Impact of Leader Member Exchange Relationship on Turnover Intention in the Apparel Industry (With Special Reference to Operational Level Employees in the Katunayaka Export Processing Zone)
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Date
2018
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Uva Wellassa University of Sri Lanka
Abstract
Turnover intention is one of the critical problems in the apparel industry in Sri Lanka. Novel organizations have become aware that strategies aimed at developing leader member exchange relationships ensure a lower turnover rate. Leader member exchange relationship creates intercommunication between the leader and the subordinate in organizations. Thus, the study empirically tested organizational justice as mediating the relationship between leader member exchange and turnover intentions of operational level employees in apparel companies in Katunayake Export Processing Zone. Questionnaires were distributed by using convenience sampling method to collect data from 100 operational level employees working for 10 apparel firms in the Katunayake Export Processing Zone. The data were analyzed using correlation coefficient, regression, Baron and Kenny mediator assessment method and Sobal test. Findings of the study indicated that there is a negative relationship between leader member exchange relationship and turnover intention. Mediator assessment and Sobal test results indicated that organizational justice significantly and partially mediated the relationship between leader member exchange relationship and turnover intention. The findings show the importance of supervisors building positive and trusting relationships with their operational level staff and maintaining an environment of justice to reduce turnover intention in the apparel industry in Sri Lanka. The study also makes a number of recommendations to managers based on the findings of the study.
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Management, Entrepreneurship, Human Resource Management