Relationship between Retention Factors, Organisational Commitment and Actual Turnover: An Empirical Study of Indian B-Schools

Abstract

The paper examines the relationship among retention factors (viz. satisfaction with pay, promotion opportunities, supervision and work-schedule flexibility), organisational commitment and actual turnover in the context of teachers of the Indian B-schools. The research design is longitudinal in nature. A self-administered questionnaire, with items related to the study dimensions, was deployed for the first phase of the study to capture responses on retention factors and organisational commitment. In all, 310 usable responses were generated. In the second phase, data on the actual turnover status of the respondents were gathered after a gap of 1 year. The structural equation modelling technique using LISREL was deployed to test the hypothesised conceptual model. The scales were subjected to a rigorous measurement analysis to test for unidimensionality, reliability and validity. Further, path analysis of the structural model was carried out to test the study hypotheses. It revealed that satisfaction with pay, supervision and work-schedule flexibility had a positive relationship with organisational commitment. Satisfaction with pay and supervision had a negative relationship with actual turnover. It was also found that organisational commitment had a negative relationship with the actual turnover of the teachers, as was hypothesised. The findings provide insights into the dynamics of actual turnover of teachers and throw light on the retention factors that have a significant bearing on the actual turnover. The study is unique as it delves into the rather uncharted domain of retention and turnover in the context of B-school teachers in India.