Sabtu, 01 September 2018

Jejak Hampa

Karya: Ari Pakusmanto

Jauh ku memandangpada keheningan
Sayup kudengar gemuruh angin menerpa dedaunan 
Bicara sendiri dalam perjalanan panjangku
Seakan bertanya dimana kaki ini akan berhenti

               Berulang kali logika menyadarkan
               Tapi hati berkata lain
               Kaki ini terus merapak membuka jalak
               Jarak yang tak tahu kemana arah dan tujuan

Bergumam lagi bibir ini
Tapi kembali langkah ini tak berhenti
Terus ia merapak, terus ia melebar
Karena hati berkata, jawabmu ada diujung jalan. 


Sebuah puisi karya seorang pujangga, Ari Pakusmanto.

Senin, 27 Agustus 2018

ANALYSIS ON THE IMPACT OF ORGANIZATIONAL CULTURE AND JOB SATISFACTION TOWARDS EMPLOYEE TURNOVER INTENTION – A CASE STUDY IN BANK XYZ


Abstract
    The purpose of this study is to analyze the impact of organizational culture and job satisfaction towards employee turnover intention. Organizational can be identified as the way of an organization deliver values and beliefs that direct people to behave in an organization. While job satisfaction can be described as the degree to which the employees is satisfied with particular job as a fundamental motivation.
Method used in this study is using quantitative method. Primary data were obtained by distributing printed questionnaires to 70 employees of Bank XYZ Jakarta. Theoretical framework of this study was adopted from secondary data (books, journals, and articles). The result of this study identified the impact of Innovation and Risk Taking, People Orientation, also Team Orientation as the characteristics of organizational culture with Benefit and Compensation, Relation with Co-Worker and Opportunity for Promotion as the characteristics of job satisfaction toward Employee Turnover Intention. The implication of this study is the company can get insight for improving its organizational culture and job satisfaction to reduce the number of employee turnover intention.

1.      Introduction
The economic competition is rising rapidly in which it generates a reasonable competition between the companies in global market. In the current circumstances, the company are pushed to survive and have a unique advantage to compete with one another. A company needs potential human resources in order to create invaluable values (Schroeder, 2002). That significant factor contributing to the success of the company is the existence of human resource. Human resource is a priceless asset, because the company are not able to be a successful organization without the existed of human resource (Fulmer & Ployhart, 2013). Even though the company is supported by modern facilities, without the presence of human resource, the company will not able to develop and maintain the performance. Therefore, each company is required to generate high knowledgeable and proficient human resources that can contribute to the company competitiveness. As a priceless asset, the company needs to manage their human resources properly to build a synchronization between demand from the company and needs of employees as an important factor of the company to move forward and remain competitive in the market.
In order to create a high quality employee, the companies are required to provide necessary work environment and proper policy, including norms, values, and regulations, which can be use by the employees as a guideline. Moreover, understanding the whole company can also be preceded by the establishment of organizational culture. Organizational culture is a viewpoint of a company, including the vision and mission that would become a significant strong point for the company to compete with existing competitor, or simply, can be define as a shared though, feeling and behavior of a group (Christensen & Shu, 1999). Strong culture determines high settlement between the resources of the company, which aims to provide proper and conventional office behavior guideline for the employee. Therefore, culture is a basic theory that discovered learning to cope with the problem of external adaptation and worked well enough to teach new resources as the correct way to think, perceive, and behave in the company (Schein, 2003). Moreover, employees who understand the whole company’s cultures will consider the culture values as the nature of the company. Cultures, values, and beliefs shared by the company will be converted into the employees’ behavior in the workplace. Therefore, good culture will have resulted in the good individual performances, and individual performances will make significant contributions to the company.
In the past period, the impact of organizational culture and job satisfaction towards employee turnover intention have been a remarkable study topic in various fields. In a definition, employee satisfaction is an extent on how happy the employees are satisfied with the jobs in the workplace (Statt, 2004). While employee turnover refers to the number of employees who leave the company to seek a new job (Saeed, et al., 2014). In additional, employee turnover intention is regularly connected with the existing cultures in an organization. Cultural values can encourage the growth and development on an ongoing basis of company performance and maintain the quality of work life experienced by their employees (Schermerhorn, et al., 2012). Moreover, high employee satisfaction, high commitment, and low turnover intention are several parameters that show how well managed a company is in creating the culture. Furthermore, organizational culture has three characteristics that can influence the employee turnover intention, including innovation and risk taking, people orientation and team orientation (Habib, et al., 2014).  The three characteristics of job satisfaction can also influence the employee turnover intention, including benefit and compensation, relationship with co-workers, and opportunity for promotion (Tasio & Giannouli, 2017). Therefore, managing organizational culture and job satisfaction can help the company to reduce the employee turnover intention rate as well as maintain the performance and remain competitive in global economy era.
For this reason, this study would deeply analyze the impact of organizational culture and job satisfaction factors towards employee turnover intention in Bank XYZ. Bank XYZ was launched in 1991 formerly known as BDI. In 2012, one of the investment groups industry acquired BDI after taking the share of ownership and the company’s name officially changed into Bank XYZ. Furthermore, Bank XYZ is one of the companies that is engaged in the field of financial and banking institution.  The vision of Bank XYZ is “To be the most preferred financial institution that focuses on micro, small, and medium businesses and serves the society with trust and professionalism.” While the mission of Bank XYZ is “To empower the community by providing opportunity and support to succeed in the micro, small and medium businesses.”
The annual report of Bank XYZ in 2016, described that the employee turnover intention was exceptionally high and should have been a serious concern for the company. In 2014, employee turnover rate reached 28% and in 2015, employee turnover rate decreased to 22%. The situation changed in 2016 since it constantly increased into 29% and became the highest turnover rate in the past three years (Bank XYZ, 2016). The turnover rate in Bank XYZ is moderately high compare to Bank Indonesia with 15% turnover rate in 2016 (Bank Indonesia, 2016). Therefore, the table below would illustrate the number of employee turnover rate during 2014 to 2015 in Bank XYZ.

According to the data given by the table, there is a problem with high employee turnover intention in Bank XYZ which may negatively influenced to the employee productivity because it leads to loss of experienced and trained employees that know the goals of the company and individual roles in achieving those goals. Possible causes of this problem are weak organizational culture and lack of job satisfaction in Bank XYZ. Referring to this problem, a study that investigates the impact of organizational culture and job satisfaction towards employee turnover intention by quantitative method is highly needed to remedy the situation.
Demonstrably, the purpose of this study is to find the factors of organizational culture and job satisfaction which may influence the employee turnover intention as well as analyze the impact of it towards employee turnover intention. This study expects a number of influences by its accomplishment and progress. For the readers, this study will improve and provide comprehensive knowledge about human resource in the context of organizational culture, employee satisfaction, and employee turnover intention and it can be used as the reference to do advance research. For the related company, this study is expected to be a useful insight for the company in term of the improvement of employee satisfaction and reduce the number of employee turnover intention. Furthermore, this paper will be divided into five sections. 1. Introduction 2. Academic literature about organizational culture, job satisfaction, and turnover intention 3. Data and sequence of methodologies used in this study 4. Finding and analysis 5. As well as the conclusion of the study.

2.      Academic Literature
2.1  Organizational Culture
The last decade, companies perceived the rise of organizational culture as an important aspect in the worldwide business. Each company has its own unique characteristic just like what people do, and the unique characteristic of an organization itself known as a culture. In a group of people who decide to work together in an organization, culture is usually invisible but have a powerful force to encourage the behavior of the members of those groups (Schein, 2003). While there are many agreements about the existence of organizational culture, it plays some significant roles in determining the behavior of an organization and there are several concepts and definitions about organizational culture itself. according to the study conducted by Mohelska & Sokolova, (2014) organizational culture definition depends on the business sectors, employee’s characteristic, nature of interaction, until organization’s historical events that shaping the personality of an organization. Mohelska and Sokolova defined the organizational culture as a system of shared meaning, collective thinking, attitudes, feelings, habits, and behavior patterns conducted by members that differentiate an organization from another. That concept also is supported by the study of Robbins & Judge, (2008) which stated that organizational culture is the way of an organization delivered values and beliefs which direct people to behave in an organization. That shared values is having a strong influence to the people on the organization and dictate how each people should perform on their own jobs. In this study, organizational culture can be defined as shared values and beliefs of business stakeholders (i.e. owners, directors, suppliers, employees, government, and supported staff) established in historical process and transferred by the use of language and symbol that influence how people behave and perform in an organization.
Organizational culture influences the employees on setting personal and professional goals, completing tasks, and managing resources in order to achieve the organizational goals. Multiple of methodologies are used in previous studies to define the components and characteristics of organizational culture. Some studies stated that organizational culture affect the way employees intentionally, unintentionally thinking, making a decision also how the employee should perceive, feel, and perform act using the shared values. Therefore, the shared values on the main of organizational culture for this study are being presented under the three principal characteristics, which are innovation and risk taking, people orientation, team orientation. 
  •  Innovation and Risk Taking
Innovation and risk taking is the degree in which each employee is encouraged to be more innovative and brave to take risks (Habib, et al., 2014). Innovation and risk taking have significant influence in organizational culture. Both revealing the organization’s openness to changes and capability to encourage each employee to take a risk. Therefore, when the culture of an organization direct the employees to be innovative and risk taking, employees will be more motivated toward their job, having capability to adapt with new things in market, and will increase employee satisfaction to work with innovative organization (Martins & Terblanche, 2003).  
  • People Orientation
People orientation is the degree in which organizational culture will affect positively if the decision taken by management supports to the organization as well as the employees (Habib, et al., 2014). An organization has to be people oriented involving organization’s support, collaboration, and respect to the employees. If the company management takes a decision that does not make a good turn of the employees, the organizational culture will be negatively affected. Therefore, the management should facilitate people oriented organizational culture to be felt by its employees and improved the organizational culture cooperation among its employees (Delobbe, et al., 2001).
  • Team Orientation
Team orientation is the degree in which team performance take precedence rather than individual working, because through the team performance organizational goals can be successfully accomplished (Habib, et al., 2014). Team orientation culture also becomes a significant part of organizational culture to organize work activities around teams. The organization with team-based orientation will have more effective complementary abilities than those that do not. Therefore, establishing team orientation as a culture will provide better outcomes than individual efforts (Sheridan, 1992). 

2.2  Job Satisfaction
Job Satisfaction is one of the important aspects that contributes to the organizational success. Thus, job satisfaction is a group of employee’s feeling about different job elements. Previously, there are various studies purposed to classify job satisfaction dimensions. In a sense, job satisfaction can be define as the degree to which the employees is satisfied with particular job as a fundamental motivation (Statt, 2004). According to (Calvo-Salguero, et al., 2010) job satisfaction defined as an attitude related with an individuals’ degree of their dislike of their current job. Furthermore, job satisfaction indicates that employees are doing these job with enthusiasm and happiness also becoming a key factor that leads to the employee acknowledgment and feeling of fulfillment. Furthermore, Armstrong, (2006) specified that job satisfaction is talking about the behavior and feeling of employees towards their job. Positive and promising behavior to particular job point out that employees are satisfied with the job, while negative and unfavorable behavior point out job dissatisfaction.  Additionally, the study by Christen, et al., (2006) defined that job satisfaction symbolizes the feeling that might appear as a result of employee’s opinion that the jobs are satisfying their psychological needs. Based on the above definitions, job satisfaction can be reflected as one of the core factor in term of efficiency and effectiveness of an organization. Job satisfaction explained that organization also should treat and consider the employee as a primary resource which having their own needs, wants, and desires towards the jobs. When the organizations are able to develop ways to deliver it as important factors, job satisfaction can help to build employee engagement and maintain profitable in the future.
Furthermore, There are two most popular surveys of job satisfaction used for past decade which are Minnesota Satisfaction Questionnaires (MSQ) and Job Descriptive Index (JDI) (Schermerhorn, et al., 2012). MSQ and JDI measures job satisfaction according to chances for improvements, working environment, freedom of judgement, praise for doing a good job, and feeling of achievement. Therefore, this study will determine three main criteria of job satisfaction measurement, which are:
  • Benefit and Compensation
Benefit and compensation is one of the main functions of human resource management to provide sufficiency of payment and reward program for the employees (Tasio & Giannouli, 2017). Benefit and compensation is important to attract, preserve, and motivate the employees. Benefits and compensation can be given to the employees in the form of money or another forms that is easily exchangeable to money (Mabaso & Dlamini, 2017).
  • Relationship with Co-Workers
Relationship with co-workers performed in an organization is a form of interpersonal communication and respect between the employees (Tasio & Giannouli, 2017). The quality of co-workers relationship represents how well the employees coordinates each others and exposes the communication effectiveness between the employees (Lin & Lin, 2011).
  • Opportunity for Promotion
Opportunity for promotion is reassignment of employees to a higher rank of significant job (Tasio & Giannouli, 2017). Naturally, the movement of an employee upward in the organizational hierarchy will lead to the enrichment of responsibilities and improvement in compensations. Employees that perceived fairly promotion are intended to have experience career satisfaction, better performance, and subsequently dedicated to the organization (Malik, et al., 2012). 

2.3  Employee Turnover Intention
Every organization invest some cost on the employees in term of training, retaining and developing to increase the employee performance and efficiency. However, employee turnove is becoming a serious challenge that every organization ever experienced with it. Many organizations are working on planning the turnover approaches for the employee, so the employee in the organization can be employed in possible way. Besides that, reducing the number of turnover can maximize the return of investment that the organization spend for each employees. In this study, employee turnover intention defines as the desire of employee to move across the involvement boundaries of an organzanization (Ponnu & Chuah, 2010). Besides that, employee turnover intention can be define as willingness of the employee to leave the organization and seek for the new opportunities (Saeed, et al., 2014). The study of (Carmeli & Weisberg, 2006)described that employee turnover intention as a withdrawal cognition practice where the employee have a thoughts of quitting the current job, intention to leave the organization, and intention to search for another job.


2.4  Framework of the Study 
     According to the review and definition of the literature above, a hypothized structural model about
the impact of organization culture and job satisfaction towards employee turnover intention  is shown
in the figure below:




3.      Data and Methodology
Research approach used in this study is quantitative approach. Quantitative research is the use of sampling methods in collecting numerical data which can be analyzed by statistical and mathematical manipulation to estimate quantities.  The purpose of quantitative approach in this research is to categorize variables and hypothesize statistical models to describe the problem is being observed. This research is conducted in Bank XYZ the data were collected from primary and secondary data. Primary data is set of original data that collected directly from the respondents for the first time. There are plenty methods to obtain primary data, including the data from interview, survey, observation, and any other methods. In this research, primary data is collected through survey method by distributing questionnaires to the respondents that are the employees in Bank XYZ. The distribution of questionnaires was conducted in two stages, including pre-test questionnaires to 30 respondents and post-test questionnaires to 70 respondents. While secondary data is the data that is accessible and has been obtained for other purposes. Secondary data used in this research is collected from book, journal, article, publication, company website, and any other sources that are related to the objectives of this research.
Furthermore, the population of this study are all the employee of Bank XYZ and the sample of used in this study are 70 respondents which coming from Bank XYZ employees. The sample must represent the whole population and must have a good size to create a good statistical analysis. Therefore, this study will use the central limit theorem to quantify the number of sample used in this study.


According to this theorem, 70 samples used in this study is larger than 30 and the samples are exceptionally good for central limit theorem to hold. Means, the distribution of sample used in this study is normally distributed. 

4.      Empirical Findings and Analysis
4.1  Validity and Reliability Test
Pre-test for 30 respondents are conducted to measures the validity and reliability of all variables in the questionnaires. The result of validity and reliability of this study was shown below.


Validity and reliability test of each variable confirmed as valid, except for team orientation variable since the KMO result is below 0.5 and Cronbach Alpha is below 0.6. Therefore, the researcher will eliminate Team Orientation variable from the research model. Eliminating Team Orientation variable from the research model does not mean that team orientation is not the characteristic of organizational culture that have significant impacts to the employee turnover intention. Team Orientation variable is not appropriate only for this research object and sample, because Team Orientation variable is confirmed as invalid and unreliable variable. Therefore, five independent variables have significant influences to the dependent variable, including Innovation and Risk Taking (X1), People Orientation (X2) as the independent variables of organizational culture, in line with Benefit and Compensation (X3), Relationship with Co-Worker (X4), also Opportunity for Promotion (X5) as the independent variables of job satisfaction. 

4.2  Simultaneous Test (f-test)
F-test analysis is one of the analysis that need to be done during multiple regression process to examine whether there is significant relationship between the whole independent variables to the dependent variable. Below is attached the ANOVA Table that show the result of simultaneous test used in this study. 
According to the result of multiple linear regression shows that significant value of research model is 0.006 or less than 0.05. Significant value of 0.006 which less than 0.05 indicates that simultaneously there is influence of each independent variable (IRT, PO, BC, RCW, and OP) towards the employee turnover intention. In addition, ANOVA table shows f-statistic value is 3.58 with the f-table is 2.37 at the significant level of α=0.05. Means, H0 is rejected and collectively there is linear relationship between independent variable with the dependent variable.

4.3  Partial Test (t-test)
T-test is an analysis to assess whether there is significant influence of single independent variable to the dependent variable. In this study, t-test is conducted to examine the relationship between dependent variable (ETI) and its independent variables (IRT, PO, BC, RCW, and OP) partially by using 95% confidence level and 2.000 t-table value. The description of t-test calculation is described by Coefficients Table of Multiple Linear Regression below.


According to the result above, it can conclude that the most significant variable that influence employee turnover intention is Benefit and compensation with significant value of 0.013 which less than 0.05. Benefit and compensation also has negative influence towards employee turnover intention in which an increase in benefit and compensation will reduce the number of employee turnover intention. This finding is consistent with the previous study by Tasio and Giannouli, (2017) stated that better benefit and compensation given to the employees lead to increase in job satisfaction and decrease employee turnover intention. The cause of significant influence on benefit and compensation variable as a characteristic of job satisfaction is that the employees are satisfied to the benefit and compensation given by Bank XYZ. Means, the employee will not intend to leave the company that will cause lower employee turnover intention. The elements that make the employees are satisfied with benefit and compensation and intended to stay with the company in this research are present salary, welfare facilities, medical facilities, and chances for salary increases.
Furthermore, the result shows that innovation and risk taking has negative influence towards employee turnover intention. This result is consistent with the previous study by Habib, et al., (2014) stated that innovation and risk taking will negatively impact to the employee turnover intention. However, the result shows that innovation and risk taking is not significant since the significant value is greater than 0.05. Means, the employees are not encouraging to be more innovative and management is not supporting the employee to bravely taking a risk. The possible reason is that most of the respondents involved in this research are coming from finance and accounting division. In this division, there is a strict guideline for work and the employee are required to work with less innovative financial constraint. This reason is consistent with the previous study by (Tysiac, 2013)  stated that it is difficult to assess whether innovative system would increase efficiency in finance and accounting division because it takes time to learn the new innovative system. Therefore, innovation and risk taking will not give any significant influence to reduce the number of employee turnover in Bank XYZ.
Additionally, the result shows people orientation is not significant and has positive influence towards employee turnover intention. This result is contradictory with the previous study by Habib, et al., (2014) stated that people will negatively impact to the employee turnover intention. However, the study by Leóna & Morales, (2016) stated that people orientation might has positive impact to the turnover since it was simultaneously associated with an increased number of uncertified absences on the part of workers who saw themselves as more employable. Means, people orientation might increase uncertified absenteeism within the employee who get overload job that leads to increase the number of employee turnover intention in Bank XYZ.
Moreover, the result of relationship with co-worker is not significant and has positive influence towards employee turnover intention. This result is inconsistent with previous study by Tasio and Giannouli, (2017) described that relationship with co-worker should have negative influence towards turnover intention since relationship with co-workers help the employees to build strong association with senior, colleagues, and also the organization. Otherwise, the study by Brunetto, et al., (2013) stated that relationship with co-workers is consequently having positive impact on turnover intention since the occurrence of frictional relationship between the employees may result in greater dissatisfaction and increase the tendency of seeking elsewhere for employment. Therefore, conflicting relationships with the co-workers may be a curse to the long-term association of the employee and leads to higher turnover in Bank XYZ.
Lastly, the result shows that opportunity for promotion has negative influence towards employee turnover intention. This result is consistent with the previous study by Tasio and Giannouli, (2017) stated that opportunity and promotion has negative impact to the emloyee turnover intention. However, the result shows that opportunity for promotion is not significant since the significant value is greater than 0.05. Means, Bank XYZ did not provide the employee with sufficient promotion to the higher level of significant job. This result is consistent with the study by Nel, et al., (2011) stated that employee turnover in banking sector tend to be higher because lack of career advancement and promotional opportunities. Conversely, Bank XYZ have implemented Management Development Program that preparing the future leader for the company and provide better career advancement and promotional opportunities for the employee. Unfortunately, Management Development Program are limited for 20 employees each year from the total employees working in Bank XYZ. Therefore, opportunity for promotion will has not significant influence to reduce the number of employee turnover in Bank XYZ.

5.      Conclusion
Based on the research objectives, the purpose of this research is to analyze the impact of organizational culture and job satisfaction towards employee turnover intention. Organizational culture defines as the shared values of an organization that shown under the three characteristics, including innovation and risk taking and people orientation, and team orientation. Job satisfaction is the degree in which the employee of an organization is happy which particular job and represented by three characteristics, including benefit and compesation, relationship with co-workers, also opportunity for promotion. While employee turnover intention defines as willingness of the employee to leave the organization and looking for new job opportunities.
From the finding, it can be concluded that f-statistic is greater than f-table (3.58 > 2.37) shows that there is linear relationship between dependent variable with the dependent variable. Furthermore, the significant value of the research model is 0.006 indicates that simultaneously there is significant influence of each independent variable, which are innovation and risk taking with people orientation as characteristics of organizational culture along with benefit and compensation, relationship with co-workers, also opportunity for promotion as characteristics of job satisfaction, toward employee turnover intention as dependent variable. In other words, there is linear relationship between dependent variable with the dependent variable. Furthermore, team orientation was not included in the research equation model, because this variable is not either valid or reliable.
According to the result, it also concluded that partially benefit and compensation as a characteristic of job satisfaction is the only independent variable that has significant influence toward employee turnover in Bank XYZ. Whereas, another independent variables, which are innovation and risk taking with people orientation as characteristics of organizational culture accompanied by relationship with co-workers and opportunity for promotion as characteristics of job satisfaction, partially have no significant influences toward employee turnover intention in Bank XYZ. The surprising factors of the research finding are people orientation and relationship with co-workers has positive influence towards the employee turnover intention where the two variables should have a negative correlation. Although people orientation and relationship with co-workers is not significant, positive correlation indicates that an increase in those variables lead to increase number of employee turnover intention.

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