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1 INFLUENCE OF QUALITY OF WORK LIFE ON EMPLOYEES RETENTION MASTER OF MANAGEMENT IN HOSPITLITY AND TOURISM ABSTRACT Human resources are the life-blood of any organization. They are the most vital and dynamic resources of any organization, without an effective team of human resource the organization can’t attain their goals. There are different types of challenges are facing by the organizations in the case of human resource The biggest challenge that organizations are facing today is not only managing these resources but also retaining them. Securing and retaining skilled employees plays an important role for any organization, because employees’ knowledge and skills are important to companies’ ability to be economically competitive. Besides, continuously satisfying the employees is another challenge that the employers are facing today. Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. For any organization employees are very important and they are treated as the asset of the organization. I selected this topic “the factors affecting employee’s retention”, to know what type of factors are influencing the employees to stay back in the organization, and to analyze the strategies that can be adopted by the organization maintain the retention of the employees in the organization. INTRODUCTION In recent years, the number of visitors to India has increased rapidly. This means that the tourist demands for hotels and services have also increased. One of the important features of the hospitality industry is the growth level of the sector which is highly notable one. According to the world trade union this is the only industry which is growing fast. More than 81.5% of employees work in the same workplace for less than 5 years, and half of the employees leave the workplaces within one year, indicating that hospitality industry workers choose to quit their jobs due to low salary levels and high levels of work pressure. Past studies relating to turnover intention have shown that organizational commitment and job satisfaction are regarded as two important variables that affect the turnover intention of employees (Clegg, 1983). In fact, the findings of the major studies on the relationship between organizational commitment, job satisfaction and turnover intention have confirmed that the two variables have significantly negative effects on turnover intention. This suggests that employees with high job

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INFLUENCE OF QUALITY OF WORK LIFE ON EMPLOYEES RETENTION

MASTER OF MANAGEMENT IN HOSPITLITY AND TOURISM

ABSTRACT

Human resources are the life-blood of any organization. They are the most vital and dynamic

resources of any organization, without an effective team of human resource the organization

can’t attain their goals. There are different types of challenges are facing by the organizations in

the case of human resource The biggest challenge that organizations are facing today is not only

managing these resources but also retaining them. Securing and retaining skilled employees

plays an important role for any organization, because employees’ knowledge and skills are

important to companies’ ability to be economically competitive. Besides, continuously satisfying

the employees is another challenge that the employers are facing today. Employee retention is a

process in which the employees are encouraged to remain with the organization for the

maximum period of time or until the completion of the project. Employee retention is beneficial

for the organization as well as the employee. For any organization employees are very important

and they are treated as the asset of the organization. I selected this topic “the factors affecting

employee’s retention”, to know what type of factors are influencing the employees to stay back

in the organization, and to analyze the strategies that can be adopted by the organization maintain

the retention of the employees in the organization.

INTRODUCTION

In recent years, the number of visitors to India has increased rapidly. This means that the tourist

demands for hotels and services have also increased. One of the important features of the

hospitality industry is the growth level of the sector which is highly notable one. According to

the world trade union this is the only industry which is growing fast.

More than 81.5% of employees work in the same workplace for less than 5 years, and half of the

employees leave the workplaces within one year, indicating that hospitality industry workers

choose to quit their jobs due to low salary levels and high levels of work pressure. Past studies

relating to turnover intention have shown that organizational commitment and job satisfaction

are regarded as two important variables that affect the turnover intention of employees (Clegg,

1983). In fact, the findings of the major studies on the relationship between organizational

commitment, job satisfaction and turnover intention have confirmed that the two variables have

significantly negative effects on turnover intention. This suggests that employees with high job

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INFLUENCE OF QUALITY OF WORK LIFE ON EMPLOYEES RETENTION

MASTER OF MANAGEMENT IN HOSPITLITY AND TOURISM

satisfaction levels have a higher level of work efficiency, organizational commitment, and

willingness to sacrifice for the organization, making it more difficult for them to leave their jobs

(Cranny, 1992).

(Feuer, 1989) Defined QWL as a process by which an organization responds to employee needs

by developing mechanisms to allow them to share fully in making the decisions that design their

lives at work and Quality of work life is specifically related to the level of happiness a person

derives for his career.

Factors affecting employee turnover today have become increasingly complex. The quality of

work life of the employees is an important factor which determines the employees stay back in

an organization (Lambert, 2001). The factors like superior and family support co workers

relation the features of the working environment etc are highly affecting the job satisfaction of

the employees.

Employees in the hospitality industry facing lot of problems, most of the studies were revealed

the factors such as work environment and coworker relationships as the most influential factors

affecting job satisfaction. Moreover, other studies have confirmed that salary level has a

significantly positive effect on organizational commitment, as well as on turnover intention.

Salary is a main motive of the human beings to work in an organization bit the present situation

saying that salary is the only reason behind the retention of the employees. It is apparent that the

effect of work environment, salary level, and coworker relationships are important to turnover

intention.

Regarding coworker relationships, this study intends to find out whether the work environment

affects employee job satisfaction, and in turn, turnover intention. Moreover, because the salary

level of the hotel and F&B industry is the lowest among all industries, another question to be

answered by this paper is whether the salary level affects organizational commitment, which

leads to a high turnover rate. This study uses hotel employees in Le Meridian Kochi as the

research subjects, and discusses the causal structural relationship of their turnover intentions.

COMPANY PROFILE

One of Kochi’s most exclusive addresses since its grand launch in April 2001, Le Meridien

Kochi is adorned in a contemporary style with modern amenities. With its 151 guest rooms and

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13 banquet halls, we inspire a new perspective of discovery for both business and leisure

travellers. Le Meridien Kochi boasts of the most picturesque locale overlooking the serene

backwaters and manicured gardens. The hotel is located at 34 KMs away from the Cochin

International Airport and 5 KMs from the Ernakulum Railway Station. The International

Convention Centre combines spaces that expand ideas with an endless choice of creative

experiences. Explore 60,000 sq.ft of air conditioned indoor space to discover the vivid

opportunities to organise events

The Le Méridien brand was established in 1972 by Air France "to provide on a home away from

home for its customers." The first Le Méridien property was a 1,000-room hotel in Paris — Le

Méridien Etoile. Within two years of operation, the group had 10 hotels in Europe and Africa.

Within the first six years, the number of hotels had risen to 21 hotels in Europe, Africa, the

French West Indies, Canada, South America, the Middle East and Mauritius. By 1991, the total

number of Le Méridien properties had risen to 58.

In May 2001, Nomura Group announced the acquisition of Le Méridien Hotels & Resorts from

Compass Group plc for £1.9 billion and Le Méridien was merged with Principal Hotels, which

was acquired in February 2001. In December 2003, Lehman Brothers Holdings acquired the

senior debt of Le Méridien.

On November 24, 2005, the Le Méridien brand and management fee business was acquired by

Starwood Hotels & Resorts. The leased and owned real estate assets were acquired in a separate

deal by a joint venture formed by Lehman Brothers and Starwood Capital.

LITERATURE REVIEW

Quality of work focuses on the quality of relationship between employees and total work

environment. The fundamental rationale is to develop work environment that are the best thing

for people as well for the economic health of the organization. Quality at work trims down

attrition intentions of the prospective employees and then helps out in reducing absenteeism and

improving job satisfaction (Clarke, 2001). Previous researches suggested several factors which

play an important role in employee retention (Cappelli, 2000). The factors which are considered

and have direct affect are; career opportunities, work environment, work life balance,

Organizational justice, and existing leave policy and organization image. Employee are stay and

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loyal with such organization where employee have value, sense of pride and work to their full

potential (Cole, 2000). The reasons to stay employee in organization are organization reward

system, growth and development, pay package and work life balance.

Employees retaining is the most important target for the organization because hiring of qualified

candidate is essential for organization but their retention is more important than hiring, because a

huge amount is spending on the orientation and training of the new indicated employees (Cotton,

1986). Many researchers found that the cost of replacing of old employees with new is estimated

up to twice the employee annual salary. When Employee leaves the job, organization lost not

only employee, but also lost the customers & client who ware loyal with the employee,

knowledge of production, current projects, competitor and past history of the organization.

Organizations make enormous efforts to attract employees and sustain them in the organization.

In today’s business scenario only high salary and designation is not significant for employees to

retain them in the organization, but others factors also play important role in their retention. The

intent of this research is to how the organizations retain the talented employees in the

organization focusing on the factors which means career development, leave policy, leadership

style, work environment, remuneration & rewards, Organization Justice, and performance

appraisal. (Van Knippenberg, 2000), suggested that employee become more loyal and stay in the

organization when they identify themselves within a group and contribute to the performance as

a group. When the employees came in to a group there will be a common goal and co ordination

to achieve the same. Today’s reasons for the retention of the employees are lack of coworkers

relation defects in the organization policies, effects of the supervisor support dissatisfaction in

work environment etc are the leading reasons for the retention of the employees.

(Fitz-enz, 1990) recognized that only one factor is not responsible in management of employee’s

retention, but there is several factors influenced in employee’s retention which need to manage

congruently i.e. compensation & rewards, job security, training & developments, supervisor

support culture, work environment and organization justice etc.

Earlier studies on employee turnover focused mainly on understanding causal mechanisms but

several studies carried out on employee retention, the strategic human resource researchers are

still investigating the things happening in between HR practices and firm’s performance

(Bluedorn, 1982), mostly related to voluntary turnover as a critical component (Shaw, 2005) as

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employee retention plays a vital role in bridging the gap between the work progress and the

growth behavior in Organizations. This is because it ensures stability and connects the

experiences of individuals in Organizations on a continuous basis to the critical measures of

success factors in the Organization. The decision of leaving the Organization is not easy for an

individual employee as well as significant energy is spent on finding new jobs, adjusting to new

situations, giving up known routines and interpersonal connection and is so stressful (Boswell,

2005). Therefore if timely and proper measures are taken by the Organizations, some of the

voluntary turnover in the Organization can be prevented. The aim of this research is to find out

whether the factors like work environment, co workers relation, supervisor and family support

are influencing the retention of the employees in Le meridian hotel cochin also helpful to know

the determent that why employees leave the organization.

METHEDOLOGY

The topic of the research was “A study on the influence of quality of work life on employee’s

retention”. The study conducted among 33 respondents gave a clear idea about the type of

relationship between the dependent and independent variables i.e. retention of the employees and

factors like co workers relation, superior subordinate relation, and work environment

respectively. The research instrument of the study was the questionnaire filled up by employees

of different departments and designation of Le meridian Cochin. The questionnaire contains

many questions that can get answers about the impact of quality of work life on employee’s

retention. The questionnaires were collected from the respondents during the two month

internship period. There were 33 respondents and questionnaires were collected from them all

and were evaluated on a 5 point scale, rating as strongly agrees to strongly disagree.

The sample for this study was chosen through convenience sampling. The sample is selected

irrespective of the gender, age, department, designation, qualification etc. The sample size of the

study is 33. SPSS was used as statistical software and the statistical tools used in this were,

correlation, ANOVAs, Regression, and Cross tab. The general objective of the study was to find

the influence of quality of work life on employee’s retention. Through this study the organization

can be able to know about whether the retention of employees are being the reason of different

factors like work environment, co workers relation, and the supervisor support. By the result of

this research they can understand the satisfactory level of being a member of the organization;

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they feel that they are working with an excellent team in the organization, they are loyal to the

organization or not, their attachment etc. The main objectives of the study were; to find the

influence of work environment on employee’s retention, co workers relation on employee’s

retention, superior and family support on employee’s retention.

DATA ANALYSIS AND DISCUSSION

Table 1: PROFILE OF RESPONDENCE

Sample characteristics of

respondent

Characteristics Frequency Percentage

Gender Male 21 61.8

Female 12 35.3

Age

20-30 3 8.8

30-40 13 38.2

40-50 13 38.2

50-60 4 11.8

Level of Employment

Managerial 6 17.6

Non Managerial 27 79.4

Years of Employment

Less than 1 year 4 11.8

1-2 8 23.5

2-3 9 26.5

3-4 10 29.4

4-5 2 5.9

Sample Characteristics

The above table shows the detail of the sample selected. Here in the above table 61.8 percent of

the respondents are male and the rest 35.3 percent are females. Over 8.8 percent of them are of

the age category of 20-30, 38.2% are belongs to 30-40 category, under 40-50 category again

38.2% are coming, rest of the 11.8% respondents are belongs to 50-60. In my respondents 17.6%

are holding the managerial positions and the rest 79.4% of them do not hold any managerial

positions. The levels of experience among the employees are 11.8 % with less than 1 year, 23.5%

with 1-2 year experience, and 26.5% with 2-3 years of experience. The employees with 3-4 years

of experience are 29.4% and the rest of 5.9% belongs to 4-5 years of experience.

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Information from the respondents was entered into the SPSS. Data were analyzed with the help

of Descriptive Statistics, Correlation, ANOVA, Regression etc. Following are the analysis and

interpretation of the data collected from the 33 respondents.

To know the impact of work environment on employees retention.

Correlations

Retention

Work

environment

Retention Pearson Correlation 1 .395*

Sig. (2-tailed) .023

N 33 33

Work environment Pearson Correlation .395* 1

Sig. (2-tailed) .023

N 33 33

From the above table we can understand that, there is a positive correlation between the work

environment and the retention, which is significant at 0.05 levels. This means that when the work

environment improves the retention also increases and vice versa. Therefore the companies

should take efforts to see that the work environment should be satisfied by the employees in the

organization.

ANOVA

Retention Work environment

Sum of Squares df Mean Square F Sig.

Between Groups 1.251 2 .625 2.831 .075

Within Groups 6.628 30 .221

Total 7.879 32

From the above ANOVA table we can understand that retention of the employees is different

based on their intensity of work environment. The descriptive table below gives the mean values

of retention based on work environment.

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INFLUENCE OF QUALITY OF WORK LIFE ON EMPLOYEES RETENTION

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Retention Descriptive

Mean

neither agree nor disagree 4.0000

Agree 4.5217

strongly agree 4.8889

Total 4.6061

The descriptive table above once again makes it very clear that their retention increases

with their level of satisfaction of work environment which was also clear from the correlation

table above. The company must also take some actions that result in matching organizational

values and employees which will later result in retention of employees.

Coefficients

Model

Un standardized

Coefficients

Standardized

Coefficients

Sig. B R Square Beta

Work environment .391 .156 .395 .023

a. Dependent Variable: Retention

Regression analysis is done to check the significance found in correlation. It is significant in

regression analysis also. Here the P-value is .023, which is significant at 0.05 levels. Here R

square value is .156, which means 15.6% of retention is due to work environment. The beta

value here is 0.395 which means that one unit change in work environment leads to 0.395 unit

change in the rate of retention. The positive beta value also indicates that there is a positive

relation between retention and work environment.

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To evaluate the impact of co-workers relation on employees retention.

Correlation table between co workers relation and retention

retention

Coworkers

relation

Retention Pearson Correlation 1 .759**

Sig. (2-tailed) .000

N 33 33

Coworkers relation Pearson Correlation .759** 1

Sig. (2-tailed) .000

N 33 33

From the above table we can understand that, there is a positive correlation between the co

workers relation and retention, which is significant at 0.01 levels. This means the co workers

relation is affecting in the retention of the employees. Therefore the companies should take

efforts to maintain a good co workers relation in the organization.

ANOVA

retention

Sum of Squares df Mean Square F Sig.

Between Groups 4.534 1 4.534 42.029 .000

Within Groups 3.344 31 .108

Total 7.879 32

From the above ANOVA table we can understand that retention of the employees is significantly

influenced by the intensity of the co workers relation. Which means that, the differences in co

workers relation significantly influences the retention. The descriptive table below gives the

mean values of retention based on co workers relation.

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Retention Descriptive

Mean

Agree 4.2000

strongly agree 4.9444

Total 4.6061

The descriptive table above once more makes it very clear that their retention increases with their

level of co workers relation which was also clear from the correlation table above. The company

must also take some actions that will keep co workers relation factors high otherwise which will

result in retention of employees.

Coefficients

Model

Un standardized

Coefficients

Standardized

Coefficients

Sig. B R Square Beta

Co workers relation . .744 .576 .759 .000

Regression analysis is done to check whether, the significance found in correlation is significant

in regression analysis also. Here the P-value is .000, which is significant at 0.01 levels. Here R

square value is 0.576, which means 57.6% of retention is due to co workers relation. There is a

positive relation between retention and co workers relation. The beta value here is 0.759 which

means that one unit change in co workers relation leads to 0.759unit change in retention.

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To know the influence of supervisor support and the family

support on employee retention

Correlations

retention

Supervisor

support

retention Pearson

Correlation

1 .312

Sig. (2-tailed) .077

N 33 33

Supervisor

support

Pearson

Correlation

.312 1

Sig. (2-tailed) .077

N 33 33

From the above table it is clear that there is no significant relation in between the supervisor

support and the retention of the employees. From the above table showing the values which is

clearing that there is relation between two factors but it can’t be proved. For the further studies I

have done the ANOV and cross tab of these two variables.

ANOVA

Retention

Sum of Squares df Mean Square F Sig.

Between Groups .766 1 .766 3.339 .077

Within Groups 7.113 31 .229

Total 7.879 32

From the above ANOVA table we can understand that retention of the employees is not

significantly influenced by the intensity of the supervisor support. This result means that there is

relation but it is not significantly influencing the two variables.

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Retention Descriptive

Mean

Agree 4.4286

strongly agree 4.7368

Total 4.6061

The descriptive table above once again makes it very clear that their retention increases with

their level of satisfaction of superior support which was also clear from the correlation table

above. The company must also take some actions that result in matching organizational values

and employees which will later result in retention of employees

FINDINGS OF THE STUDY

The project on “Study on the influence of quality of work life on employee’s retention in Le

meridian hotel Cochin” has delivered us the findings and conclusion based on the topic. Through

analyzing different factors that influence the retention of employees, it is understood that all the

factors like superior support, co workers relation, work environment etc are influencing the

retention of the employees, but the employees are saying that the superior family supports are not

a factor which is not being influencing the retention. There is a positive relationship found

between the dependent and independent variables when did the correlation. It is also clear that,

when the work environment in the le meridian hotel increase the retention rate of the employees

is also changes and vice versa. And when take into consideration of the second objective the co

workers relation from the calculation it is also clear that the relation between the employees are

less as compared to the other hotel industry. From the response of the employees they

mentioning that effective co workers relation can maintain the retention rate and can build up

good relation and through that, the organization can offer job satisfaction among the employees.

The questionnaire that used to collect data from the employees includes questions that measuring

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the level of different factors that affecting the retention of the employees. Through the analysis

and interpretation the role of quality of work life on the retention of the employees is clear and

the range of influence that through various factors are also revealed. The result helps the

organization to determine which the factors are that is increases the rate of retention of the

employees, and the organization can control the factors and can implement new policies and

procedures to reduce the rate of retention of the employees in the organization. This study giving

the organization a chance to analyze, which are the factors that influencing the retention of the

employees and also they can take appropriate attention to prevent such situations in the

organizations.

The major findings on the objectives of the study are; the retention of the employees is different

based on the intensity of the work environment of the organization, it was also found that, the co

workers relation intensity is also high, so the retention is significantly influenced by the co

workers relation of the employees. It was clear that, the superior family support to the employees

is high but it is not contributing significance to the retention of the employees.

. Managers also need to give training to employees who rated as the organization value and that

of the organization matches as average, to make them clear about and understand the value of the

organization. Perhaps it may the problem of employees because they are new to the organization.

Proper planning and coordination can maintain the employees’ stay back in the organization. The

organizations attitudes towards the employees is also a factor which determines the retention of

the workers so the organizations should take attention regarding wealth of the employees, and a

solution for the leaving the organization.

LIMITATIONS OF THE STUDY

One of the limitations I found in this study is that, the study is based on the responses of the

respondents which may bias. The total number of the respondents that is used for the study is

very less; it should have been more in numbers. Perhaps there would have been a change in the

result when the no increases. So when further study is done, no of the respondents must be

considered. And another factor to be taken care is the equality of gender in selecting the

respondents. In this study most of the respondents were male; only 8 female employees were

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there. There were some employees who were not ready to fill the questionnaire. It may because

of the some kind misunderstanding of them. Le Meridian as a reputed brand, some of the

employees were not ready to give the information and also the most of the employees were

satisfied and they tell me no need of filling of such data because they are showing commitment

and job satisfaction and also they happy with the work environment and factors like co workers

relation, superior subordinate relation and all.

CONCLUTION

The main thrust of this study is based on the quality of work life on retention of the employees.

The study analyzed various factors that come under the quality of work life like happy being a

member, working with an excellent team, co workers are very helpful to the work life and the

superior family support is essential etc. Through this analysis the specific objectives were proved

to be significant. Through this paper we can come to the conclusion that, the quality of work life

is highly influencing the retention of the employees in the le meridian hotel Cochin.

So the study suggests that, since the quality of work life influencing the retention, the managers

must take steps to prevent the left out of employees from the organization. And also they must

take necessary actions to improve the factors come under the quality of work life. The

improvement of the factors in work life will increase the rate of retention in the organization.

The results of this study suggest that coworker relationships and work environment have

significantly positive effects on retention of the employees when the facilities and co works

relation is increasing the employees retention is also increase. If hotels can provide a better work

environment and facilitate harmonious coworker relationships among employees, job satisfaction

can be effectively improved. Moreover, job satisfaction and salary level have no direct effect on

retention, however, job satisfaction and salary level can indirectly affect the employee turnover

rate through organizational commitment. The results also suggest that higher salary levels, higher

levels of job satisfaction, and higher levels of organizational commitment will lead to lower

turnover intention. When discussing factors affecting employee turnover intention, the study

showed that coworker relationships, salary level, and organizational commitment in addition to

work environment are important factors that influence employee retention. Because job

satisfaction and salary level indirectly affect retention through organizational commitment,

employees will begin to identify with the company, its goals and business strategies, and their

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jobs if the company can effectively enhance their organizational commitment. Therefore, the

effect of organizational commitment is very important to hotel employees.

Questionnaire

1. Age: 20-30 30-40 40-50 50-60

2. Gender: Male Female

3. Level of Employment: Managerial Non managerial

4. Years of work experience: below 1 1-2 2-3

3-4 4-5 above 5

Mark the options from highest agreement (5) to lowest agreement (1)

5= Strongly Agree 3 = Neither agree Nor Dis-agree 1 = Strongly Dis-agree

I often get opportunities to communicate with my

superiors.

I have freedom to communicate with my superiors.

I have my supervisors’ support in work.

Superior willing to tolerate arguments and give fair hearing

Listens to you when you share things that are bothering

you

My family is willing to share my stress

They are very eager to know about my work

Suggestions and support from the family.

Please rate your level of agreement with the following statements regarding your colleagues

in the department where you work:

The people in my work group use time and resources

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effectively.

The people in my department cooperate to get the job done.

I feel that my own ideas are genuinely considered in the

department.

The people in my department share job knowledge with

each other.

The people in my department are honest, open and

transparent in their dealings.

The people in my department treat each other with respect.

The people in my department resolve conflict quickly when

it arises.

Please rate your level of agreement with the following statements regarding aspects of your

organisations working environment:

My organisation is a good place to work.

In general, employees in my organisation effectively

manage conflicts of interest.

Employees in my organisation feel they are valued for their

contribution.

My organisation places a high priority on the learning and

development of employees.

When someone praises the accomplishments of my

organisation, it feels like a personal compliment to me.

Please rate your level of agreement with the following statements regarding aspect of your

retention from the current organization

I often seriously consider leaving my current job.

I intend to quit my current job.

I have started to look for other jobs.

This organization giving only stressing duties more than

my working capabilities

Other organizations providing more freedom to workers

Organization is not considering employees wealth

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