Study on Organizational Culture and Turnover Intention in International IT Firms in Sri Lanka

Abstract

Management has been continuously facing the threat of employees leaving the staff and local managements records an average loss of 3-5 percent of it is trained and experienced employees in contrast to foreign management’s 2-3 percent yearly. Thus, with local employees, as members of the same nation sharing similar work-related cultural values (Hofstede, 1984; 2001), the problem then pinpoints to whether employees feel an obligation to stay attached to the international management organizations, and hence, to decisions of turnover. Thus, leading to the question: “What is the relationship between Organizational Culture and Turnover Intention?". The study seeks to add knowledge to the current knowledge body of Organizational culture within the areas of organizational culture and the management of employees within the service sector in general and the information technology industry in particular, by applying new methods to the labor turnover phenomenon. The research has been motivated by a determination to acquire insight into the relationship between organizational culture and labor turnover. It is also an objective of the researcher that the findings will make a contribution to those managers and employers who are attempting to discover new approaches when addressing the challenge of employee retention. Organizational Culture Assessment Instrument (OCAI) is used to measure organizational culture and intention to quit scale will be used to measure turn over intention in this study. This study fills a gap in the literature by acknowledging the findings of the organizational culture and turn over intention, hence it will test and validate the model in organization culture and turn over intention in Sri Lankan information technology sector.