Types of employee training, organizational identification, and turnover intention: evidence from Korean employees
-
DOIhttp://dx.doi.org/10.21511/ppm.18(4).2020.41
-
Article InfoVolume 18 2020, Issue #4, pp. 517-526
- Cited by
- 1105 Views
-
333 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Many organizations are willing to increase human capital investment through various employee training programs. This study empirically examines a proposed model that explains the relationship between the different types of employee training, including general and firm-specific training and employee turnover in Korean firms. This study used a survey sample of 10,069 employees in 467 publicly traded firms in South Korea. 78% of participating companies provided training programs to the employees. This study conducted quantitative cross-sectional regression analyses to test the hypotheses. The study suggests empirical evidence that general training and firm-specific training reduce employee turnover intention. Moreover, the magnitude of firm-specific training on turnover intention is much higher than general training. Furthermore, employee organizational identification has a partial mediating effect on training and turnover intention. However, the study found no substantial evidence of the moderating effect of employees’ justice perception of receiving training opportunities. Based on the human capital theory and social exchange perspective, the results indicate that both types of training programs help employee retention, and cultivating employee organizational identification can be critical in the training-turnover process.
- Keywords
-
JEL Classification (Paper profile tab)M10, M53
-
References36
-
Tables3
-
Figures1
-
- Figure 1. Research model
-
- Table 1. Descriptive statistics and correlations
- Table 2. Results of regression analysis of turnover intention (mediation model)
- Table 3. Results of regression analysis of organizational identification (moderating model)
-
- Acemoglu, D., & Pischke, J. S. (1998). Why do firms train? Theory and evidence. The Quarterly Journal of Economics, 113(1), 79-119.
- Adams, J. S. (1965). Inequity in social exchange. Advances in Experimental Social Psychology, 2, 267-299.
- Ahn, J., & Chaoyu, W. (2019). Job stress and turnover intention revisited: evidence from Korean firms. Problems and Perspectives in Management, 17(4), 52-61.
- Aiken, L. S., West, S. G., & Reno, R. R. (1991). Multiple regression: Testing and interpreting interactions. Sage.
- Ashforth, B. E., & Mael, F. A. (1998). Sustaining Valued Identities. Power and Influence in Organizations, 89(11), 89-120.
- Autor, D. H. (2001). Why do temporary help firms provide free general skills training? The Quarterly Journal of Economics, 116(4), 1409-1448.
- Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
- Barth, E. (1997). Firm-specific seniority and wages. Journal of Labor Economics, 15(3), 495-506.
- Becker, G. S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press.
- De Winne, S., & Sels, L. (2010). Interrelationships between human capital, HRM, and innovation in Belgian start-ups aiming at an innovation strategy. The International Journal of Human Resource Management, 21(11), 1863-1883.
- Dutton, J. E., Dukerich, J. M., & Harquail, C. V. (1994). Organizational images and member identification. Administrative Science Quarterly, 239-263.
- Dysvik, A., & Kuvaas, B. (2008). The relationship between perceived training opportunities, work motivation and employee outcomes. International Journal of Training and Development, 12(3), 138-157.
- Eisenbeiss, K. K., & Otten, S. (2008). When Do Employees Identify? An Analysis of Cross-Sectional and Longitudinal Predictors of Training Group and Organizational Identification 1. Journal of Applied Social Psychology, 38(8), 2132-2151.
- Forrier, A., & Sels, L. (2003). The concept employability: A complex mosaic. International Journal of Human Resources Development and Management, 3(2), 102-124.
- Guan, X., & Frenkel, S. (2019). How perceptions of training impact employee performance. Personnel Review, 48(2).
- Hashimoto, M. (1981). Firm-specific human capital as a shared investment. The American Economic Review, 71(3), 475-482.
- Hayes, R. M., Oyer, P., & Schaefer, S. (2006). Coworker complementarity and the stability of top-management teams. Journal of Law, Economics, and Organization, 22(1), 184-212.
- Hogg, M. A., & Terry, D. I. (2000). Social identity and self-categorization processes in organizational contexts. Academy of Management Review, 25(1), 121-140.
- Hogg, M. A., & Turner, J. C. (1987). Intergroup behaviour, self-stereotyping and the salience of social categories. British Journal of Social Psychology, 26(4), 325-340.
- Katz, E., & Ziderman, A. (1990). Investment in general training: the role of information and labour mobility. The Economic Journal, 100(403), 1147-1158.
- Koopman, J., Howe, M., Hollenbeck, J. R., & Sin, H. P. (2015). Small sample mediation testing: Misplaced confidence in bootstrapped confidence intervals. Journal of Applied Psychology, 100(1), 194.
- KRIVET. (2016). HCCP User’s Guide. Seoul: KRIVET.
- Lazear, E. P. (2009). Firm-specific human capital: A skill-weights approach. Journal of Political Economy, 117(5), 914-940.
- Lincoln, J. R., & Kalleberg, A. L. (1996). Commitment, quits, and work organization in Japanese and US plants. ILR Review, 50(1), 39-59.
- Lipponen, J., Olkkonen, M. E., & Moilanen, M. (2004). Perceived procedural justice and employee responses to an organizational merger. European Journal of Work and Organizational Psychology, 13(3), 391-413.
- Loewenstein, M. A., & Spletzer, J. R. (1999). General and specific training: Evidence and implications. Journal of Human Resources, 710-733.
- Milgrom, P., & Roberts, J. (1993). Economics, Organization and Management. Englewood Cliffs. Milgrom, P., & Roberts, J. (1993). Economics, Organization and Management. Englewood Cliffs.
- Noe, R. A., & Kodwani, A. D. (2018). Employee training and development. McGraw-Hill Education.
- Paterson, J. M., Green, A., & Cary, J. (2002). The measurement of organizational justice in organizational change programs: A reliability, validity and context-sensitivity assessment. Journal of Occupational and Organizational Psychology, 75(4), 393-408.
- Phillips, J. J. (2012). Return on investment in training and performance improvement programs. Routledge.
- Pitts, D., Marvel, J., & Fernandez, S. (2011). So hard to say goodbye? Turnover intention among US federal employees. Public Administration Review, 71(5), 751-760.
- Pratt, M. G. (1998). Central questions in organizational identification. Identity in organizations, 24(3), 171-207.
- Tett, R. P., & Meyer, J. P. (1993). Job satisfaction, organizational commitment, turnover intention, and turnover: path analyses based on meta-analytic findings. Personnel Psychology, 46(2), 259-293.
- Topcic, M., Baum, M., & Kabst, R. (2016). Are high-performance work practices related to individually perceived stress? A job demands-resources perspective. The International Journal of Human Resource Management, 27, 45-66.
- Wang, I., Shieh, C. J., & Wang, F. J. (2008). Effect of human capital investment on organizational performance. Social Behavior and Personality: an international journal, 36(8), 1011-1022.
- Wu, J. B., Hom, P. W., Tetrick, L. E., Shore, L. M., Jia, L., Li, C., & Song, L. J. (2006). The norm of reciprocity: Scale development and validation in the Chinese context. Management and Organization Review, 2(3), 377-402.