysis
The perception may have been that all three of the independent variables demonstrated correlation to the dependent variable employee turnover intentions
The analysis revealed three variables that show a correlation with the dependent variable: perceptions (PER) at -0.292, job satisfaction (JSAT) at -0.458, and tenure (TEN) at -0.165.