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Asian Social Science; Vol. 11, No. 13; 2015
ISSN 1911-2017 E-ISSN 1911-2025
Published by Canadian Center of Science and Education
260
Retention Factors and Their Relative Significance in Ceramic
Manufacturing Industries in India
S. Umamaheswari1 & Jayasree Krishnan2
1 Faculty of Business Administration, Sathyabama University, Chennai, India
2 Department of Management Studies, St. Joseph’s College of Engineering, Chennai, India
Correspondence: S. Umamaheswari, Faculty of Business Administration, Sathyabama University, Chennai, India.
E-mail: umaaishwarya99@gmail.com
Received: December 31, 2014 Accepted: March 4, 2015 Online Published: May 16, 2015
doi:10.5539/ass.v11n13p260 URL: http://dx.doi.org/10.5539/ass.v11n13p260
Abstract
Due to the tough competition prevailing in the manufacturing industries, retention of employees has become a
challenge for the organizations. Surveys predicted that there is a strong growth in ceramic sector. Therefore
special attention is given in this paper to analyze the factors influencing employees’ continuation in ceramic
manufacturing industries. Work life balance & policies, organization commitment, supervisor support and
training & development were the four non-monetary factors considered for analysis. This study explored the
facts over employees of ceramic manufacturing industries in India. Statistical tools were utilized to analyze the
influence of variables. The analysis revealed that all the four factors were correlated to employee retention. The
findings also concluded that work life balance & policies, organization commitment and supervisor support
exerted significant influence with employee retention. It is also found that supervisor support exerted more
influence that other two factors. Suggestions and limitations of the study were also incorporated.
Keywords: employee retention, work life balance & policies, organization commitment, supervisor support,
training & development, ceramic manufacturing industries
1. Introduction
Employees are considered as the heart and soul of an organization. Most of the manufacturing industries mainly
depend on their workforce for their production though some major firms utilize latest technology of automation.
Even for them, work force is essential to operate and maintain their machineries. Further possessing of critical
employees differentiates them from their competitors. But in reality industrialization provided wider scope for
able employees to mobilize towards better opportunities and pulling of capable employees by the competitors
can also occur creating a deficit in the required work force. The benefits of retaining critical employee include
the ability of the company to achieve strategic business objectives and to gain a competitive advantage over its
current and potential competitors (Ramlall, 2003).
Knowledgeable workers play a vital role in the business activities of the organizations. One of the characteristics
of knowledge workers is their high level of mobility. The cost of labour turnover of the key resources is high in
both financial and non-financial terms. There is, thus a need to understand what the factors are that underpin the
retention of cognitions of knowledge workers (Sutherland & Jordaan, 2004).The researchers Sutherland &
Jordaan (2004) concluded from their study that the need of high individualism, the need for challenge and the
career management desires of this new breed of workers who are unique and increasingly important contributors
to the knowledge based economy is to be considered in the formation of retention strategy. Organizations should
have a proactive retention strategy so as to satisfy the employees who differ by roles, needs and their motivation
to the maximum extent (Ragupathi, 2013).Hence organizations, particularly manufacturing industries are giving
their utmost priority in retaining their employees apart from giving importance to acquire raw materials for their
products.
1.1 Significance of the Study
The studies by Hay group(2013) observed that higher attrition rate of over 26% exists in India and survey on
manufacturing industries predicted a strong growth of over 10% in ceramic sector in April-June
2014-2015(FICCI,2014),which increased the necessity of more employees. The general strategy of “pay more
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261
and retain” results in escalation of production cost, which diminished the chances in capturing domestic and
international market. Thus organizations are looking for non- monetary factors effecting retention. Moreover pay
is clearly not the most important issue in employee turnover however, a certain level of pay is needed to recruit
and retain (Boxall, Macky, & Rasmussen, 2003). Researchers Yiu & Saner (2014) outlined in their article that
turnover cannot be smoothened by salary increase and by costly extrinsic incentives alone. Hence non-financial
factors also plays considerable role in the retention of employees. Further, motivation for job change is a
multi-dimensional and no one factor will explain it (Boxall et al., 2003). There is no globally accepted formula to
prevent turnover and it is needful to formulate suitable retention strategies to compete in the global market
giving importance to the critical factors influencing retention of employees (Nwokocha & Iheriohanma, 2012).
This necessitated the research and main factors focused in this article were work life balance & policies,
organization commitment, supervisor support and training &development. As ceramic sector is less attended one,
this article explores the influence of above non-financial factors and their relative significance over employee’s
working in ceramic manufacturing industries in India.
1.2 Literature Review
1.2.1 Work Life Balance & Policies and Retention
Work life balance involves balancing career demands with personal and family needs (Gupta, 2010). Work life
policy is the organization‘s methods adopted for satisfying the needs of employees to balance work and their life.
Policy on work life balance varies from organization to organization. Various combinations of options were
offered to the employees. Some of the options include job sharing, part time working, staged working hours,
occasionally working at home, and leaves etc. (Sanghi, 2012). Work life balance is increasingly an important
factor for employee retention and people are leaving their jobs, to acquire better work life balance (Boxall et al.,
2003). Supportive work culture characterized by work time and work life flexibilities contributes to increased
work life balance and make employee more proactive. This kind of corporate culture has a strong role to play
between work life balance & practices and human resource issues like retention and turn over (Kar & Misra,
2013). Work life balance have an impact on employee retention and work life policies plays a role of obtaining a
balance between work and life. It encourages employee’s decision to remain with the organization (Shoaib, Noor,
Tirmizi, & Bashir, 2009). According to recent research published in training & development 69% absences are
not due to illness but occur because employees decide to attend their personal needs. This may cost an employer
over $600 per absence .The financial health of a company is linked to personal health of the human capitals.
(Work/Life Initiatives Impact Employee Retention, 2003). Flexible working practices helps staff to strike a
balance between paid work and personal life, can lead to improved recruitment and retention, reduction of
absenteeism and an improved staff commitment and productivity (Manfredi & Holliday, 2004). Job retention is
positively associated with the employer’s promotion of work life balance (Smith, 2005).
The Mccrindle study of 3000 Australians showed that work life balance is the number one factor of job attraction
and retention (even above salary) (Pleffer, 2007). One of the main reasons for employee’s stay in their company
is flexible work schedule (Ramlall, 2003). Both perceived flexibility and supportive work life balance & policies
significantly increase the likelihood of expected retention (Richman, 2006). Work life programme have the
potential to significantly improve employee morale, reduce absenteeism, and retain organizational knowledge,
particularly during difficult economic times. Also work life programmed offer a win- win situation for employers
and employees (Lockwood, 2003). An exploratory study on the views of male workers by the researchers
Hughes & Bozionelos (2007) indicated the existence of clear correlation between problems with work life
balance and withdrawal behaviors including turnover and non-genuine sick absence. According to new research
from Hay Group (April 16, 2013) more than one in four employees (27%) at organization that are not perceived
to support work life balance plan to leave their companies within next two years. The authors
Cegarra-LeivaSánchez-Vidal & Cegarra-Navarro (2012) while analyzing the effect of work life balance over
managers found that informal support for work life balance is expressed through the existence of positive and
supportive organizational values for work life balance, plays a major role in enhancing organizational out comes
such as job satisfaction among mangers and their retention in small and medium enterprises. The above literature
review reveals that work life balance &policies is an important factor for retention.
1.2.2 Organization Commitment & Retention
Organization commitment is the extent to which an employee feels a sense of allegiance and loyalty to /his/her
employer. Organization commitment is the emotional reaction of employees towards an organization and its
policies. Organization commitment is getting attention due to its ability to produce desirable outcomes for the
people of the organization (Haldar & Pareek, 2009). Organization commitment was found to be the most
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influential factor in affecting employee’s staying intention (Othman & Ghazali, 2014). Strong organization
commitment derives and shapes the organization culture that promotes a sense of belonging and ownership
among employees essential for being satisfied, productive and loyal employees, hence reduces turnover intention
(Hussain & Asif, 2012). A strong inverse relationship is also confirmed by the research of (Jehanzeb, Rasheed, &
Rasheed, 2013) between organization commitment and turnover intention. Affective commitment of employees
is negatively and significantly related to employees’ turnover intention (Joarder, Sharif, & Ahmmed, 2011).
The researcher Arthur (1994) found that employees with more commitment towards their organization perform
better and also noticed increased efficiency and production quality in their job. Hence organization prefers
philosophy of commitment to minimize their employees’ turnover. Work values are related to various facts of job
satisfaction, which in turn influence commitment to the organization (Froese & Xiao, 2012). Intention to quit is
largely influenced by lack of commitment to the organization(Firth, Mellor, Moore & Loquet,2004).Research
conducted by Parasuraman (1982) found that organization commitment of employees was one of the strongest
predictors of turnover intentions. The research by Salleh Nair & Harun (2012) provided empirical support that
organization commitment was significantly and negatively related to turnover intention. According to Steers,
(1977) who carried out the study among 382 hospital employees and 119 scientists and engineers found that for
both samples, personal characteristics, job characteristics, and work experiences influenced commitment.
Moreover, commitment was found to be strongly related to intent and desire to stay. Also organizational
commitment played a very important role in affecting a person's decision to stay (Igbaria, Meredith, & Smith,
1994). The above findings give evidence that organization commitment is an important factor for employee
retention.
1.2.3 Supervisor Support and Retention
Organizations feel that the supervisors are the sources of general assistance in the efforts to retain their critical
employees (Ramlall, 2003). The quality of relationship between supervisor and employees is an important factor
in retaining individuals (Boxall et al., 1993). Supervisor support is a major contributor for employee retention
amongst all other determinants (Shoaib et al., 2009). The research by Gentry, Kuhnert, Mondore, & Page (2007)
on blue-collar part time workers in U.S.A revealed that “perceived supervisor support levels were related to
retention rates” and this clearly shows that supervisor support is an important predictor of retention. Employees
who perceived high support expressed stronger feelings of affiliation and loyalty to the organization as perceived
support related to supervisor’s evaluations; the relationship with supervisor plays an important role in
employee’s decision of stay in the organization (Eisenberger, Fasolo, & Davis-LaMastro, 1990). Supervisory
relationships were rated as an important factor in the decision of continuation with the company and also
perceived poor treatment by a supervisor leads to turnover (Borstorff & Marker, 2007). Supervisor role is
becoming very crucial for organization. Supervisors are influenced in directing a clear career vision to
employees thus enhancing dependence on organizational career management. The encouragement of a more
interactive and coaching approach via supervisors would facilitate the development of trust and confidence from
employees and they will be more willing to strive for organization goal in return (Tan, 2008).
Employees who believed that the supervisor valued their contribution and cared about their well-being showed
increased perceived organization support, which in turn was related to decreased turnover. Also employees with
low perceived organization support may believe that their prospective success in the organization is greatly
limited. Thus a reduction of perceived organization support, resulting from perceived supervisor support or other
resources may increase employee’s likely hood of quitting the organization. (Eisenberger, Stinglhamber,
Vandenberghe, Sucharski, & Rhoades, 2002). If bosses are supportive, encouraging and let employees to learn
from mistakes, more the employees feel sense of pride in their jobs. Supervisors or the managers of the
organization play a vital role in employee retention (Fatima, 2011). The researchers Ng’eno Williter Chepkemoi
Rop (2014) predicted that employee’s work appreciation, freedom to make job-related decision, mentorship and
career development granted by the supervisor had a high and positive significance with supervisor’s influence on
employees to continue in the firm and hence supervisor-employee relationship is an important attribute that
significantly affects retention of millennial employees at their work places. There exists direct relationship
between supervisor support and turnover decision of faculty member of private universities of Bangladesh
(Joarder et al., 2011). Supervisor support plays a crucial role in increasing the enthusiasm among employees
which leads to job satisfaction and employee retention (Hassan, Razi, Qamar, Jaffir, & Suhail, 2013). Supportive
and competent supervisor positively associated with job retention (Smith, 2005). The above mentioned literature
survey revealed that supervisor support is an important determinant of employee’s retention.
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1.2.4 Training & Development and Retention
The overall aim of a training programme is to fill the gap between existing and desired pool of knowledge, skills
and aptitudes. The objectives of training express the gap between the present and desired performance levels.
(Gupta, 2010). In order to enhance employees’ performance to meet global challenge managerial learning frame
work is required (Garg & Rastogi, 2006). The more knowledge the employee acquire the more will be their
performance .The necessity of increased skills and efficiencies of employees had been felt by organization and
they are investing on training programmes. The investment on work practices are justified and encouraged as
they are associated with greater productivity and corporate financial performance and lower employee turnover.
(Huselid, 1995). The study by the researcher Ragupathi, (2013) identified that training is the fundamental
consideration for the employee’s retention decision. Training and career development has significant positive
association with intention to stay (Chew & Chan, 2008). Training, its types and direction is a key variable that
lead to job satisfaction and employee retention (Hassan et al., 2013). The finding of the study by Ashar, Ghafoor,
Munir, & Hafeez (2013). Support the notion that affective commitment of employees is highly effected by
perception of training and also depict inverse relationship between affective types of commitment and turn over
intentions. Training & development is contributing strongly in developing employees’ intention to stay with the
organization. (Hussain & Rehman, 2013).
According to Tangthong, Trimetsoontorn, & Rojniruntikul (2014) though training & development does not have a
complete role in determining employee retention, it exerts direct and indirect effects when it is combined with
compensation and reward benefits. Training can be an important tool for retaining employees, but it can see that
the impact of training on compensation of an employee can be very crucial for retention (Anis, Ijaz-Ur-Rehman,
& Safwan, 2011). The researchers Hong, Hao, Kumar, Ramedran, & Kadiresan (2012) while analyzing the
retention effects of variables, found that training & development provided to employees had significant influence.
The study of Huselid (1995) provided broad evidence to the fact that use of high performance work practices
will be reflected better firm performance. Also work practices such as providing training and employment
security by the company are important factors associated with employee turnover. The literature survey revealed
that training is one of the important determinants for job retention.
1.2.5 Objectives of the Study
1) To examines the influence of work life balance & policies, organization commitment, supervisor support, and
training & development (independent variables) on employee retention (dependent variable).
2) To predict their relative significance.
1.2.6 Hypothesis
As discussed above the following hypothesis are proposed in the present study.
H1-There is an association & significant relationship between work life balance & policies and employee
retention.
H2-There is an association & significant relationship between organization commitment and employee retention.
H3-There is an association and significant relationship between supervisor support and employee retention.
H4- There is an association and significant relationship between training & development and employee retention.
2. Method
2.1 Sample and Procedure
Respondents in the study were staff of ceramic manufacturing factories in India. Out of 550 self-administrated
questionnaires distributed to the staff of the above factories, 416 usable questionnaires were used in the statistical
analysis representing a response rate of 75% (approx.) from the sample. The selection of the respondent is based
on the simple random sampling.
2.2 Profile of the Respondents
Respondents of the study comprises of 25-45 age group (81%) and 57% belongs to 5-15 years of service. As
regards to educational qualification approximately 73% of them possess post graduate and professional
qualification. Majority of the respondents work in production department and they hold middle level managers
post.
2.3 Measurement
The independent variables of the study were work life balance &policies, organization commitment, supervisor
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support, training & development. Totally 35 questions exists in the questionnaire. There were five questions for
work life balance & policies and eight questions for organization commitment .Another five questions were
floated to measure supervisor support and seven questions for training & development. Dependent variable is
employee retention with 10 questions. Respondents were asked to respond the questionnaire on a Likert- scale
range from 1- 5 with 1 = strongly disagree and 5=strongly agree. Statistical package for the social sciences
(SPSS) has been employed for analyzing the collected data. The researcher developed the questionnaire based on
self-administration and adoption from previous papers (Dockel, 2003; Chew, 2004; Wang, 2012; Sophia, 2007;
Mowday, Steers, & Porter, 1979; Atkinson, 2011; Olafsdottir, 2008).
3. Results & Discussion
Table 1. Mean, standard deviation and Cronbach’s alpha
Va ri a b le s Mean Standard Deviation
N
o of ite
m
Cronbach’s alpha
Work life balance & policies 21.46 2.09 50.766
Organization commitmen
t
34.26 3.32 80.829
Supervisor suppor
t
21.29 2.21 50.785
Training & developmen
t
25.11 2.51 70.818
Employee retention 41.50 4.482 10 0.902
Table 1 shows the mean, standard deviation and Cronbach’s alpha for each variable. It depicts the reliability
coefficient of variables which ranges from 0.766 to 0.902 which concurs with minimum acceptable level of 0.70
(Nunnaly, 1994) and also explains the mean value which ranges from 21.29 to 41.50.
Table 2. Correlation coefficient between and dependent and independent variables
Va ri a b le s
Work life
balance &
policies
Organization
commitment
Supervisor
support
Training and
development
Employee
Retention
Work life balance
& policies 1
Organization
commitment 0.687** 1
Supervisor suppor
t
0.528** 0.654** 1
Training and
development 0.566** 0.603** 0.604** 1
Employee
Retention 0.602** 0.634** 0.700** 0.539** 1
** Correlation is significant at the 1% level (2 tailed)
Table 3. Model summary and Anova for regression analysis
Dependent
Va ri a b le Employee retention
Predictors Work life balance & policies, Organization commitment, Supervisors support, Training &
development
Multiple R value 0.759
R square value 0.577
F value 140.065
P value 0.000
Table 2 shows the coefficient of correlation between dependent and independent variables. It is observed that all
the variables are positively correlated with each other. The correlation ranges from 54% to 70%.Supervisor
support is highly correlated(70%) with employee retention and other three variables lies between 54% to 63%
proving the acceptance of all the hypothesis H1, H2, H3, H4 and all of them falls under significant at 1% level.
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Table 4. Variables in the multiple regression analysis
Va ri a b le s Unstandardized coefficients t Sig
βStd. erro
r
constants 3.065 1.705 1.799 0.073
Work life balance & policies 0.505 0.098 5.152 0.000**
Organization commitmen
t
0.206 0.069 2.986 0.003
Supervisor suppor
t
0.895 0.090 9.95 0.000**
Training & developmen
t
0.069 0.075 0.919 0.359
Dependent variable: employee retention *p<0.05; **p<0.01
Dependent variable=3.065+0.505+0.206+0.895+0.069.
Table 3 and 4 shows that the multiple correlation coefficients is 0.759.It measures the degree of relationship
between the actual values and predicted values of employee retention. Because predicted values are obtained as a
linear combination of independent variables, the coefficient value of 0.759 indicates that the relationship
between the dependent and four independent variables are quite strong and positive. The co-efficient of
determination (R square value) measures the goodness-of fit of the estimated sample regression plan (SRP) in
terms of the proportion of the variation in the dependent variables explained by the fitted sample regression
equation. Thus the value of R square is 0.577. It means that 57.7% of the variation in employee retention is
explained by estimated SRP that uses the work life balance & policies, organization commitment, supervisor
support, training & development as the independent variable and R square value is significant at 1% level.
The multiple regression equation is employee retention = 3.065 + 0.505 (work life balance & policies) + 0.206
(organization commitment) + 0.895 (supervisor support) + 0.069(training & development). Here, the coefficient
of 0.505 represents the partial effect of work life balance & policies on employee retention holding other three
variables as constants. Estimated positive sign implies that such effect is positive that employee retention would
increase by 0.505 for every unit increase in work life balance & policies and this co-efficient value is significant
at 1% level. The coefficient of organization commitment 0.206 which represents the partial effect of organization
commitment on employee retention holding other variables as constants. The estimated positive sign implies that
such effect is positive that employee retention would increase by 0.206 for every unit increase in organization
commitment this coefficient is significant at 1% level. Similarly coefficient of supervisor support is 0.895. It
represents the partial effect of supervisor support on employee retention holding other three variables as
constants. The estimated positive sign implies that such effect is positive that employee retention would increase
by 0.895 for every unit increase in supervisor support and coefficient value is significant at 1% level. Likewise
the coefficient value of training & development is 0.069.It represents the partial effect of training & development
on employee retention. The estimated positive sign implies such effect is positive that employee retention would
increase by 0.069 for every unit increase in training & development and the coefficient value is not significant at
5% level.
The results derived from correlation matrix revealed that work life balance & policies, organization commitment
supervisor support and training & development were positively related to employee retention. The regression
analysis explored that the three independent variables namely work life balance & policies, organization
commitment and supervisor support had significant influence on employee retention. In other words, out of the
four variables, work life balance & policies, organization commitment and supervisor support were more
predominant factors for the employee retention. The result derived from the data collected predicted that
supervisor support acts as a predominant factor having significance over employee retention which coincides the
previous research studies (Eisenberger et al., 1990; Boxall et al., 2003; Umamaheswari & Krishnan, 2014). This
may be due to fact that organization are for their better governance ,decentralized and supervisors are considered
as “mini organizations” and their supportive nature enhances the employee’s confidence and attachment towards
supervisors results in dedicated work. This full fills the organization target, consequently employees were
rewarded. On the other side, if the relationship in rough and turbulent, the employee will have fatigue,
displeasure and may try for change. The next factor which gives considerable influence is work life balance &
policies is coincided with the previous research (Boxall et al., 2003; Richman, 2003). This may due to the fact
that employees–friendly policies fulfill their personnel need and they will be carrying out their job
enthusiastically and without any diversion. Due to this dedication, organization targets can be achieved earlier
and can result in rewards and perks. On the other hand, conflict in work and family life leads to switching over.
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Also as per analysis organization commitment emerged as a significant factor employees retention and this is
consistent with the pervious study (Steers, 1977; Igbaria et al., 1994). And lack of organization commitment
influence intention to quit and this coincided with previous study (Firth et al., 2004).
4. Conclusions
The study revealed that employee’s continuation in firm is significantly related to the relationship that exists
between supervisors and employees. Also the results gives evidence that work life balance & policeis and
organization commitment also have significant relationship with employee retention in ceramic manufacturing
industries in India. Based on this study it is suggested that organizations, while preparing retention strategies
should give special emphasis for the cordial relationship between supervisors and employees. Employee friendly
policies and factors for improving emotional attachment towards the organization also should be taken into
consideration while the retention strategies are prepared.
Like other studies, this study also has its own limitations. The research had been carried out in a specific country
which limits generalization. Further, existence of junior staff among respondents and the assumption that they
also know the organization well and fully is another limitation. In future the research can be tried with different
variables and in different industries for getting more detailed reports.
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