The Effects of Quality of Working Life and Organizational Design on Turnover Intention in the IT Industry: The Case of Unit4 Business Software

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Unit4 is an organization active in the IT industry, creating and selling business software to customers all over the world. Recently, high voluntary turnover rates have been causing issues within the Dutch PS Global department. The objective of this case study is to assess the influence of Quality of Working Life and organizational structure on turnover intention of consultants in the IT industry, through the perceptions of respondents within the Dutch PS Global department at Unit4. To achieve this objective, the job satisfaction, affective organizational commitment and emotional exhaustion of consultants is assessed to measure the Quality of Working Life. For the assessment of the Dutch PS Global’s organizational structure, the parameters from De Sitter’s (1997) sociotechnical design theory are used. This nature of this research is exploratory, as the influence of organizational structure on turnover intention has not been researched sufficiently in the context of the IT industry. The results of this research indicate a clear link between the moderate to low outcomes on the Quality of Working Life and high turnover intention in the consultant’s perception. They mention a perceived lack of salary increase, limited career advancement opportunities, low degrees of organizational citizenship behavior and high perceived stress as main reasons for considering leaving Unit4 voluntarily. Even though high parameter values found for the organizational structure theoretically point towards an influence of organizational structure on turnover intention, there is no immediate link found between the consultant’s perceived reasons for leaving Unit4 voluntarily and the drawback they experience as a result of the Dutch PS Global department’s poorly design organizational structure.
Faculteit der Managementwetenschappen