Corporate Culture's Role in Employee Turnover Intentions: A Study of Fortune 500 Companies

Essay by kwhite8University, Master'sA+, February 2010

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Executive SummaryPrior research studies have revealed that a company's corporate culture can significantly influence the success of the organization. As a result, the effects of corporate culture on organizational performance have taken center stage in the global business environment. In addition, because high employee turnover rates result in lower profit margins, firms are taking steps to identify the sources of turnover intentions. Although researchers have made theoretical and methodological advances in understanding the development of cultural values in organizations, if undertaken, this study will respond to previous recommendations by scholars to investigate the relationship between an organization's cultural strength and employee turnover intentions. Such knowledge may ultimately further the development of organizational initiatives to decrease employee turnover rates. In preparing this business research proposal, the researcher employed the following methodologies: rigorous and extensive literature reviews; comparisons to other studies; and a proposed survey of 5,000 employees of the top 500 U.S.

publicly traded corporations as ranked by Fortune magazine. The main question explored throughout this research is: Do strong corporate cultures have an effect on employee turnover intentions? By drawing conclusions from the findings of a multitude of prior studies, the researcher anticipates that this study's analytical results will indicate a significant relationship between strong corporate cultures and employee turnover intentions.

Corporate Culture's Role in Employee Turnover Intentions: A Study of Fortune 500 CompaniesIt all begins with the corporate culture of a company. All companies have such a culture-a corporate way of life followed consciously or subconsciously in the day-to-day activities of the organization. According to Del Campo (2006), organizational researcher Edgar Schein "defines culture in managerial terms as 'how people feel about the organization, the authority system and the degree of employee involvement and commitment'; he continues, adding that culture can be viewed as a widely held, shared...