Most countries that are not developed prioritize higher economic growth maintaining policy mandates that put large corporates before the cooperative development of large corporates and small and medium corporates and develop specific areas first ra...
Most countries that are not developed prioritize higher economic growth maintaining policy mandates that put large corporates before the cooperative development of large corporates and small and medium corporates and develop specific areas first rather than a balanced development including regional areas-primarily focusing on growth of the capital cities setting aside edistribution to regional areas to later stages. Korea since l960s has experienced a continued high growth; concentration of such growth in the capital city and the surrounding metropolitan area resulted in serious side effects in areas such as transport and environment and economic discrepancies between metropolitan area and regional areas of the country. These problems had been recognised; however a government policy to develop the country in more balanced manner was only introduced in 2000s. This paper-which considers the significance of the relocation policy relocation of the government s dministrative capital city to Sejong city and government agencies to regional parts of the country now at its implementation stage-addresses a need for an empirical research on expected loss of personnel of the affected organizations as a result of the relocation. The research was performed on public agencies rather than the general public sector.
Prior researches on the relocation dealt with matters such as economic impact on the sending city and receiving city residential conditions or settlement status legal review sale of the departing agency s real estate property. However there has not been a research on an internal impact of the relocation on the organization specifically on the intention of employees to leave the job. This appears to be attributable to the nature of government agencies that carry a responsibility to execute the government policies as sub-organizations of the administrative government bodies. The main hypothesis of the paper is whether employees would leave the job due to the relocation from metropolitan area to other regional cities of the country a result of which is examined and verified below. First as many scholars have already researched Role Stress (independent variable) Job Satisfaction(parameter) Organizational
Commitment(parameter) and Turnover Intention dependent variable) were modelled for their relationship. Then a <Research Model l> was built to determine how the concept of the relocation once applied to the previous model would affect the parameters and variables; and acceptance of the relocation policy is artificially defined and quantified to measure the concept of the relocation.
Further the <Research Model l> was complemented by classifying the subject group into a high acceptance group and a low acceptance group in order to verify the control effect on the existing research model - refer to <Research Model 2>. A verification process of the research models primarily utilized the Path Analysis through AMOS; and the Multiple Regression Analysis was conducted using the SPSS as a supplementing check. Both analyses provided the same conclusion supporting the validity of the conclusion of the research. In order for the research to be relevant to the relocation characteristics of a espondent that were surveyed and analysed included not only gender age job title marital status and whether accompanied by family but were also further refined into the five following demographic attributes: place of birth place of highest education received place of longest residence current residence and current family residence. The analyses conducted are frequency
analysis through SPSS chi-squared test T-test and MANOVA. In conclusion the degree of acceptance of the relocation policy does not have a meaningful impact on the intention of the employees of the affected organization to leave the job. Nevertheless it had a positive impact on job satisfaction and organizational commitment: it can be interpreted that employees who approved the relocation policy (or who accepted the relocation policy) had higher job satisfaction and higher engagement at work. Job satisfaction and rganizational commitment had a negative
impact i.e. reducing turnover intention. As job satisfaction and organizational commitment were found to be a full mediation variable between acceptance of the relocation policy and intention to leave the job the relocation was noted to affect turnover intention indirectly. Role stress was found to increase turnover intention and has a direct effect on reducing job satisfaction and organizational commitment confirming the conclusions of the prior research models. Job satisfaction and organizational commitment were found to be a partial mediation variable between role stress and turnover intention. Interestingly the variable that had the largest impact on turnover intention was organizational commitment which led to the conclusion
that if an organization were to prevent its employees from leaving it needs a plan that puts the engagement of its employees with the organization on top of its agenda. The relocation is an external variable that is out of control of the government agencies (due to the subordinate nature explained above); it does not have a direct impact on turnover intention when measured through a degree of acceptance of such policy; rather it has an indirect effect through job satisfaction and organizational commitment.
Based on the mean difference analysis (T-test) male respondents as compared to female respondents showed higher acceptance of the relocation policy higher job satisfaction higher organizational commitment and lower turnover intention. While employees at a
higher level in organization tend to adjust to the work culture are satisfied with the current job and have a higher engagement at work their job opportunities outside the organization are limited therefore it was found that they conform to the relocation policy when compared with younger employees and have a lower intention to move out of the firm. In relation to the demographic attributes current place of residence and current place of family s residence are relatively more important - than the place of birth and the place of longest residence - for a human resources strategy. However other attributes such as department level of education experiences staying with family length of employment and place of highest education received did not have a meaningful difference. The paper sampled different demographic attributes and therefore it appears that an HR manager at an organization that is planned to be relocated does not have to consider the place of highest education received for transfer of current employees or recruitment of new graduates. It was concluded that staff from metropolitan area does not mind working in other cities which suggests that new graduates do not have to be hired from the city where they finished their university degree and the organization is relocating into due to the bias about the graduates from metropolitan area.
A summary of considerations for recruiting new graduates and approaches in HR management to current employees is listed below based on the result obtained from the multi-variate analysis
(MANOVA) of demographic attributes around gender.
This paper is significant in that there was no research paper on the relocation policy and its implication on employee turnover given the prevalent concerns at a point in time when the relocation policy is implemented. Further to this acceptance of policy has been regarded as a final dependent variable only while the paper is the first attempt to quantify a concept of the relocation into an acceptance of policy and set it as an independent variable that
affects the intention of the employees to leave the job. Moreover detailed classification of respondent characteristics such as demographic attributes add to the relevance of the research subject i.e. relocation; and an analysis of variances in such respondents allowed to provide practical recommendations to policymakers. The paper obtained reliability and validity through statistical validation.