Chapter One: Introduction

1.1 Background of research study

Employee  turnover  is  giving  a  sleepless  night  to  human  resource  managers  in  many  countries around  the world.  High  employee  turnover  rate  has  increasingly  been  an  issue  of  interest  to  both practitioners and academicians, not just in developed countries but also in the developing countries. In the United States for example, employee turnover has been as a national workplace crisis. The overall number  of  voluntary  turnover  (measure  of workers’  willingness  or  ability  to  change  job)  was  2.1 million in April 2012, up from 1.8 million at the end of recession in June 2009 (in according to the web ).  In  the  assembly  plants of  Northern  Mexico reported the employee turnover ranging from 120% to 150% annually. Managers face major challenge, including  building  an  appropriate  managerial  relationship  and  developing,  and  maintaining organizational commitment among workers (Chinen & Enomoto, 2004).  In addition, many researchers are very interested to research about employee turnover due to it is an important criterion and reflects a critical  motivated  behavior.  One  organization have  high  turnover  rate  is  not  only  affect  to  the  staff morale, but it is also lead to the loss of productive workers while reducing efficiency. According to the research study of Hillmer, Hillmer, and Mc Roberts (2004) on the cost of employee turnover based on data from an existing call center with a 60% annual turnover level.  There was an alarming that the cost of turnover is about a year’s salary for each vacant position. The total cost was over $ 40,000 annually for the small call center in study. Employee turnover results in the loss of not only financial and human capital,  but  also accumulated  knowledge.  When  employees  leave  the  organization,  they  take  the knowledge  with  them  (Droege &  Hoobler,  2003).  Hence,  building  a  turnover  model  and  reducing turnover intention is an important issue to the organization.

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1.2 Focus of the Research

The research study will focus on the following points, which is only focus on employees who are working in the service industry in Cambodia as a sample, due a wide range of study can reduce the reliability of the study. Firstly, the research study only conducted a survey questionnaire on employees who are working in service industry in Cambodia as a selected sample. The reason that this research study only selected those organizations as a sample due to researcher is a Cambodia student study that came  to  study  in  China  so  this  will  be  easy  for  researcher  to  conduct  the research.  Moreover,  it  is convenience for researchers to conduct the survey because researcher knew some of their employees from those organizations, so this way will be easy to ask them for help. Secondly, the research study did not take  into  account  any  unpredictable  internal  and  external  factors  such  as  financial  difficulties, political impacts, nor macroeconomic indicators such as unemployment rate, Consumer Price Index (CPI), and Gross Domestic Product (GDP). Last but not least, the result of this research is not suitable to use in other countries due to the different of culture, leadership style, and level of job satisfaction, working hours, and traditional value. But, the result of the study can be adequate for future study.

The purpose of this study was to find out the relationship of job satisfaction and organizational commitment that can influence to turnover intention on employees in service industry in Cambodia. To discussed to see whether job satisfaction have relationship with turnover intention or not, and to find out is there any relationship between job satisfaction and organizational commitment. Moreover, to look out that organizational commitment plays a role as a mediator in between job satisfaction and turnover intention  or  not.  The  survey  questionnaires  will  conduct  for  employees  that  are working  in  service industry in Cambodia.

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Chapter Two: Literature Review

2.1 Definition of Key Terms

According to Locke (1983) defined job satisfaction as a positive or pleasurable feeling that is the result  from  the estimate  of  one’s  job  experiences.  On  the  other  hand,  based  on  Berry  (1998)  and Rowden  (2002)  defined job  satisfaction  as  the  position  that  can  influences  employees  about organization and organization about employees. According to Zhang Fan Di (張凡迪) (2003) defined job  satisfaction  as  the  result  of  the  individual according  to  its  frame  of  reference  for  the  working characteristics, in which some kinds of working environment can affect job satisfaction involves many factors. 

Organization  commitment  is  referred  to  a  psychological  that  characterizes  the  employees’ relationship  with  the organization,  and  has  implications  for  the  decision  to  continue  or  discontinue membership  in  the  organization (Meyer  &  Allen,  1991).  In  1996  Allen  and  Meyer  also  state  that organizational commitment is a psychological link between employees and organization that makes it less likely which mean that the employees will voluntarily quit from the organization. According to Mathews & Shepberd (2002) stated that organizational commitment encompasses a range of behaviors and  attitudes  in  the  work  place,  and  the  measure  of  this  factor  is  central  to  understanding  such organizational  connections.  Furthermore,  in  related  to  this  definition  of  organizational  commitment Porter, Steers, Mowday, and Boulian (1974) propounded that organizational commitment represented an individual’s belief in an agreement with the company’s goals and values, the willingness to exert effort toward accomplishing the company’s goals, and strong desire to maintain employment at the present organizational. 

The  word  turnover  is  defined  by  Price  (2001)  as  the  movement  of  individual  across  the membership boundary of an organization. Beside Price, there are many definition related to employee turnover,  those  definition  are  not  right or  wrong  the  definition  have  been  given  according  to  the understanding, situation and kind of organization. Bohlander et al (2001) stated that employee turnover refers to the movement of employees out of an organization. From Bohlander definition we can say that regardless employees move of the organization mean that the firm has an employee turnover. Mobley (1977) defined employee turnover as the involvement of those people who are leaving their certain position in the organization after a certain time.  Regarding to Abassi et al (2000) defined turnover as the rotation of workers in the labour market, among firms, jobs and occupations. From this point shows that even the employees is changing their position within the organization it also can deem as turnover. This definition very stress on the rotation of the employees even within the firm due to the reason that when the organization have employees rotation in any cases the firm still face the trouble such as the firm need to find suitable person to replace the current position, as well it needs to take time to train staff to the new task so the loss of profit still happen when there is rotation of staff in the organization. In other word, the rotation of employees around the labour market with companies, jobs and occupations is also  known  as  employee  turnover.  Employee  turnover  is  the  common  voluntary  stop  of  being  a membership in an organization by an individual who receives monetary compensation for participating in that organization Mobley (1982). 

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2.2 Related Concept and Results of Previous research

2.2.1 Employee Turnover

In general employee turnover divided into two kinds which are voluntary turnover and involuntary turnover.   Voluntary employee  turnover  is  strained  the  immediate  links  between  turnover  and  job dissatisfaction  (Mobley,  1977). Due to  voluntary  turnover  can  negatively  impact  organizational effectiveness and employees morale, leaders rightly find out a better ways to manage turnover in order to  retain  valued  human  resources  and  sustain  high  performance.   According  to  Hycner  (1985) categorize  voluntary  employee  turnover  as  job  related  reasons  which  include  (new job  or  other opportunity, job dissatisfaction, higher pay, other job related), and personal reasons such as (relocation, personal  health,  family,  returned  to  school,  retired,  and  other  personal).  Moreover,  resigned  and voluntary leave without reason are the two higher orders of categories of voluntary turnover. 

On the other hand, involuntary turnover refers to the employees leave the company due to the organization asks them to leave or due to some reasons such layoff staff or dismiss staff during the downturn.   Generally,  leader  tries  their best  to  avoid  involuntary  turnover  and  minimize  voluntary turnover. High voluntary turnover should have serious effect to the movement of the firm because when the  firm  have  voluntary  turnover  they  will  face  the  problem  of losing  their  talented  employees  or competition with other firms. In general voluntary can be predicted and controlled. 

Steers  and  Mowday  (1981)  stated  that  the  theory  of  employees  eventually  staying  or  quitting. Price (1997) addressed that demographic determinants and intervening variables that effect employee turnover. The study found that job involvement, job satisfaction, and organizational commitment have the  authority  on  the  employees’  affective responses  to  the  job,  and  affective  responses  affect  the employees’  desire  and  intention  to  leave  or  stay  in the  organization.   The  intention  to  quit  or  stay decides the subsequent behavior of quitting or staying. (Lee & Mitchell, 1994; Mobley, 1977; Price, 1977; Steers & Mowday, 1981).

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Chapter Three: Research Methodology ....................... 15

3.1 BRIEF INTRODUCTION OF CAMBODIA.............. 15

3.2 PROJECT REPORT DESIGN......................... 18

3.3 SURVEY QUESTIONNAIRES DESIGN ............................. 18

Chapter Four: Data Analysis....................25

4.1 DATA ANALYSIS .................. 26

4.1.1 Personal Information Analyze.................. 27

4.1.2 Job Satisfaction factors analysis ........................ 27

Chapter Five: Interpretation Finding and Conclusion............40

5.1 DISCUSSION.................41

5.2 INTERPRETATION.............. 41

Chapter Five: Interpretation Finding and Conclusion

As this chapter is about the interpretation of the result finding, so first this chapter will make a brief discussion about the study research, and then a brief interpretation of the analysis, then come up with the conclusion of the finding, moreover, also give some recommendation to the enterprise management through the finding. 

5.1 Discussion

As have stated above the previous research about the employee turnover in Cambodia are seldom found. However, there were many researcher conducted about the causes of employee turnover and solution  on  how  to  minimize  and prevent  employees  from  turnover  intention  in  different  countries. Moreover, there were also some studies on the organizational commitment with employee turnover, job satisfaction  with  employee  turnover,  etc.  This  paper  has researched  about  the  relationship  of  job satisfaction,  organizational  commitment,  and  turnover  intention. Furthermore,  the  study  was  only conducted on the Cambodia employees who are working in the organization or company which were randomly selected amount service industry in Cambodia.  

The study was conducting the research survey questionnaires that related to the job satisfaction, organizational commitment and turnover intention. The survey questions were divided into four parts. The  first  part  was  about  the job  satisfaction  which  contained  20  items,  second  part  was  about  the organizational  commitment  which contained  18  items,  third  part  was  about  the  turnover  intention question which contain four items, and the last part was about the personal information which contained 7 items.  The hypotheses have been raised according to the variables and sub-variables of the study. There were 252 respondents were receive, however, only 244 respondents were valid to use for analysis due to other responds were not fully completed or careless completed. 

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參考文獻(xiàn)（略）