Raza et, Al.

The impact of turnover intention and moderating role of

transformational leadership on Job Performance, Creativity and
Organizational Citizenship Behavior
Introduction:
In past few decades employees turn over intention is becoming a big area of interest for the
researchers but in industries and growing companies turnover intention needs some research work.
Employee turnover intention is great importance in academic communities and in the world of
business (Medina, 2012.). Now a days, if an employee want to be successful in his field, than he has
to balance the relationship with his carrier and his desire (Medina, 2012.). Realistically, the turnover
intention is becoming a serious problem for many organizations. This is becoming a serious
problem for the organization, especially when the employees who are performing at their best will
leave the organization. To compete in the global market and to increase the organization
performance the employee turnover intention should be clearly focused; therefore, the employee
turnover intention is very important to business and global economy (Benko & Weisberg, 2007;
Becker, 2007.) The turnover intention captures individual perception and evaluates job alternatives
(Perez, 2008.).
The turnover intention is a mental decision of individual to continue the job or to leave the job
(Jacobs and Roodt, 2007.). Excessive turnover intention is very dangerous because it will reduce the
efficiency and productivity of the organization (Joarder& Sharif, 2011.). Due to more turnover
intention the overall performance of organization is affected, we have to put a view on the
relationship between turnover intention and organizational citizenship behavior. The relationship
between turnover intention and Ocb are not well defined and they did not receive a great deal of
intention in research work (Chen, Hui&Siego, 1998.)The turnover intention and job performance
relationship is not well defined and have not significant results (Perez, 2008.).

Problem statement:
The previous reports shows that only 43 percent of lowest income earners are well satisfied with
their job as compared to 55 percent of higher income workers who want to switch their jobs
(Medina, 2012.). Now a days, Many organizations are facing problems of increased turnover
intention because of turnover intention unemployment among the youngster are increasing day by
day and separation cost, training cost, replacement cost and vacancy cost are faced by organization
(Terez, 2000.). Due to increased turnover intention living standard is gradually decreasing and the
survival of youngster in the economy is very difficult. It is widely approved that the dealing and
identifying the reasons of turnover intention in the organization is an effectual way of reducing
turnover intention (Dess and Shaw, 2001.). direct and indirect cost are occurred due to turnover
intention, the direct cost include selection, recruitment , induction and training; whereas, indirect
cost includes learning, reduce morale, loss of social CapitaLand pressure on the employee (Des &
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Shaw ,2001.). Because of increased in turnover intention the performance of employees and
organization is gradually reducing and this is affecting the productivity and effectiveness of work in
the organization. According to the SAKE based examination the turnover rate in 2005 is 9.7% and
around 300,000 employees are changing their jobs (Henneberger & Sousa-Poza 2007: p. 17.)
Because of increased turnover intention the creativity of such employee who is performing well in
the organization is gradually reducing. The ethical environment of organization will be disturbed
and the employee does not want to improve organization behavior and it will negatively impact the
organizational citizenship behavior. Due to turnover intention these entire variable will effect
negatively. In past few years 2002, 2006 and 2010 the economy is highly influenced (Perez, 2008.).

Research objective:

Does increased turnover intention predict decreased employee job performance, creativity
and OCB?

Does increased turnover intention with transformational leadership increase creativity, job
performance and OCB?

What will be the effect on job performance, creativity & organizational citizenship behavior
if the transformational leader is moderating turnover intention?

Frame work:
Transformational leadership

Organizational citizenship behavior

Turnover intention

Job performance
Creativity

Literature review:
Turnover intent is defined as the reflection of the (subjective) probability that an individual will
change his or her job within a certain time period (Sousa-Poza & Henneberger, 2002: p. 1). In
other words we can say that when the individual decide to leave the boundaries of organization by
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the will of organization or by his own will with in a specific period of time. (Sousa-Poza &
Henneberger, 2002: p. 1).
According to (Perez, 2008.) there are two types of turnover intention voluntary turnover intention
and involuntary turnover intention.

Voluntary turn over intention:

When an individual didnt perceive the environment according to his need and his mind didnt
accept the environment the turnover intention takes place. The employee job satisfaction and
performance gradually decreased day by day and the individual decide to leave the organization
with his own will (Price, 2001) this type of turnover intention highly affect the productivity,
performance, and effectiveness of the organization. (Perez, 2008.).

Involuntary turnover intention:

When an individual is not working according to the need of the organization, didnt performing
well, effect the organizational effectiveness and no more beneficial for the organization (Perez,
2008.). The organization will ask the employee to leave the organization. Other reasons of
involuntary turnover intention are death of employee and when the organization is cutting down the
expenses by firing employees which is known as Retrenchment. (Perez, 2008.).

Factors affecting turnover intention:

There are some factor influencing turnover intention in the organization some of them are avoided
and some cannot be avoided. (Perez, 2008.). There are various reason that turnover intention exist
in the organization includes personal issues like children education, job hoping& relocation by a
spouse (Perez, 2008.).
The second major issue is Push factors in the organization, sometime the individual push to leave
the organization due to the dissatisfaction and many organizational issues which includes benefit,
facilities, and salaries, size of the organization, infrastructure, management and organizational
justice. (Shah, et al, 2010: Loquercio, 2006.) Sometime the employee attitude is also a reason of
turnover intention like job satisfaction. Sometime employee didnt satisfy about his job due intrinsic
or external motivation factor. It includes working environment, fringe benefits, job security, and
nature of job, learning environment and position advancement. (Shah, et al, 2010)
The third issue is pull factor in the organization, it is that factor in which individual is attract toward
the new opportunities of work. Various pull factors are: high wages, career opportunities, job
security, location of company, more autonomy, well reputation, more benefits. (Shah, et al, 2010).

Consequences of Turnover intention:

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Three important consequences, which have impact on the effectiveness of organization, how
turnover intention impact on organizational cost (Perez, 2008.)

Turnover intention affects the organization cost:

These are the following that occurred due to the turnover intention and organization faced the cost.
(Perez, 2008: Tziner et al, 1999.).

Separation Cost:
The costs occurred due to conducting exit interviews
Administrative cost occurred at the time of termination of employee

Replacement Cost:
Advertising for the vacancy of availability in media
The costs occurred due to conducting new interviews
Decision meetings during the selection of individual

Training Cost:
Give training to the employee to reach that the certain level of individual of firing the
employee.

Disturbance in organizational operation:

Every work is start from the operational level of hierarchy, when the low level employee leave the
organization the operation of the organization is disturbed (Perez, 2008).

Demoralization in the organization:

When an existing employee leave the organization due personal factor or external motivation like
better salary plans, compensations, career opportunities and great environment in other companies,
the employee decide to leave the organization. The behavior of such employee will negatively affect
the other employee and demoralization takes place. (Perez, 2008)

Turnover intention and their outcome:

There are three depended variable that are discussed above in the frame work in this journal.

Relationship between turnover intention and job performance:

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There is negative relationship between turnover intention and job performance whenever the
turnover intention in the organization increased as a result the job performance of the employee is
decrease (Perez, 2008). The previous result on the relationship of turnover intention and job
performance has no positive relation (Boshoff & Allen, 2000).

Relationship between turnover intention and organization citizenship behavior:

The relationship between turnover intention and Ocb is negatively related to each other (Wee &
Ahmad, 2011). High turnover intentions will lead to low Ocb and the relation between these two
variables is weaker (Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O., &Ng, 2001.).
Acceding to (Aryee & Chay, 2001.) reported that there is a negative relation of approximately -.31
between turnover intentions and Ocb.

Relationship between turnover intention and creativity:

The relationship between turnover intention and creativity is negatively related to each other. When
the turn over intention increased the creativity of employee decreased (Perez, 2008). When the
employee decide to leave the organization. The behavior of such employee will negatively affect the
other employee and similarly the performance of the organization will decrease. Hence the
creativity of the organization will decrease (Perez, 2008).

Hypothesis 1:
Turnover intention has negative relation with job performance, ocb and creativity.

Transformational leadership:
This form of leadership is necessary to drive principals to the higher levels of concern and
motivation needed for educational improvement (Crawford, 2005, p. 8). Transformational
leadership style is one of the best leadership styles among all the leadership style (Schepers,
Wetzels, & de Ruyter, 2005.).The transformational leadership style not only motivates the
individual in the organization but also provides them direction, support them and give them clear
vision of their carrier.

Dimensions of transformational leadership:

According to (Geijsel, F., Sleegers, P., Leithwood, K. &Jantzi, D, 2003) there are four dimension of
transformational leadership.

Idealized influence:
According to this dimension the put the need of the follower first, dont use his power
unnecessarily, provide them direction and gave them high role moral standard
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Inspirational motivation:
This dimension describes the way by which the leader can motivate them, inspired them and
gave them clear vision about their goals and their carrier.

Intellectual stimulation:
This factor described the way by which the leader can boost the capacity of followers at high
level and stimulates their efforts to become more creative and innovative.

Individualized consideration:
According to this dimension the leader puts close and specific attention on its followers
needs and interest.

Transformational leadership & outcome:

Relationship between transformational leadership and job performance:
There is a positive relationship between transformational leadership and job performance, when the
transformational leadership exists in the company the job performance will increase gradually. They
have a strong relation between them. (DeGroot, Kiker, & Cross, 2000; Judge & Piccolo, 2004;
Wang et al., 2011). The transformational leadership increased the job performance of employee by
motivating him external and internal (Sandell, 2012).

Relationship between transformational leadership and Ocb:

There is positive relationship between transformational leadership and Ocb, the correlation between
Ocb and transformational leadership is strong (Piccolo & Colquitt, 2006).the transformational
leadership internally motivate the employee to work for the benefit of organization and individual
without any reward. The individual make contribution because his senses are intrinsically motivated
to make this contribution. (Wang, Law, Hackett, Wang & Chen, 2005).

Relationship between transformational leader and creativity:

The relationship between transformational leadership and creativity is positively related to each
other. According to (Sarros, Cooper, Santora, 2008) Transformational leader ship can build a cloud
toward the employee performance. If the performance of the employee is high then the
organizational creativity is high. Organizational creativity is also related to the organizational
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culture. For example if transformational provide support to the individual to motivate the employee
toward their work it not only effect the performance of the employee but also effect on the
organizational creativity. Every employee are motivate due to that motivation they can contribute
some part of their performance on creativity. (Sarros, Cooper, Santora, 2008). Transformational
leadership arouses the creativity of employee to think critically and to solve the problem effectively
(Bass, Avolio, Jung, & Berson, 2003)

Hypothesis 2:
Transformational leadership is positively related to job performance, Ocb and creativity.

Transformational leadership as a moderator:

The transformational leadership minimizes the effect of employee turnover intention. It places a
potential effect on intention to quiet. (Judge & Piccolo, 2004). Transformational leadership arouses
the creativity of employee to think critically and to solve the problem effectively and to counter
turnover intention. (Bass, Avolio, Jung, &Berson, 2003).transformational leader fit employee to the
job, the person feels less stress toward his job due to this employee are not willing to leave his job
(Mitchell & Lee, 2001). Transformational leader create a relationship to the individual due to this
interaction relationship between individual and transformational leader the individual are motivate
and loyal toward his leader and organization. In this way the chances of turnover intention are less.
(Judge & Piccolo, 2004).

Hypothesis 3:
Transformational leader moderate the relationship between turn over intention and job performance,
creativity and Organizational citizenship behavior. Such a way that relationship will be weaker
when transformational leadership is high.

Method
Turnover intention is a major problem in the organizations and it is spreading widely in the
organizations. To cover maximum part we collect data from twenty one organizations which include
banks, helpline centers, companies and hospital. There are ten banks, one hospital, three call
centers, one school, two colleges and five companies. We collect our most of the data from the
Lahore which is the busiest city of Pakistan. We didnt convert our questionnaire to native language
and used the original questionnaire because most of our respondents are educated and can
understand the English. Many of the Pakistan papers didnt convert it into native language like
Abbas et al.
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We collect data through administration of questionnaires with supervision and self-report. There is a
cover letter attached with questionnaire explaining that the data we are collecting are for the
research purpose and is highly confidential. All respondents voluntarily completed the
questionnaire. Respondents filled the self-report regarding turnover intention, transformational
leadership, organizational citizenship behavior and creativity. In addition every respondent
mentioned his name, age, qualification and experience. The supervisor of every respondent fills the
questionnaire regarding job performance of the respondents and both supervisors and respondents
returned the questionnaire. Each supervisor knows the respondents for more than 1 year.
There are 200 questionnaires are distributed and we got 150 questionnaire back and all of them are
supervisor rated. 17 questionnaires are distributed in hospitals, 57 in the banks, 3 in school, 8 in
colleges, 25 in call centers and 40 in different organizations. We got 100% result from the
respondents of our questionnaire. Most of the respondents are graduated and master studies
Qualified some of them are intermediates, Ph.D., pharmacists and C.As. About 75% of our
respondents are male and 25% are females.

Measure:
All variable are measure by the respondent except the job performance. This is measured by the
manager of the respondent to avoid biasness. We are using 5-liker scale 1 = strongly disagree, 2 =
disagree, 3 = neutral, 4 = agree, 5 = strongly agree.
Turnover intention:
In turnover intention we are measure the three item scale from vigoda (2000).example of this
question is I often think about quitting this job. The reliability of turnover intention is 0.76
Transformational leadership:
In transformational leadership we are measure the twenty one item scale from B. M. Bass and B. J.
Avolio (1992).such as I call attention to what others can get for what they accomplish. The
reliability of transformational leadership is 0.65. We exclude 4 questions to make ou reliability
better.
Outcomes:
A seven item scale is used to measure the job performance made by Williams and Anderson (1991).
Such as This person adequately completes assigned duties. The reliability of job performance is
0.58. 3 questions are excluded to make our reliability better. Thirteen item scales is used to measure
the organizational citizenship behavior developed by Williams, Anderson (1991).such as
Conserves and protects organizational property. Its reliability is 0.59. 4 questions are excluded to
make our reliability better. A three item scale are used to measure the creativity develop by Oldham
& Cummings (1996).such as How ORIGINAL and PRACTICAL is this person's work? Original
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and practical work refers to developing ideas, methods, or products that are both totally unique and
especially useful to the organization? its reliability is 0.60.

Results
Turnover intention, transformational leadership and outcomes:
In table 1 descriptive statistics estimates of reliability (coefficient ) and bivariate correlations is
measured for all measure. Multiple linear regressions are used to test the main hypothesis
(hypothesis 1 and hypothesis 2).we used age, organization and gender in the first step, which are
followed by independent variables. Table 2(step 3) shows the effect of turnover intention and
transformational leadership and outcomes. Turnover intention is negatively related to job
performance (=-.20, ns) and negatively related to ocb (=-.27, p<.015) and creativity (=-.70, ns).
These results support hypothesis 1. Similarly in table 2 shows Transformational leadership
negatively related to job performance (=-.0.17, ns) and positively related to creativity (=.20, ns)
and ocb (=.21, p<.01).some of the results support hypothesis 2 only for creativity and Ocb. And
hypothesis 3 is totally rejected because of showing negative relation with job performance with
transformational leadership and insignificant results of Ocb and creativity.

Table no 1
Age
Gender
Organization
Turnover
intention
Transformational
leadership
Job performance
Ocb
Creativity

Mean
36.55

S.D
8.53

1.25
9.97
2.52

0.44
6.13
1.09

-0.15
-0.75
-.045

.366**
0.008 0.047

(0.76)

3.91

0.35

0.03

0.081

0.048

-0.65

(0.70)

4.39
3.97
4.36

0.49
0.43
0.50

-0.009
-0.009
0.008

-0.03
.187*
0.026

-0.038
.242**
0.157

0.195*
-.280**
-0.076

0.032
.294**
.201*

(0.58)
.264**
0.015

(0.59)
0.108 (0

Note: n=150: alpha reliability is present in parenthesis. Ocb =organizational citizenship behavior
A) Organizational type: 0=private, 1=public
*p<.05. **p < .01 ***p < .001
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Table no 2
Job performance

OCB
R
R

-.183
-.153
-0.53
-.101

.058

-.140
.167
.108
.213

.111

-.20*

.093 .035*

-.27***

.176

Step1
QUALIFICATION
EXPERIENCE
Gender
Organization
Step2
Intention to quit

Creativity
R

-.140
-.044
-.058
.134
.065***

.
046

-.070

.
.005
051
Note: n=150: alpha reliability is present in parenthesis. Ocb =organizational citizenship behavior
A) Organizational type: 0=private, 1=public *p < .05. **p < .01 ***p < .001

Table no 3

tep1
QUALIFICATION
EXPERIENCE
Gender
Organization
tep2
ntention to quit
Transformational
tep3
2qxtransformatinal

Job performance
R
R

-.183
-.153
-0.53
-.101

.058

-.197*
-0.17

.058 .058*
.093 .035

-1.926* .117 .024*

Ocb
R
R

-.140
.167
.108
.213

.870

Creativity
R
R

-.140
-.044
-0.58
.134 .046

.
111

-.198** .
111
.203** .
213

.
111**
.
102**

-.010 .046
.
.085
195*

.046
.
039*

.664

.003

.088

.
.005
218

Note: n=150: alpha reliability is present in parenthesis. Ocb=organizational citizenship behavior

A) Organizational type: 0=private, 1=public
*p < .05. **p < .01 ***p < .001

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Moderating influence of transformational leadership:
We have used to test the moderated multiple regression analysis of hypothesis 3 (Cohen, Cohen,
West, & Aiken, 2003.). In the first step we have entered the control variable and in second step we
have entered the independent variable along with moderator variable. In the third step we have
entered the product of independent variable and moderator variable. Which is not a confirmed
moderation and insignificant.
In the table 3 shows the result of turnover intention and transformational leadership. The interaction
term of turnover intention x Transformational leadership was insignificant to job performance (=
-1.93, p< .05, R=.02, p<.006) ocb (= .87, p < .35, R=.005, p<.006) and creativity (= .67, p < .
508, R=.003, p<.006)

Discussion
Our finding clearly support that when there is turnover intention is present in the organization the
creativity (Perez, 2008.).of the organization is also decreased. Similarly in ocb (Colquitt, J. A.,
Conlon, D. E., Wesson, M. J., Porter, C. O., &Ng, 2001.). High turnover intention will decrease the
ocb.we also find that when the turnover intention is high the creativity and ocb in the organization is
decreased. Similarly on the other outcome when the turnover intention is present the job
performance also decreased there is no positive relation between turnover intention and job
performance (Bashoff & Allen, 2000.).the result in our study also show that there is positive relation
between transformational leadership, ocb and creativity but not with job performance. In addition
we found a good moderator variable transformational leadership for turnover intention. Whenthere
is negative relation job performance and turnover intention then transformational leadership is high.
When there is high transformational leadership, thenthe employee internally motivate to work for
the benefit of organization and individual without any reward. The individual make contribution
because his senses are intrinsically motivated to make this contribution. (Wang, Law, Hackett, Wang
& Chen, 2005.).similarly Transformational leadership arouses the creativity of employee to think
critically and to solve the problem effectively (Bass, Avolio, Jung, & Berson, 2003.).

For example
It is noticed that high performer are more likely to quit (Allen & Griffeth, 1999.).but when we
introduced a transformational leadership at that time then it can reduce the turnover from the
organization It places a potential effect on intention to quiet. (Judge & Piccolo, 2004.).
Transformational leadership fit the employee in the job due to this employee will not leave the job
(Mitchell & Lee, 2001.).

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The result of moderating role of transformational leadership between intention to quit and outcomes
were in the expected direction but the relation of job performance will not satisfied which is
negatively related with transformational leadership. This result shows that turnover intention is has
huge concern with low transformational leadership. Turnover intention does not seem negative
relation with creativity and ocb when turnover intention is high.
Our finding that transformational leadershipcounters the turnover intention and can reduce the fact
on ocb and creativity (Judge & Piccolo, 2004).we believes that when the turnoverintention is high
the job performance of the employee is less (Perez, 2008.). And it can also affect the creativity of
the organization (Wee & Ahmad, 2011.). But as we can introduce the transformational in the
organization. Not only the performance of the employee is increased (DeGroot, Kiker, & Cross,
2000; Judge & Piccolo, 2004; Wang et al., 2011.) but also increased the creativity (Sarros, Cooper,
Santora, 2008). And ocb (Piccolo & Colquitt, 2006.).In the organization.it can somehow reduce the
effect of turnover intention on employee and organization. Hence we can reached in the conclusion
that transformational leadership will minimize the effect of turnover intention on job outcomes

Strengths and limitations:

Study that we have di have several strengths. First is responding the call of lai & Chen (2012). Our
study has negative and positive oriented research. In our study we particularly enhance our
understanding of turnover intention on performance with the moderating effect of transformational
leadership. Second, we collect our data from different type of organization and from different level
of employees which reduced the chance of biasness. Third, our performance is supervisor rated
which shows consistently best reliability.
This study has several weaknesses. One of the main weaknesses is all the variables which are
examined except for job performance which is supervisor rated. The results obtained from our data
are not so reliable and consistent. The second one is the reliability of our variable are slightly lower
except for turnover intention. Third limitation is that we include only few of the dimension of
leadership we didnt include all the dimensions. If all the dimensions are included the results
obtained may be different.

Implications for Practice:

Our precious research shows that when manager act as transformational leader howthey can
minimizes the effect of employee turnover intention. It places a potential effect on intention to
quiet. Manager arouses the creativity of employee to think critically and to solve the problem
effectively and to counter turnover intention. manager fit employee to the job, the person feels less
stress toward his job due to this employee are not willing to leave his job.managers create a
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relationship to the individual due to this interaction relationship between individual and the
individual are motivate and loyal toward his leader and organization. In this way the chances of
turnover intention are less.

Future Research Directions:

Future research in this area , we are focusing that result of our finding between the moderator and
job performance is not satisfied.so there is more research are required in this context.
Second we are collecting our data mostly from government sector so we can emphasize that to
collect the data from private and government sector equally.
Third, here we are take research only transformational leadership not its dimension.so we feel that
there is more research are also required with the dimension of transformational leadership.

Conclusion:
Most of the research is done in the global economies and in Asia there is very limited research on
turnover intention with the moderating effect of Transformational leadership. Asia is now filling
with the companies and Asia has a big role in global economy. We have studied turnover intention
and transformational leadership in Pakistan and its effects in the companies. And our study gave
employees a new direction to think innovative and to overcome the situation. More efforts are
required to test the complexity according to different cultures.

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