Two Factor Theory And Job Satisfaction

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2. LITERATURE REVIEW
2.1 Relationship between Job Satisfaction and Turnover Intention
Herzberg’s Two-Factor Theory is a remarkable theory which stated that certain factors in the working environment that cause job satisfaction while a separate set of factors causes dissatisfaction. The psychologist Frederick Herzberg was the one who developed this theory and theorized job satisfaction and job dissatisfaction act independently of each other. Most researchers recognize job satisfaction is composed of various facets as a global concept. In addition, the most typical categorization considered five facets of job satisfaction are promotions, pay, co-workers, supervision and the work itself (Smith, Kendall & Hulin, 1969).

There were many turnover
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The higher of actual turnover rate will also lead to high turnover intention of employees who still remain in the organization. Managers might become distracted in attracting and hiring of replace employees rather than spending time in supporting employees (Bhal & Gulati, 2006).

In the Udechukwu’s study (2006), it found that two variables namely organizational commitment and job satisfaction had significant impact towards intention to quit. And the intention to quit will result as turnover of employees in an organization, shown as below (i.e. Figure 1).

Figure
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All types of staff turnover were generally associated with negative effects such as costs and disruptions on organizational performance. The study of Frank, Finnegan & Taylor (2004), which described the voluntary turnover as unplanned loss of workers, who leave on themselves and whom, employers prefer to keep. In the article of Beam (2009), he described that employee turnover is a ratio comparison of the number of employees that a company must replace in a given period of time to the average number of total employees. Huge concern raise to most of companies that employee turnover as a costly expense especially for low paid job, for which the employee turnover rate is the highest. Many factors play a role in the employee turnover rate of any company and these can stem from both the employer and the employees. The companies should take a deep interest in their employee turnover rate since it is a costly part of doing business.
According to lots of literature reviews and journals shows that the cost of turnover is actually high, it may equivalent to the cost of replacing the employee. The costs consist of hiring, on-boarding and training. High employee turnover will also impact productivity and daily operation. Actually, the degree of employee turnover was occurred in every industry. Thus, the companies ought to critically find the reasons behind and establish effective employee retentions in offer to

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