The Impact of Organizational Culture and Organizational Identification

Talent is valuable only if the organization needs their skills and expertise. Similarly, if the talent does not match the organization, there is a high chance of turnover. Here we explore some of the factors affecting turnover.

Leader-member exchanges

The common saying is that ‘people quit managers, not jobs.’ Given that the direct representative of the organization is the line manager, we start by looking at the quality of the relationship between supervisor and subordinate using leader-member exchange (LMX) theory, which has been shown to correlate with turnover intention across several sectors (Brunetto et al., 2013; DeConink, 2011; Harris, Li & Kirkman, 2014;

Portoghese, Galletta, Battistelli & Leiter, 2014). LMX is different from person-supervisor fit in that it refers to the exchange between supervisor and subordinate. For example, employees who have a poor relationship with their manager will be assigned disliked tasks, leading to turnover intention. Conversely, a positive relationship with the manager can benefit the employee through an easier promotional climb and more rewarding work assignments (Brunetto et al., 2013). Several LMX models have been proposed, with the following key factors influencing the exchange: expectation of positive outcomes; affection for each other; loyalty to each other; perceptions of their contribution to the common goal; and professional respect (Dulebohn, Bommer, Liden, Brouer & Ferris, 2012; Liden & Maslyn, 1998). Furthermore, at the early stage of employment, Liden, Wayne & Stilwell, (1993) survey of supervisor-subordinate relationships shows that it is possible to predict the quality of the future LMX and thus whether the newcomer will stay or leave based on job expectations, the perception of similarity between supervisor and subordinate and the initial sense of rapport. Therefore, it is crucial to recruit the correct talent and assign that talent to an appropriate supervisor in order to ensure a good relationship.

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