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Ramly Burger

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Niesa Aziz

on 22 October 2017

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Transcript of Ramly Burger


The mediating role of affective commitment on the relationship between work values and Generation Y employee’s intention to leave in banking sector
Khairunnisa Binti Abdul Aziz (PHA 153017)
Dr Rabeatul Husna Abdull Rahman
Dr Halimah Mohd Yusof

INTRODUCTION
OUTLINE OF THE STUDY

BACKGROUND OF THE STUDY
PROBLEM STATEMENTS
RESEARCH OBJECTIVES
SCOPES OF THE STUDY
CONCEPTUAL DEFINITION
Intention to Leave
This employee turnover intention issue becomes more critical within the Generation Y (Yusoff et al., 2013).

Generation Y refers to people who born between 1982 to 2004 (Howe and Strauss, 1991)
Work values
Past studies found notable differences on work values across different generations (Cennamo & Gardner, 2008; Gursoy, Chi, & Karadag, 2013; Lyons, 2005; Rani & Samuel, 2016; Twenge et al., 2010; Whiteoak, Crawford, & Mapstone, 2006)
Work Values
Generation Y’s work values were not only significantly different with their previous generations, they also appear to be different within their group itself (Papavasileiou and Lyons, 2015)
Affective Commitment
Work values are pertinent in explaining attitudes and behaviors in the workplace (Queiri, Dwaikat, & Yelwa, 2016)
Affective commitment strongly correlated with intention to leave (Meyer et al., 2002)
Affective commitment is the core essence of organizational commitment (Mercurio, 2015)
Generation Y
Banking Sector
Within the next eight to nine years, we expect the Generation Y workforce in the banking system to rise to about 50% from 25% currently (The Star Online, 2014)
Banking sector is well known with high workload and stringent time frame for their employees to adhere with, which can be recognized as major contributions to the increase of turnover rate
The prime challenge for the banking sector is retention of Generation Y employees (Salman et al., 2010)
In 2015, banking and insurance sector contribute to the highest turnover (Awani News,2016)
41% of Generation Y finance proffessional expect to be with their current employer for two years (Asian Institute of Finance, 2014)

Work values were significantly related with intention to leave ( Wei & Han, 2017; Aladwan, 2014; Nor
et al.
, 2017).
Only one study that examined the relationship bewtenn work values and intention to leave among Generation Y in Malaysia (Nor
et al.
, 2017).
Nor
et al.
(2017) did not fully investigate each dimension of work values
Instrumental and prestige work values were positively related with intention to leave the organization (Huang et al., 2016; Vansteenkiste et al., 2007) while cognitive and social/altrustic work values were negatively related with intention to leave (Burd, 2003; Chang et al., 2008; Lu & Lin, 2002; Wang et al., 2010).
Most of the study focusing on major work values (Aladwan, 2012; Chang et al.m 2008; Vansteenkiste et al., 2007)
What are the relationship between Generation Y employee’s work values (cognitive, instrumental, social-altruistic, prestige) and intention to leave in the banking sector?
Consistently signifinant relationship (references)
Mediating analysis shoud be taken in order to explain "how" and "why" these findings found in these relationship.
Missing link (based on cognitive hierarchy model of human behavior (Vaske & Donnelly, 1991) and Generation Y model (Solnet, 2008)
Past studies had focused on satisfaction (Dill et al., 2012; Vansteenkiste et al., 2007).
Organizational commitment is stronger predictor towards turnover intention than job satisfaction (references).
Absence of research that consider affective commitment as possible mediator
Significant relationships between work values and affective commitment (Froese & Xiao, 2012; Ho, Oldenburg, Day, & Sun, 2012; Shieh, 2014) as well as negative relationship between affective commitment and intention to leave (Alniacik, Cigerim, Akcin, & Bayram, 2011; Aydogdu & Asikgil, 2011)
Research Questions 3-5
3. What is the relationship between Generation Y employee’s work values and affective commitment in the banking sector?

4. What is the relationship between Generation Y affective commitment and intention to leave in the banking sector?

5. Does affective commitment mediates the relationship between Generation Y employee’s work values and intention to leave in banking sector?

Generation Y's work values is radically different with previous generations (Gursoy et al., 2013; Lyons et al., 2005; Twenge et al., 2010)
Work values also not highly homogeneous within Generation Y group (Papavasileiou & Lyons, 2015)
Research Question 1
Research Objectives

1. To examine the relationship between Generation Y employee’s work values and intention to leave in banking sector.
2. To examine the relationship between Generation Y employee’s work values and affective commitment in banking sector.
3. To examine the relationship between Generation Y employee’s affective commitment and intention to leave in banking sector
4. To examine the mediating role of affective commitment the relationship between Generation Y employee’s work values and intention to leave in banking sector

Scope of the study
Generation Y's intention to leave (DV), Generation Y's work values (IV) and affective commitment (Mediator).
Generation Y (born between 1982-2004)

Generation Y who works at one of the largest banking companies in Malaysia

LITERATURE REVIEWS
UNDERPINNING THEORY
MODEL
RESEARCH FRAMEWORK
PAST FINDINGS
HYPOTHESES
Generational Theory
Generation Y's Work Values
Manheim's theory
Karl Mannheim in 1923
Relies primarily on major events
Social, political, economic and historical event
"Generational location"
Generation members who are in a position to experience the same events and data (Mannheim, 1970)
Strauss and Howe's theory
William Strauss and Neil Howe in 1991
Past generations have the greatest influence on their successor
Generation Y traits
Strong connection with peers
Respond best to external motivators
"Family” is a keyword for the Generation Y
Famous for skill required for collaborative and team work projects
Generation group's values, attitudes and behaviour
Interdependence Theory
The Cognitive hierarchy model of human behaviour ( Doske & Donnelly, 1991)
Value orientations are comprised of patterns of basic beliefs relative to a particular topic ( values at work among Generation Y)
Attitudes is a mental state and must refer to some object (e.g attitude toward involvement in organization)
Attitude served as a mediator between the value orientations and behavioral intentions
Intention to perform the behavior ( e.g intention to leave the organization)

Generation Y's Model
(Solnet & Hood, 2008)
4. Work Values and Affective Commitment
2. Affective Commitment and Intention to Leave
1. Work Values and Intention to Leave
4. Mediating role of affective commitment
Absence of empirical support on mediating effect of affective commitment on the relationship between work values and intention to leave
A significant relationship between work values and affective commitment (Andolsěk & Sťebe, 2004; Cennamo & Gardner, 2008; Ho et al., 2012) as well as a significant relationship between affective commitment and intention to leave (Aydogdu & Asikgil , 2011; Yücel, 2012; Zhao et al., 2007).
Based on cognitive hierarchy model of human behavior (Vaske and Donelly, 1996) and Generation Y's model (Solnet and Hood, 2008)
H1 : Generation Y employee in banking sector will tend to prefer cognitive work value the most and followed by instrumental work value, social-altruistic work value, and least preferred prestige work value

H2 : There is a negative significant relationship between work values and intention to leave

H2a : There is a positive significant relationship between cognitive work value and intention to leave

H2b :There is a positive significant relationship between instrumental work value and intention to leave

H2c : There is a negative significant relationship between social-altruistic work value and intention to leave

H2d : There is a positive significant relationship between prestige work value and intention to leave
H3: There is a negative significant relationship between work values and affective commitment

H3a : There is a positive significant relationship between cognitive work value and affective commitment

H3b : There is a positive significant relationship between instrumental work value and affective commitment

H3c : There is a positive significant relationship between social-altruistic work value and affective commitment

H3d :There is a positive significant relationship between prestige work value and affective commitment

H4 : There is a negative significant relationship between affective commitment and intention to leave

H5 : Affective commitment mediates the relationship between work values and intention to leave


METHODOLOGY
RESEARCH DESIGN
MEASUREMENT AND DATA COLLECTION METHOD
PILOT STUDY
DATA ANALYSIS
POPULATION, SAMPLE SIZE AND SAMPLING PROCEDURE
Quantitative research approarch
Cross sectional survey
Population -Generation Y employee of one of the largest bank companies in Malaysia (in term of asset and market capitalization)
Sampling procedure
Probability sampling
Cluster sampling
Data collection method
- Self administered survey
Variables and measurement
Intention to leave has been a mainstay of the turnover research since its advent (Cho & Lewis, 2012).

Employee will go through the stage of having the intention to leave the organization before this actual employee turnover could happen (Mobley, 1977).

Intention to leave is the best predictor of turnover(Griffeth, Hom & Gaertner, 2000).

Generation Y tends to show higher intention to leave compared to older generations (Benson & Brown, 2011; Cennamo & Gardner, 2008; Chan, 2005; D'Amato & Herzfeldt, 2008; LeVasseur, Wang, Mathews, & Boland, 2009; Lub, Nije Bijvank, Matthijs Bal, Blomme, & Schalk, 2012; Solnet, Kralj, & Kandampully, 2012).
A meta-analysis conducted by Costanza, Badger, Fraser, Severt, and Gade (2012) also supported these past studies whereby they revealed that Generation Y exhibit higher intention to leave than their older counterparts
Factor influencing Generation Y's intention to leave
John Thibaut and Harold Kelley (1959).
extended by Kelley and Thibaut (1978) and then by others (e.g., Kelley 2003)
Based on two previous classic theories which are exchange theory and game theory
Interdependence theory invlolves
Social interaction between two people
interdependence structure (level of dependences)
transformation process (driven by commitment)
The data for present study also will be analyzed by using SEM- (PLS)
Internal consistency (Composite reliability),
Indicator reliability,
Convergent validity (AVE)
Discrimination validity (VIF)
Coefficients of determination (R²),
Effect size. F²
Prredictive Releance Q²
Summary of data analysis
Sample size
The rule of thumb indicate that the minimum sample size should be 10 times the maximum number of arrowheads pointing at a latent variable anywhere in the PLS path model (Hair, Hult, Ringle, Sarstedt, 2014).
Based on sample size table provided by Sauder et al., (2012, p.266), the sample size of this present study is 370.
Mobley's model of turnover (1977)
A Three-Component Model of Organizational Commitment. (Meyer et al., 2002)
Intent to leave establishes the final cognitive phase in the decision making process to leave the organization (Mobley, 1977).


Intention to leave is expected to be the strongest predictor of actual turnover behavior (Mobley, 1977).




Research Framework
Quit/stay
Evaluation of existing job
Intention to quit/stay
Evaluation of existing job
Evaluation of expected utlity of search and cost quiting
Experienced job satisfaction/ dissatisfaction
Intention to search for alternatives
Search for alternatives
Evaluation of alternatives
Comparison of alternative vs preset job
Organizational commitment is one of the most commonly studied work attitudes and it is fundamentally important for understanding work behavior (Harrison, Newman & Roth, 2006).
Vaske and Donnelly's (1999) model and Gen Y's model (Solnet and Hood, 2008)
Value/ Work value- attitudes-behavior
Banking sector is currently experiencing a shortage of Generation Y employee and it is expected to worse over the years (Dhesi, 2014)
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