The relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises

Employees’ turnover intention is one of the challenges faced by many organisations including small medium enterprises (SMEs) in Malaysia. Thus, demand for an effective leadership style is crucial as it can increase employees’ interest to stay longer in organisations. The relationship between leaders...

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Main Author:	Ng, Xin Le
Format:	Thesis
Language:	English
Published:	2018
Subjects:	HD28 Management Industrial Management
Online Access:	http://eprints.utm.my/id/eprint/79586/1/NgXinLePFM2018.pdf
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id	my-utm-ep.79586
record_format	uketd_dc
spelling	my-utm-ep.795862018-10-31T13:01:54Z The relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises 2018 Ng, Xin Le HD28 Management. Industrial Management Employees’ turnover intention is one of the challenges faced by many organisations including small medium enterprises (SMEs) in Malaysia. Thus, demand for an effective leadership style is crucial as it can increase employees’ interest to stay longer in organisations. The relationship between leadership styles and employees’ turnover intention has been widely studied. There are various leadership styles such as transformational, transactional, autocratic and charismatic leaderships. While the concept of leadership has been extensively studied, the role of servant leadership in reducing employees’ turnover intention has not been fully understood. Servant leadership focuses on their followers’ needs in establishing good relationship with followers. In addition, it is associated with characteristics such as standing back, empowerment, ethical, humility, listening and forgiving. This study examined the relationship between servant leadership (independent variables) and employees’ turnover intention (dependant variable). In addition, this study investigated the effect of human resource (HR) practices as the mediating variable since this relationship has received scarce attention in research. HR practices such as training and development, rewards and pay system, performance management, and occupational safety and health management were the focal points of this research. The objectives in this research were to identify the level of servant leadership in SMEs; to investigate which is the most frequently used HR practices; to determine inter-relationships between servant leadership, HR practices and turnover intention; and to examine the role of HR practices as a mediator. Using questionnaires, data were collected from 227 local SMEs' employees in manufacturing sector. The questionnaires were distributed by hand, mails, emails and Google Forms. SPSS version 24 was used to analyze the normality test and demographic factors of the respondents, whereas AMOS version 24 was used for Confirmatory Factor Analysis (CFA) and testing the relationship between variables in the Structural Equation Modeling (SEM). The results showed that the level of servant leadership is moderate and performance management is most frequently used HR practices among SMEs. Apart from that, it was found that there is a significant positive relationship between servant leadership and HR practices, in which good servant leadership and HR practices are found to be significant in reducing employees’ turnover intention. It is discovered that only two dimensions of servant leadership which are listening and ethical behavior showed a significant mediation effect on turnover intention. In short, these findings provided useful insights for practitioners of SMEs in reducing employees’ turnover. It is recommended that leaders not only have to listen to the needs of their employees but to take care of their welfare such as training opportunities and pay rates. 2018 Thesis http://eprints.utm.my/id/eprint/79586/ http://eprints.utm.my/id/eprint/79586/1/NgXinLePFM2018.pdf application/pdf en public phd doctoral Universiti Teknologi Malaysia, Faculty of Management Faculty of Management
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	HD28 Management Industrial Management
spellingShingle	HD28 Management Industrial Management Ng, Xin Le The relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises
description	Employees’ turnover intention is one of the challenges faced by many organisations including small medium enterprises (SMEs) in Malaysia. Thus, demand for an effective leadership style is crucial as it can increase employees’ interest to stay longer in organisations. The relationship between leadership styles and employees’ turnover intention has been widely studied. There are various leadership styles such as transformational, transactional, autocratic and charismatic leaderships. While the concept of leadership has been extensively studied, the role of servant leadership in reducing employees’ turnover intention has not been fully understood. Servant leadership focuses on their followers’ needs in establishing good relationship with followers. In addition, it is associated with characteristics such as standing back, empowerment, ethical, humility, listening and forgiving. This study examined the relationship between servant leadership (independent variables) and employees’ turnover intention (dependant variable). In addition, this study investigated the effect of human resource (HR) practices as the mediating variable since this relationship has received scarce attention in research. HR practices such as training and development, rewards and pay system, performance management, and occupational safety and health management were the focal points of this research. The objectives in this research were to identify the level of servant leadership in SMEs; to investigate which is the most frequently used HR practices; to determine inter-relationships between servant leadership, HR practices and turnover intention; and to examine the role of HR practices as a mediator. Using questionnaires, data were collected from 227 local SMEs' employees in manufacturing sector. The questionnaires were distributed by hand, mails, emails and Google Forms. SPSS version 24 was used to analyze the normality test and demographic factors of the respondents, whereas AMOS version 24 was used for Confirmatory Factor Analysis (CFA) and testing the relationship between variables in the Structural Equation Modeling (SEM). The results showed that the level of servant leadership is moderate and performance management is most frequently used HR practices among SMEs. Apart from that, it was found that there is a significant positive relationship between servant leadership and HR practices, in which good servant leadership and HR practices are found to be significant in reducing employees’ turnover intention. It is discovered that only two dimensions of servant leadership which are listening and ethical behavior showed a significant mediation effect on turnover intention. In short, these findings provided useful insights for practitioners of SMEs in reducing employees’ turnover. It is recommended that leaders not only have to listen to the needs of their employees but to take care of their welfare such as training opportunities and pay rates.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Ng, Xin Le
author_facet	Ng, Xin Le
author_sort	Ng, Xin Le
title	The relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises
title_short	The relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises
title_full	The relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises
title_fullStr	The relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises
title_full_unstemmed	The relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises
title_sort	relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises
granting_institution	Universiti Teknologi Malaysia, Faculty of Management
granting_department	Faculty of Management
publishDate	2018
url	http://eprints.utm.my/id/eprint/79586/1/NgXinLePFM2018.pdf
_version_	1747818262612148224

The relationship between perceived servant leadership characteristics, human resource practices and turnover intention in small medium enterprises

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