Investigating the Relationship among Fit Organization, Organization Commitment and Employee’s Intention to Stay: Malaysian Context

Abstract

Retaining employees in the organization has become very crucial especially in tough times. Losing skilled and experienced employees affect the overall productivity, profitability and product quality. While numerous studies have been carried out on this subject and the majority centre on turnover due to organizational approach, only a few studies have been done on intention to stay. Thus, the main purpose of this article is to examine the relationship among fit organization, organizational commitment and employee’s intention to stay in information and communication technology (ICT) industry in Malaysia. Quantitative method with self-administered questionnaire approach is followed targeting information technology (IT) managers of ICT with stratified random sampling of 105 IT professionals of ICT companies in Malaysia, based on the analysis using partial least square structural equation modelling (PLS-SEM) (PLS 3.0) to establish both measurement and structural model. From the empirical findings, it was revealed that there is a strong relationship between organizational commitment and intention to stay. The result also found that religiousness in the employees makes them to stay in the organization. This shows that while remunerations are crucial for the intention of employees, employee’s commitment is much higher than the intention initiatives.

Employee Turnover: Causes, Importance and Retention Strategies

“…Organizations have paid much attention to employee turnover because it has huge impacts on organizations [69]- [73]. Many researchers have found that a high employee turnover rate can negatively impact an organization's profitability if not properly managed [74]- [76]. High employee turnover can have a severe impact on the business, both financially and emotionally [54], [77].…”

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“…By supporting innovative ideas and creating value in the manufacturing, changes can be seen in the management structure amid generational change, which is 'from hierarchical organization to flattened organization commitment' (Noor et al, 2020;Pattnaik et al, 2020). In their work, Lenka et al (2016) claimed that following generational change, to stay competitive, advantage in the innovation adoption process and investment in research and development (R&D) are necessary.…”