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Presenter: Kuei -Yuan Betty LiAdvisers : Dr. Tieh-Chun Chang Dr. Pi-Ying Teresa HsuDate : December 23, 2013

The Effects of Organizational Training on Life Insurance Employees’ Organizational Commitment and Turnover intention

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Contents

I. Introduction

II. Literature Review

III. Methodology

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I. Introduction

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BackgroundMotivationJob CharacteristicsQuestionsPurposeGapContribution

INTRODUCTION

Background Prosperous developing life insurance in Taiwan

Abundant organizational training High turnover rate Turnover rate

= 100% - 45.37% Retention Ratio =54.63%

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INTRODUCTION

Research Motivation The effects of organizational training on

organizational commitment at hotel industry (Bulut & Culha, 2010)

The effects of organizational training

at life insurance industry On organizational commitment On turnover intention

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INTRODUCTION

Job Characteristics Salespeople

Working in any places and time for any clients Graduated from senior high or vocational schools Flexible job description Performance-oriented bonus

Office staff Working in the office on working days Graduated from colleges or universities Fixed job description Stable salary

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INTRODUCTION

Research Questions What are the effects of organizational training on life

insurance employees’ organizational commitment?

What is the relationship between life insurance

employees’ organizational commitment and turnover

intention?

What are the differences between salespeople and

office staff in terms of the organizational training,

organizational commitment and turnover intention?

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INTRODUCTION

Research Purpose To investigate

the effects of organizational training on life insurance employees’ organizational commitment

the relationship between organizational commitment and turnover intention

the differences between salespeople and office staff in terms of organizational training, organizational commitment and turnover intention

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INTRODUCTION

Research Gap

Multidimensional researches regarding salespeople

Few researches regarding office staff The complementary data for office staff

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INTRODUCTION

Research Contributions To distinguish

the elements affecting life insurance employees’ organizational commitment

the relationship between organizational commitment

and turnover intention the roles of job characteristics between salespeople

and office staff

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II. Literature Review

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Organizational TrainingOrganizational CommitmentTurnover IntentionHypothesis Structure

LITERATURE REVIEW

Organizational training “Employees perceived training as operationalized

with a multidimensional structure of motivation,

access, benefits and support.”

(Bulut & Culha, p.311, 2010)

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LITERATURE REVIEW

Organizational training Motivation to training “a specific desire of the trainee to learn the content of

the training program and use the knowledge and skills mastered in the training program on the job”

(Noe, 1986, p.743).

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LITERATURE REVIEW

Hypothesis 1 H1a: Life insurance employees’ perceived motivation

to training significantly influences their

organizational commitment.

H1b: Life insurance salespeople’s perceived motivation

to training is significantly different from life

insurance office staff’s.

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LITERATURE REVIEW

Organizational training Opportunities of Training Training opportunities serve a general purpose in

making the employees feel important and taken care of by the organization.

Perceived training opportunities can enhance employees’ motivation, task performance, discretionary efforts and intentions to stay.

(Dysvik & Kuvaas 2008)

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LITERATURE REVIEW

Hypothesis 2 H2a: Life insurance employees’ opportunities of

training significantly influences their

organizational commitment.

H2b: Life insurance salespeople’s opportunities of

training is significantly different from life

insurance office staff’s.

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LITERATURE REVIEW

Organizational training Benefits from Training

Personal benefits To establish their network To improve their job performance To make progress toward their personal

development

(Noe & Wilk, 1993)

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LITERATURE REVIEW

Organizational training Benefits from Training

Career benefits To identify career objectives To reach career objectives To create opportunities to pursue new career

paths

(Noe & Wilk, 1993)

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LITERATURE REVIEW

Organizational training Benefits from Training

Job-related benefits To lead to better relationships between peers and

managers To provide a necessary break from the job

(Noe & Wilk, 1993)

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LITERATURE REVIEW

Hypothesis 3 H3a: Life insurance employees’ perceived benefits

from training significantly influences their

organizational commitment.

H3b: Life insurance salespeople’s perceived benefits

from training is significantly different from life

insurance office staff’s.

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LITERATURE REVIEW

Organizational training Support for Training ”the extent to which employees perceive that their

contributions are valued by their organization and that the firm cares about their well-being”

(Eisenberger et al. 1986, p.501)

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LITERATURE REVIEW

Hypothesis 4 H4a: Life insurance employees’ perceived support for

training significantly influences their organizational

commitment.

H4b: Life insurance salespeople’s perceived support for

training is significantly different from life insurance

office staff’s.

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LITERATURE REVIEW

Organizational commitment The psychological linkage between employees and their

organizations taken as three quite different forms, affective commitment, continuance commitment, and normative commitment.

(Allen & Meyer, 1996 )

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LITERATURE REVIEW

Hypothesis 5 H5a: Life insurance employees’ organizational

commitment significantly influences their

turnover intention.

H5b: Life insurance salespeople’s organizational

commitment is significantly different from life

insurance office staff’s.

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LITERATURE REVIEW

Turnover Intention “the last in a sequence of withdrawal cognitions, a set to

which thinking of quitting and intent to search for alternative employment also belong”

(Tett & Meyer 1993, p. 262)

Hypothesis 6 Life insurance salespeople’s turnover intention is

significantly different from life insurance office staff’s.

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LITERATURE REVIEW

Hypothesis Structure

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Turnover intention

H 6

Organizational training

Motivation to training

Opportunitiesof training

Benefits from training

Support for training

H 1

H 2

H 3

H 4

Organizational commitment

H 5

III. Methodology

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ParticipantsData CollectionQuestionnaire DesignProcedureMeasurement

Methodology

Participants Employees at a listed life insurance company (2012)

Taichung branch

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5586Salespeople - Taichung branch

Office staff - Taichung branch

Total employees: 15,007 28

Other branches- 9,157

Methodology

Data Collection By quantitative survey Convenience sampling 7-point-Likert questionnaires

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(1) Motivation to organizational training

1 2 3 4 5 6 7

1: Strongly disagree

2: Disagree

3: Somewhat disagree

4: Neutral

5: Agree 6: Somewhat agree

7: Strongly agree

1 I try to learn as much as I can from training programs. 2 I tend to learn more from training programs than most

people.

Methodology

Questionnaire design Part I: Demographical Details

1. Gender: □ male □ female

2. Marital status: □ single □ married □ others

3. Job characteristics:

Office staff： □ staff □ lower manager □ middle manager

□ upper manager

Salespeople： □ salesperson □ lower manager □ middle manager

□ upper manager

4. Age: □ under 25 □ 25-34 □ 35-44 □ 45-54 □ over 55 years old

5. Seniority: □ under 1 year □ 1~5 years □ 6~10 years □ 11~15 years

□ over 16 years

6. Education: □ Under high school □ High school □ Bachelor □ Master

□ Ph. D.

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Methodology

Questionnaire Design Part II. Statements

Organizational training Motivation to organizational training Opportunities of participating organizational training Benefits from organizational training Support for organizational training

Organizational commitment (Bulut & Culha, 2010; Dysvik & Kuvaas,2008)

Turnover intention (Newman, Thanacoody & Hui, 2011)

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a 0.7 ; p 0.05

Methodology

Procedure

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Literature Review

Questionnaire

Design

2013

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Pilot Test

60 office staff

60 salespeople

Jan, 2014

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Questionnaires

200 office staff

1,000 salespeople

Feb, 2014

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Methodology

Measurement Statistical Product and Service Solutions (SPSS )

Descriptive Statistics the distribution of demographic data

T-test the differences between salespeople and office staff

Correlative Statistics the relativeness among variables

Regression the effects of the organizational training

Structural Equation Modeling (SEM ) Confirmatory Factors Analysis (CFA)

the proposed interrelationships among variables

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