EXECUTIVE

17

1 J. Anitha

2 Farida Begum N

Role of Organisational Culture and Employee Commitment in Employee Retention

1 Dr. Anitha is Associate Professor at

Department of Management Studies, PSGR

Krishnammal College for Women,

Coimbatore.

E-mail : [email protected] 2 Farida Begum N. is Research Scholar at

PSGR Krishnamal College for Women,

Coimbatore.

E-mail : [email protected]

Abstract

Employee retention is one of the challenges faced by Indian organisations. Employees are the most valuable assets of an organisation. It is they who add value to an organisation in terms of quality and quantity. There is a great demand for the skilled professionals within India and abroad. Employee retention means various policies and practices which let the employees stick to an organisation for a long period of time. In order to achieve competitive advantage, maximum utilization of resources and to get organisational efficiency employees must be retained in a true spirit in order to cope with all these conditions. This paper focuses on automobile manufacturing and service sector, and highlights factors like Employee Commitment and Organisational Culture that measure how to retain an employee in an organisation. The model will be validated which will be beneficial to organisations in the automobile and service sector to focus on key aspects that aid in Employee Retention. Organisational Commitment comprises of three dimensions, namely: Affective, Continuance and Normative Commitments, which were derived from Allen and Mayer's model. The perceptions of Organisation Culture are also the factors measured to know the existing levels of retaining an employee in an organisation. The findings reveal that Organisational Culture has high impact on Employee Retention than Continuance Commitment and Normative Commitment. This implies that the employees of the organisation have more positive perception regarding organisational culture. However, Affective Commitment doesn't impact Employee Retention to a significant extent. This indicates that most of the employees remain in the organisation due to the benefits they get in being on the job (Continuance Commitment) and due to the obligation values they have in

,

giving something back to the organisation (Normative Commitment). It also indicates that Affective Commitment need not reflect in getting retained in organisation.

Keywords

Employee Retention, Organisation Culture, A f f e c t i v e C o m m i t m e n t , C o n t i n u a n c e Commitment and Normative Commitment.

Introduction

People are the most important resource of any organisation. The best people are the reasons for the best organisations, and inept people result in inept organisations. Employee retention is a challenge in many organisations. Demographical and market changes have created a more confident and demanding workforce, which makes it necessary for organisations to be competitive and work harder at meeting employees' needs to retain their loyalty. Employees are the assets of any organisation and organisation cannot afford losing its key performers. Organisations are striving to retain their talents by implementing effective retention strategies. Organisational Culture and Employee Commitments are the strategies used to retain the employees. Employee Retention involves taking measures to encourage employees to remain in the organisation for the maximum period of time. The corporate world is facing a lot of problem in Employee Retention these days. Hiring knowledgeable people for the job are essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for talented persons. There are many organisations which are looking for such employees. If a person is not satisfied by the job she/he -is doing, she/he may switch over to some other more suitable job. Thus, in today's environment it becomes very important for organisations to retain their employees.

When the right people are found for the organisation, they blend into the Organisational Culture. Organisations these days are going

through a situation where the number of employees is large but the quality is lacking. Organisations are also finding it difficult to adapt to changing situations. An organisation's culture has a profound impact on the effectiveness of the organisation by influencing how decisions are made, how human resources are used and how people respond to environmental challenges. In this study, the factor Organisational Culture is taken into consideration on Employee Retention as Organisational Culture is increasingly being pushed as an important selling feature as companies attempt to attract and retain valued employees. Employers are being advised to evaluate their cultures and, where necessary, change them to increase their attractiveness to employees. Sheridan (1992), in his study, has suggested that a possible dilemma for organisations interested in using culture as a retention tool. A culture that promotes strong 'relationship values' appears to increase the retention of both strong and weak employees. That is, it reduces both dysfunctional and functional turnover.

Organisational Culture is the behaviour of

human beings within an organisation and the

meaning that people attach to those behaviours.

According to Needle (2004), organisational

culture represents the collective values, beliefs

and principles of organisational members and is

a product of such factors as history, product,

market, technology, and strategy, type of

employees, management style, and national

culture. Culture includes the organisation's

vision, values, norms, systems, symbols,

language, assumptions, beliefs, and habits.

Ravasi and Schultz (2006) wrote that

organisational culture is a set of shared

assumptions that guide what happens in

organisations by defining appropriate behaviour

for various situations. Schein (1992), Deal and

Kennedy (2000) and Kotter (1992) advanced the

idea that organisations often have very differing

cultures as well as subcultures. Though a

18 International Journal of Asian School of Business Management, Vol. IX, Issue I, January - June, 2016

company may have its "own unique culture", in

larger organisations there are sometimes co-

existing or conflicting subcultures because each

subculture is linked to a different management

team.

This study has also tried to find out the impact of

organisational commitment on employee

retention. Organisational commitment has been

defined as the attitude which ties the individual to

the organisation. On the other hand, satisfied and

committed employees tend to be less attracted by

alternatives. This means that even in situations of

existing job alternatives, the employee's decision

of staying in the organisation depends

significantly on employee's perception of firm's

interest and effort for trying to make him/her to

stay. The employees' perception of being valued

by the organisation is likely to increase their

satisfaction and commitment which tend to

enhance the employee's desire to remain member

of the organisation. Organisational Commitment

is treated as comprising three dimensions,

namely: Affective, Continuance and Normative

Commitments. As part of their research, Meyer &

Allen (1991) developed a framework that was

designed to measure three different components

of Organisational Commitment: (a) Affective

commitment refers to employees' emotional

attachment, identification with, and involvement

in the organisation. Employees with a strong

affective commitment stay with the organisation

because they want to. (b) Continuance

commitment refers to employees' assessment of

whether the costs of leaving the organisation are

greater than the costs of staying. Employees who

perceive that the costs of leaving the organisation

are greater than the costs of staying remain

because they need to. (c) Normative commitment

refers to employees' feelings of obligation for the

organisation. Employees with high levels of

normative commitment stay with the organisation

because they feel they ought to. In arguing for

their framework, Meyer & Allen (1991)

contended that affective, continuance, and

normative commitment were components rather

than types because employees could have varying

degrees of all three.

This study thereby focuses on the influence of o r g a n i s a t i o n a l c u l t u r e a n d E m p l o y e e commitment on employee retention. Specific reviews on the study variables were made to develop a theoretical framework and the same was validated using empirical data.

Literature Review

A number of researches (Kuttappa, 2013; Kumar and Arora, 2012; Hassan et al., 2011) have focused on finding out the factors that influence employee retention in organisations. However different researches have shown different factors as influential of retention that includes HRM factors and organisation factors, work life balance and demographic factors, superior subordinate relationship etc. This section focuses on the various key elements that play a major role in employee retention. Kuttappa (2013) determines the influence of HRM factors and organisational factors on employee retention. His paper dealt with the association between retention rates and application of the identified HRM factors and organisation factors. His study also highlighted several external constrains that may affect the retention of core employees. These results imply that effective retention management practices (using ten identified HRM and Organisational factors that is effective selection, challenging employee assignment and opportunities, training and career development, reward recognition of employee value, equity of compensation leadership, company policies and culture, working environment etc) will have impact on better retention rates. Irshad (2012) also concluded the same that almost all the factors or indicators that directly or indirectly influence employee retention are correlated. Not only a single factor promotes an employee to leave but it is blend of many reasons to leave the organisation. Hassan et al., (2011), in their study reveal that hiring right person for a right job leads an employee for long term relationship. The supervisor plays an important role to gain the trust

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of an employee; also there should be good judgment of job security and future prospects in an organisation. Chebolu (2006), emphasises the concept of “social visibility” that constitutes the core job of “effective executive” for achieving organisational and personal goals. Galindo (2012) concentrates on the way toward the future s t u d y i n m a k i n g c o m p a r i s o n b e t w e e n administration, faculty, staff, and student perceptions of social media in higher education. The significance of social media research will impact future communication, collaboration and success among retention administration. Naik (2008), states that a personal touch will go a long way in deep rooting sustainable motivation drivers. The factors like loyalty and love, long term prospects and congenial societal environment are equally important drivers of motivation.

Sheridan (1992) tried to find out whether person- organisation fit and individual commitment have substantial effects on employee retention. Organisational culture value has important implications for human resource managers. The r e l a t i o n s h i p b e t w e e n e m p l o y e e s ' j o b performance and their retention also varied significantly with organisational cultural values. The research study also describes a relationship between fit and performance and explains partially why stronger performer stayed much longer than weaker performer in the culture emphasizing work task values. Millan (2010) tries to find out in his study that if group mean difference in cultural perception exists between people of different generational ages, gender and ethnicity. In this study, his theoretical frame work consisted of Herzberg's two factor motivation and Mc Gregor's theory X and Y. In his study the finding indicates that there is no significant group mean difference in cultural dimension for demographic in addition his findings suggest that highly skilled worker prefer a family oriented participative culture. His study determines that improving organisational structure and shift cultural norms that result in increased productivity, global competitiveness and social change. Zhao et al., (2008) in their study reveal that corporate culture, hiring and promotion

practices impact management retention as well, more over as well as organisation mission, goals, direction and employee retention were found to positively reduce non-management employee turnover. The study also implies that a trusting and committed work force that will reap long term benefits, which in turn provide high productivity levels, improved financial performance over all firm enhancement.

Chatterjee (2009) explores that overall satisfaction of employees with regard to organisational culture. The studies also reveal the expectations of employees from organisations to understand the changes needed in the organisational culture to improve retention rates. The author also suggest that to ensure employee retention the organisation should give due importance to the organisational culture and work environment and try to devise strategies specific to their own organisation. Allen and Meyer et al. (1991) state that Affective commitment as the employee's emotional attachment to, identification with, and involvement in the organisation; Continuance commitment as awareness of the costs associated with leaving the organisation; and Normative Commitment as a feeling of obligation. Kreisman (2002) has found through his study numerous employee-retention related issues that are of particular significance to organisations today. It further seeks to demonstrate how the Insights Discovery System can be utilized as a powerful force to engage, or re-engage employees in a manner that fosters greater job satisfaction and commitment thus improving business results. Aay (2004) highlighted the importance and complexity of new employee orientation and peer mentoring within organisations, which then evolved into the identification of variables that strengthen organisation commitment and retention in new employees. He also suggested that new employees had strong organisational commitment and new employee participated in online orientation combined with peer mentoring had higher commitment levels. Dockel (2003) proposed in his study that specific retention factors that induce organisational commitment and can thus increase the retention of high technology employees. The author describes that

20 International Journal of Asian School of Business Management, Vol. IX, Issue I, January - June, 2016

high technology employees want a competitive salary. The majority of high employees receive an incentive, which provides a measure of group performance feedback. This feedback creates the perception that the organisation values their commitment.

Based on the above reviews, this study arrives at a theoretical framework as shown in Figure 1 t h a t d e p i c t s t h e r e l a t i o n s h i p b e t w e e n Organisational Culture, the three types of Commitment namely, Affective Commitment, C o n t i n u a n c e C o m m i t m e n t , N o r m a t i v e Commitment and the main study variable

Continuance Commitment

Affective Commitment

Organisation culture

al

Normative Commitment

Employee Retention

Figure 1 : Theoritical framework depicting the relationship between Organisational Culture,

three components of Commitments and Employee Retention.

Need for the Study

Employee Retention has become a major concern for corporate in the current scenario. An organisation invests time and money in grooming an individual and makes him ready to work and understand the corporate culture. The employees working for a longer period of time are more familiar with the company's policies, guidelines and thus they adjust better. It has been observed that individuals sticking to an organisation for a longer span are more loyal towards the management and the organisation. This study sought to determine that the Organisational

Culture and Organisational Commitment factors are measured to know at what level an employee can be retained in an organisation. The Culture decides the way employees interact at their workplace; indeed healthy culture encourages the employees to stay motivated and loyal towards the management. The culture of an organisation represents certain predefined policies which guide the employees and give them a sense of direction at the workplace to be retained. Employee Commitment is important because high levels of commitment lead to several favourable Organisational outcomes. It reflects the extent to

21

which employees' identify with an organisation and is committed to its goals. Many successful organisations are strongly committed to their employee needs because they believe that organisation that fosters employee satisfaction can be lead to stay and fit in an organisation.

Automobile Manufacturing and

Service sector

The Indian auto industry is one of the largest in the world with an annual production of 23.37 million vehicles in for the year 2014-15, following a growth of 8.68 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country's gross domestic product (GDP).The two and four wheelers segment with 81 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle segment has 13 per cent market share. India is also a prominent auto exporter and has strong export growth expectations for the near future. In the year 2014-15, automobile exports grew by 15 per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler and Four Wheeler market in the world by 2020.

The majority of India's cars manufacturing industry is based around three clusters in the south, west and north. The southern cluster consisting of Chennai is the biggest with 35% of the revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National Capital Region contributes 32%. Chennai, houses the India operations of ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Datsun. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki,

is based. Nashik has a major base of Mahindra and Mahindra with a SUV assembly unit and an engine assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster.

India's automotive industry is one of the most competitive in the world. It does not cover 100 per cent of technology or components required to make a car but it is giving a good 97 per cent, as highlighted by Mr. Vicent Cobee, Corporate Vice- President, and Nissan Motor's Datsun. The vision of automobile mission plan 2006-2016 aims for 'India to emerge as the destination of choice in the world for design and manufacture of automobiles and auto components with output reaching a level of US$ 145 billion; accounting for more than 10 per cent of the GDP and providing additional employment to 25 million people by 2016.' Leading auto maker Maruti Suzuki expects Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. This study is done in this sector to reduce the turnover of employees and motivating them to be retained, as the high rate of employee turnover in the car business just might be the single greatest source of aggravation in the industry. Turnover frustrates every single person at the dealership, starting with the owner. Turnover makes every job at the dealership more difficult to accomplish, drives up operating costs and drives down profits. Most importantly, turnover impacts customer satisfaction and loyalty. (ibef.org)

India Brand Equity Foundation (IBEF) is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India. IBEF's primary objective is to promote and create international awareness of the Made in India label in markets overseas and to facilitate dissemination of knowledge of Indian products and services. Towards this objective, IBEF works closely with stakeholders across government and industry.www.ibef.org is a knowledge centre for global investors, international policy-makers and world media seeking updated, accurate and comprehensive information on the Indian

22 International Journal of Asian School of Business Management, Vol. IX, Issue I, January - June, 2016

economy, states and sectors. IBEF regularly tracks government announcements in policy, foreign investment, macroeconomic indicators and business trends. IBEF works with a network of stakeholders - domestic and international - to promote Brand India

Objectives of the Study

This study influences on the variables shown in the theoretical framework figure 1 and hence framed the following objectives.

1. To study the existing level of positive perception of Organisational Culture, the level of Affective Commitment, Continuance Commitment and Normative Commitment and level of Employee Retention.

2. To find the association between Organisational Culture, Affective, Continuance and Normative Commitment and Employee Retention.

3. To find the impact of Organisational Culture, Affective, Continuance and Normative Commitment on Employee Retention

Methodology

Type of Study - The study is both descriptive and causal in nature. It describes in various aspects of how to retain an employee in an organisation. It also studies the measure of organisational culture and employee commitment. As a causal study, this work is focused on identifying how organisational culture and three components of commitment that i s A ff e c t i v e c o m m i t m e n t , C o n t i n u a n c e commitment and Normative commitment helps to retain an employee in an organisation. Thus it arrives in establishing a cause and effect relationship between organisational culture, three components of commitment and employee retention.

Sampling Design and Data Collection - The population comprise employees from Automobile manufacturing company and service sector in Coimbatore. Two stage random sampling was used to identify the sample. In first stage companies were identified using random s a m p l i n g . T h e n u m b e r o f A u t o m o b i l e

manufacturing company taken is one, next number of Automobile spares and service sector taken are 5 and number of employees taken is around 2000 approximately. In second stage 10% is computed on total employees who lead to around 200 employees. For this study total respondents are 200 employees out of which 100 employees belong to Automobile manufacturing company which is ROOTS Manufacturing in Coimbatore district and remaining 100 employees or respondents belong to Automobile spare and service sector namely Ford, Chandra Hyundai, Nissan, Toyota and Chevrolet in Coimbatore district. The sampling frame consists of the employees' attendance register from which the samples of the employees were selected randomly. The variables included in the study tend to assess the creativity of the employee. Each response was measured using a five-point likert scale, ranging from 5 (strongly agree) to 1 (strongly disagree). The research strategy is in quantitative nature. Also the study intends to explore the cause and effect relationship between Organisational C u l t u r e a n d t h e t h r e e c o m p o n e n t s o f Organisational Commitment on Employee Retention. A pilot study was done in order to test the reliability of the questionnaire for the intended target group of employees in automobile sector. The reliability of the study was 0.863. Simple random sampling was used to identify the companies and further the respondents. Mean value analysis, correlation and regression were the tools used to achieve the above said objectives.

The study is based on primary data collected from respondents through questionnaire. The questionnaire for Employee Retention and organisational culture that is taken for the study is combination of pre-validated instruments proposed by (Hai and Robert, 2012), and Jeevananda (2010), and the questionnaire for Employee Commitment is taken from the original commitment scale items (Allen and Meyer, 1990).

Findings & Analysis - The analysis of the study was done using SPSS. Specific tools for specific objectives were used. Descriptive statistics was

23

used to analyze the mean scores and the nature of the sample. About 200 valid responses were analyzed. Responses were collected from Automobile manufacturing and service sector. The majority of the respondents are men.

Correlation was used to study if there was any association between organisational culture, three components of commitment - affective commitment, continuance commitment, and normative commitment and employee retention. And regression was used to analyze the strength of impact of organisational culture and three

components of Commitment on Employee Retention.

Existing level of Organisational Culture, three components of Commitment and Employee Retention - The existing level of perception of Organisational Culture, the level of Affective Commitment, Continuance Commitment, Normative Commitment and level of Employee Retention is measured using the Mean score and standard deviation. Table 1 shows the mean values of these constructs.

Table 1: Existing level of Employee Retention, Organisational Culture, Affective Commitment,

Continuance Commitment and Normative Commitment

Descriptive Statistics

Factors

Mean Std. Deviation

Organisational culture 4.1104 .55478

Employee retention 3.7688 .53636

Affective commitment 3.6269 .79438

Continuance commitment

3.5406 .78528

Normative commitment 3.6350 .69222

The mean value for the factor namely Organisational Culture (M = 4.1104) is greater than 4 in a scale of 5, which implies that the employees of the organisation have more concern on above factor. For the constructs, Employee Retention, Affective Commitment, Continuance Commitment and Normative Commitment, the mean value is less than 4. This indicates that these factors score less, comparatively to the organisational culture variable.

A n a l y s i s o f a s s o c i a t i o n b e t w e e n Organisational Culture, three components of Organisational Commitment and Employee Retention - The association between the Organisational Culture, Affective Commitment, Continuance Commitment, and Normative Commitment on Employee Retention is

explained here. The five factors considered are h i g h l y c o r r e l a t e d . T h e a s s o c i a t i o n o f Organisational Culture with Employee Retention indicates highly correlated (r =0.735). The association of three components of commitment that is Affective Commitment (r = 0.710), Continuance Commitment (r = 0.670), Normative Commitment, (r = 0.516) are highly correlated with Employee retention. This shows there is a positive significant correlation between the Organisational Culture, three components of commitment on Employee Retention. The factors Organisational Culture, Affective Commitment, Continuance Commitment, and Normative Commitment have high influence and are positively correlated to the factor Employee Retention.

24 International Journal of Asian School of Business Management, Vol. IX, Issue I, January - June, 2016

Table 2 : Correlation between Organisational Culture, Affective commitment, Continuance Commitment, Normative Commitment and Employee Retention

Factors Employee Retention

Organisational Culture .735**

Affective Commitment

Continuance Commitment

Normative Commitment

.756**

.670**

.516**

Strength of impact of Organisational Culture and three components of Commitment on Employee Retention - Regression analysis was performed to find out the factors that influence the Employee Retention from among the two independent variables. Employee Retention was taken as dependent variable and Organisational Culture and three components of Commitment (Affective, Continuance, and Normative Commitment) were taken as independent

variables and step wise regression was carried out.

The model summary indicates that the four Independent Variables have about 66.4% influences on value of Employee Retention. This conveys that the independent factors have high influence on the dependent variable, Employee Retention. This can play a major extent to retain an employee.

Table 3: Model Summary

Model Adjusted

1

R R Square Std. Error of the Estimate

R Square

.664.819 a

.671 .31087

Note: Predictors: (Constant), Normative Commitment, Organisational Commitment, Affective

Commitment, Continuance commitment

Table 4: Coefficients

Model

Standardized Coefficients

T Sig.

B Std. Error Beta

(Constant) .500 .181 2.760 .006

Organisational Culture .512 .046 .529 11.070 .000

Affective Commitment .055 .041 .082

1.345 .180

Continuance Commitment .178 .050 .261 3.586 .000

Normative Commitment .092 .044 .118 2.099 .037

Note: Dependent variable - Employee Retention

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It can be seen from table 4, that the Affective Commitment (β = .082, t = 1.345, p = 0.180 greater than 0.05). This shows that Affective Commitment have low impact on the Employee Retention as P value is greater than the significance level. Hence the organisation has to give considerate on the employees who are emotionally attached to an organisation in order to retain them. Organisational Culture (β = 0.529, t = 11.070, p <0.001), Continuance Commitment (β = 0.261, t = 3.585, p <0.001), and Normative Commitment (β = 0.118, t = 2.099, p <0.001), are positively related to Employee Retention as the coefficient shows positive sign. And have high impact on Employee Retention. The result indicates that all the three independent factors have high contribution towards Employee Retention. The relative importance of the three factors Organisational Culture (β = 0.529), Continuance Commitment (β = 0.0261) and Normative Commitment (β = 0.118) shows that this factors have the significant and a positive impact on effectiveness of Employee Retention. This indicates that these factors can be adapted as it plays a significant role in retaining an employee in the organisation.

Discussion

The analysis and the results show that the employees understand the culture of their organisation and adapt to it in a positive manner as the mean score is 4.1104. This plays a vital role for an employee to be retained. Griffith (2013) infers that the employees of this company value trust and open communication. The present culture can be attributed to the company's strong vision and values programmed that has helped to articulate the vision and mission of the company. The Organisational Culture and the two components of Commitments, Continuance Commitment and Normative Commitment are highly correlated positively. The findings also shows that Affective Commitment do not have high influence on Employee Retention. So these employees are not committed to the organisation

and there is a chance of turnover of employees. Despite differences in the nature of the sample and respondents employed, the study adds to the existing evidence with respect to the study that C o n t i n u a n c e C o m m i t m e n t , N o r m a t i v e Commitment and Organisational Culture have high impact and positive influence on Employee Retention which leads an organisation to measure in several scopes. On the relationship between Organisational Commitment, Organisational Culture and Employee Retention, it is interesting to note the fact that an Affective Commitment (β = 0.082, t = 1.345, p greater than 0.001) though t value is low and significant value is greater than 0.005 have no significant influence on Employee Retention. Employees who have with low level of perception and low level emotional attachment towards work ethics have the chance of leaving the organisation. Specifically, as the findings suggest that employees who understand their organisational cultures (β = 0.529, t = 11.070, p <0.001) shows their willingness to spend their rest of their career in their respective organisation. It can be seen from table 4, that Continuance Commitment (β = 0.261, t = 3.585, p <0.001), Normative Commitment (β = 0.118, t = 2.099, p <0.001) also has the highest impact on t h e E m p l o y e e R e t e n t i o n . C o n t i n u a n c e commitment refers to employees' assessment of whether the costs of leaving the organisation are greater than the costs of staying. Employees who perceive that the costs of leaving the organisation are greater than the costs of staying remain because they need to. Employees' having with high level of obligation based on one's personal norms and values tends to remain in the o r g a n i s a t i o n b e c a u s e t h e y o u g h t t o be.Organisation should aspire to develop e m p l o y e e s w i t h t h e c h a r a c t e r i s t i c s o f understanding their organisational cultures of goals and mission, Continuance Commitment and Normative Commitment would, obviously have to engage in a more serious approach in establishing a higher degree of work ethics among their employees.

26 International Journal of Asian School of Business Management, Vol. IX, Issue I, January - June, 2016

Conclusion

The purpose of this study was to analyze and determine the factors that most significantly influence employees' decision to remain employed in an organisation. Retaining an employee is not an easy task. An organisation need to think in different aspect to retain his skilled employees, as the employees are given more importance. Employee turnover plays a vital role if skilled employees are not retained and has been the subject of extensive theorizing and research because of potential costs to organisations. Therefore a small amount of turnover is healthy. The factors Organisational Culture and the two components of Commitment (Normative Commitment and Continuance Commitment) have high level influence on measuring the Employee Retention. Organisation should take up special efforts to help their employees to be retained who are emotionally attached to the organisation and also the employees should be committed in new different aspect of projects, so that an employee having with clear view of their Organisation Commitment, will help an employee to be loyal to their organisation. Organisation should be given special attention on work commitment to employees by empowering them, so that these employees play a vital role in the organisation.

The study recommends the organisation to have a healthy culture which encourages the employees to stay motivated and loyal towards the management. Organisational Culture is important in Indian context, to maintain high retention of employees. Employees stay in an organisation if they find that their values and beliefs are aligned with the organisation's culture. Organisation should highly build their employees committed with their concern. Increased commitment will also increase their efficiency. Hence, the organisation can reduce the dependency on Continuance and Normative Commitments by being a better leader, by working on team management skills and so on. Finally Affectively

Committed employees should be motivated more in their self esteem, job design and leadership style etc for retaining them in an organisation.

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