Turnover Intention in Terms of Organizational Climate in Marketing
Employees
Sri Hartini, Cindy Arini, Surya Dini and Ewen Sulim
Fakultas Psikologi, Universitas Prima Indonesia, Medan
Keywords: Turnover Intention; organizational climate.
Abstract: This research aims to investigate the relationship between Turnover Intention and Organizational Climate in
Employees. The purpose of this research is there was a negative relationship between turnover intention and
organizational climate, assuming that the higher the organizational climate, the lower the turnover intention.
Conversely, with the lower organizational climate, the turnover intention was higher. The subjects used in
this study were employees and permanent employees at PT HM Sampoerna Tbk, with a sample of 106
people. Data is obtained from instruments measuring the turnover intention and organizational climate. The
calculation was done by conducting the analysis assumption test, which consists of normality test and
linearity test. Analysis of the data used was to use product-moment correlation through the help of SPSS
version 17 for windows. The results of data analysis showed a correlation coefficient of -0.889 and a
significance value of 1 (p <0.05). These results indicated a negative relationship between the variable
turnover intention and organizational climate. The contribution was given by the variable turnover intention
to the organizational climate by 79.1 percent, with the remaining 20.9 percent other factors were not
examined. From this research, it could be concluded that the research hypothesis has a negative relationship
between a turnover intention and an organizational climate which it could be accepted.
1 INTRODUCTION
Employee behavior in organizations is a result of
their personal characteristics as well as the
environment in which they perform. Employees’ job
attitudes are affected by a wide range of
organizational characteristics and social
relationships, which form the employees’ work
environment (Berberoglu, 2018). Organizational
climate is one of the most important matters
regarding organizational environment, which has a
direct relationship with employee behavior. Since
late 1960s, organizational climate has been a popular
topic discussed in organizational behavior literature
and is considered as a vital viewpoint in order to
comprehend employee’s work-related attitudes and
behaviors (Nouria, 2013).
One of the important studies of the literature was
carried out in 1974 by Lyman Porter et al., which
was concerned with organizational commitment and
turnover intentions of the employees. Porter et al., in
1974, carried out the most commonly cited study of
the related literature, which addressed the
relationship between organizational commitment,
job satisfaction and turnover intentions among a
sample of psychiatric technicians. This study
preserves its significance as it involves the first
organizational commitment questionnaire in the
literature (Li et al., 2019).
Employee turnover has become a critical
managerial problem in organizations. High
employee turnover rates result in direct and indirect
costs, such as costs associated with recruiting and
training new employees, and loss of organizational
knowledge and a cohesive culture (Park & Min,
2020). Enterprises should maintain a high level of
competitiveness, mainly effective use of funds,
materials, equipment, technology and other members
of the organization and the technology, and "human"
is the subject of the disposal of resources. In human
resources systems, and organizational climate and
environmental incentives factor is an important
incentive influence employee behaviour, and the
business success, in addition to market
competitiveness and profitability, solidarity and
attitude of the staff is also an important factor (Hung
et al., 2018). Natural conditions, tropical climate,
and sunshine throughout the year support Indonesia's
Hartini, S., Arini, C., Dini, S. and Sulim, E.
Turnover Intention in Terms of Organizational Climate in Marketing Employees.
DOI: 10.5220/0010311900003051
In Proceedings of the International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies (CESIT 2020), pages 361-367
ISBN: 978-989-758-501-2
Copyright
c
2022 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
361
biodiversity and make Indonesia one of the largest
agrarian countries in the world. The term was pinned
to Indonesia because most of the population work as
farmers. The term was pinned to Indonesia because
of most of the population work as farmers.
Evidenced by the data collected by the Central
Statistics Bureau (BPS) in the first quarter of 2018,
it is known that the agricultural sector occupies the
first position as the employment sector that has the
most workforce of 38.7 million people or 30.46
Percent. One of the most recognized types of
agriculture in Indonesia is tobacco Natural
conditions, tropical climate, and sunshine throughout
the year support Indonesia's biodiversity and make
Indonesia one of the largest agrarian countries in the
world. The term was pinned to Indonesia because
most of the population work as farmers.
The tobacco commodity is one of the most
profitable industrial activities in the world,
especially for countries with low stages (Stuckler et
al., 2012). Recent studies have shown that people
around the world spend about one-third of their
income on food, tobacco and beverages. This
spending allocation appears not to be uniform across
the world popula- tion. While consumers from the
developing countries spend almost 40% of their
income on food, beverages and tobacco
(Selvanathan & Selvanathan, 2006). Kemenperin
(2016) stated that the tobacco commodity is one of
the domestic strategic sectors with high
competitiveness and continues to contribute
significantly to the national economy. It is known
that the tobacco products industry provides excise
payments of Rp. 138.69 trillion or 96.65 percent of
the total national excise tax. Based on the various
explanations above, it can be seen that the
agricultural business sector in terms of tobacco is a
business sector that is proliferating from year to
year. The development of the industry certainly
shows an increasing demand that must be balanced
with the development of companies producing
tobacco-related products. the leading tobacco
company in Indonesia PT HM Sampoerna Medan 1
is a subsidiary of PT Philip Morris Indonesia
(PMID) and an affiliate of Philip Morris
International Inc. (PMI), a leading international
tobacco company in the world.
As a large-scale company such as PT HM
Sampoerna Medan 1, fulfilling human resources'
availability is very important to support the
company's operational activities. Without human
resources, other organizational resources will not
generate profits or add value to the organization
(McLean, 2005). The role of human resource
management is very important in building
organizations, the function of Human Resources
(HR) in the organization has a long history of
producing goods and services (Becker & Huselid,
2006). Human resources are people who design and
produce goods or services, oversee quality, market
products, allocate financial resources, and formulate
all organizational strategies and objectives.
Therefore, companies need to do proper
management so that their human resources can
continue to dedicate themselves to the company.
Becker & Huselid (2006) states that human resource
management is policy and practice determining
aspects of human or human resources in
management positions, including recruiting,
screening, training, giving awards, and evaluating.
Based on this understanding shows that all types of
actions or policies taken by the company will have
an impact or influence on its human resources.
Human resource management is essential to create a
work environment that enables people to do their
best according to their capacity and potential to
achieve benefits for the company and themselves,
change the work environment's quality, and feel
satisfied with their work. However, human resource
management is not an easy thing to do. Sometimes
obstacles arise that can affect employee behavior, as
happened in one tobacco company in Malang in
2014. It is known that 970 employees resigned.
Employee discharge is known to leave the company
because the company has experienced a decline in
production. Researchers also conducted brief
interviews with several former employees in the
marketing division of PT HM Sampoerna Medan 1.
Turnover intention is one of the widely studied
areas in the field of industrial psychology
(Alkahtani, 2015; Fortuin, 2017; Hendricks, 2017).
This is attributed to its impact on the operational
costs of employing and re-employing employees.
These costs include, but are not limited to,
recruitment costs, leave capitalisation, relocation
costs as well as formal training and induction costs
(Alkahtani, 2015). In addition, organisations are
losing their most valued intellectual capital to their
competitors, which greatly affect their comparative
advantage as some of the organisations’ ways of
doing business might be shared with their rivals.
Turnover intention also impacts internal employees
as well as employee–customer relationships
(Isfahani, 2017). In view of the possible impact of
staff turnover, organisations need to foster
behaviours and systems that promote staff retention.
Aside from the common financial interventions,
CESIT 2020 - International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies
362
perceived organisational support (POS) plays a
significant role in influencing turnover intention.
Based on the results of the interview, it is known
that the reason for their resignation is that wages are
not appropriate, there is no labor social security and
working hours that exceed the set work limits
(Zhang et al., 2019). Hence, an imbalanced between
work and personal life causes higher stress that
might lead to greater turnover intention among
employees (Jaharuddin & Zainol, 2019).The same
reason was also expressed by several marketing
employees who were still actively working. They
stated that high targets sometimes forced them to
work even outside of work time, so they often felt
exhausted (Aliyu, 2018). Furthermore, these
employees felt that their efforts were not appreciated
with appropriate wages. Conditions like that make
them often look for other job vacancies, either
through internet sites, newspapers or through
existing relationships. Some employees have sent
job application files to other companies. In
particular, turnover intention is proposed to have a
predominantly negative impact on organizations,
and especially with respect to low productivity and
low staff morale (Li et al., 2017)
The various cases above show that employees
have shown unproductive behaviors and want to
leave the company. It is known in various cases
above, employees have taken action to quit or move
from the company where they work. This is
following the aspect of turnover intention, namely,
intention to quit. Some employees start comparing
companies where they work with other places and
think about quitting work.
Turnover intention is the termination of
membership in the organization by individuals who
wish to change jobs by receiving monetary wages
from the organization (Li et al., 2019). One of the
factors that influence turnover intention is the
organizational climate. Organizational climate as a
quality of the internal environment that is relatively
ongoing, experienced by members of the
organization, influences each member's behavior.
Previous research explains the negative relationship
between organizational climate and turnover
intention. This is evidenced by research conducted
by (Burli & Chan, 2020) on several nurses at Taiwan
Hospital. Based on these results, it is known that the
hospital where they work is not a place of work that
shows concern for its employees. Even so, the sisters
feel that the hospital where they work provides a
pleasant work environment. The sisters also
admitted that they did not want to leave the hospital
where they worked. This shows that there is a
negative influence of organizational climate on
turnover intention (Kalidass & Bahron, 2015). This
means that the higher the organizational climate, the
lower the turnover intention. Conversely the lower
the organizational climate, the lower the turnover
intention. Besides, Naotunna & Arachchige (2016)
researched hospital workers in the City of Ishafan,
Iran. Through this research, it is known that when an
employee feels comfortable and secure about their
work where there is a belief that the work provides a
decent life and development for themselves, then the
employee will stay at the company where he is. This
means that there is a negative relationship between
the quality of work-life and turnover intention,
where the higher the quality of work-life perceived
by employees, the lower the turnover intention.
Conversely the lower the quality of work-life, the
higher the turnover intention.
2 METHOD
This study aims to see the relationship between
Turnover Intention and Organizational climate in
employees. Location of research at PT. HM
Sampoerna Tbk Medan and using the scale method
(Rinaldi, 2019). The type of scale used in this study
is a Likert scale. The criteria for rating a favorite
item based on a Likert scale are one (1) for Strongly
Disagree answers (STS), two (2) for Disagree
answers (TS), three (3) for Agree answers (S), and
four (4) for the Strongly Agree (SS) answer.
Whereas the assessment criteria for unfavorable
items are a value of one (1) for Strongly Agree (SS)
answers, value of two (2) for Agree (S) answers,
three (3) for Disagree answers (TS), and four (4) )
for the Strongly Disagree answer (STS). Data
collection techniques in this study were carried out
by way of scale distribution. The scale used in this
study consists of two scales: the scale of turnover
intention and the scale of the organization's climate.
The sample used in this study were employees and
permanent employees at PT. HM Sampoerna Tbk. as
many as 106 people. Data were obtained from a
scale to measure turnover intentions and
organizational climate. The sampling method in this
study was purposive sampling.
Validity. The type of validity used in measuring
the turnover intention and organizational climate is
content validity. Content validity is validity
estimated through testing the contents of the test
with rational analysis or through professional
judgment (Azwar, 2010). Content validity measures
the extent to which the test items represent the
Turnover Intention in Terms of Organizational Climate in Marketing Employees
363
components in the overall content area of the object
to be measured and the extent to which the test items
reflect the behavioral characteristics to be measured.
Content validity does not involve any statistical
calculations but only rational analysis.
Reliability. Reliability means being trustworthy
(Rinaldi, 2019). Reliability refers to an
understanding that an instrument can be trusted
enough to be used as a data collection tool because it
is already good (Rinaldi, 2019). Furthermore,
(Azwar, 2010) states that the reliability of a variable
is said to be good if it has an Alpha Cronbach value>
0.6. In this study the reliability test uses the
Cronbach Alpha technique using SPSS 17 for
Windows.
Data analysis technique. Product Moment
Correlation requires that data be normally
distributed, and in this case, Kolmogorov Smirnov Z
is used. As for the criteria used is if p> 0.05 then the
data is normally distributed and vice versa if p <0.05
then it is not normally distributed.
Linearity test. According to Sugiyono (2010), if p
<0.05 then the relationship between the two variables
namely organizational climate and turnover intention
is said to be linear, and vice versa if p> 0.05 then the
relationship of organizational climate and turnover
intention is said to be nonlinear.
3 RESULTS
Valid items were based on the coefficient value
stated by (Azwar, 2010), which was in terms of r
0.30. The validity test in this research try out used
the corrected item-total correlation method in which
a valid item could be seen in the corrected item-total
correlation table with a moving r value from 0.303
to 0.824. The trial results of measuring instruments
to reveal turnover intention showed that 37 out of 42
items were declared valid. Furthermore, (Azwar,
2010) states that the reliability of a variable was said
to be good if it had an Alpha Cronbach value> 0.6.
High and low reliability, empirically was shown by a
number called the Alpha Cronbach reliability
coefficient. In this turnover intention scale obtained
Alpha Cronbach's reliability coefficient of 0.959.
This means that this scale was appropriated to be
used as a data collection tool in this research.
The distribution normality test used the
Kolmogorov Smirnov Test (K-SZ) test. Data was
said to be normally distributed if p> 0.05. The
turnover intention variable showed the K-SZ value
of 1.186 with Sig of 0.120 for the 2 (two) tails test /
Sig. 2-tailed, while this study had a one-way
hypothesis so that the test used 1 (one) tail / Sig. 1-
tailed of 0.06 (p> 0.05) means that the turnover
intention score followed the normal distribution.
Organizational climate variables showed K-SZ of
1.061 with Sig of 0.211 for the 2 (two) tails / Sig 2-
tailed test and Sig. 1-tailed of 0.105 (p> 0.05) means
that the distribution of organizational climate scores
followed the normal distribution. Based on these
results, the data on organizational climate variables
had a normal distribution or distribution because of
p> 0.05. The variable turnover intention and
organizational climate were said to have a linear
relationship if p<0.05. it could be said that the
variable turnover intention and organizational
climate had a linear relationship. This could be seen
from the P-value obtained, namely 0,000, then p
<0.05, it could be concluded that the two variables
had a linear relationship and had been fulfilled the
requirements for product-moment correlation
analysis. Hypothesis. The hypothesis in this study
was that there was a negative relationship between
organizational climate and turnover intention.
Hypothesis testing was done using Pearson
Correlation analysis techniques. Based on the results
of the correlation analysis between organizational
climate and turnover intention, obtained product-
moment correlation coefficient of -0.889 with p of 1
(p <0.05; Sig. 1-tailed). This showed that there was
a negative correlation between organizational
climate and turnover intention.
From the results of these calculations, the
hypothesis proposed in this study showed that there
was a negative relationship between organizational
climate and turnover intention otherwise acceptable.
Thus it could be concluded that the higher the
organizational climate, the lower the turnover
intention. Conversely, the lower the organizational
climate, the higher the turnover intention.
Based on the effective contribution that could be
seen in the table on the next page, it could be
concluded that in this study, a coefficient of
determination of 0.791 was obtained. Based on these
results, it could be stated that the contribution of
79.1 percent of organizational climate affected
turnover intention, and the remaining 20.9 percent
was influenced by other factors Inspirational
leadership, Transformational leadership, Democratic
leadership style.
4 DISCUSSIONS
The results of the study of 106 employees and
employees who were the subject of the study
CESIT 2020 - International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies
364
showed that there was a negative relationship
between organizational climate and turnover
intention with product-moment correlation
coefficient of r = -0.889 and p = 1 means that the
higher the organizational climate, the lower the
turnover intention. Conversely, the lower the
organizational climate, the higher the turnover
intention. Organizational climate was closely
related to turnover intention; this was reinforced by
the research conducted by (Liou, 2010) on several
nurses in hospitals in Taiwan. The results showed a
significant negative relationship between
organizational climate and turnover intention. The
lower the turnover intention, the higher the
organizational climate; otherwise, the higher the
turnover intention, the lower the organizational
climate. Relationship between organizational climate
and turnover intention.
The results of the same study conducted by
(Nugraha, 2017) of PDAM Tirta Moedal City
Semarang employees. The results of a study of 80
subjects showed that there was a negative
relationship between organizational climate and
turnover intention. In this study, the determination
coefficient of R Square (R2) of 0.791 was obtained.
Based on these results, it could be concluded that
79.1 percent of organizational climate affects the
turnover intention of employees and employees at
PT. HM Sampoerna Tbk. and the remaining 20.9
percent was influenced by other factors Inspirational
leadership, Transformational leadership, Democratic
leadership style. In this study, the results obtained
indicate that turnover intention at PT. HM
Sampoerna Tbk. included in the high category was
evidenced by turnover intention for employees who
fell into the low category of 1 (one) person with a
percentage of 0.95 percent. In contrast, turnover
intention for employees in the moderate category is
30 people with a percentage of 28.30 percent, and
employees with turnover intention in the high
category numbered 75 people with a percentage of
70.75 percent. Based on the explanation above, it
can be concluded that the average employee of PT.
HM Sampoerna Tbk. expressed a high turnover
intention.
This study also shows the average organizational
climate results at PT. HM Sampoerna Tbk. including
low because employees who declared high
organizational climate included in the low category
by 0 (zero) people with a percentage of 0 (zero)
percent, while employees who stated the
organizational climate was included in the moderate
category numbered 81 people with a percentage of
76.41 percent and which states low organizational
climate into the high category of 25 people with a
percentage of 23.59 percent. Based on these
explanations, it could be concluded if the
organizational climate at PT. HM Sampoerna Tbk.
did not meet the desires of employees, where the
organizational climate was a condition or traits or
characteristics that described an organizational
psychological environment that was felt by people in
the organizational environment. Organizational
climate was influenced by the perceptions of
existing members of the organization.
Thus, if the employee felt that the climate in the
organization where he belonged was quite conducive
and pleasant to him, they would work well, which
would make the employee felt satisfied.
Organizational climate influenced HR practiced and
policies were accepted by members of the
organization. All organizations naturally had a
strategy in managing human resources. An open
organizational climate encourageed employees to
express their interests and dissatisfaction without
fear of retaliation and attention. Such dissatisfaction
could be handled positively and wisely. In the low
category of 0 (zero) percent, shown through the
results of interviews with employees, who claimed if
the organizational climate at PT. HM Sampoerna
Tbk. did not make employees comfortable in this
company. Many aspects of the organization's climate
were not applied to this company, to make the
employees wanted to resign from the company. The
influence of organizational climate on organizational
performance was so considerable that many experts
or experts paid special attention to organizational
climate. The importance of the organizational
climate because the organizational climate was
recognized as influencing the behavior of employees
and leaders as members of the organization.
Organizational climate influenced employees to
understand the rules that apply in the work
environment and give instructions to them in their
adjustment efforts within the organization. The
concept of organizational climate is considered to
have a position as a bridge that connected
management or leadership and employee behaviour
in realizing organizational performance in order to
achieve organizational goals.
As many as 25 employees or 23.59 percent of
employees were in the medium category. Due to the
dimensions of standards that were not applied at PT.
HM Sampoerna Tbk. So often, employees who
worked at the company, work not following the job
description they had, this made the employees
confused in carrying out the work they had As
acknowledged by one of the employees who should
Turnover Intention in Terms of Organizational Climate in Marketing Employees
365
had held SPG's position, but often worked on the
company's financial statements, the employee
admitted that he sometimes felt confused about his
position. Many employees who had only been
working for 6 (six) months had left the company.
Through these statements strengthen the allegations,
the low climate of the organization in PT. HM
Sampoerna Tbk. Employees saw themselves as
belonged to the company and became members of a
work team.
5 CONCLUSION
There is a negative relationship between
organizational climate with turnover intention in PT
HM Sampoerna Medan Marketing Employees with
Product Moment correlation of r = -0,889 and p = 1,
meaning that the higher the organizational climate,
the lower turnover intention. Conversely, the lower
the organizational climate, the higher the turnover
intention experienced by employees. The mean of
turnover intention on the subject of PT HM
Sampoerna Medan Marketing Employee research
shows that the research subjects' turnover intention
shows a high category. This can be seen from the
empirical value of 115.06 higher than the
hypothetical mean of 92.5. Based on the category, it
can be seen that there are 1 (one) subjects with 0.95
percent who have a low turnover intention, 30
subjects with 28.30 percent who have a moderate
turnover intention, and there are 75 subjects with
70.75 percent who have turnover intention high.
The mean of the organizational climate on the
subject of PT HM Sampoerna Medan's Marketing
Employee research as a whole shows that the
organizational climate of the research subject shows
a high category. This can be seen from the practical
value of 72.08 higher than the hypothetical mean of
62.5. By category, it can be seen that 0 (zero)
percent is categorized as a low organizational
climate, 81 subjects with a percentage of 76.41
percent who have a moderate organizational climate,
and 25 subjects with a percentage of 23.59 percent
who have a high organizational climate. The results
of this study indicate that the contribution of
organizational climate variables to turnover intention
is 79.1 percent, the remaining 20.9 percent is
influenced by other factors not examined, such as
inspirational leadership, transformational leadership,
and democratic leadership styles.
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