Stay or not to Stay: An Analysis of Diversity Management and Abusive Leadership Relationship with Turnover Intention
Abstract
With the emergence of economic globalisation, HR executives strive to provide a fairer working environment as there is an unprecedented shift of increased participation of people with different demographic backgrounds, genders and belief systems at workplaces around the globe. Simultaneously, there has been a tremendous rise in the occurrences of abusive leadership behaviours leading to increased turnover ratios. Hence, this study aims to investigate the effects of abusive leadership and diversity management practices on turnover intention. This study data has been collected from the employees of pharmaceutical companies based in Karachi, Pakistan using a non-probability purposive sampling technique. Data was taken from (n = 403) participants. The results show a significant negative relationship between diversity management and turnover intention and a significant positive relationship between abusive leadership and turnover intention. The results also indicate that job satisfaction mediates the relationship of both diversity management and abusive leadership with turnover intention. The study emphasises that organisations should consciously channel their resources effectively into creating an all-inclusive environment to cater the psychological needs of a diverse workforce. The study also implicated that organisational leadership should pay special attention to ensure that they treat their subordinates fairly across the board, as the behaviour of the leaders has far-reaching effects on the performance, productivity and psychological well-being of the employees.
Keywords
abusive leadership, job satisfaction, turnover intention, diversity management
INTRODUCTION
The world is becoming a global village due to modern technology, especially the internet and internet-based social media (Srinivasan, 2017). Similarly, employees having different ethnic and cultural backgrounds and sexual orientations are transcending borders to occupy workplaces (Hauret & Williams, 2020). Organisations are becoming a heterogeneous mix of individuals (Paoletti, Gilberto, Beier, & Salas, 2020). This creates an opportunity to avail from an international pool of talent and diverse experiences serving an impetus to organisational productivity. It also creates a huge challenge for the management; putting their expertise to the test (Singh et al., 2022). Given the similarity of beliefs, cultures and traditions, it is easier to manage personnel of homogeneous or local strata. In a diverse setup, a manager needs to be sensitive to the diverse needs of the individual, as in any heterogeneous mix of people rise of friction is a natural phenomenon and if not managed intelligently, it may have grave consequences for the organisation (Just, Risberg, & Villesèche, 2020). It could lead to higher turnovers and loss of revenues, and above all, it may paint the organisation in a very bad color affecting its global reputation (Lee, Kim, & Kim, 2021). It has been predicted that in 2022 and beyond HR executives around the globe will strive for a fairer working environment (Gartner, 2021). This has resulted due to unprecedented and increasing participation of all the individuals with various geographical backgrounds, and nationalities at workplaces (Garg & Sangwan, 2021).
The importance of diversity management and inclusiveness initiatives has been recognized worldwide. The United Nation’s Agenda for Sustainable Development 2030 (SDG-17) has acknowledged the role of cultural diversity in promoting economic growth and social cohesion (UNESCO, 2018). Creating a more inclusive environment is not only about global recognition but is a necessity of time to rope in all segments of human resources irrespective of religion, caste, creed, and gender for better performance. Workplace diversity is often linked with innovation, creativity (Nielsen & Madsen, 2017), and productivity (Yadav & Lenka, 2020).
Most of the research which addresses diversity management practices and job attitudes, such as intention to quit, has been done in the United States (Chordiya, 2022; Jolly & Self, 2020; Ward, Beal, Zyphur, Zhang, & Bobko, 2022), United Kingdom (Marcinko, 2020) or in other Western countries (Köllen, Koch, & Hack, 2020). Moreover, there have been fewer studies on diversity management outside North America, Europe, and Australia (Syed, 2009). However, there is growing criticism on the transferability of diversity management research (Bešić & Hirt, 2016; Guillaume et al., 2017; Porcena, Parboteeah, & Mero, 2021) and there have been calls for diversity management research in different contexts (Erdur, 2020). There has also been an emphasis on how diversity management practices result in non-Western and Muslim-majority countries (Syed & Tariq, 2017).
Furthermore, the studies on diversity management practices and turnover intentions in the Asian context (China, South Korea, India, Taiwan, etc.) have primarily focused on hospitality and tourism (Hsiao, Ma, Lloyd, & Reid, 2019), food and manufacturing (Lee et al., 2021), IT sector (Gupta & Gomathi, 2022), etc. Therefore, this study contributes to the literature in two major ways: firstly, it has answered the calls by conducting diversity management research in a non-Western context and a Muslim-majority country like Pakistan; and secondly, this study focused on the pharmaceutical industry, which is among the 10th largest in the Asia-Pacific (Jabbar, Saleem, Malik, Qureshi, & Thursamy, 2020). The pharmaceutical industry in Pakistan has grown in double digits during the last five years, valued at around $3.29 billion (Tdap, 2023) and employs over 240,000 people in the country (GOP, 2022). The study could help organisations understand how diversity management can be implemented in a unique cultural context (Saqib & Khan, 2022). Hence, this study investigates the effects of abusive leadership and diversity management practices on employee intention to quit.
Literature Review
There is a sharp increase in occurrences of abusive leadership behaviors (Xia, Zhang, & Li, 2019). Abusive leadership is associated with negative outcomes for employees and the organisation (Tepper, Henle, Lambert, Giacalone, & Duffy, 2008; Thau, Bennett, Mitchell, & Marrs, 2009). Receding work satisfaction and rising turnover intentions have been considered ever-mounting organisational concerns (Tummers & Knies, 2013). Reduced job satisfaction and higher turnover intention among employees are expensive and affect the quality of the services and other tangible and intangible deliverables (Webb & Carpenter, 2012).
According to Takase (2010), the intention to leave a job, or turnover intention, comprises several stages and is set in motion by negative psychological reactions to internal or external job circumstances, ultimately leading to the voluntary departure of employees. It refers to an employee's reported readiness to depart from their current job within a specific time frame, and is commonly employed as a tool to analyse actual employee turnover (Lazzari, Alvarez, & Ruggieri, 2022). Turnover always proves harmful to companies, especially those that value retaining quality human resources (Wang & Sun, 2020).
According to Hancock, Allen, Bosco, Mcdaniel, and Pierce (2013), employees usually pass through a reflection period before cultivating turnover thoughts and then finally decide to leave the organisation. The study conducted byZeffane (2003) identifies various factors that affect employee turnover, including past experiences, gender diversity, length of work, age, intelligence, attitudes and interests as well as expectations of an employee. Turnover intention is significantly related to organisational commitment and job satisfaction. (Ahmed et al., 2023; Mathieu, Fabi, Lacoursière, & Raymond, 2016)
Previous researchers have identified several antecedents regarding turnover intention for instance, the study conducted byPark and Min (2020) has revealed nine categories of antecedents leading to turnover intentions i.e. abusive supervision, burnout, work engagement, role conflict, organisational citizenship behavior, deep acting, perceived organisational support, and self-efficacy.
Among these, this research focused on abusive leadership because there is substantial evidence demonstrating the detrimental impact of abusive supervision on employee outcomes, including employee attitudes, performance, well-being, and counterproductive behavior (Jabbar et al., 2020).Pradhan and Jena (2018) showed that abusive treatment can result in significant hidden costs for the organisation. These costs may include counterproductive work behavior, increased employee turnover, wasted organisational resources dedicated to conflict resolution, and a decrease in organisational citizenship behaviors (Pradhan & Jena, 2018; Zainab, Akbar, & Van, 2020). Moreover, meta-analysis by Mackey, Frieder, Brees, and Martinko (2017),Zhang and Liao (2015) andZhang and Bednall (2015) have also indicated costs and detrimental effects of abusive leadership that not only causes turnover intention but also sabotage the organisation reputation.
Job satisfaction
Mathieu et al. (2016) has defined job satisfaction as a state in which an individual possesses a positive emotion with respect to his current job. On the contrary, an individual gets dissatisfied when expectations remain unfulfilled. Every employee joins an organisation with certain pre-assumptions, which transform into an unwritten psychological contract (Ramlawati, Trisnawati, Yasin, & Kurniawaty, 2021). The study byRamlawati et al. (2021) further highlights that job satisfaction arises due to the multiple factors, for instance, salary, opportunities for career growth, worker and supervisor relationship, recognition, and the job itself.
Job satisfaction in any organisation can be measured using fundamental indicators, including labor turnover and employee morale and discipline (Shanahan & Hopkins, 2019). When there is a small labor turnover and higher levels of work morale and discipline, the organisation will register a higher level of job satisfaction among the employees (Kong, Jiang, Chan, & Zhou, 2018). Conversely, when employees appear to have a higher turnover and lower level of discipline and work morale, it implies that organisation has failed to ensure job satisfaction among its employees (Ramlawati et al., 2021).
Job satisfaction is a perceived motivation of individuals towards their work, which enables them to abide by organisational rules and policies, and develop continuous interaction with the superiors, subordinates and colleagues (Bashir, Amir, Jawaad, & Hasan, 2020). Moreover, the study ofSims (2020) indicated that a satisfied employee always adjusts well to the favourable workplace conditions and displays sustained good performance till such conditions are maintained (Akinwale & George, 2020).
Job satisfaction is an employee appreciative and self-supporting judgment regarding current work. Management generally tends to ignore the fact that as the motivations of the employees are subjective in nature so is the case with their personal levels of satisfaction (Burić & Moè, 2020). It is; therefore, desired of conscious management that they should always try to understand their employees individually and gets fully involved to avail of their unique potential. Job satisfaction is an important element that affects the performance of any organisation (Akbar, Riaz, Arif, & Hayat, 2018; Kollmann, Stöckmann, Kensbock, & Peschl, 2020).
In the literature, job satisfaction is recognised as a primary and direct factor that leads to both employee turnover and productivity (Dodanwala & Santoso, 2022; Wang & Sun, 2020). Therefore, to ensure the completeness of the study, it was essential to consider job satisfaction as a precursor to turnover intention.
Abusive leadership
The topic of leadership has traditionally been a subject of interest for the practitioners and researchers in organisational behavior. The extensive literature on this topic covers the perspective of both leaders and subordinates, including their relationship's positive and negative outcomes. In the global context, research has identified various negative consequences resulting from toxic or abusive leadership (Lopez, Dohrn, & Posig, 2020; Wang et al., 2019).Fischer, Tian, Lee, and Hughes (2021) conducted a literature review that revealed how abusive supervision can affect subordinates attitudes, behaviors, relationships, and well-being.
Abusive leadership is defined as a kind of destructive leadership that forms the negative attitudes of employees towards work and respective organisations (Tepper et al., 2008). The concept of abusive leadership was introduced byTepper (2000) found that the adoption of abusive leadership behavior acts as a catalyst for numerous negative consequences, he argued that the more an individual experiences injustice in the course of performance of a certain job, the higher is the tendency of such employees to display negative reactions to the abusive leadership.
Many studies indicate that subordinates have suffered from abusive leadership behavior due to the positions and unrestrained power (PB, 2019). This includes behaviors such as ridiculing, angry outbursts, intimidation, withholding information, blaming subordinates for negative results, and taking credit for their work (Schmid, Verdorfer, & Peus, 2018). In other words, abusive leadership can be harmful and cause stress (Oliveira & Najnudel, 2023)
Many studies have revealed negative outcomes of abusive leadership behaviour adopted by supervisors. For instance, Mitchell and Ambrose (2007) have concluded that abusive leadership negatively affects subordinate job satisfaction and organisational citizenship behaviour. For instance,Nidadhavolu (2018) discovered that abusive leadership influences employee retention and job satisfaction. Similarly,Wang and Sun (2020) found that abusive supervision is linked to breaking employee silence, which affects work engagement and job satisfaction. Tanuwijaya and Jakaria (2022) found that abusive leadership has an adverse effect on job satisfaction.
Diversity management
Globalisation, workforce mobility and migration, and an ageing population have all contributed to the diversity of modern workforce. The formal recognition of this fact has given birth to the subject of, ‘International Human Resource Management (Ariss, Sidani, & Y, 2016). As a result, managers have emphasised managing their diverse workforce effectively by implementing policies and practices aimed at achieving diversity-related goals (Yadav & Lenka, 2020). Concurrently, scholars have shown a growing interest on the impact of workforce diversity, concluding that effective management of a diverse workforce can enhance organisational performance (Köllen, 2021)
The overwhelming attention drawn by diversity management, both scholarly and in practice, reflects changing dynamics of workplaces in the 21st century (Rahman, 2019). (Wise & Tschirhart, 2000) defined diversity as a blend of human similarities and dissimilarities across a wide spectrum of human social interactions; hence, diversity management becomes a necessity to achieve a common purpose or goal. Demographic characteristics that define diversity include gender, age, personality types, values, education level, religion, and socioeconomic and demographic characteristics (Vanderschuere & Birdsall, 2019). Thomas (1990), the first author who coined the term “diversity management,” argued that organisations can exercise diversity within their workforce to reinforce competitive advantage by managing employee differences more effectively.
Hence, researchers have contended that job satisfaction among diverse people will be greater when diversity management programs and practices are stronger in an organisation (Vanderschuere & Birdsall, 2019). Moreover, the existing literature shows that diversity management practices positively influence job satisfaction in the public sector, (Pitts, 2009) academia (Ordu, 2016) and also in the retail industry (Foster & Harris, 2005).
Theoretical Foundations
This study is grounded in the social identity theory, which explains how individuals become aware of their membership in a social group and identify themselves as either part of the group or excluded from it (Hogg, 2016). According to the theory, when an organisation becomes more diverse, its members tend to engage more actively in social categorisation and comparison processes (Tran, Garcia-Prieto, & Schneider, 2010). This grouping process leads to identifying out-group and in-group members, and may also cause personal biases and obstacles to social interactions (Scheepers & Ellemers, 2019).
However, the use and interpretation of social identity theory are mainly based on a Western viewpoint (Hsiao et al., 2019). This implies that the theory primarily emphasises intergroup relations, rather than intragroup interactions. The process of intergroup comparison is seen as a vital factor in the formation of in-group identity (Rather, 2017). Conversely, collectivist values such as cooperative behavior and promoting harmonious relationships with group members are often highlighted in Asian contexts (Peterson & Stewart, 2020). The conservation of resources (COR) theory is a valuable framework for comprehending the association between turnover intentions and abusive supervision (Hobfoll & Freedy, 2018). According to this theory, individuals have a strong drive to attain, maintain, and safeguard their resources (Hobfoll & Freedy, 2018). The main idea of the theory is that the depletion of resources has a more critical affect than the gain of resources, because it represents a significant threat to survival.
Moreover,Halbesleben (2021) noted that the loss of resources, whether potential or actual, can be a more significant motivational factor for resource gain. As an interpersonal stressor, abusive supervision is particularly demanding, stressful, and threatening (Wang et al., 2019). It reduces leadership support and can overburden individual capacity to respond to such expectations (Aryee, Sun, Chen, & Debrah, 2008). As a result, it is reasonable to hypothesise that being exposed to abusive supervision over an extended period can lead to psychological distress, which can, in turn, cause employees to consider leaving their job.Tran, Nguyen, Nguyen, and Nguyen (2020) conducted a study which showed that promoting diversity and acknowledging its importance in an organisation has a positive impact on job satisfaction (Mansoor, Tran, & Ali, 2021). These relationships were found to be influenced by an organisation diversity climate. Similarly, (Ordu, 2016) found that diversity management positively correlates with job satisfaction.
Furthermore, several studies have looked into the relationship between job satisfaction and the intention to leave a job. The prevailing viewpoint among scholars is that there is an inverse relationship between job satisfaction and turnover intention (Ali & French, 2019). This implies that low job satisfaction is associated with a higher likelihood of leaving one's job.Ankomah, Kwarteng, and Osei (2020) conducted a study which revealed that job satisfaction among employees is contingent upon their work environment and demographic factors. Moreover, the study found a strong correlation between job satisfaction and turnover intention.
In the light of the foregoing literature review discussion, the following four hypotheses have been formed:
H1: There is a significant positive relationship between diversity management and job satisfaction.
H2: There is a significant negative relationship between abusive leadership and job satisfaction.
H3 There is a significant negative relationship between job satisfaction and turnover intention.
H4: There is a significant negative relationship between diversity management and turnover intention.
H5: There is a significant positive relationship between abusive leadership and turnover intention.
H6: Job satisfaction mediates the relationship between diversity management and turnover intention.
H7: Job satisfaction mediates the relationship between abusive leadership and turnover intention.
The hypothetical relationships among all the four variables i.e diversity management, abusive leadership, job satisfaction and turnover intention have been presented as a conceptual framework in Figure 1.
![https://typeset-prod-media-server.s3.amazonaws.com/article_uploads/b583fdac-01b4-4ef8-9e6f-a9e252338ad6/image/d7440ae7-3cd8-4094-9027-543cd327a111-ufig-1.png](https://typeset-prod-media-server.s3.amazonaws.com/article_uploads/b583fdac-01b4-4ef8-9e6f-a9e252338ad6/image/d7440ae7-3cd8-4094-9027-543cd327a111-ufig-1.png)
METHODOLOGY
Based on the quantitative survey, we have adopted a quantitative approach to establish the goodness of the above-modeled theoretical framework. The data was collected from employees of pharmaceutical companies using a non-probability purposive sampling technique. During the survey, participants were ensured about confidentiality to elicit true responses to reach valid results and deduce relevant findings and conclusions.
Data was collected from 403 participants. Four hundred and fifty questionnaires were distributed in total, of which 10 respondents returned the incomplete questionnaire, whereas 37 of the participants did not provide any feedback. The data collected from the rest of the 403 participants were used for analysis. The questionnaire consisted of closed-ended items for measuring the constructs and knowing the respondents' demographic details. The model consisted of four different constructs namely; abusive leadership, diversity management, job satisfaction and turnover intention.
Measurement of Variables
The 8-item scale measuring abusive leadership was adopted from the study conducted by Lin, Ma, and Johnson (2016). Diversity management was measured using a three- item scale taken from previous research (Choi, 2009; Pitts, 2009). The construct of job satisfaction was measured using a 10-item scale adopted from the study of Cooper, Rout, and Faragher (1989). Finally, turnover intention was measured using a 3-item scale adopted from the study of (Long, Thean, Ismail, & Jusoh, 2012). All of the constructs were measured using a 5-point Likert scale ranging from strongly disagree to strongly agree. The responses, for example, were coded as 1 for strongly disagree, 2 for disagree, 3 for neutral, 4 for agree, and 5 was assigned to strongly agree. For analysis purposes, SPSS and Smart-PLS were used. The demographics of the collected data were presented using SPSS, whereas the structural and measurement models have been run using Smart PLS to validate the results.
Results
Descriptive statistics of the study helped us arrive at a comprehensive analysis, especially in understanding the essential demographic characteristics of the respondents. These survey elements were classified by gender, marital status and working experience. Table 1 shows that the majority of the participants were males i.e. 52.9% (males) and 47.1% (females). The matrimonial status of the respondents show that 197 (48.9%) were married while the remaining 206 (51.1%) were unmarried. In terms of age distribution, 143 (35.5%) respondents had working experience between 2 to 4 years, the same number of respondents had an experience of 5 to 7 years, and the participants with higher experience i.e. 9 plus years were 117 (29%). The descriptive spread out of the respondents in terms of age and experience seems fair enough to draw relevant conclusions and to generalise them with a good amount of confidence over the targeted population which is the subject of this study.
Frequency |
Percent |
||
---|---|---|---|
Valid |
Male |
213 |
52.9 |
Female |
190 |
47.1 |
|
Total |
403 |
100.0 |
|
|
Married |
197 |
48.9 |
|
Unmarried |
206 |
51.1 |
|
Total |
403 |
100.0 |
|
2-4 years |
143 |
35.5 |
|
5-7 years |
143 |
35.5 |
|
7+ years |
117 |
29.0 |
|
Total |
403 |
100.0 |
Measurement model
The SMART-PLS was employed to assess the reliability and validity of each construct. The Cronbach Alpha and composite reliability values were used. To ensure an acceptable value of Cronbach Alpha, a pilot survey was conducted over 25 respondents before serving the questionnaire to the entire survey frame. Besides that construct, validity was assessed by employing average variance extracted values.
Sekaran and Bougie (2016) were of the view that the value for composite reliability and Cronbach’s Alpha should be greater than 0.70 and the acceptable value for average variance extracted (AVE) should be greater than 0.50 (Hair, Hult, Ringle, & Sarstedt, 2016). Table 2 below shows that the average variance extracted values and values regarding reliability are more than their required thresholds. Table 2 indicates the number of items used to measure each of the constructs along with the factor loadings which are also within the prescribed threshold.
Construct |
Items |
Factor Loadings |
Cronbach Alpha |
CR |
AVE |
---|---|---|---|---|---|
Abusive Leadership |
AL1 |
0.713 |
0.859 |
0.89 |
0.503 |
AL2 |
0.746 |
||||
AL3 |
0.699 |
||||
AL4 |
0.717 |
||||
AL5 |
0.695 |
||||
AL6 |
0.695 |
||||
AL7 |
0.721 |
||||
AL8 |
0.684 |
||||
Diversity Management |
DM1 |
0.837 |
0.752 |
0.858 |
0.669 |
DM2 |
0.813 |
||||
DM3 |
0.803 |
||||
Job Satisfaction |
JS1 |
0.739 |
0.909 |
0.924 |
0.549 |
JS2 |
0.734 |
||||
JS3 |
0.742 |
||||
JS4 |
0.713 |
||||
JS5 |
0.756 |
||||
JS6 |
0.752 |
||||
JS7 |
0.752 |
||||
JS8 |
0.733 |
||||
JS9 |
0.743 |
||||
JS10 |
0.744 |
||||
Turnover Intention |
TI1 |
0.794 |
0.703 |
0.835 |
0.627 |
TI2 |
0.797 |
||||
TI3 |
0.786 |
CR: composite reliability and AVE :average variance extracted
AL |
DM |
JS |
TI |
|
---|---|---|---|---|
Abusive Leadership |
0.709 |
|
|
|
Diversity Management |
-0.671 |
0.818 |
|
|
Job Satisfaction |
-0.672 |
0.631 |
0.741 |
|
Turnover Intention |
0.601 |
-0.582 |
-0.544 |
0.792 |
AL: Abusive Leadership, DM: Diversity Management, JS: Job Satisfaction, and TI: Turnover Intention
Discriminant validity under the Fornell-Larcker criterion is presented in Table 3. Fornell and Larcker (1981) argued that square root of AVE must surpass its highest correlation with other constructs in the model. However, (Henseler, Ringle, & Sarstedt, 2015) argue that this criterion is ineffective, particularly when there are slight variations in the indicator loadings of a construct (e.g., loadings ranging from 0.65 to 0.85). Thus, the Fornell-Larcker criterion, as argued by Radomir and Moisescu (2019) usually fails to recognise issues with discriminant validity in practical applications accurately, and it is recommended to avoid it (Hair et al., 2016). Instead, (Hair et al., 2021) proposes using the heterotrait-monotrait ratio (HTMT) of correlations (Henseler et al., 2015) as a more reliable choice to measure discriminant validity.
Constructs |
Abusive Leadership |
Diversity Management |
Job Satisfaction |
Turnover Intention |
---|---|---|---|---|
Abusive Leadership |
||||
Diversity Management |
0.836 |
|
|
|
Job Satisfaction |
0.758 |
0.762 |
|
|
Turnover Intention |
0.773 |
0.798 |
0.680 |
Hair et al. (2016) believe that HTMT as the latest standard used for assessing discriminant validity and the acceptance value of HTMT should be less than 0.90. Table 4 shows that the HTMT values are less than 0.90; hence, it confirms the discriminant validity among the variables of our theoretical framework.
Structural model
After presenting the reliability analysis and discriminant validity results, this study depicts the results of the structural model in Figure 2. These results comprise total effects and path effects as shown in Table 5; Table 4. After determining the measurement model, hypothesis testing was performed. Table 5 shows the result of H1 & H2. It was found that abusive leadership has a positive significant relationship with turnover intention with a beta value of 0.308, a standard deviation of 0.059 and a p-value of 0.000, less than 0.05. Hence, it confirms the link between abusive leadership and employee turnover. People having different cultures and backgrounds perceive abusive leadership differently.
![https://s3-us-west-2.amazonaws.com/typeset-prod-media-server/f95ddba2-6413-4fb8-bfcc-a4791d8a709aimage2.png](https://s3-us-west-2.amazonaws.com/typeset-prod-media-server/f95ddba2-6413-4fb8-bfcc-a4791d8a709aimage2.png)
Hypotheses |
Relationship |
β-values |
SD |
T-value |
p-value |
Decision |
---|---|---|---|---|---|---|
H1 |
DM -> TI |
-0.268 |
0.064 |
4.163 |
0.000 |
Accepted |
H2 |
AL -> TI |
0.308 |
0.059 |
5.233 |
0.000 |
Accepted |
H3 |
DM -> JS |
0.327 |
0.053 |
6.158 |
0.000 |
Accepted |
H4 |
AL -> JS |
-0.452 |
0.052 |
8.745 |
0.000 |
Accepted |
H5 |
JS -> TI |
-0.169 |
0.057 |
2.946 |
0.003 |
Accepted |
Mediation analysis
A mediator variable facilitates the mediation effect between independent and dependent variables. Put simply, a mediator serves as an explanatory variable that improves our understanding of the connection between the independent and dependent variables (Preacher & Kelley, 2011). In the present study, job satisfaction was considered a mediator between diversity management and turnover intention and between abusive leadership and turnover intention.
The mediation analysis conducted using SMART-PLS adheres to the principles outlined by (Hair et al., 2021) andPreacher and Hayes (2008) and utilises the bootstrapping technique to achieve a greater level of statistical power (Hair et al., 2016). As per the recommended approach of SMART-PLS for testing mediation, it was anticipated that exogenous variables would have a considerable impact on the mediator variable, and the mediator variable would significantly impact the endogenous variable (refer to Table 6).
The study found that job satisfaction significantly affects the relationship between diversity management and turnover intention and between abusive leadership and turnover intention. Therefore, the hypothesised mediatory relationship was confirmed in the present study.
Hypothesis |
Relationship |
β-values |
SD |
T-value |
p-value |
Decision |
---|---|---|---|---|---|---|
H6 |
DM -> JS -> TI |
-0.055 |
0.021 |
2.656 |
0.008 |
Accepted |
H7 |
AL -> JS -> TI |
0.077 |
0.029 |
2.610 |
0.009 |
Accepted |
DISCUSSION
The 21st century has witnessed a heightened emphasis on diversity and inclusion within the corporate sphere. This shift can be attributed to several factors, including the increased participation of women in the workforce (Garg & Sangwan, 2021), the involvement of individuals from diverse backgrounds and multiple generations, and the renewed sociopolitical push for the inclusion of immigrants (Ortlieb & Sieben, 2014). The rising diversity has raised several inquiries, especially regarding its impact on firm productivity and the emotional well-being of individual workers (Hauret & Williams, 2020). Understanding the possible influence of diversity on employee attitudes is crucial for employing effective managerial policies to minimise adverse outcomes of a more diverse workforce and leverage the positive ones (Abiew, Okyere-Kwakye, & Ellis, 2022; Dover, Kaiser, & Major, 2020).
Effective leadership plays a pivotal role in driving organisational success in all industries. Experts and researchers have observed that leadership can significantly influence various aspects of an organisation, such as productivity, novelty, team efficiency, and customer loyalty (Guchait, Madera, & Peyton, 2020). Leadership also profoundly impacts employee behaviours, performance and attitudes, which are crucial for achieving organisational objectives (Khan, Rehmat, Butt, Farooqi, & Asim, 2020). The prevalence of abusive leadership in the organisational landscape is a concerning phenomenon that can cause significant harm to the workplace climate and employees (Ashkanasy et al., 2018). Current literature highlights various negative effects of abusive leadership, such as disruptions in operational performance and a lack of sensitivity towards diversity and inclusion initiatives, which can hinder the agenda of an abusive leader (Ju, Zhao, Wu, Li, & Ning, 2020).
Building upon this reasoning, we aimed to examine and explain the impact of diversity management practices and abusive leadership on turnover intention. There is ample evidence that workplace abuse inflicted by supervisors can lead to reduced job satisfaction among individuals, irrespective of their role as a witness, instigator, or victim, resulting in an increased likelihood of turnover (Bamfo, Ab, Dogbe, & Mingle, 2018; Frieder, Hochwarter, & Deortentiis, 2015). Furthermore, abusive leadership practices can create an atmosphere of intense work pressure and instability for employees, leading to higher turnover rates across various industries (Xu et al., 2018).
The results of this study are generally in line with previous studies. This study shows that diversity management practices are negatively related with turnover intention. These findings are supported by several previous studies such as (Ali, Metz, & Kulik, 2015; Choi, 2009; Lee et al., 2021; Richard & Johnson, 2008). However, the work ofLeonard and Levine (2006) showed no consistency in diversity and turnover intention. One reason for this inconsistency of the results is thatLeonard and Levine (2006) focused on diversity (race, gender and age) and did not study diversity management practices. Another outcome of our study was the validation of the positive relationship between abusive leadership and turnover intention. These results are supported by the past studies (Liu, Zhu, & Wei, 2019; Lyu, Ji, Zheng, Yu, & Fan, 2019) which were conducted in different contexts (nursing and tech employees) but have shown the similar findings.
By analysing data from the pharmaceutical industry in Pakistan, this study successfully addressed gaps in the literature by exploring the impact of diversity management and abusive leadership on job satisfaction and turnover intention. The results highlight the complexity of diversity as a construct, which relates with contextual aspects and influences outcomes through process factors, emphasising the importance of effective diversity management. In order to leverage diversity for enhancing organisational efficiency, sufficient managerial efforts must be made to facilitate harmonious relations within the organisation.
Implications
Besides promoting positive leadership practices, it is recommended that equal emphasis should be placed on preventing and managing negative leadership behaviors. For instance, implementing zero-tolerance policies against negative leadership behaviors can be an effective measure. In terms of practicality, it might be more advantageous to concentrate on streamlining the selection and succession procedures to avoid hiring people with unfavorable characteristics to leadership positions, instead of allocating resources to coach abusive leaders to modify their behavioral patterns.
Limitations
There are certain limitations of this study, e.g. it relied on the quantitative approach to draw relevant results and insights therein; however, certain aspects of turnover intention, particularly the insightful antecedents leading to turnover, can also be explored through qualitative research. Furthermore, the context of the research was limited to Karachi, Pakistan; therefore, the generalisation of these findings to other geographical regions should be well thought through exercise. Qualitative or quantitative research involving survey elements from the global geographical regions expected to form part of an organisation's diverse workforce would certainly enhance the global generalizability of this study. Moreover, further research based on gender and organisational hierarchy would help in acquiring a better understanding of the dynamics of turnover intentions.
CONCLUSION
The above results highlight and validate our hypothetical formulations that diversity management is an essential organizational factor in improving employee job satisfaction. This aligns with previous research such asAli and French (2019) and Bell, Özbilgin, Beauregard, and Sürgevil (2011). Study results further highlight that abusive leadership is detrimental to organisations and individuals, hurting productivity, declining job satisfaction and contaminating the work experience. This resultantly culminates in cropping up an individual intention to quit. In light of insights drawn from available literature and the results of this study, management is required to take practical steps to enhance diversity at their respective organisations. Diversity training sessions may be offered to the management and employees to make them conscious of this emerging workplace reality. Training abroad, usually from those countries or geographical regions forming part of the mix workplace, would be better to allow rightful exposure to realistic environments. Conclusively this study proves our hypotheses that, “the turnover intention is negatively affected by diversity management practices but positively affected by abusive leadership”.
CONFLICT OF INTEREST STATEMENT
The authors declare no conflict of interests.