Effect of Perceived Organizational Justice on Turnover Intentions in the Banking Sector in Nairobi City County in Kenya
Keywords:
Perceived organizational Justice, Turnover intention, Employee engagement and Banking sectorAbstract
Employees believe that the organization has a general positive or negative orientation toward them that encompasses recognition, contributions and concern for their welfare. Whilst organizations want their employees to be engaged; there are indicators that engaged employees are more productive. Consequently, there is a link between employee engagement and discretionary effort, innovation, customer loyalty, quality, profitability, earnings per share and productivity. When employees are not fully engaged in the organization, not happy and satisfied with their work, they are more likely to shift their passions to searching and connecting with potential employers. The study examined the effect of perceived organization justice on turnover intentions in the banking sector in Nairobi City County in Kenya. The study adopted a cross sectional survey design. The target population of the study was 6,487 employees in the six banks in Nairobi City County. Simple random sampling technique was used in selecting the sample for this study to be 326 respondents drawn from top-level and middle-level management. Data was collected using questionnaires and analyzed using SPSS version 22 and STATA version 14 where an analysis of descriptive statistics, correlation and logistic regression analyses was done. Analyzed data was used to examine the relationship between pairs of variables and the effect of perceived organizational justice on the turnover intentions. Logistic regression of coefficients results showed that Perceived Organization Justice and Turnover Intention were negatively and significant related (β=-2.633, p=0.000). This implied that an additional unit of Perceived Organization Justice decreases the probability of turnover intention by 2.633 points holding other factors constant. The study concluded that Perceived Organization Justice have negative and significant effect on turnover intentions.
Keywords: Perceived organizational Justice, Turnover intention, Employee engagement and Banking sector
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