Leadership, leader, employee turnover, FMCG Fast-Moving Consumer Goods, recruitment, Cargills Foodcity, Sri Lanka, transactional leadership, transformational leadership, research, data analysis, data, correlation analysis
The Fast-Moving Consumer Goods (FMCG) industry faces a pivotal challenge in employee turnover as it impacts elevated recruitment expenses, inferior operational capability, and diminished customer satisfaction. The influence of transformational leadership on employee turnover at Cargills Food City Mawenella Branch has been investigated by studying an under-explored area of retail leadership strategies in Sri Lankan organizations. The research analyzes the relationship between idealized influence, inspirational motivation, and intellectual stimulation dimensions of transformational leadership toward employee turnover intentions. Using a positivist research philosophy, a quantitative survey was conducted among 34 employees, with data analyzed through SPSS, employing correlation and regression tests. The findings reveal a strong positive correlation (r=0.887, p<0.01) between transformational leadership and employee turnover. Regression analysis shows that transformational leadership accounts for 78.6% of turnover variance, confirming that employees who perceive their leaders as inspirational, ethical, and supportive, still exhibit less organizational commitment and high turnover intentions. This study contributes to knowledge gap, reinforcing its applicability in Sri Lanka's FMCG sector. For managers, it highlights the importance of efficient leadership training, employee motivation strategies, and career growth opportunities in increase retention. Future research should explore other leadership styles (e.g., transactional leadership) and expand across different industries for a broader understanding of leadership's role in employee retention.
[...] The findings reveal a strong positive correlation (r=0.887, p [...]
[...] The organization that aims for leadership in its industry sector faces employee retention problems specifically at its Mawenella branch. Leadership effectiveness at this branch directly affects how employees see their work environment and how engaged they become while determining their organizational dedicatedness. The connection between leadership and employee retention establishes the necessity of how transformational leadership functions within Cargills Food City Mawenella to overcome staff retention issues. 1.2 Problem Statement Employee turnover represents a major issue for the FMCG sector as organizations there depend on stable workforces to keep their service systems efficient and business outcomes strong (Tett & Meyer, 1993). [...]
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[...] SAGE Publications. Bass, B., & Riggio, R. (2006). Transformational Leadership (2nd ed.). Mahwah, NJ.: Lawrence Erlbaum. Bass, B., Avolio, B., Jung, D., & Berson, Y. (2003). Predicting unit performance by assessing transformational and transactional leadership. Journal of Applied Psychology 207-218. Breevaart, K., Bakker , A., Hetland, J., Demerouti, E., Olsen, O., & Espevik, R. (2013). Daily transactional and transformational leadership and daily employee engagement. [...]
[...] Every research has two main paths: deductive which uses hypotheses to check theories and inductive which builds theories from observational data (Creswell, 2014). The research utilizes a deductive approach to validate hypotheses that emerged from transformational leadership and turnover theories. The analytical structure enables researchers to conduct statistical tests for comprehensive leadership and turnover research. 3.1.3 Research Choice Research choice allows investigators to choose between qualitative research, quantitative research, and mixed methods of research approaches. The research method between quantitative and qualitative stands opposite each other since quantitative focuses on numbers and statistics whereas qualitative explores subjective meanings (Bryman & Bell, 2019). [...]
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