Impact of Leader-Member Exchange, Communication, Organization Commitment and Job Satisfaction on Employee Performance and Turnover Intention: A Case-Study of True Corporation Public Company Limited

Authors

  • Ekasit Kansuwiro
  • Boon-Anan Phinaitrup

Keywords:

Communication, Leader-Member Exchange, Organizational Commitment, Employee Performance, Turnover Intention

Abstract

The objective of this research is to study the relationships among communication, leader-member exchanges, job satisfaction, organizational commitment, employee performance, and turnover intention. Data was collected from the sample population, who are working with True Corporation Public Company Limited, by using the paper-based questionnaires. Total of 737 questionnaires were sent out and 679 questionnaires were completed and sent back to the researcher, which equals to 95% response rate. The Structural Equation Modelling technique was used in analyzing the collected data. The result indicated that communication, leader-member exchange, job satisfaction, and organizational commitment have total effect on employee performance and turnover intention, with the statistical significance level equals to 0.01. Therefore, the organization should consider setting the communication guidelines and practices which are clear and appropriate with the communication content and objectives. In addition, supervisors and management should continuously build good relationship with employees by meeting with employees or joining activities with them. So that the organization can attract and retain high-performance employees with organization in the long run.

Downloads

Download data is not yet available.

References

Adams, J. S. (1963). Toward an understanding of inequity. Journal of Abnormal and Social Psychology, 67, 422-436.

Afshari, L. (2016). Leadership and organizational commitment. Ph. D. Thesis, RMIT University, Australia.

Ahearne, M. (2000). An examination of the effects of leadership empowerment behaviors and organizational citizenship behaviors on sales team performance. Ph.D. Thesis, Indiana University, USA.

Aldhuwaihi, A. (2013). The influence of organisational culture on job satisfaction, organisational commitment and turnover intention: a study on the banking sector in the Kingdom of Saudi Arabia. Ph.D. Thesis, Victoria University, Australia

Ali, K. (2014). The effects of leader-member exchange and employee wellbeing towards employee turnover intention. Ph. D. Thesis, Deakin University, Australia.

Allen, N., & Meyer, J. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63(1), 1-18.

Apker, J., Propp, K., & Zabava Ford, W. (2009). Investigating the effect of nurse– team communication on nurse turnover: Relationships among communication processes, identification, and intent to leave. Health Communication, 24(2), 106-114.

Barhite, B. (2017). The effects of virtual leadership communication on employee engagement. Ph.D. Thesis, Bowling Green State University, USA.

Dial, B. (2013). Employee commitment in the community college: A case study resulting from a Baldrige-based quality journey. Ph. D. Thesis, Capella University, USA.

Dimitriou, C. (2012). The impact of hotel business ethics on employee job satisfaction, organizational commitment, and turnover intention. Ph.D. Thesis, Texas Tech University, USA.

Gowda, N. M. (1996). Factors associated with burnout and turnover intention among case managers who work with older adults. Ph.D. Thesis, The Ohio State University, USA.

Herzberg, F. (1959). The motivation to work (2nd ed.). New York: Wiley.

Holston-Okae, B. (2017). Employee turnover intentions in the hospitality industry. Ph.D. Thesis, Walden University, USA.

Jalalkamali, M., Ali, A. J., Hyun, S. S., & Nikbin, D. (2016). Relationships between work values, communication satisfaction, and employee job performance. Management Decision, 54(4), 796-814.

Kacmar, K. M., Witt, L. A., Zivnuska, S., & Gully, S. M. (2003). The interactive effect of leader–member exchange and communication frequency on performance 18 ratings. Journal of Applied Psychology, 88(4), 764-772.

Kang, D.-S., Stewart, J., & Kim, H. (2011). The effects of perceived external prestige, ethical organizational climate, and leader- member exchange (LMX) quality on employees' commitments and their subsequent attitudes. Personnel Review, 40(6), 761-784.

Kim, J., Song, H. J., & Lee, C.-K. (2016). Effects of corporate social responsibility and internal marketing on organizational commitment and turnover intentions. International Journal of Hospitality Management, 55, 25-32.

Klein, H. J., Becker, T. E., & Meyer, J. P. (2009). Commitment in organizations: Accumulated wisdom and new directions. New York: Routledge.

Kuzmycz, D. (2011). Coaching behaviors of managers as a predictor of higher quality leader-member exchanges and employee engagement. Ph.D. Thesis, Alliant International University, USA.

Law, K. S., Wong, C.-S., Wang, D., & Wang, L. (2000). Effect of supervisor–subordinate guanxi on supervisory decisions in China: An empirical investigation. The International Journal of Human Resource Management, 11(4), 751-765.

Lee, K.-A. (2005). The effects of locus of control and organizational structure on job satisfaction and turnover intention of hotel managerial employees. Ph.D. Thesis, Oklahoma State University, USA.

Li, K. S. (2012). The impact of career development on employee commitment of part-time faculty (PTF) in Hong Kong’s continuing professional development (CPD) sector. Ph.D. Thesis, University of Newcastle, Australia.

Ma, R. W. Y. (2018). Psychological contracts, work behaviour and turnover intention in the Hong Kong telecommunications industry. Ph.D. Thesis, Southern Cross University, Australia.

Mavuso Mda, A. (2010). Staff turnover in the information and communication technology (ICT) sector in South Africa. Ph.D. Thesis, Ohio University, USA.

Mensah, J. K. (2018). Unlocking the "black box" in the talent management employee performance relationship: Evidence from the Ghanaian banking sector. Ph.D. Thesis, National Institute of Development Administration, Thailand.

Miles, E. W., Patrick, S. L., & King, W. C. (1996). Job level as a systemic variable in predicting the relationship between supervisory communication and job satisfaction. Journal of Occupational and Organizational Psychology, 69(3), 277-292.

Morris-Sweeney, K. (2018). An examination of the impact of organizational culture and employee engagement on job satisfaction and turnover intention in a nonprofit organization. Ph. D. Thesis, Nova Southeastern University, USA.

Northouse, P. G. (2016). Leadership: Theory and Practice (7th ed.). Thousand Oaks: SAGE.

Nuchrawee, J. (2016). The influence of total compensation management effects on employee motivation, employee commitment and employee performance: A case study of Royal Thai Army. Ph.D. Thesis, National Institute of Development Administration, Thailand.

PERSOLKELLY. (2018). 2018 APAC workforce insights. Gig economy: How free agents are redefining work. Retrieved April 13, 2019, website: https://www.persolkelly.com/media/persolkelly/client/2018%20APAC%20Workforce%20Insights/PERSOLKELLY%202018%20APAC%20Workforce%20Insights%20-%20Gig%20Economy%20How%20Free%20Agents%20Are%20Redefining%20Work.pdf

Putnam, L., & Mumby, D. K. (2014). The Sage handbook of organizational communication: advances in theory, research, and methods (3rd ed.). Los Angeles: SAGE.

PWC. (2018). The talent challenge: Rebalancing skills for the digital age. Retrieved May 3, 2019, website: https://www.pwc.com/gx/en/ceo-survey/2018/deep-dives/pwc-ceosurveytalent.pdf

Ramesh, A. (2007). Replicating and extending job embeddedness across cultures: Employee turnover in India and the United States. Ph.D. Thesis, Mississippi State University, USA.

Schaffer, R. H. (1953). Job satisfaction as related to need satisfaction in work. Psychological Monographs: General and Applied, 67(14), 1-29.

Scrimpshire, A. (2017). I get by with a little help from my (imaginary) friends: Perspective-taking, self-efficacy, and employee engagement. Ph.D. Thesis, Oklahoma State University, USA.

Seunghee, I., Yang Woon, C., & Ji Yeon, Y. (2016). Employees’ participation in corporate social responsibility and organizational outcomes: The moderating role of Person-CSR fit. Sustainability, 9(1), 28.

Smith, J. (2013). Study of leader follower relationship quality and employee commitment in a public housing agency with communication as the mediating variable. Ph.D. Thesis, Our Lady of the Lake University, USA.

Voigt, E.A. (2011). Intention to leave and employee turnover: Expanding understanding of key antecedents in the modern workforce. Ph.D. Thesis, Monash University, Australia.

Walford, M. (2016). Leaders’ and followers’ information-processing styles, constructive thinking and their relationship to implicit followership and leadership theories and leader-member exchange. Ph.D. Thesis, Murdoch University, Australia.

Watt, A. (2007). The impact of managerial virtuality on employee performance. Ph.D. Thesis, Rensselaer Polytechnic Institute, USA.

Wichai, L. (2016). The effects of collectivism-high performance work system and leader-member-exchange on organizational performance in the Thai hospitality industry. Ph.D. Thesis, National Institute of Development Administration, Thailand.

Wong, H. C. Y. (2015). The influence of employer branding on employee performance. Ph.D. Thesis, The University of Manchester, United Kingdom.

World Economic Forum. (2018). The future of job report 2018: Centre for the new economy and society. Retrieved May 8, 2019, website: http://www3.weforum.org/docs/WEF_Future_of_Jobs_2018.pdf

Young, J. (2009). The newcomer's path to trust: Trust-building strategies, experienced trust, and employee engagement among newly-hired employees. Ph.D. Thesis, University of Washington, USA.

Published

2022-06-27

How to Cite

Kansuwiro เ. ., & Phinaitrup บ. . (2022). Impact of Leader-Member Exchange, Communication, Organization Commitment and Job Satisfaction on Employee Performance and Turnover Intention: A Case-Study of True Corporation Public Company Limited. Business Review Journal, 14(1), 87–105. Retrieved from https://so01.tci-thaijo.org/index.php/bahcuojs/article/view/241566

Issue

Section

Research Articles