Abstract
M.Phil. (Leadership in Performance and Change)
Employee turnover is a challenge to all organisations, regardless of their size,
industry or location. High employee turnover rates have been linked to factors such
as high labour mobility due to international competition for talent, an organisation’s
inability to match high salary offers from competitors, as well as employee
dissatisfaction with management style. These factors are also likely to be at play
within State-Owned Enterprises.
Based on this background, this study aimed to investigate whether a relationship
exists between management style and employee turnover intention at a South
African State-Owned Enterprise. In order to meet this aim a quantitative survey was
conducted. The survey consisted of a web-based questionnaire that included the T-P
Leadership Questionnaire (measuring autocratic and laissez-faire management
styles) and the Turnover Intention Scale (measuring employee’s intention to leave
the organisation). The sample consisted of 378 respondents.
The data was analysed using Product Moment Correlation and Multiple Regression
analyses. The results indicate a significant positive, but low, relationship between
autocratic management style and high turnover intention (r = .19; p < .01). The
relationship between laissez-faire management style and employee turnover
intention was also significantly positive correlation of r = .29 (p < .01). Autocratic and
laissez-faire management styles explained 9.0% of variance in turnover intention (R2
= 0.09, F = 18.70, p < 0.0005).
Human resources practitioners and line management should consider the
relationship between management style and employee turnover when developing
retention strategies. It is further recommended that the specific State-Owned
Enterprise involved in this study should consider the reasons why employees leave,
together with reasons why employees remain with the organisation when developing
talent retention strategies. Such an approach could proactively address employee
retention.