The purpose of this article is to test the relationship between four transformational leadership elements and employee turnover intention in a small start-up company in Bangkok, Thailand. The method was to collect questionnaires from all employees in the start-up company about how they feel about their CEO and what level they are in terms of turnover intention. Employees' views on CEOs were measured using Multifactor Leadership Questionnaire form 6S (MLQ-6). transformational leader and turnover intention statement (TIS-6) to measure employee turnover intention level. Then analyzed to find the relationship between the four elements and turnover intention through Pearson's correlation and linear regression to find out whether the four elements can predict employees' turnover intention.
The result of this paper is that two out of four elements, which are inspirational motivation and idealized influence, have a weak relationship with turnover intention, and the four elements of transformational leadership cannot predict employee turnover level.
INTRODUCTION 1
LITERATURE REVIEW 2
- Situation Overview 2
- Transformational leadership 2
- Leadership and business profitability 3
- Startups and mature firms 4
- Multifactor Leadership Questionnaire (MLQ) 4
- Turnover intention 5
- Turnover intention statement 6
- Research Question 7
Inspirational motivation - The leader's vision should inspire and motivate followers through communication of future goals. The leader must encourage followers to have voice and creativity in the organizing process. Individualized Consideration - The leader listens to followers' concerns and needs such as support, coaching and mentoring.
The leader gives empathy, respect and celebrates the contribution of follower so that follower will have aspirations and motivation for self-development. The leader must focus on the organization's vision so that business failure does not hinder the leader from achieving success. The leader challenges others to have the beliefs and values that are similar to the organization's value.
In the practice of transformational leadership, the leader encourages followers to express their opinions and concerns, which will reduce the problem of employee turnover (Wells, Peachey 2011). In 2014, the research of Iqra Saeed, Momina Waseem, Sidra Sikander and Muhammad Rizwan found that the negative impact of job performance, job satisfaction and relationship with leaders on turnover intention. Does the company's turnover intent depend on the transformational leadership of the current CEO?
RESEARCH METHODOLOGY 8
Framework 9
I used only the transformational part of MLQ-6S which will measure the four elements which are idealized influence, inspirational motivation, intellectual stimulation and individual consideration of transformational leadership. The TIS-6 was used to measure the level of turnover intention by adding scores from 6 questions together. After calculating all of the above, the first part will use each element of transformational leadership and the employee's average amount of total transformational leadership to find the correlation with the turnover goal score using the correlation calculation.
Hypotheses 9
H22: Idealized affect has a negative correlation with turnover intention in an employee group consisting of a team leader and a manager. H23: Inspirational motivation has a negative correlation with turnover intention in a group of team leader and leader employees. H24: Intellectual stimulation has a negative correlation with turnover intention in a group of team leader and leader employees.
H25: Individualized consideration has a negative correlation with turnover intention in employee group of team leader and manager. H34: Idealized affect has a negative correlation with turnover intention in employees who have job tenure of 1 to 2 years. H35: Inspirational motivation has a negative correlation with turnover intention in employees who have job tenure of 1 to 2 years.
H36: Intellectual stimulation has a negative correlation with turnover intention among employees who have been employed for 1 to 2 years. H37: Individualized treatment has a negative correlation with turnover intention among employees who have been employed for 1 to 2 years. H38: Idealized affect has a negative correlation with turnover intention among employees who have been employed for 3 to 4 years.
H39: Inspirational motivation has a negative correlation with turnover intention in employees who have been employed for 3 to 4 years. H40: Intellectual stimulation has a negative relationship with turnover intention in employees who have been employed for 3 to 4 years. H41: Individualized consideration has a negative correlation with turnover intention among employees who have been employed for 3 to 4 years.
H7: Inspirational motivation has a negative correlation with turnover intention in the employee group aged 20 to 29 and is not significant as the p-value is 0.073. H12: Intellectual stimulation has a negative correlation with turnover intention in the employee group aged 30 to 39 and is not significant as the p-value is 0.215. H26: Idealized influence has a negative correlation with turnover intention in the employee group of normal employees is not significant as the p-value is 0.097 >.
FINDINGS AND DATA ANALYSIS 13
Demographic analysis 13
H6: Idealized affect has a negative correlation with turnover intention in employee group of age 20 to 29 is not significant as the p-value is 0.057 > 0.05 there for H6 is rejected. H8: Intellectual stimulation has a negative correlation with turnover intention in employee group of age 20 to 29 is not significant as the p-value is 0.252. H9: Individualized consideration has a negative correlation with turnover intention in employee group of age 20 to 29 is not significant as the p-value is 0.790.
H10: Idealized influence has a negative correlation with turnover intention in employee group of age 30 to 39 is not significant as the p-value is 0.088 > 0.05 there for H10 is rejected. H11: Inspirational motivation has a negative correlation with turnover intention in employee group of age 30 to 39 is significant as the p-value is < 0.023. H13: Individualized consideration has a negative correlation with turnover intention in employee group of age 30 to 39 is significant as the p-value is < 0.004.
H14: Idealized affect has a negative correlation with turnover intention in male employees is not significant because p-value is 0.074 > 0.05 there for H14 is rejected. H15: Inspirational motivation has a negative correlation with turnover intention in male employees, it is significant as the p-value there is 0.043 < 0.05 for H15. H16: Intellectual stimulation has a negative correlation with turnover intention in male employees, it is not significant because the p-value is 0.375 > 0.05 there for H16 is rejected.
H17: Individualized consideration has a negative correlation with turnover intention in male employees is not significant as the p-value is 0.731 > 0.05 there for H17 is rejected. H18: Idealized influence has a negative correlation with turnover intention in female employees is not significant as the p-value is 0.071 > 0.05 there for H18 is rejected. H19: Inspirational motivation has a negative correlation with turnover intention in female employees is not significant as the p-value is 0.057 > 0.05 there for H19 is rejected.
H20: Intellectual stimulation has a negative correlation with turnover intention in female employees is not significant as the p-value is 0.181 > 0.05 because H20 is rejected. H22: Idealized influence has a negative correlation with turnover intention in the employee group of team leaders and managers is significant as the p-value is 0.012 <. H27: Inspirational motivation has a negative correlation with turnover intention in the employee group of normal employees. This is not significant as the p-value is 0.010 < 0.05 and is accepted for H20.
H28: Intellectual stimulation has a negative correlation with turnover intention in the group of employees of normal employees is not significant as the p-value is 0.334 > 0.05 there for H28 is rejected. H29: Individualized consideration has a negative correlation with turnover intention in the employee group of normal employees is not significant as the p-value is 0.125 > 0.05 there for H29 is rejected. H34: Idealized influence has a negative correlation with turnover intention in employees who have a job tenure of 1 to 2 years is not significant as the p-value is 0.139 > 0.05 there for H34 is rejected.
H39: Inspirational motivation has a negative correlation with turnover intention in employees who have been employed for 3 to 4 years, it is not significant as p value 0.172 > 0.05 there for H39 is rejected.
Results score for Idealized Influence, Inspirational 14
Discussion 29
Based on the result above, inspirational motivation and idealized influence have a significant correlation with turnover intention in the finding of all employees. The results show that the correlation between inspirational motivation and idealized influence has a low negative correlation with turnover intention. The linear regression result shows that we cannot explain turnover intention with four elements of transformational leadership.
The group of employees aged 30 to 39 showed the significant correlation of inspirational motivation and individual consideration with employee turnover intention. For grouping by position level, there is a significant correlation between idealized influence and employee turnover intention for team leader and manager groups, because at the highest level, employees want to have a good company that is a role model of the CEO. There is a significant relationship between inspirational motivation and employee turnover intention for the normal group of employees, because as in the front line people want to have more motivation to create good products and services.
For grouping by job tenure, there is a significant correlation of inspirational motivation with employee turnover intention for job tenure in the group of 1 to 2 years. The group of employees with work duration less than 1 year has no correlation between the four elements of transformational leadership with the intention of employee turnover, because at this stage most employees try to fit in with the team and demand good pay from the company. The group of employees with 3 to 4 years of tenure has no correlation between the four elements of transformational leadership with employee turnover intention, because these employees already accept the company's terms and are willing to stay in their comfort zone.
To explain the ambiguous and insignificant result for the most part, many other factors lead to turnover intention such as employee development, transactional leadership, job satisfaction. The average score from all employees is an average score for all four elements of leadership, but turnover intention is also moderate. Research has found weak correlations of inspirational motivation and idealized affect with turnover intention for general employees.
Using the four elements of CEO transformational leadership to predict employee turnover intention is not significant. We should consider more other types of leadership, such as transactional leadership and laissez-faire leadership, may affect the turnover intention more than the transformational leadership style. Organizational culture and personality type: The relationship with person-organization fit and turnover intention (Order No. 3711576).
