The Moderating Effect of Working Environment on the Relationship Between Human Resource Management Practices and Employee Turnover Intention: A Study of Tyre Manufacturing Industry in Sri Lanka

H J Hewavithrana,B M Wijesiri

doi:10.4038/wjm.v10i2.7485

Abstract

Employee turnover has been considered as major problem for most organizations, especially in the tyre manufacturing industry. Management of companies should minimize employee turnover through their better HRM practices. Therefore, this study attempted to identify to the relationship between HRM practices and employee turnover intention among employees in the tyre manufacturing industry in Sri Lanka. And also it identified the moderating effect of the working environment on the relationship between Human Resource Management (HRM) practices and turnover intention. The study was based on six hypotheses that were constructed to reveal whether performance appraisal, rewards, training and development and working environment significantly affect employee turnover intention. These three HRM practices and working environment were identified based on previous literature. Furthermore, this study was conducted among 278 employees who work in tyre production sections from three tyre manufacturing companies. Moreover, the study collected data using a structured questionnaire and analyzed through reliability analysis, descriptive analysis, correlation analysis and multiple regression analysis. Results of the analysis revealed that performance appraisal, rewards, training and development had a significant negative impact on employee turnover intention. Further, the working environment as a moderator significantly decreased the relationship between HRM practices and turnover intention.

Highlights

Organizations are seeking growth and successful progress because of the highly competitive nature in the business world
This study introduced the working environment as a moderator to identify any significant impact on the relationship between Human Resource Management (HRM) practices and employee turnover intention
The questionnaire was divided into 3 sections where section 1 includes demographic details of respondents and section 2 includes all about employee turnover intention, selected HRM practices and working environment

Summary

Introduction

Organizations are seeking growth and successful progress because of the highly competitive nature in the business world. Employee turnover has become one of the major issues faced by the tyre manufacturing industry in Sri Lanka. This has result negatively to the company’s efficiency when skilled employees often leave the organization and the work population contains a high percentage of new employees. Turnover is the actual action that employees had left the company and move to another company for new employment relationships (Price, 2001) and turnover intention is the behavior that employees thinking of leaving and terminate for the current employment relationship, but not the actual action to leave the current job (Cotton and Tuttle,1986). The actual turnover behavior has a strong and significant positive relationship with turnover intentions (Samad, 2006)

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