THE EFFECT OF ORGANIZATIONAL CULTURE ON IT EMPLOYEES TURNOVER INTENTION IN ISRAEL

Kessler Ladelsky Limor
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Kessler Ladelsky Limor: UBB,

Annals of Faculty of Economics, 2014, vol. 1, issue 1, 1019-1027

Abstract: Employee voluntary turnover is very expensive from the point of view of the organization, has significant negative effects on the organization and hence remains a critical issue for organizations.Most of the causes discussed in the literature are classic causes coming from conservative theories such as psychological and sociological organizational behavior etc. Field literature review shows that these general causes affecting voluntary turnover intention could be grouped in the following broad categories: 1) organizational causes, related to: Human Resource Management (HRM), organizational culture, job structure and content, leadership style and internal marketing strategies, policies and practices; 2) extra organizational causes, related to: individual characteristics and labor market aspects. One of the classical causes of voluntary turnover that has been researched but still needing attention is organizational culture. The purpose of this paper is to present a new explanation of the phenomenon of voluntary turnover of IT employees in the IT sector in Israel, i.e. from the corporate culture perspective. It focuses on the correlations between organizational culture and voluntary turnover intention among IT employees in Hi-Tech companies in Israel. This correlation was researched in an extensive empirical study among two population groups: IT employees and IT managers and by means of mixed methods research (combination of quantitative and qualitative research).The findings show that only one type of organizational culture influences voluntary turnover intention:Type C Marketing culture, which focuses on results and objectives. It is also shown that this type of organizational culture has a positive effect on voluntary turnover intention among IT employees in Hi-Tech companies in Israel. This finding has to be adopted by IT organizations and management who have to develop a way to prevent voluntary turnover among IT employees and have to develop an organizational culture or policy to retain this expensive IT human resource in Hi-Tech companies.

Keywords: Voluntary turnover intention; Turnover Intentions; IT sector employees in Israel; Corporate culture; Organizational culture; Management by objectives; Internal marketing (IM) (search for similar items in EconPapers)
JEL-codes: J2 M13 M14 M15 M31 O14 (search for similar items in EconPapers)
Date: 2014
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