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Affective Commitment, Continuance Commitment, Normative Commitment, and Turnover Intention in Shoes Industry
Damarsari Ratnasahara Elisabeth1, Rika Yuliastanti2, Joko Suyono3, Rahul Chauhan4, Ishan Thakar5
1,2
Sekolah TinggiIlmuEkonomiMahardhika, Surabaya, Indonesia. E-mail:
[email protected]
3
Narotama University, Surabaya, Indonesia; UniversitasAirlangga, Surabaya, Indonesia. E- mail: [email protected]
4
Assistant Professor, Parul Institute of Business Administration, Parul University, Vadodara, India. E-mail: [email protected]
5
Assistant Professor, Parul Institute of Applied Sciences, Parul University, Vadodara, India. E-
mail: [email protected]
Corresponding authore-mail: [email protected]
Abstract.This study aims to determine the influence of affective commitment on employee turnover in the shoes industry in Sidoarjo - Indonesia, the influence of continuance commitment on employee turnover in the shoes industry in Sidoarjo - Indonesia, the influence of normative commitment on employee turnover in the shoes industry in Sidoarjo - Indonesia, as well as the simultaneous influence of affective commitment, continuance commitment and normative commitment to employee turnover in the shoes industry in Sidoarjo - Indonesia. The population in this study were15,476employees ofshoes industry in Sidoarjo - Indonesia, whilethe research sample consisted of 99 employees of shoes industry in Sidoarjo - Indonesiawho were calculated by the Slovin formula. Data analysis was done by multiple linear regression analysis. The results showed that affective commitment had a significant influence on employee turnover in the shoes industry in Sidoarjo - Indonesia, continuance commitment had a significant influence on employee turnover in the shoes industry in Sidoarjo - Indonesia, normative commitment had a significant influence on employee turnover in the shoes industry in Sidoarjo - Indonesia. The results also show that affective commitment, continuance commitment and normative commitment simultaneously influence employee turnover in the shoes industry in Sidoarjo - Indonesia.
Keywords: Affective Commitment, Continuance Commitment, Normative Commitment, Turnover Intention.
Introduction
The company has various kinds of resources to support its operational activities, such as human resources (employees), capital, production machinery, infrastructure facilities, and so forth. From some of the resources owned by the company, employees have an important role in achieving company goals, because employees are the most involved resources and manage company activities. Employees play a role in facilitating existing activities in the company such as setting plans and objectives to be achieved by the company. Without employees, other resources cannot be utilized, let alone managed to produce a product or service. According to Sudarma (2012) superior human resources with high quality become a demand for every organization to be able to achieve the stated goals.
The existence of employees in the company is very important in increasing the effectiveness and efficiency of the company, so that the company's ability to manage its employees wellcan reduce turnover. To achieve optimal performance, companies must be able to manage the resources within them, including maximizing the functions of human resources. This is because if human resources are not managed properly it can make the company's performance bad by some human resource behaviors. One form of behavior is the desire to move which leads to the decision to leave work.
According to Mathis and Jackson (2006) explaining turnover is a process in which employees leave the organization and must be replaced. Thus it can be concluded that the entry and exit of employees
illustrates the employee turnover rate. Employee turnover has a negative impact on the company's operations, because employee productivity decreases, company productivity also decreases. Several previous studies have shown that employee turnover has a negative impact on company performance.
Research conducted by Knapp et al. (1998) in Tariq et al. (2013) explains that employee turnover has an impact on company efficiency because turnover disrupts stability, consistency and continuity of work, and disrupts the implementation of more difficult long-term planning, causing staff shortages which in turn can increase the workload of other employees, reduce employee productivity, and increase the cost of hiring and training staff.
One industry that has high turnover intention is in the shoe industry in Sidoarjo. The high increase in demand is in fact not proportional to the amount of human resources owned. This is because in 2017 there were over 2,000 layoffs (Source: Indonesian Footwear Association / Aprisindo East Java, https://ekbis.sindonews.com/read/1223226/34/industri-alas-kaki- downturn-1500799691). This makes the number of employees decreasing. The number of remaining employees inevitably must be willing to overtime and leave personal interests in order to achieve production targets. In addition, the absence of regeneration has made shoes industry employees bored and fed up with the work done. Employees who have long worked have a tendency to look for something new, and if it is not found, they will feel bored and will not stay longer in the company.
Turnover intention in the shoe industry in Sidoarjo shows that the existing organizational commitment of employees is low. Robbin & Judge (2007) defines organizational commitment as a condition in which an employee sided with a particular organization and the goals and desires to maintain membership in the organization. Organizational commitment is also considered as the level of individual loyalty to the organization. Individuals with high organizational commitment will be proud to consider themselves members of the organization. Conversely, if an individual has a low organizational commitment, he will have the desire to leave the organization (Yusuf & Syarif, 2018).
According to Meyer and Allen (1991), organizational commitment consists ofthree dimensions, namely affective commitment, continuance commitment and normative commitment. Affective commitment refers to emotional attachment, identification and involvement of a person in an organization that appears to be a personal characteristic, job characteristics, work experience that confirms performance characteristics and structural characteristics. Continuance commitment is considered as an individual's desire to advance the organization because of consideration of sacrifices and losses that must be borne if it leaves the organization. Normative commitment shows the assessment of individuals who feel there is a need to remain a member of the organization.
Thanacoody, Newman & Fuchs (2014) study shows that there is a negative relationship between affective commitment to turnover intention. The research of Mehmood et al. (2016) also shows that affective commitment has a significant and negative influence on turnover intention. Furthermore, research conducted by Guntur, Haerani and Hasan (2012) shows that affective commitment, continuance commitment and normative commitment have a significant negative effect simultaneously on employee turnover intention. This shows that the existence of confidence, the willingness to advance the organization and the need to become a member of the organization or company, does not make employees intend to leave the organization or company.
Formulation Of The Problem
Based on the description above, the formulation of the problems to be discussed in the study are:
1. Does affective commitment have a significant effect on employee turnover in the shoe industry in Sidoarjo?
2. Does continuance commitment have a significant effect on employee turnover in the shoe industry in Sidoarjo?
3. Does normative commitment have a significant effect on employee turnover in the shoe industry in Sidoarjo?
4. Does affective commitment, continuance commitment and normative commitment simultaneously influence employee turnover in the shoe industry in Sidoarjo?
Literature review and hypotheses Affective Commitment
Meyer and Allen (1991) define affective commitment as an emotional feeling towards the organization and belief in the value that exists. Affective commitment refers to emotional attachment, identification and
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involvement of a person in an organization that appears to be a personal characteristic, job characteristics, work experience that confirms performance characteristics and structural characteristics. These structural characteristics illustrate the size of the organization, the presence of trade unions or worker associations, the extent of control, the centralization of authority and experience of psychological needs to feel comfortable in the organization and competent in carrying out work roles. Affective commitment can be measured by several indicators (Busro, 2018), including:1. Strong trust and accept the values and goals of the organization 2. Loyalty to the organization
3. Willingness to use efforts for the benefit of the organization Continuance Commitment
Continuance commitment is considered as an individual's desire to advance the organization because of consideration of sacrifices and losses that must be paid if it leaves the organization. Continuance commitment shows that commitment is based on workers' losses if they leave the organization.
Continuance Commitment is based on employee perceptions of the losses that will be obtained if he does not continue his work in a company. In other words, the employee is still working for a company because he requires salary and other benefits or because he has not found another job. Continuance commitment is measured by several indicators (Busro, 2018) including:
1. Profits when keeping working in the organization 2. Losses when leaving the organization
Normative Commitment
Normative commitment shows the assessment of individuals who feel there is a need to remain a member of the organization. Normative Commitment arises from the self-values of employees who stay to become members of the company because there is an awareness that commitment to the company is a necessity or obligation. These employees only stay in the company because they feel they should have done it.
Normative commitment can be measured by several indicators (Busro, 2018) including:
1. Willingness to work
2. Responsibility to develop organization Turnover Intention
The term turnover comes from English which means change. Werther (1996) explains the notion of turnover is the loss of employees by an organization. It represents employees who depart for a variety of reasons. In other words, employees leave their jobs for various reasons. Robbins and Judge (2009) state that turnover is the permanent resignation of employees, voluntary and involuntary, of an organization.
Turnover intention can be measured using two aspects, as mentioned by Supriati (2013), namely:
1. There is a thought to get out
2. Other work alternatives are available Research Model
The following research model in this study:
Affective Commitment
Continuance Commitment Turnover Intention
Normative commitment
Figure 1 : Research Model
Hypothesis
The following hypotheses are proposed:
H1: affective commitment has a significant effect on employee turnover in the shoe industry in Sidoarjo.
H2: continuance commitment has a significant effect on employee turnover in the shoe industry in Sidoarjo.
H3: normative commitment has a significant effect on employee turnover in the shoe industry in Sidoarjo.
H4: affective commitment, continuance commitment and normative commitment simultaneously influence employee turnover in the shoe industry in Sidoarjo.
Methods
Population and Sample
Population is a generalization area consisting of objects or subjects with certain qualities and characteristics determined by the researcher and then studied and concluded (Sugiyono, 2012). The population in this study were the shoe industry employees in Sidoarjo, which numbered 15,476 people.
The sample is a unit part of the population (Sugiyono, 2012). The sampling technique in this study was conducted by probability sampling technique, which is a sampling technique that provides equal opportunities for each element (member) of the population to be selected as members of the sample. The probability sampling technique used in this study is simple random sampling, which is a random sample selection of existing populations. The determination of the minimum sample in this study was carried out using the Slovin formula with the following formula:
𝑛 = 𝑁
𝑁. 𝑑2+ 1 Where
n: Sample size
N: Number of target population
d: Tolerance limit for sampling errors due to inaccuracy, which is 10%
Based on calculations with the formula, the number of research samples is:
𝑛 = 15476
15476. 0,102+ 1= 99,3 = 99
Based on the calculations above, the sample in this study was 99 employees.
Data collection technique
Data collection in this study was conducted by distributing questionnaires to research respondents. the scale used is the Likert scale.
Data Analysis Techniques
Data analysis in this study was carried out by multiple linear regression analysis.
Result
Testing of Research Instruments Validity test
The results of the validity test from this study can be seen from the tables below:
Table 1 : Validity Test of Affective Commitment (AC)
Statement Corrected Item-Total Correlation N Remark
AC1 0,453 99 Valid
AC2 0,610 99 Valid
AC3 0,652 99 Valid
The results shown by the table above are the significance values of the correlation of each statement item above 0.3. Therefore, it can be concluded that all item statements on affective commitment (AC)variables are declared valid. This means that items on the questionnaire can be used and continued for further
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calculations.Table 2 : Validity Test of Continuance Commitment (CC)
Statement Corrected Item-Total Correlation N Remark
CC1 0,694 99 Valid
CC2 0,694 99 Valid
The results shown by the table above are the significance values of the correlation of each statement item above 0.3. Therefore, it can be concluded that all statement items in the continuance commitment (CC) variable are declared valid. This means that items on the questionnaire can be used and continued for further calculations.
Table 3 : Validity Test of Normative Commitment (NC)
Statement Corrected Item-Total Correlation N Remark
NC1 0,620 99 Valid
NC2 0,620 99 Valid
The results shown by the table above are the significance values of the correlation of each statement item above 0.3. Therefore, it can be concluded that all statement items in the normative commitment (NC) variable are declared valid. This means that items on the questionnaire can be used and continued for further calculations.
Table 4: Validity Test of Turnover Intention (TI)
Statement Corrected Item-Total Correlation N Remark
TI1 0,953 99 Valid
TI2 0,953 99 Valid
The results shown by the table above are the significance values of the correlation of each statement item above 0.3. Therefore, it can be concluded that all statement items on turnover intention (TI) variables are declared valid. This means that items on the questionnaire can be used and continued for further calculations.
Reliability Test
The following are the results of the reliability test for each variable:
Table 5 : Reability Test Result
Variable Cronbach’s Alpha Remark
Affective Commitment 0,742 Reliable
Continuance Commitment 0,818 Reliable
Normative Commitment 0,765 Reliable
Turnover Intention 0,975 Reliable
Based on the table above, it is known that the four research variables namely Affective Commitment (AC), Continuance Commitment (CC), Normative Commitment (NC)and Turnover Intention (TI)have a Cronbach's Alpha value greater than 0.6. Therefore, it can be concluded that all statement items that measure research variables are declared reliable.
Analysis of Multiple Linear Regression
The multiple linear regression equation in this study was obtained from the results of data processing with the SPSS version 22 program, as follows:
Table 6 :Equation of Multiple Linear Regression
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
Correlations
Collinearity Statistics
B
Std.
Error Beta
Zero-
order Partial Part Tolerance VIF
1 (Constant) 1,330 ,935 1,422 ,158
Variable AC -,282 ,125 -,254 -2,255 ,026 ,413 -,224 -,154 ,367 2,725 Variable CC -,474 ,168 -,333 -2,829 ,006 ,415 -,277 -,193 ,334 2,990 Variable NC 1,681 ,192 1,156 -3,753 ,000 ,690 ,666 ,596 ,266 3,765 a. Dependent Variable: Variable TI
From the table above, the following multiple linear regression equations are obtained:
Y = 1,330-0,282X1-0,474X2 + 1,681X3
Correlation Coefficient Analysis and Determination
Table 7 : Results of Analysis of the Correlation Coefficient and Determination
Model R R Square Adjusted R
Square
1 .745 .555 .541
The coefficient of determination (R2) is seen from the value of Adjusted R Square which is equal to 0.541.
This shows that the ability of affective commitment, continuance commitment and normative commitment variables in explaining turnover intention variables is equal to 0.541 or 54.1%. While the remaining 45.9%
is the influence of other independent variables not examined in this study.
Hypothesis testing T test
The t test in this study uses the following conditions:
1. If the result is significant> 0.05 then the hypothesis is rejected.
2. If the result
is
significant <0.05 then the hypothesis is acceptedTable 8 : Testing the Hypothesis with the t Test
Variables T Significant
Affective Commitment -2.255 0.026
Continuance Commitment -2.829 0.006
Normative Commitment -3.753 0.000
Based on the table above, it is known that:
1. The value of “t” is calculated for the affective commitment variable of -2.255 with a significant value obtained at 0.026. This shows that affective commitment partially has a negative and significant effect on turnover intention.
2. The value of “t” is calculated for continuance commitment variables of -2.829 with a significant value of 0.006. This shows that partially, continuance commitment has a negative and significant effect on turnover intention.
3. The value of “t” is calculated for the normative commitment variable of -3.753 with a significant value of 0.000. This shows that partially, normative commitment has a negative and significant effect on turnover intention.
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F TestThe F test was used to prove "Affective commitment, continuance commitment and normative commitment simultaneously influencing the turnover of the intention of shoe industry employees in Sidoarjo". The following are the results of processing the data obtained in the calculation for the F test:
Table 9 :Hypothesis Testing with F Test ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1 Regression 263.636 3 87.879 39.914 .000b
Residual 211.364 96 2.202
Total 475.000 99
a. Dependent Variable: Variable TI
b. Predictors: (Constant), Variable NC, Variable AC, Variable CC
The test results obtained F value of 39.914 with a significant value obtained 0
.
000 where the value is smaller than 0.05. Thus it can be explained that there are significant effects together between affective commitment, continuance commitment and normative commitment variables. Therefore, the hypothesis that "a
ffective commitment, continuance commitment and normative commitment simultaneously influence employee turnover in the shoe industry in Sidoarjo" has been proven.Discussion
1. The influence of affective commitment on turnover intention
Based on the results of the t test it is known that the calculated t value obtained is -2.255 with a significant value obtained at 0.026. Related to this, affective commitment has a significant influence on turnover intention and the first hypothesis is accepted. The value of t count shows a negative number, this shows that affective commitment has a negative and significant influence on turnover intention.
Employees will continue to work for the company because
they
agree with the goals and values applied in the company. Employees who have high affective commitment will have the desire to remain in the company because the employee supports the goals and values applied and will be willing to make efforts to achieve the company's goals. However, if the employees
do not have a high affective commitment,they
will choose to leave the company and find a new job.2. The influence of continuancecommitment on turnover intention
Based on the results of the t test it is known that the value of t
value
obtained is -2.
829 with a significant value obtained 0.
006. Related to this, continuance commitment has a significantinfluence
on turnover intention and the second hypothesis is accepted. The calculated t value obtained shows negative results, so continuance commitment has a negative and significant effect on turnover intention.Employees who enjoy working at the company will find it hard to leave the company because of the need to survive with consideration of costs when leaving the company. The calculation of profit and loss makes employees stay in the company compared to leaving the company. Employees who have high continuance commitment will be hard to leave the company because they are afraid of losing income, so employees will still choose to stay in the company because
they need
income. However, if the employees
do not have high continuance, thenthey
will choose to leave the companyand look for another company
that provides a higher salary or income.3. The influence of normative commitment on turnover intention
Based on the results of the t test it is known that the value of t count for the continuance normative variable is 8.753 with a significant value of 0
.
000. This shows that normative continuance has a significantinfluence
on turnover intention and the third hypothesis is accepted. The existence of a positive value on the value obtained shows that normative commitment
has a positive and significantinfluence
on turnover intention.Employees have feeling that they must remain in the company because they do not want to disappoint supervisors. In addition, the reason for employees to stay in the company is because they do not
want to get a negative impression from other employees. Employees who have normative commitment will survive in the company because they have duties and responsibilities to do. However, if the employees have a low normative commitment, they prefer to leave the company regardless of the comments of fellow employees and feedback from supervisors.
4. Simultaneous Influence of Affective Commitment, Continuance Commitment and Normative Commitment to Turnover Intention
Based on the results of the F test, it is known that the F value of 39.914 is obtained with a significant value of 0.000 where the value is smaller than 0.05. Thus it can be explained that there are significant
simultaneous influence
between affective commitment, continuance commitment and normative commitment variables. Therefore, the hypothesis that "affective commitment, continuance commitment and normative commitment simultaneously influence employee turnover in the shoe industry in Sidoarjo" has been proven. The results showed that one of the determinants of turnover intention in the Sidoarjo shoe industry was affective commitment, continuance commitment and normative commitment.Conclusion
From the data analysis above, the following conclusions can be drawn as follows: affective commitment has a significant influence on employee turnover in the shoe industry in Sidoarjo. This means that the higher the affective commitment of the employees, the lower their turnover intention. Continuance commitment has a significant influence on employee turnover in the shoe industry in Sidoarjo. This means that the higher the continuance commitment of the employees, the lower their turnover intention.
Normative commitment has a significant influence on employee turnover in the shoe industry in Sidoarjo.
This means that the higher the normative commitment of the employees, the lower their turnover intention.
Affective commitment, continuance commitment and normative commitment simultaneously influence employee turnover in the shoe industry in Sidoarjo.This means that, together. if employees have a high affective commitment, continuance commitment and normative value, then turnover intention will decrease.
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