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The Impact of P-O Fit on Organizational Commtiment and Turnover Intention

Author: ChenXiaoLing
Tutor: YuJing
School: China University of Geosciences
Course: Business management
Keywords: P-O fit organizational commitment turnover intention interaction effcet
CLC: F272.92
Type: Master's thesis
Year: 2013
Downloads: 33
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Abstract


Under the open and free business environment, the enterprise should develop itself in an all-around way, meanwhile the staff can expand their horizons and will have more choices for their personal career development. On the one hand, Globalized economic development leads to international competition trend. Under such a situation, the enterprise must continuously strengthen its ability of positive and flexible response to the external environment, which largely depends on the synergistic effect of employees and enterprise. On the other hand, the change of employees’ work value makes frequent resignation or job-hopping a problem. In order to maintain the core competence and ensure the persistance of the organization’s operation, the enterprise has to face a very serious problem of turnover. Based on this, that how to attract, select and retain the right talents has been the focus of the scholars and the managers.In the field of organizational behavior and human resource management, the topic about Person-Organization fit (P-O fit) has gradually attracted more and more scholars’ attention. From the perspective of theory and practice respectively, the scholars have tried to explore the P-O fit effect to learn about the relationship between P-O fit and some outcome variables, such as work satisfaction, organizational commitment, turnover intention et al..However, considering present research, studies on P-O fit show the following characteristics:One, studies on P-O fit effect are more based on the concepts of a single dimension, especially on the value congruence; Second, more attention is paid to explore the main effect of the P-O fit effect, and more or less neglecting the interaction effect between different dimensionalities.Based on the practice and theory background, the paper builds P-O fit effect model, in which the concept of P-O fit is defined with three dimensionalities. By learning about the research status, including the concepts, dimensionalities and influences of the variables, such as P-O fit, organizational commitment and turnover intention, the variables are defined and the possible relationships between them are understood. Then the paper proposes that organizational commitment serves as an intermediary between P-O fit and turnover intention. Four hypotheses are put forward by the theoretical analysis:Hl. P-O fit is positively related to organizational commitment; H2. P-O fit is negatively related to turnover intention; H3. organizational commitment is negatively related to turnover intention;H4. organizational commitment plays part mediating role between P-O fit and turnover intention.First, the paper tests the relationship of the variables by using structural equation modeling. The data shows that P-O fit could significantly positively predict organizational commitment, and organizational commitment could significantly negatively predict turnover intention, but P-O fit couldn’t directly predict turnover intention. It indicates that the hypotheses of H1,H2and H3has passed the test, but H4hasn’t. That is to say, P-O fit could only indirectly predict the turnover intention. When P-O fit is high, the employee will show high organizational commitment, and then low turnover intention. On the contrary, low P-O fit will reduce organizational commitment, which will lead to higher turnover intention.Second, in order to clarify how P-O fit influences the outcome variables and further understand the boundary condition of the relationships between variables’ dimensionalities, this paper adopts hierarchical regression analyses in Chapter5to reveal the main effects and interaction effects between variables on the dimensional level, including three dimensionalities of P-O fit (value congruence, Need-Supply fit and Demand-Ability fit), the dimensionalities of organizational commitment(OAC,ONC and OCC) and turnover intention.The main effects between dimensionalities are as follows:(1)Value congruence could positively predict ONC and OAC, but it couldn’t predict OCC. In addition, Value congruence showed negative effect on turnover intention.(2) Need-Supply fit could evidently and positively predict sub-dimensions of organizational commitment, but it couldn’t predict turnover intention.(3)Demand-Ability fit is also a significant positive predictor of the sub-dimensions of organizational commitment, however it couldn’t predict turnover intention. That is to say, there is significant correlation between the sub-dimensions of P-O fit and organizational commitment, while only value congruence serves as an effective predictor of turnover intention.The interaction effects between dimensionalities are as follows:(1)Need-Supply fit negatively moderates the relationship between value congruence and the outcome variables, including OAC, ONC and turnover intention. However, Need-Supply fit can’t moderate the relationship between value congruence and OCC.(2)Demand-Ability fit has positive response on the relationship between value congruence and sub-dimensions of organizational commitment except OCC, and between Need-Supply fit and sub-dimensions of organizational commitment except OCC. Meanwhile Demand-Ability fit negatively moderates the relationship between Need-Supply fit and OCC. And Demand-Ability couldn’t moderate the relationship between the other two sub-dimensions of P-O fit and turnover intention.So the main contributions of this paper are as follows:(1) Different from other scholars, who always focus on a single dimension of P-O fit, the paper is based on the concept of three dimensional perspective to study the impact of P-O fit on organizational commitment and turnover intention.(2) Considering that most of the related studies about P-O fit prefer to talk about the main effects, this paper tries to explore the relationships between dimensionalities, and test both the main effects and interaction effects. And then it will enrich the study of P-O fit effects.

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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making > Corporate Administration > Personnel Management
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