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Archives Des Sciences Vol 65, No. 3;Mar 2012

The Predictor of external environment, occupational stress, job

satisfaction and intent to leave towards organizational commitment
Noordin Yahaya 1, *Azizi Yahaya 2, Halimah Ma’alip3, Shahrin Hashim2 Syarifah Nurul Ain Bt Syed
Alwee1

1 Faculty of Bussiness Management,Universiti Teknologi Mara (Melaka)

noordinyahaya@yahoo.com
2
Faculty of Education, Universiti Teknologi Malaysia *(Corresponding author)
*p-azizi@utm.my, p-sharin@utm.my
3
Languange Academc, Universiti Teknologi Malaysia
m-halima@utm.my

Abstract
The purpose of this article was to determine the relationship between external environment, occupational
stress, job satisfaction and intent to leave towards organizational commitment. A convenience sample group
of 130 employees of Northport (Malaysia) Bhd. were selected over 2272 of total population at year 2009. A
self–administered survey instrument was developed to measure and test the employee external
environment, occupational stress, job satisfaction, and intent to leave towards organizational commitment.
Using SPSS 16.0, two statistical tests were employed to test study hypotheses. First, by measuring
correlation, a Pearson correlation coefficient analysis was used to identify the relationships between
predictor and criterion variables. Likewise, multiple regression analysis was used to determine the effect
between external environment, occupational stress and job satisfaction among related variables. The
findings reveal that job satisfaction, occupational stress and intent to leave does affect organizational
commitment. At the same time, occupational stress gives impact to the intent to leave. Unlike external
environments, it does not effect on both organizational commitment and intent to leave. Among predictor
variable towards the organizational commitment, the job satisfaction were produced strong relationship.
Keyword: environment, occupational stress and job satisfaction and organizational commitment

1.0 Introduction
The issues of turnover in organization have widely been discussed (Edechuckwa, 2009; Ghere and Barr,
2007; Kaye and Jordan-Evans, 2001) due to the number of turnover rate is accelerating. Turnover refers to
the employee self-action to quit from the employer. Edechuckwa (2009), has defined turnover in their
article referred to voluntary turnover. Voluntary turnover is referred as a consequence of employees
initiating the termination of their employee-organization relationship (Lambert, 2001).
The turnover problem is not face by certain industry. In fact, various diversity industries are experiencing
this hitch. This issue is representing one of the greatest ongoing challenges of industry. From the further

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reading, there was no found any statistic or research has done in port industry as prior to this research
setting. However, the hospitality industry has reported annual turnover rates ranging from 32 percent to 300
percent (Fortino and Ninemeier, 1996; Woods and Macaulay, 1989). Previous has revealed turnover for
correctional officer at one state correctional agency in 2002 accoutered for 77% of total correctional officer
turnover; and for 2003, it was 76%. Similarly, Edechuckwa (2009) noted in his study, correctional
recruitment and retention in Texas prison system, in the four years preceeding 2002, the security force
attrition rates exceeding 20% as reported by Castlebury (2002).
In more specifically, the turnover rate of nurses in Ontario was 21.3% in 2002 (Kirkwood, 2006). As
this scenario, as the Canadian and world economies improve in 2004, an August 2003 survey by the
Society for Human Resource Management (SHRM) and CareerJournal.com, 83 percent of employees and
56 percent of HR professionals believed it was likely that voluntary turnover would increase in 2004 as
overall world economies improved (Sunderjin).

1.1 Turnover and retention

Since turnover is one of foremost issues in organization, the central concern is related to the costs and
impact of employee turnover. So it is imperative to understand what are the matters involve. Employee
turnover and retention are, in essence, of opposite sites of the same coin (Ghere and Barr, 2007). In that
sense, the organizational cost that related to turnover is the reverse of the gain that organization receives
from retaining quality employee. From this statement, it shows how crucial is retaining employee especially
skilled workers need to be addressed on. Thus, prior to the purpose of this study, it is relevant to understand
the issues of turnover in order to ultimately comprehend employee retention.

1.2 Cost and effect of turnover

Undoubtedly, many organizations know that employee turnover negatively impact productivity.
Edechukwa (2009), described employee turnover is a potentially costly phenomenon facing by many
organizations. Turnover is expensive monetarily and costly in many other ways either direct or indirect
cost. The direct and indirect costs are generally classified as separation cost, learning cost, and acquisition
costs (Mobley, Griffeth, Hand and Meglino, 1979).
To determine the costs associated with turnover, one has to consider the effect invested in employing
(for example, recruiting, interviewing, orienting) and developing each worker. As note by Ghere and Barr
(2007) in their research, shows there are three types of costs are incurred when an employee leaves an
organization (Harverd Management Update 2000). First are the direct replacement expenses for requiting,
interviewing, and training each new employee. Second is the indirect cost during the transition period that
affects the workload, morale, and productivity of the remaining employees, as well as customer
satisfaction. Finally, there are costs of lost opportunities. The time and energy invest in each new hire
results in lost opportunity cost because that time is not available for the organizational needs.

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In term of moral effect, turnover may be preceded by employee withdrawal in the form of reduced
performance or increased external environment over a period of time before the actual termination (Keller,
1984), and this may impact the morale of employee (in Kelly Russell, 2005).

1.3 Occupational stress

Quick (1997), defined stress as an individual’s adaptive response to a situation that is perceived as
challenging or threatening to the person’s well-being (McShane and Glinow, 2009). According to P.
Robbins (1991), stress is a dynamic condition in which an individual is confronted with an opportunity,
constraint, or demand related to what he or she desires and for which the outcome is perceived to be both
uncertain and important. From both definitions, it shows that stress is something of displeasure feeling.
There were so many definitions have been suggested. However, Hart and Cooper (2001), although the key
words ‘occupational stress’, ‘work stress’, and ‘job stress’ have been used in over 2000 scientific articles in
the 1990s, there has been no clear, coherent and precise definition of occupational stress (Hamilton, 2008).
Stress conditions can be positive (eustress) or negative (distress)(Selye, 1994). While positive is desire so
many reasons but negative is not. Eustress, which refers to the healthy, positive, construct outcome of
stressful events and the stress response McShane, Glinow (2009). It uses enough to activate and motivate
people to achieve goal. Distress is the degree of physiology, psychological, and behavioral deviation from
healthy functioning. Nevertheless, most research focuses on distress because it is a significant concern in
organizational settings. Employees frequently experience enough stress to hurt their job performance and
increase their risk of mental and physical health problems (McShane and Glinow, 2009)
Course of stress called stressor. There are numerous stressors in organizational setting and life
activities have been identified. McShane and Glinow (2009) also have outlined four types of work related
stressor: interpersonal, role-related, task control and organization and physical environment stressors
Several studies have attempted to identify which jobs have more stressors than others (Keil, 1999). A level
of stress can be distinguished into particular occupation (McShane, and Glinow). stress and the negative
outcomes of stress have been recognized as financially costly to any health care organization. Negative
outcomes of job stress among nurses include illness, decline in overall quality of care, job dissatisfaction,
external environment, and staff turnover (Schwab, 1996).

1.4 Job satisfaction

Job satisfaction has been defined many different ways by numerous researchers. However, Suk Lee (2008)
noted in her study, which all agreed that job satisfaction is a nebulous, complex, but an important concept
for human resource management practice because it depends on so many different factors such as work
environments, job position, and work roles as defined by Gruneberg (1976); Hopkins (1983); Hsiao and
Kohnke (1998); Locke (1969); Mumford (1972); Willa and Blackburn (1992). According to Wiley and
sons, inc.(1976), job satisfaction is the favorableness or unfavorableness with, which employee view their
work.

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In addition, it influences one’s feelings of expectations and attitudes toward a job. Vroom (1964),
defined job satisfaction as the positive perception of an individual’s work and work role. Choi (2001);
Morrison et al. (1997), were defined it as employee’s feelings or emotional responses to a job, which can be
the result of the employee’s expectancy and actual outcome from the work environment. Hsiao and Kohnke
(1998) defined job satisfaction as one’s emotional response to a job that results from the person’s
expectations of job and the reality of the job situation.
Suk Lee (2008), noted “job satisfaction consists of the total body of feelings that an individual has
about his job” as proposed by Gruneberg (1976). When the total feeling of job influences the perception of
job satisfaction, one’s job satisfaction can be measured. Moreover, job satisfaction was defined as
employees’ feeling about job characteristics, work climate, and work compensation (Jong et al., 2000). Job
satisfaction factors can be sorted into nine factors: pay, promotion, contingent rewards, communication,
operating procedures, benefits, co-workers, nature of work, supervision, and physical evidence (Suk Lee,
2008). From these factors, she stated that all researchers found that the factors of nature of work and
supervision were the most important factors and influenced employees’ job satisfaction.
From all the definitions have been suggested, the broadest sense of job satisfaction is about how we feel
about our job as stated by Stamps (1997). All feeling towards the job surroundings can be considered as job
satisfaction.
Job satisfaction is a concept of broad interest to people employed in all organization. In addition,
Hamilton noted in her study that, researchers content that job satisfaction is possibly the most significant
yet elusive factor in understanding worker motivation, performance and effectiveness, recruitment and
retention ( Cavangh, 1992)

1.6 Organizational commitment

Mowday, Streers, and Porter (1979) defined organizational commitment as an affective attachment to an
remain in the organization characterized by shared values, a desire to remain in the organization, and
willingness to exert effort on its behalf. Organizational commitment is characterized by strong believe of in
and acceptance to the organization’s goal and value, and willingness to exert considerable effort on behalf
of the organization and a strong desire to maintain membership in the organization (Monday and Porter,
1979). As stated by Blau and Boal (1986), organizational commitment is a state in which an employee
identifies with a particular organization and its goal and wishes to maintain membership in the
organization. Organization commitment has been defined and measured in several different ways.
However, all of these share a common theme in that organization commitment is considered to be a bond or
linking of the individual to the organization. A bond should not be confused with the broader concept of
commitment as defined by Kobasa, (1982).
The organizational commitment also has been identified into three concepts. These concepts have
been constructed by classic study, Allen (1985), on organization commitment. There are normative,
affective and continuance commitment. Affective commitment can be conceptualize as an orientation

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towards the organization such that the individual want to contribute to it. According to Stabbins (1970),
continuance commitment arises from a awareness of the cost associated to discontinuing to work for the
organization. Finally, Allen had indicated “it appears that normative commitment has as its basis those
believes and values about organizational membership which the individual has internalized”. Unlike
affective commitment, it can be described as states where individual strongly want to continue contribute to
the organization.
Conversely to continuance commitment where individuals contribute to continue with the organization
because they have to do so rather than ought to do so for normative commitment. These distinctions make
the different to measure the level of commitment of individual. It seems more reasonable that individual
will vary in each of these concepts. Thus, in the model examined by Allen are not considered as different
type, but rather, as component by which when taken together can provide qualitative and quantitative
profile of individual commitment to organization. For study purpose, this study might focus on affective
commitment due to the state of definition that can easily measure the intent to leave of present employee in
study setting that low experiencing in turnover.

1.7 Intent to leave

The dependent variable of intent to leave employment is an integral perception of the probability that
employee will terminate employment with the organization (Price and Mueller, 1981). It refers to
individual perception rather than behavior and is seen as contemplative stage linking the attitudinal
component of job satisfaction with the behavioral component of turnover (Alexander et al., 1998).

1.7 External environment, occupational stress, and job satisfaction

So many studies have made in stress and job satisfaction area. It shows that stress there is a strong
empirical evidence to support the causal relationship between job satisfaction, intent to leave and external
environment (Parsons, 1998). Conversely, study by S. Leong, Furnham and L.Cooper (1996), in a study
attempted to examined the effect of organizational commitment as a moderator of stress-outcome
relationship, they found that, occupational stress and stress-outcome (job satisfaction was nonsignificant.

1.8 External environment, occupational stress, job satisfaction Job satisfaction and organization
commitment
Review on literature and research had indentified many factors that contribute to organizational
commitment. One of research identified were Hrebiniak and Alutto (1972) and Davis (1982) which in
indicated that job satisfaction has been found to be the most important and consistent antecedent of
organizational commitment. This finding also was also supported by Klenke-Hamel, 1983; Ferris and
Aranya, 1983). However, Mowday, Steers and Porter had suggested the relationship was not totally
completed. Hence, they stated “to begin with, commitment as a construct is more global, reflecting a

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general affective response to the organization as a whole. Job satisfaction, on the others hand, reflects one’s
response either to one’s job or to a certain aspect of one’s job. Therefore, commitment emphasizes
attachment to the employing organization, including its goal and values, while satisfaction emphasizes the
specific task”.
From the suggestion by Mowday, its show that the relationship is totally completed when affective
response to organizational as a whole is only exist if job satisfaction reflect one’s response either to one’s
job or to a certain aspect of one’s job. The aspect of one’s job can be describe as characteristic of job that
employee perceives. This shows when job satisfaction was defined as employee’s feeling about job
characteristic, work climate, and work compensation as stated by Jong et al. (2000). Suk Lee (2008)
indicated certain job characteristic also positively correlated with organizational commitment, but their
relationships were not always significant.
A part from the definition of job satisfaction defined by Robbins (1991) he said it can be defined as an
individual general attitude towards his/her job. He also stated that job satisfaction involve expectation. He
noted, It express the amount of agreement between one’s expectation of the job and rewards that the job
provides. While Human resource management activities are concerned on performing of justice and
fairness, study made by Koy(1988), found that the perception of human resource activities is positively
associated with employee’s organizational commitment. As noted early by Robbins, since job satisfaction
involves expectation, it relates to equity theory, psychological contract and motivation. If the expectation of
employee is unfavorable, it may affect the feeling of inequity. Thus, the reasonable prediction of job
satisfaction and organization commitment is correlated.
Nevertheless, empirical evidence suggested that perceived job satisfaction of employee needs may be a
primary determinant of organizational commitment (Marsh and Mannari, 1977). In some cases,
commitment has been found related to achievement, motivation and higher order needs (Steers and
Spencer, 1977). This finding was demonstrated the theories of motivation by Maslow and henricks
Federick

1.9 External environment, occupational stress, job satisfaction and intent to leave
Turnover intention precedes actual staff turnover. During this stage phase, actual thought is give to leaving
the position, institution, or profession. Zeytinoglu and Denton, 2005).Job satisfaction is in turn influenced
by the level of stress employment. Hence, lake of job satisfaction plays a large part in the intention of an
individual to leave employment.
There has a study among nurses in health care setting studied in British by Shields and Ward (2001),
which focused on nurse retention. Further investigation made in that study in determining job satisfaction
and the relationship between job satisfaction and intent to leave, the findings demonstrated that nurses who
reported overall dissatisfaction with their jobs have a 65% higher probability of intending to quit than those
who reported to be satisfied. In the study also, they found that training and promotion opportunity were
stronger impact than workload and pay. In this mind, it can be concluded that organization policies that

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focused on pay is only has little success in employee retention, unless they are accompanied with
promotion and opportunity of training and development. Hamilton (2008), stated turnover intention were
primary determined by unmet career expectation such as a higher salary and more responsibility, and to a
lesser extent by quality of job content. The word expectation is as refer to the definition on job satisfaction
by Hsiao and Kohnke (1998); Choi (2001); Morrison et al. (1997),

1.10 Organization commitment and intent to leave

From the widely perspective, understanding of organizational commitment is crucial to organization
because previous studies found that organizational commitment related to intention to leave. A classic
studies by Mowday, Steers and Porter (1979), had show that there a positive relationship between
organizational commitment towards job tenure. They found that employee who has a highly committed was
likely to remain with the organization much longer period. This shown that once employee feel they want
to stay lore longer with their organization, it may prominent to negative feeling of intent to leave. Indeed,
this negative relationship also has demonstrated in other study. As study by Koslowsky (1991), has found
that an increase in commitment may cause a decrease in intention to leave.
Moreover et al. (1993) found that people with high organizational commitment suffered less negative
outcome in term of job satisfaction, mental and physical illness and intention to quit. Later, a same study
was also supported in a study made by Leong et al. (1996), they found organizational commitment was
positively correlated to intent to quit (-0.53).
Interestingly, a research conducted by Lynn and Redman (2005) in hospital setting among nurses staff,
researchers concluded that organizational commitment was a predictive intent to leave of current position,
but not profession.

Variables of study
In order to understand the course of turnover, employer can firstly identify the factors that influence the
intent to leave. Stiffler (2007), defined that intent to leave is where staff member’s intention to leave the
organization in which he or she is employed. Study in are of nurses turnover, intent to leave is an internal
perception of the probability that the nurse will terminate employment with the organization (Price and
Mueller, 1981).
Logically, the intent to leave and is something that reverse to intent to stay. This statement truly
supported the description of intent to stay by (Halaby, 1986; Halaby and Weakiem, 1989; Iverson, 1990;
Martin, 1979, O’Reilly and Caldwell, 1981; Price and Muller, 1981, 1986a) which, “sometimes referred to
propensity to leave, intent to quit, intent to leave, behavioral commitment, and attachment as noted by
Iverson (1992) in his study on intent to stay: empirical test of revision of the Price Mueller Model. This
argument is important as to relate the intent to leave and turnover. Because, there had study that found
intent to stay has strong negative relationship with intent to leave (Iverson (1992).

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As concern to this ultimate problem, the study of employee turnover can be conceptually understood
by assessing work attitude. They have also found in others work attitudes such as organizational
commitment, intention to leave, and perceived alternative employment have also been shown to impact
voluntary turnover. This was true when Mobley et al. (1979), found that job satisfaction to be related to
employee turnover. Although, as fundamental understanding the turnover, it also relevant to applied the
motivational theory. “Maslow hierarchy of needs and Herzberg theory can be applied to understand the
problem of turnover by shedding light on work attitudes such as satisfaction” (Edechuckwa, 2009).
There have several reasons why make people want to leave from their current employee in staying. Rather
than nature reason such as retirement, transferred, death or further study, one of the most reason is due to
the occupational stress encountered. This was true when a study on Paraprofessional employee turnover and
retention in inclusive program conducted by Ghere and Barr (2007) found that the demanding nature and
the stress incurred in the work were viewed as affecting paraprofessionals’ decision to leave. They also
clarified it due to the ambiguous work as results of limited experience.
Given the impacts of employee turnover, greater attention to retention is warranted. Again, in the
study of paraprofessional turnover and retention, the finding yield several target that could improve the
retention of qualified paraprofessional: wages, job matching in first hiring decision, and ongoing support
like maintain strong communication and supportive relationship which do not require excessive
expenditures.
Northport (Malaysia) Bhd. is one of the largest operator of multi-purpose port that handling 63% of
the local’s trade with 2272 of total current manpower. NMB is one of the terminal that situated in Port
Klang that chaired by Tan Sri Ahmad Sarji Abdul Hamid. NMB also is a Malaysia’s pioneer port with it
108 years of rich heritage in port dynamic. NMB provides connectivity to 300 ports of call around the
world. The major core services provide by NMB is container, conventional and logistic. Northport
employee comprises with administrator and non administrator that involve operator that operates along
wharf area. NMB is strategically located within the Free Zone (FCZ) of Port Klang in the state of
Selangor and on the west coast of peninsular Malaysia facing the world’s longest and busiest straits, the
Straits of Malacca.
From the interviewed between researcher and assistant manager of human resources department, it found
that, there is no any retention management is being applied in NMB. The definition of retention
management is relied on the effort of NMB in proving a good compensation package, condusive
environment, supporting from top management and maintain excellent communication with employee.
However, more specifically, at the end of the interviewed session, it can be conclude that most of employee
is attracted far more on the compensation package offered. The strategy of compensation package of NMB
is low pay and high variable pay.
From the background of company, it make researcher to study in area that interested to study on
which is employee retention, since NMB has low employee turnover.

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The purpose of this study is to identify the factor that contributed employee retention related variable by
determined the effect between external environment, occupational stress and job satisfaction on
organizational commitment and intent to leave.
The idea of this research was made up as extension study in Northport done by Hewitt survey
(2009) and Noordin et.al (2009). From that study, Northport was titled as the highest percentage in
employee retention as compared to ten best companies in Malaysia. In fact, Northport’s Human resource
annual report has also indicated that the total turnover headcount is very low, which can be considered as
good. The illustration of employee turnover can be seen in Table 1.

Table 1. Total number and percentage of employee resigned from 2006 to 2008.

Year Total no. of Total no. of employee % Percentage of

employee resigned employee resigned
2006 2622 20 0.8 %
2007 2495 27 1.0 %
2008 2408 22 0.9 %
Moreover, in supporting the retention of employee also, it shows in NMB effort in providing compensation
package to their employee. The details of basic salary and fixed allowance expenses by Human resource
can be seen in Table 2.
Table 2. Monthly payroll expenses of human resources in 2008.

MONTH Monthly actual

January
February 524,127
Mac 537,985
April 570,712
May 557,347
June 542,412
July 525,512
August 482,440
September 360,639

The relevant in attempted of study on organizational commitment and intent to leave as measuring
employee retention rather than turnover, is because of the limitation in getting data from the people outside
of organization who has left from current employment. In fact, the study on retention is major alternative
of doing study on turnover. Since the outcome of this study will be the basis body of knowledge that
company can refer for in managing employee retention, thus the primary data source much be gathered
within the organization area.

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From the further reading in aspect or retention and turnover are, in logically, if the factors do influence
in decreased intent to leave, or increased organizational commitment, then it would consequence to increase
employee retention. From this interrelationship, it seems support the fact that Northport is high employee
retention. By understand the present employee work attitude like organizational commitment and intention
to leave, hope this might be explained why Northport has high employee retention.

2.0 Purpose of the Study

The purpose of this study is to explore the relationship between external environment, occupational stress,
job satisfaction, intent to leave and its effect on organizational commitment (retention related variables).

3.0 Conceptual Framework

Independent Variable Dependent Variable

External
Enviroment

Occupational Organization
Stress Commitment

Job
Satisfaction

Intent to leave

Figure 1. The relationship of external environment, occupational stress, job satisfaction, intent to leave and
it effects on organizational commitment (retention related variable).

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4.0 Methods
4.1 Population and Samples size
Sample size of this study was withdrawn from the entire population of Northport’s employee. According
Azizi et.al (2007), sample is subset of the population, while population refers to the entire group, events or
things of interest. The population overall Northport (Malaysia) Bhd was 2272 with 2007 of non executive
and 265 of executive as total of Northport’s employee headcount as of Jun, 2009. For this study purpose,
over entire population, only (N= 200) samples have been chosen. However, out of 200, only 130 were
available to be the subject of this study.

4.2 Sampling design

According to Uma Sekaren (2003), sampling is the process of selecting a sufficient number of elements
form the population. Reason for sampling is rather than collecting data from the entire population are
self-evident. In this study, convenience sampling was used as sampling technique. It is one of the
non-probability sampling designs, which the element does not have a known chance of being selected as
subject. This technique was chosen due to conveniently administered to the subject, the availability of
element, source and time constraint. As stated by Uma Sekaren (2003) convenience sampling refers to the
collection of information from member of population who are conveniently available to provide it. In fact,
this technique was best fit for this study as what be the reason on selection of study setting that make
quickly and efficiently to reach subject.

4.3 Instrument
Instruments used in the study were occupational stress scale, 6 questions each variables pertaining job
satisfaction and affective commitment, 6 questions on measuring intent to leave and 3 questions for
external environment.

4.3.1 Occupational stress scale

The occupational stress scale measured the independent variable of occupational stress. 4 questions were
adopted and from the updated revision of Expanded Nursing Stress Scale (ENSS) and 2 questions were
taken from updated OSC by Hamilton (2008). Since The ENSS was purposely for nursing, then the items
have been adjusted to fit with the general job stress that participated by administration worker in port area.
6 items were tested in a large sample of (N=200) after 1 item was removed from the instrument. The
completed contains 5 items the measured by using 5 point-likert scale where 1= never stressful, 2=
occasionally stressful, 3= less frequently stressful, 4= frequently stressful, and 5= extremely stressful.

4.3.2 Job satisfaction

For the independent variable of job satisfaction, items were measured by using 5 items from Hewitt Best
Employee Survey. In fact, from the original survey items, only 5 items have chosen to be put in as

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instrument to be measured. Response were obtained on five point-Likert scale where 1 = strongly
disagree, 2=disagree, 3=neither Disagree nor agree, 4=agree, and 5 strongly agree.

4.3.3 Organizational commitment scale

In this study the concept of organizational commitment that discussed earlier chapter was definitely focus
on affective commitment by using affective commitment scale (acs) which developed by Allen, (1985). As
usual, the responses were in five point-Likert scale as used by job satisfaction where 1 = strongly disagree,
2=disagree, 3=neither Disagree nor agree, 4=agree, and 5 strongly agree.

4.3.4 External environment scale

Obviously, the measures of external environment developed and used in this research are new. Three items
outlined are based on the general situation that might be encountered by employee. Scale that need to be
responded was 5 point-likert scale where 1= never stressful, 2= occasionally stressful, 3= less frequently
stressful, 4= frequently stressful, and 5= extremely stressful. Three items developed was tested with no
removed item.

4.3.5 Intent to leave scale

For the dependent variables of intent to leave in measuring the retention variable, 2 questions were adopted
form the study revision by Prince and Muller, (1981). The other 4 items contains were newly developed for
measure purpose. Responses were based on five point-Likert scale as where 1 = strongly disagree,
2=disagree, 3=neither Disagree nor agree, 4=agree, and 5 strongly agree.

4.3.6 Study Location

This study was carried out specifically in various departments throughout area of Northport (Malaysia) Bhd
as represent the study area organization situation. There have thirteen departments all. However, only 5
departments with their divisions were chosen to be included in study setting. The department and their
division were chosen based on the availability of subject and distance of other department from the place
that I have been attached during my practical. Total of 200 questionnaires have been distributed over these
5 locations. The study setting that has been undertaken is described in Table 3.

Table 3. Study Location.

Department Division

Human resource and support services - Training and development

department - Human Resource Planning
- Employee Relation
- Safety, Health and Environment (SHE)

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- Legal and administration

Customer services
Finance - Payroll
- Credit Control
- Billing
Conventional

Container

4.3.7 Pilot study

Prior to this study, to ensure the reliability and clarity of the proposed measures, the draft instrument was
tested for face and content validity. A pilot study has been conducted over 15 employees in an attempt to
validate the methodology and to recognize problems that may be encountered before the actual survey takes
place. During the test, 25 questions were outlined. As to ensure there is no problem in answering the
questionnaire, I was there to assist and note if there has any double meaning problem. The most frequently
asked by respondent on certain question was considered to be modified. However, during the test, there is
no problem in understanding question. Based on the pre-test also, the method and the question to record the
data were further refined for improved data collection that would allow for a detailed analysis.

4.3.8 Validity testing

It is important to ensure the instrument that be used has validity, which do measure the concepts being
tested. According to American Educational Research Association, Psychological Association, and National
Council on Measurement in Education (1999), validity is "Validity refers to the degree to which evidence
and theory support the interpretations of test scores entailed by proposed uses of tests”. In this study, the
validity of the instrument used to test the concepts, which was undertaken by two different tests. First, the
instrument was adopted from the previous study that had validity been tested before. Second, due to
adaptation of language and understanding preferences, the questionnaire has been adjusted by interpreting
to Bahasa Malaysia language to avoid double meaning error by respondent. Since I was there during the
pilot test, the validity of both tests was guarantee.

4.3.9 Reliability testing

Reliability is the "consistency" or "repeatability" of measures (William Trochim, 2008). Uma Sekaren
(2003), stated the reliability of measure is established by testing for both consistency and stability, which
indicated how well the items measuring a concept hang together as a set. Internal consistency reliability
was assessed using Cronbach’s coefficient alpha. Overall Cronbach’s alpha yielded the reliability of each
variable were (α=0.820) for job satisfaction, (α=0.716) for external environment, (α=0.895) for
occupational stress, Intent to leave (α=0.876), and organizational commitment was (α=0.781). As result,
completed 21 items were tested over large sample of (N=200) after 4 items have been removed form the

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initial instrument since the refinement of reliability of each variables were demonstrated adequate
consistency at range (α=0.7 - 0.9).
The illustration the Cronbach alpha, items removed and number of remaining items can be illustrated in
Table 4.

Table 4. The result of Cronbach’s Alpha.

Variable Α Items removed No.of

remaining
items
Unable to influence my immediate
Occupational stress 0.895 supervisor’s decision & action that would 5
affect me.
External environment 0.716 No item removed 3
Job satisfaction 0.820 I truly enjoy my day-to-day work task 4
Organizational commitment I would be very happy to spend the rest of 4
0.781 my career with this organization
Intent to leave 0.876 I am often bored with my job 5

4.3.9 Analysis and interpretation of data

For analyze the data gathered from the instrument used, SPSS 16.0 was used. By using this software, two
statistical tests were employed to test study hypotheses constructed. Since this research was attempted to
identify and determine the relationship and effect of interrelationship variables, two statistical tests, a
correlation and multiple regression analysis were used. If there is correlation exist between the
interrelationship variable, hence again it has to undergo the second test, multiple regressions by using
stepwise method.

4.3.10 Guttman’s rules of thumb

The strength of interrelationship among variables been tested can be referred and determined by referring to
Guttman’s rule of thumb as can be seen in Table 5.

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Table 5. Strenght of Relationship

Coefficient Size Strength of the Relationship

0.71 - 1.0 Very Strong

0.61 – 0.70 Strong

0.41 – 0.60 Moderate

0.20 – 0.39 Weak

0 – 0.19 Very Weak

5.0 Results
From the correlation Table 6, after been tested by using Pearson product and multiple regression analysis,
the results can be illustrated in Pearson Correlation Matrix in figure 6. From result, it demonstrated that
only stress with organizational commitment (r=0.254**), Intent to leave with organizational commitment
(r=0.166**) and Job Satisfaction external with organizational commitment (r=0.290**) is significantly
correlated at 0.05. While External environment with organizational commitment (r= -0.043) have no
statistical correlation at of 0.05 level of significant (2-tailed).

Table 6 Correlation and effect of the variables.

organizational Intent to External Occupational Job

commitment Leave enviroment Stress Satisfaction
Organizational 1 .166* -043 .254** .290**
commitment
Intent to leave .166* 1 .279** .390** -.015
External environment -.043 .279** 1 .353** -.160*
Occupational Stress .254** .390** .353** 1 -.235**
Job Satisfaction .290** -.015 -.160* -.235** 1
Table 7 shows multiple regressions, the analysis of the R² model intent to leave is 0.028. Smaller R², the
less capable to explain the dependent variable (organizational commitment), F (1,199) = 5.606, P = 0.001
<0.05. When viewed on the Beta, intent to leave (Beta = -0.166, t = -2.368, Sig = 0.001 andR²=0.028.

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The conclusion is also supported by ANOVA is significant that the value of 0.001 is significantly lower
than the specified significant level of 0.05. This finding means that the first predictor of intent to leave is
reflected by the first model accounted for an additional 2.8 percent change in criterion (organizational
commitment).
Value R² analysis of model 2 occupational stress is 0.064. R² smaller, less capable, the independent
variable (job satisfaction) to explain the dependent variable (organizational commitment), F (2,198) =
13,610, P = 0.001 <0.05. When viewed on the Beta, occupational stress factors (Beta = -0.231, t = -3366,
Sig = 0.001 and R² = 0.064). This means that the proposed model fit the data in the percentage is only 6.4
per cent only.
The conclusion is also supported by ANOVA is significant that the value of 0.001 is significantly
lower than the specified significant level of 0.05. This finding means that the second predictor
occupational as shown by the two models accounted for 6.4 per cent increase in change criterion
(organizational commitment).
Through the analysis of the R² model 3 job satisfactions is 0.024. Smaller R², the less capable of
independent variables (job satisfaction) to explain the dependent variable (organizational commitment), F
(3,197) = 5.606, P = 0.001 <0.05. When viewed on the Beta, job satisfaction factor (Beta = -0.166, t =
-2.368, Sig = 0.009 and R² = 0.088). This means that the proposed model fit the data in the percentage is
only 8.8 per cent only.
The conclusion is also supported by ANOVA is significant that the value of 0.001 is significantly
lower than the specified significance level of 0.05. This finding means that the three predictors of
occupational stress by the three models accounted for 8.8 percent of the additional changes in criterion
(organizational commitment).
Based R² value of these three models can be concluded that these findings show that 2.8 percent of
the intent to leave contributes to organizational commitment, the percentage increase rose to 6.4 percent
when contributions to occupational stress are taken into account and continues to increase to 8.8 percent if
is the job satisfaction taken into account towards organizational commitment.

Table 7: Multiple Regression Analysis Predictor Factors For Occupational Stress, Job Satisfaction, Intent to
leave with Organizational commitment.

Std. Change Statistics

Adjusted
R Error of
Model R R R
Square the F df df Sig.F
Square Square
Estimate Change 1 2 Change
Change
1 .166a .028 .023 .82753 .028 13.610 1 198 .001
b
2 .254 .064 .060 .81173 .036 9.501 1 198 .001
c
3 .297 .088 .079 .80344 .024 5.606 1 199 .001

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a. Predictors: (Constant), Intent to leave

b. Predictors: (Constant), Intent to leave Occupational Stress,
c. Predictors: (Constant), Intent to leave Occupational Stress, Job Satisfaction
d. Dependent Variable : Organizational Commitment

The results of the analysis also allows to get a regression equation that can be used to predict the Y value in
the future. The regression analysis results obtained as follows:
Y = β0 β1x + + + β3x β2x ² ³ ⁴ β4x + + Standard Error
Y = 3055 - 0.166x – 0.231 x ² - ³ + 0.155x 0.277
Y = Organizational commitment
β1x = - 0.166 (occupational stress)
β2x ² = - 0.231 (job satisfaction)
β3x ³ = - 0.155 (Intent to leave)
Standard Error (Standard Error Constant) = 0.277
Constant (Constant) = 3055
From the analysis carried out based on Table 7, shows that there is a significant variance for the factors
(occupational stress, job satisfaction and intent to leave) to criterion organizational commitment, ie F =
5.606, Sig = 0.001 <0.05 (the factor of occupational stress), F = 13,610, Sig = 0.001 <0.05 (job satisfaction
factor) and F = 9.501, Sig = 0.001 <0.05 (intent to leave factor). When viewed on the Beta, intent to leave
factor (Beta = -0.21, t = -2368, Sig = 0.001 and R ² = 0.028), job satisfaction (Beta = -0.32, t = -4.54, Sig
= 0.001 and R ² = 0.064) and intent to leave (Beta = -0139, t = -2.31, Sig = 0.001 and R ² = 0.088). The
conclusion is that the regression results,
When the occupational stress increased, the organizational commitment scores would increase by 2.8
percent. When occupational stress merged with the job satisfaction, and increased per unit, the
organizational commitment scores would increase by 6.4 percent.
When occupational stress, job satisfaction merged with the intent to leave unit increase the organizational
commitment, the scores will increase by 8.8 percent.
It can be concluded that these findings show that 2.8 percent of occupational stress contributing to
organizational commitment, the percentage increase to 6.4 percent when contributions to the job
satisfactionfactors are taken into account and further to 8.8 percent if the intent to leave factor is taken into
account the change in organizational commitment

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Table 8. Results of Multiple Regression Analysis for Factors Contribute to Occupational Stress, Intent to
leave, job satisfaction and with organizational commitment.

Standard
Variabel Multiple R Beta t Sig of t
erorr
Intent to leave 0.28 -0.21 0.089 0.17 -2.36 0.001

Occupational stress 0.64 -0.32 0.087 0.25 -3.70 0.001

Job satisfaction 0.88 -0.29 0.061 0.16 -3.40 0.001

Regression analysis (stepwise) four predictors external enviroment, occupational stress, job satisfaction and
intent to leave. While organizational commitment is as (criterion) to these four variables. Figure 8 shows
the results of multiple regression (stepwise). From the analysis carried out found that there is a significant
variance for the occupational stress, job satisfaction and intent to leave on organizational commitment
(criterion).
Regression coefficients that are not standard between the two variables is shown below the value of Beta
for occupational stress towards organizational commitment is beta= 0.25, and job satisfaction towards
organizational commitment is beta= 0.16. The Beta value for intent to leave also is 0.17. Since the
regression is not a population based sample, there is a risk of the population regression coefficient is not
equal to the actual population. 95% within the range in which the reliability of providing certainty to
estimate the position of the slope and constant. 95% of the reliability of the intercept is 0.25 to 0.17.
This is shown on the sample. Shortcuts for the population is between the range of 95%. This shows that for
every increase of 1:00 in the horizontal axis, the vertical axis was changed by 0.17 for intent to leave.
Further increase in per unit increase in the job satisfaction of the vertical axis changed by 0.25, while the
increase brings the intent to leave of 0.16 in their organizational commitment.

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External
Enviroment

Beta=-0.25
Occupational Organization
Stress Commitment

Beta=-0.16

Job Satisfaction Beta=-0.17

Intent to leave

Figure 2. Model "External Enviroment, Occupational Stress, Job Satisfaction and intent to leave on
organizational commitment.

6.0 Recommendations
Based on the literature review and findings of this study, the researcher has made several recommendations
that proposed to the selected construction firms.
According to Steven B. Donovan and Brian H. Kleiner , an important criterion related to occupational stress
is role ambiguity and time pressure. When an employee becomes curiosity with their responsible for their
work, it will create stress among them. Time pressure also have positive relationship to occupational stress
which is most employees being procrastinate with their work. Thus, when an occupational stress occurs,
intent to leave and absence will also exist because the employees feel demoralized with their work.
Employee absence and intention to leave are employee satisfaction that is the employee with a high level of
job satisfaction is less likely to be absent and intent to leave the organization. In order to reduce the number
of external environment and intention to leave the organization, organization must increase the level of job
satisfaction so that employee will feel to satisfy when working in the organization. Job's satisfaction can be

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increased by giving reward, recognition, give better salary and benefit, and provide good facilities and so
on.
Besides that, even occupational stress is not affecting intention to leave and external environment. It may
effect through job satisfaction because occupational stress effect job satisfaction. Organization must reduce
the stress level so that job satisfaction will be high. Occupational stress can be reduced by giving support to
an employee, give training, good communication in a workplace, give extra leave, better salary and benefit
and so on.
In addition, only one factor is recognizing in this research, which is the external environment. Organization
must find as much as possible factor to reduce the level of occupational stress in the company so that future
way can be predicted.

7.0 Discussion and Conclusion

From the finding based on the test by using multiple regression analysis, it shows that both occupational
stress, intention to leave and job satisfaction can influence organizational commitment in their current
employer. If employer wants to reduce the organizational commitment among their employee, they have to
increase the level of satisfaction and try to decrease the level of occupational stress that encountered among
their employee. Form the finding also reveals that job satisfaction is major factors in determining intent to
leave of employee. This found when job satisfaction has very strong negative relationship (r= 0.290) and
with strength (B=0.695) on intent to leave compared to other variable been measured. Thus, for this reason,
employer must ultimately focus on increase the level of satisfaction of their employee since it has inverse
relationship to intent to leave. At the same time, this study founds that occupational stress does impact
intent to leave with strong positive relationship (r =0.608) with (B=268). By reduce the work related
stressor that encountered by employee, NMB may reduces the intent to leave of employee. Thus it can be
concluded that these finding were do support the low turnover rate and high employee retention that NMB
now experiencing. In fact, this really supports when over five likert scale of occupational stress and job
satisfaction, the scales have been modified into three level, 1= week, 2= moderate and 3= high, which
49.2% employees demonstrated that they encountered moderate occupational stress level and only 13.1%
are experiencing high stress level. Moreover, only 17.7% of employees have low satisfied and 43.1% have
moderate level of satisfaction toward survey. From the broad idea as results from the findings, it can be
concluded that any attempt on increase the organizational commitment and intent to leave among employee
in Northport, human resource personnel has to making effort on increase in level of satisfaction of their
employee by embarking an excellent policy that relates to overall systems in providing satisfaction.

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