Abstract
This study examines the direct and indirect effects of interpersonal fairness on employees’ willingness-to-stay and organisation-based self-esteem through affective commitment among manufacturing workers in Tema, Ghana. Using the survey design, 300 manufacturing workers in Tema were conveniently sampled for the study. The confirmatory factor analysis and structural equation modelling were used to analyse the data. Results indicated that affective commitment partially mediated the relationship between interpersonal fairness and employees’ willingness-to-stay. Affective commitment also fully mediated the interpersonal fairness-organisation-based self-esteem relationship. Results further showed that organisation-based self-esteem partially mediated the affective commitment and willingness-to-stay relationship, such that, an increase in organisation-based self-esteem leads to a decrease in employees’ willingness-to-stay. These findings emphasised the roles of interpersonal fairness and affective commitment in organisations, where affective commitment increases as a result of an increase in interpersonal fairness and makes employees have an intention-to-stay. The findings imply that employees who are very confident and have higher organisation-based self-esteem stand lower chances of staying in their current organisations. This study is the first to examine how affective commitment transfers the effects of interpersonal fairness unto employees’ intention-to-stay among manufacturing workers in Ghana.
Highlights
Employee retention has become a crucial issue of concern in present-day organisations due to the negative influence that high rate of turnover has on organisations: skilled labour shortage, high employee turnover and fluctuating economic growth (Aslam et al, 2011)
Considering the number of items per scale, parcels were created per latent variable to retain a higher quotient of the indicator to sample size (Landis et al, 2000)
This study examined the role of interpersonal fairness in predicting employees’ willingness-to-stay directly and indirectly through affective commitment
Summary
Employee retention has become a crucial issue of concern in present-day organisations due to the negative influence that high rate of turnover has on organisations: skilled labour shortage, high employee turnover and fluctuating economic growth (Aslam et al, 2011).Andrew Carnegie, cited in Aguenza and Som (2012), remarked, ‘Take away my factories, my plants; take away my railroads, my ships, my transportation, take away my money; strip me of all of these but leave me my key employees, and in two or three years, I will have them all again’. The adverse effects of employees leaving their organisations are enormous: huge financial costs, interference of co-workers’ relations, additional work stress, low quality of work and diminished abilities to adapt to uncertain environments (Prabhakar, 2016). Despite these adverse effects of turnover, it can be beneficial when low-productivity workers are more likely to leave (i.e., functional turnover): Such an argument implies that optimal turnover rate is not zero (Madariaga et al, 2018). This led Lee (2018) to empirically conclude that elimination of poorly performing employees contributes to improve organisational performance
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