Turnover and Organizational Performance: A Comparative Analysis of the Effects of Voluntary, Involuntary, and Reduction-in-Force Turnover

Turnover and Organizational Performance A Comparative Analysis of the Effects of Voluntary, Involuntary, and Reduction-in-Force Turnover

Data were collected from 31 regional subunits of a national financial services company to examine differential effects of 3 types of turnover (voluntary, involuntary, and reduction-in-force) on measures of organizational subunit performance. Although each form of turnover exhibited adverse effects o...

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Bibliographic Details
Published in:Journal of applied psychology Vol. 86; no. 6; pp. 1294 - 1299
Main Authors: McElroy, James C, Morrow, Paula C, Rude, Scott N
Format: Journal Article
Language:English
Published: Washington, DC American Psychological Association 01-12-2001
Subjects:
Adult
Applied psychology
Biological and medical sciences
Comparative research
Comparative studies
Consumer Behavior
Correlation
Correlation analysis
Effects
Employee Performance Appraisal
Employee Turnover
Employees
Female
Financial services
Firings
Fundamental and applied biological sciences. Psychology
Human
Humans
Labour turnover
Male
Occupational psychology
Organizational Effectiveness
Organizational performance
Organizational Policy
Organizations
Personnel
Personnel Turnover
Psychology. Psychoanalysis. Psychiatry
Psychology. Psychophysiology
Turnover
Work condition. Job performance. Stress
Workers
United States > US
Social environment
Human
Occupational environment
Attitude
Labour productivity
Turnover
Work
Job satisfaction
Performance
Enterprise organization
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Summary:Data were collected from 31 regional subunits of a national financial services company to examine differential effects of 3 types of turnover (voluntary, involuntary, and reduction-in-force) on measures of organizational subunit performance. Although each form of turnover exhibited adverse effects on subunit performance when examined separately, partial correlation results revealed greater and more pervasive adverse effects for reduction-in-force turnover (i.e., downsizing) in comparison with the effects of voluntary and involuntary turnover. The results confirm the negative effects of downsizing, suggesting the need to move beyond the traditional voluntary-involuntary classification scheme used in turnover research.
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ISSN:0021-9010
1939-1854
DOI:10.1037/0021-9010.86.6.1294