Management Styles and Employee Turnover in Flower Farms
Management Style Employee Turnover
Attrition Resignation Dismissal
Participative r = .283** r=-.120* r = -.028
p =.000 p=.031 P = .008
Facilitative r=.151** r =.107 r=-.084
p =.007 p =.005 p =.002
**Correlation is significant at the 0.01 level (2-tailed)
*correlation is signification at the 0.05 level (2-tailed)
The finding shows that there was a positive significant relationship between management
style (participative and facilitative) and employee turnover at a significance level of 0.01.
However, there was a negative correlation between the management styles and dismissal.
Therefore, the null hypothesis was rejected and the alternative hypothesis accepted indicating
that there is a significant relation between leadership styles and employee turnover. Hence
the finding indicates that management styles may not be the only reason for dismissal. There
could be other reasons like stealing from the employer or committing a criminal offence for
which an employee is imprisoned.
Ordinal Regression Analysis
Regression analysis was employed to test the relationships in the model. The regression
method was used to determine the influence human resource practices on employee turnover
in flower industry in North Rift Region. The term "independent" variables and "dependant""
variables are derived from the mathematical expression;
y = α + β1X1 + β2X2 + β3X3 β4X4+ ẹ
Where,
y= Dependent variable α= regression constant,
β1 – β4 = Regression coefficients (change in y for every unit change in X) X1 = Management
Styles
X2 = Rewards (extrinsic and intrinsic) X3 = Work Life balance
X4 = Health and safety Practices
℮ = Error term
The regression coefficient `α' is the Y intercept: while β1, β2, β3 and β4 are the net change in
y for each change of either of the variables (factors), x1, x2, x3 and x4.
The main purpose of the study was to determine the influence human resource practices on
employee turnover in flower industry in North Rift Region. Regression analysis combined
selected independent variables with employee turnover being the dependent variable. This
was to determine any significance for the assumed relationships based on the magnitude and
direction of the relationship. Variables such Management Styles, Rewards (extrinsic and
intrinsic), Work Life balance and Health and safety Practices were the predictors representing
the independent variables.
Ordinal Regression for Objective I
To analyze the relationship between Management Styles and employee turnover in flower
farms.
Table 4.8 Model Fit
Model Fitting Information
Model -2 Log Likelihood Chi-Square df Sig.
Intercept Only 734.212
Final 661.043 73.168 24 .000
Results shows the Model fitting information. Before looking at the effects of each
explanatory variable in the model, there is need to determine whether the model improves our
ability to predict the outcome. This is done by comparing a model without any explanatory
variables (the baseline or ‘Intercept only’ model) against the model with all the explanatory
variables (the ‘Final’ model - this would normally have several explanatory variables). The
Model fitting Information table gives the -2 log-likelihood (- 2LL,) values for the baseline
and the final model, and the test performs a chi-square to test the difference between the -2LL
for the two models. The statistically significant chi- square statistic (p<.0005) indicates that
the Final model gives a significant improvement over the baseline intercept-only model. This
implies that the model gives better predictions based on the marginal probabilities for the
outcome categories.
Goodness-of-Fit
Chi-Square Df Sig.
Pearson 572.894 576 .529
Deviance 372.589 576 1.000
Results on Table, contains Pearson's chi-square statistic for the model as well as another chi-
square statistic based on the deviance. These statistics are intended to test whether the
observed data are consistent with the fitted model. We start from the null hypothesis that the
fit is good. If we do not reject this hypothesis if the p value is large, then it is concluded that
the data and the model predictions are similar and that you have a good model. However if
the assumption of a good fit is rejected, conventionally if p<.05, then the model does not fit
the data well. The results for our analysis suggest the model fits very well p<.529.
Table Pseudo R-square Statistics
Pseudo R-Square
Cox and Snell .204
Nagelkerke .205
McFadden .044
Pseudo R-square Statistics
What constitutes a good R2 value depends upon the nature of the outcome and the
explanatory variables. Here, the pseudo R2 value is Nagelkerke = 20.5% indicates that
management styles influence employee turnover though with a small percentage. From this
there could be other reasons that would cause employee turnover. The low R2 indicates that a
model containing only management styles is likely to be a poor predictor of the outcome for
any particular employee. Though, this does not negate the fact that there is a statistically
significant and relatively large difference between management styles employee turnover as
shown in Table 4.10.
Table Test of Parallel Lines
Test of Parallel Linesa
Model -2 Log Likelihood Chi-Square Df Sig.
Null Hypothesis 661.043
General .000b661.043 576 .008
When testing an ordinal regression it is assumed that the relationships between the
independent variables and the logits are the same for all the logits. That means that the results
are a set of parallel lines or planes one for each category of the outcome variable. The result
of the test of parallelism is in Table 4.11 shows that row labeled Null Hypothesis contains
2log-likelihood for the constrained model. The model assumes the lines are parallel. The row
labeled General is for the model with separate lines or planes. The entry labeled Chi-Square
is the difference between the two 2 log-likelihood values. If the lines or planes are parallel,
the observed significance level for the change should be large as shown in the results, since
the general model does not improve the fit very much. The parallel model is adequate. The
null hypothesis may not be rejected since the lines are parallel. From Table 4.10 the
assumption is reasonable for this problem. If the null hypothesis is not rejected, it is possible
that the link function selected is incorrect for the data or that the relationships between the
independent variables and logits.
Intrinsic and Extrinsic Rewards and Employee Turnover
The second objective of this study was to examine the relationship between intrinsic and
extrinsic rewards and employee turnover in flower farms. To achieve this, the employees
were first asked to rate in a five likert scale items in the questionnaire on extrinsic rewards.
The items were rated as; Not satisfied (NS) =1; somewhat satisfied (SS) =2; Satisfied (S)
= 3; Very satisfied (VS) = 4 and Extremely Satisfied (ES) = 5. Their responses were scored
and the results are presented in Table 4.12.
Table Extrinsic Rewards and employee Turnover
Statement NS SS
S
VS ES
F % F % F % F % F %
The chance to work alone on
the job
100 31.2 187 58.3 34 10.6 0 0.0 0 0.0
The chance to do different things
from time to time
127 39.6 54 16.8 103 32.1 37 11.5 0 0.0
The ability of my supervisor in
making decisions
112 34.9 86 26.8 38 11.8 79 24.6 6 1.9
The way the organization want us
to do the work
111 34.6 92 28.7 29 9.0 62 19.3 27 8.4
My pay and the amount of work I
do
113 35.2 93 29.0 50 15.6 64 19.9 1 .3
The working conditions 149 46.4 58 18.1 39 12.1 56 17.4 19 5.9
The praise I get for doing a good
job
137 42.7 85 26.5 49 15.3 46 14.3 4 1.2
From the findings on extrinsic rewards presented on Table 4.12 revealed that majority of the
respondents were not satisfied with extrinsic rewards. Majority (187, 58.3%) employees were
somewhat satisfied when they are given a chance to work alone on job, (100,31.2%)
employees were not satisfied while (34,10.6%) employees were satisfied. The study findings
showed that majority (89.5%) of the employees in flower farms in North Rift Region were
not satisfied when they were working alone. This implies that most employees in the farms
like working in a team making their work easier and enjoyable and therefore making
employees satisfied with their work thus wanting to stay longer in the farms. This concurs
with Abdulah et al., (2012) who found a strong correlation between employee satisfaction
and teamwork.
In addition, (127, 39.6%) employees were not satisfied when they were given an opportunity to
do different things from time to time, (103, 32.1%) employees were satisfied and (54,16.8%)
employees were somewhat satisfied while (37,11.5%) employees were very satisfied. From the
responses, it can be shown that majority (56.4%) of the employees were not happy with doing
different tasks from time to time. This implies that most employees would want to do one kind of
task all the time. This is an indication that most employees who are assigned different tasks from
time to time do not enjoy their work and might want to leave. However, it has been noted that
task assignment may not only affect task-level productivity, may also impact worker turnover.
Task variety could lead to increased job engagement, lower levels of boredom (Warr, 2007), and
increased job satisfaction (Griffeth et at., .2000). Further, (112, 34.9%) employees were not
satisfied with the ability of their supervisors in making decisions, (86, 26.8%) employees were
somewhat satisfied, (79, 24.6%) employees were very satisfied and (38, 11.8%) employees were
satisfied while (6,1.9%0 employees were extremely satisfied. It emerged from the study findings
that a majority (61.7%) of the employees were unhappy with supervisors’ decision making
process. Employees would be satisfied with their work when they are involved in decision
making process which is participative. Participative decision making is a managerial strategy
which has been argued to affect performance, organization commitment, turnover, motivation
and satisfaction of employees, organization productivity (Olele, 2014 et al.,). Similarly, (111,
34.6%) employees were not satisfied with the way their organizations wanted them to do their
work, (92, 28.7%) employees were somehow satisfied, 62, (19.3%) employees were very
satisfied and (27, 8.4%) employees were extremely satisfied while (29,9.0%) employees were
satisfied with the statement. It can therefore be shown that a majority (63.3%) of the
employees may not want to work as per the organization plans. This means that employees
would want to work where there is flexible in terms of work planning. Some researchers argue
that flexible working practices facilitate work-life balance, and with shifting family patterns
such practices are beneficial for both women and men (Thomson, 2008; Hofacker, & Konig
2013). Flexible working result in employee loyalty and engagement, increased organizational
commitment, and higher job satisfaction. Flexible working packages help to recruit and retain
talented employees for the organization (Anderson, & Kelliher, 2009).
More so, (113, 35.2%) employees were not satisfied with the pay and the amount of work they
do, (93, 29.0%) employees were somewhat satisfied, (64, 19.9%) employees were very satisfied
and (50, 15.6%) employees were satisfied while (1,.3%) employee was extremely satisfied. From
the responses, it can be argued that majority (64.2%) of the employees in flower farms in the
region are not satisfied with pay they are given and the kind of jobs they undertake. Akintoye
(2000) asserts that money remains the most significant motivational strategy; therefore flower
farms need to remunerate workers as per the type of jobs they undertake to retain them.
Performance based pay improves employee performance in addition to motivating and engaging
employees (Nazir, et al., 2013) causing to improve employee retention. In employee recognition
process, employees are praised which is a key essential as employees seek the need to be valued
and respected. This process increases individual productivity, loyalty, retention and high
employee satisfaction (Danish & Usman , 2010). Nonmonetary incentives attract, motivate and
retain competent human resource in the organization (Fogleman & McCorkle, 2013; Ahmed &
Ahmed, 2014). Extrinsic rewards increases the level of employee performance and satisfaction
also found as a strong factor for employee motivation (Saeed, et al., 2013). Intrinsic rewards
were found to be a sustainable source of motivation for employees. However according to
studies extrinsic rewards are more positive and stronger in relation to intrinsic rewards
(Edirisooriya, 2014) in retaining employees.
Reward systems are necessary because they give preference to service over self-interest. It also
means there need to be an equitable distribution of wealth. One test of equity is how well to
affirm the fact that the success of the institution is in the hands of people at each level. An
institution’s wealth and value, in the broadest sense, is then a community creation (Block,
2005). Money is the most obvious extrinsic reward. Money acquires significant motivating
power because it comes to symbolize so many intangible goals. It acts as a symbol in different
ways for different people and for the same persons at different times. Money can provide
positive motivation in the right circumstance, not only because people need and want money but
also because it serves as a highly tangible means of recognition. Money can be considered as
scorecard through which employees evaluate how much an organization values them.
Further, (149, 46.4%) employees were not satisfied with working conditions in the flower farms,
(58, 18.1%) respondents were somewhat satisfied, (56, 17.4%) respondents were very satisfied
and (39, 12.1%) respondents were satisfied while (19,5.9%) respondents were extremely
satisfied with the conditions. The study findings suggested that majority (64.5%) of the
employees were not satisfied with the working conditions within the flower farms. This implies
that the working conditions were not appealing to most workers in the flower firm industry and
therefore were unsatisfied with their jobs. This stems from the fact that employees are not
involved in decision making process. The working conditions in flower industry do not provide
sustainable livelihoods for those employed as argued by Dolan et al. (2003). Furthermore,
Gitonga, (2010) reported that in July 2010 more than 1,500 workers from Aquilla and Karuturi
farms went on strike over poor working conditions. This implies for continued retention of
employees in flower farms, working conditions need to be improved.
Similarly, (137, 42.7%) employees were not satisfied with the praise they received when they do
a good job, (85, 26.5%) respondents were somewhat satisfied and (49, 15.3%) employees were
satisfied while (46, 14.3%) employees were extremely satisfied. From the responses, it can be
shown that majority (69.2%) of the employees in the flower farms believed that the praises they
received for good work done were not adequate. Praise from superiors motivates employees to
work hard and produce quality results (Mahaney & Lederer 2006). Therefore flower farms
should praise hard working employees all the time as a way of improving their self esteem and
productivity which in turn leads to job satisfaction and low employee turnover. This concurs
with the findings by Johnson (2000) which shows that two-thirds of respondents in the research
admitted that lack of appreciation wa the major factor in driving them to leave their
organizations.
From observation the employees looked not motivated and unwilling to work. This was seen
through their slow way of carrying their duties. Human resource management is an approach to
develop highly committed and capable workface also accountable for retaining skilled
employees therefore with these approaches it is evident that one of the primary sources of
competitive advantage for an organization is employee (Saha & Gregar , 2012). Hence
organizations without proper human resource management practices will invest often more on
attracting and recruiting employees that fits for the organization, train them to align with the
overall culture and strategy of the organization which will incur higher costs (Moon & Li, 2012).
Employee retention today has become a global issue. According to Hay Group, the global
employee turnover rate will experience the severest escalation with in 2014 and by 2018 more
than 49 million employees will leave their present jobs compared to 2012 making it a total
number of 192 million employees worldwide (HayGroup, 2013).
Further, the employees were first asked to rate in a five likert scale items in the questionnaire on
intrinsic rewards. The items were rated as; Strongly Disagree (SD) =1; Disagree (D) =2; Neither
Agree nor Disagree (NAD) = 3; Agree (A) = 4 and Strongly Agree (SA) = 5. Their responses
were scored and the results are presented in Table 4.12.
