Global Journal Of Management Science and Technology (www.gjmst.

com)

Vol. 1 Issue. 6

Turnover Intentions in Indian BPO Employees: Role of

organizational climate and happiness
ByJay Singh
Research Scholar
Department of Psychology, BHU, Varanasi, India

Ranjana Mittra
Professor
Department of Psychology, BHU, Varanasi, India

Abstract
The Indian BPO (Business Process Outsourcing) organization has emerged rapidly, and it has grown from $565
million in 2000 to about $301 billion by 2010 as per estimated by NASSCOM. Despite this encouraging
scenario this organization faces many problems related directly to the management of human capital,
specifically high turnover intentions (intentions of employees to leave the organization) being the main problem
leading to a shortage of employees, due to dissatisfaction towards different organizational and personal factors.
The main objective of this study was to examine the role of organizational climate (OC) as organizational factor
and happiness as individual factor in turnover intentions (TI) of Indian BPO employees, and it was hypothesized
that healthy organizational climate and happiness would be negatively associated with turnover intentions of
BPO employees.
Study comprised of 460 customer care executive (CCE) level employees which includes 388 males and 72
females in the age range of 20 to 34 years. Respondents were given Organization Climate Scale (22 item),
Oxford Happiness Questionnaire (29 items) and Turnover Intentions Scale (20 item). Results of regression
analyses showed that happiness, organizational climate as a whole and its four factors individually are
significant negative predictors for turnover intentions. Analysis further revealed that after controlling the effect
of organizational climate, association of happiness with turnover intentions turns out to be positively related.
Findings will be presented and discussed.
Key Words- Turnover Intentions, Organizational Climate, Happiness, Indian BPO
The Indian BPO (Business Process Outsourcing) industry has emerged rapidly, and its exports have grown from
$565 million in 2000 to about $301 billion by 2010 as per estimated by NASSCOM. Despite this encouraging
scenario industry have to facing many problems relate directly to the management of human capital, specifically
high turnover intentions which lead to a shortage of employees. Turnover intentions have been defined as the
intentions of employees to leave the organization due to dissatisfaction toward management and organizational
processes, nature of role and new opportunities in the market.
In India the turnover rate has been reported as high as 80% in the IT services sector (Gupta, 2001) and as high as
100% for Indian call centers (Mitchell, 2005, 2007). For example, Wipro announced that it replaced 90% of its
call center and BPO workers in 2004 (Mc Cue, 2005). The lowest rate was found reported on turnover in Indian
software services was 30% (Mitchell, 2004). The study released by the Associated Chambers of Commerce and
Industry of India (ASSOCHAM) shows that between December 2010 and April 2011, the attrition rate in the
BPO industry increased to 55% from 40% during the same period a year earlier. No matter which turnover
number one considers the low estimate of 30% or the high estimate of 100%, turnover is a major issue to
Indian suppliers and their global clients. Supplier staff turnover delays the clients project, reduces quality, and
increases costs (Jiang & Klein, 2002). Clearly, both clients and suppliers must share the objective of high
retention of the most qualified workers. Although researchers want to ideally understand turnover behavior, but
in reality, it is quite difficult to empirically examine. Instead, researchers more typically studied current
employees and ask them their turnover intentions, which is found to be reliable predictor of actual turnover
(Mobley, Hoener, & Hollingsworth, 1978; Martin, 1979; Ajzen & Fishbein 1980; Steers & Mowday, 1981;
Dougherty, Bludorn, & Keon, 1985; Hui, 1988; Griffeth et al., 2000).
Various theories reviewed on employees perceptions about different organizational factors, job satisfaction and
their intent to quit and found significant association between these variables. According to Adjei-Appiah,
(2008), When defined and described to organizational climate, it holds promise for theory and research
concerning organizational conditions and employees behavioural intentions of quitting their jobs since
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psychological factors that have also been identified as antecedents of the job satisfaction-turnover literature
(Zeytinoglu et al. 2007).
The researcher found that, in the Indian BPO sector where high employee attrition is attributed more to brain
drain and competition in the job market in relation to ones income, than effects of certain potential
psychological features of the workplace, the issue of employee turnover can be explained through an
understanding of how BPO workers perceive their job facets and working environment against their turnover
intentions. Numerous empirical findings suggest that perceptions of organizational politics are significantly
related to turnover intentions. Even though quitting may not prove feasible due to lack of suitable external
opportunities or other restrictions, psychologically the person may still intend to leave the organization (Hom et
al., 1992). Therefore, organizational climate was adopted for this study as it will investigate the influence of its
factors which are climate conditions on turnover.
Happiness is rooted in the positive psychology movement (Seligman, 1998, 2002; Snyder & Lopez, 2002) and
contributes to positive organizational behavior (Luthans, 2002a, 2003). Applying happiness and other positive
constructs to organizations, Luthans (2002b) defined positive organizational behaviour as the study and
application of positively oriented human resource strengths and psychological capacities that can be measured,
developed, and effectively managed for performance improvement in todays workplace (p. 59). To be
included in this conceptions happiness must to reduce employees intentions to leave the organization.
A stereotype regarding call centre work is that managing phone-based customer interactions all the day is
neither complicated nor demanding as most interactions are basic, simple, and scripted. This stereotype,
however, is not corroborated by recent research. On the contrary, the majority of previous studies have shown
(Holman, 2003) that the work of call centre agents is very demanding with respect to various aspects. In order to
do the job correctly, call centre agents have to perform several attention consuming, simultaneous subtasks such
as controlling the call via the deployment of sophisticated listening and questioning skills, operating a keyboard
to input data into computers, reading often detailed information from a visual display unit, and speaking to
customers. Furthermore, as many customers are subjected to long waiting times their satisfaction is negatively
affected and thus these tasks are often conducted under high time pressure.
Moreover, phone calls with customers are usually short (e.g., 2 5 minutes) and therefore, a call-centre agent
often communicates with many different customers each day; sometimes with about 100 customers during a
typical 8 hour shift. Continuously keeping track of to whom you are speaking and the frequent readjustment to
new customers is a further, non-trivial attention requirement. More significantly, call centre agents are usually
instructed to be friendly, enthusiastic, polite, and helpful to customers even if customers are rude, which is not a
rare event (Grandey, Dickter, & Sin, 2004; Totterdell & Holman, 2003) and this induces further demands with
respect to the volitional presentation of emotions in opposition to those being actually felt, which is referred to
as emotional dissonance (Lewig & Dollard, 2003). As many call centres use monitoring procedures such as test
calls and recording of calls (Holman, 2002; Holman, Chissick, & Totterdell, 2002), violations of this norm will
be easily detected. Recent research shows that the control of ones own emotions (e.g., by suppression, hiding,
or overplaying emotions) can have serious consequences. This form of emotion regulation consumes volitional
energies (Baumeister, Bratslavsky, Muraven, & Tice, 1998) and often leads to the development of emotional

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exhaustion, a component of the burnout syndrome (Dormann & Zapf, 2004; Grandey, 2000; Payne & Cooper,
2001; Salovey, Detweiler, Steward, & Bedell, 2001; Zapf, 2002; Schaufeli & Buunk, 2003).
Thus, demands for emotion regulation at work can affect health negatively, especially work motivation,
identification, and well-being related intensive negative emotions are aroused in call centre work (Isic,
Dormann, & Zapf, 1999; Schaubroeck & Jones, 2000; Totterdell & Holman, 2003; Zapf, Isic, Bechtoldt, &
Blau, 2003; Grandey & Dickter, 2004; Wegge, Dick, Fisher, Wecking, & Moltzen, 2006). Continuous attention
to high volumes of differing customer demands, the regulation of emotions, and conforming to organizational
norms with respect to the display of positive emotions can easily exceed the available resources of call centre
agents.
There are also some aspects of call centre work, however, that are stressful because they disqualify the use of
available skills and resources. Most calls are based on a predetermined script that agents have to follow strictly.
Agents also have very little autonomy or control over their work because they are not allowed to deviate from a
predetermined message in order to meet customer demands. Having to use the same communication script about
hundred times a day leads to feelings of monotony and boredom (Wieland & Timm, 2004) that might
accumulate over the course of the week (Richter, 2004). Boredom is sometimes also induced by unnecessary
waiting times that result from mismanaged call distribution or unexpected low call volumes. Moreover,
requirements for agents to be innovative, proactive, or forward thinking are often low for these types of tasks
and this typically also yields lower work motivation and health problems. As several other common stressors
(e.g., working in shifts, inconvenient postures due to computer work, high noise levels in large offices) are also
present in call centre work, it can be concluded that the work of agents is neither simple nor undemanding.
Above discussion have shown that turnover intentions of BPO employees may importantly associated with their
perception of organizational climate and work place happiness, and it is found in several study, but no
comments were found in literature on the role of general life happiness and its combined role with perceived
organizational climate to determine intention to leave the organization in employees. Therefore, the main
objective of this study is to identify the role of organizational climate and happiness in turnover intentions of
BPO employees, and study were conducted on the basis of fallowing specific objectives and hypotheses.

1.0 Objectives
The aim of this study is to examine how organizational factors and general life happiness influenced turnover
intention among BPO employees in India. Specifically the study will be guided by the following objectives:(i)

Measure the association of organizational climate with turnover intentions.

(ii)

Measure the association of general life happiness with turnover intentions.

(iii)

To investigate the combined effect of organizational climate and happiness on turnover

intentions.

1.1 Hypotheses
On the basis of review of literature and objectives of the present investigation the following hypotheses were
formulated:July|2012

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(i)

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There would be negative association between overall and different domain of organizational
climate and turnover intention.

(ii)

There would be negative association between happiness and turnover intention.

(iii)

Organizational climate and happiness would show the significant interceding effect for other
in association with turnover intention .

1.2 Methodology
Sample
Sample comprises 460 BPO employees including male and females of the age range of 20 to 34 years and
minimum one years of experience. Sampling was done by purposive sampling technique across Delhi and
Kolkata region.
Table-1
Sample distribution
Age
Work Tenure
Minimum= 20

Maximum= 34

Delhi Region
Kolkata Region
Male
Female

Mean= 24.25

Minimum= 01 Maximum= 06 Mean= 2.60

Frequency
Total
Organizational region
270
460
190
Gender
388
460
72
Marital Status
24
436

Married
Non-married

460

Per cent
58.7
41.3
84.3
15.7
5.2
94.8

1.3 Tools

1) Turnover Intentions Scale (TIS)

This scale is developed by the researcher for this research purpose. Primarily 26 items were selected on the
bases of review of related literature and items of the priory scales. But after the pilot study only 20 items were
found appropriate, and finally on the total sample overall scale was found highly reliable with .90 Cronbach's
Alpha Based on Standardized Items. Concurrent validity of the scale was also established by measuring
correlation (.80) with the four items of previous scale. Factor analysis of this scale was also done and two
factors were identified like management and organizational processes related turnover intentions (Factor-1), and
nature of work and growth opportunities related turnover intentions (Fctor-2).
2) - Organizational Climate Scale (OCS)
This scale has been developed by Sanjyot Pethe, Sushma Chaudhary and Upinder Dhar, (2001). The scale
comprising of 22 items, related to the four dimensions (altruistic behaviour, rewards and interpersonal relations,
organizational process, clarity of role and sharing of information). Each statement has seven alternatives.
Reliability of the test is found very high in this study (Cronbach's Alpha Based on Standardized Items 0.93), and
Validity of the test is well established as reported in various studies with 0.93 correlations co-efficient.

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3) - Oxford Happiness Questionnaire (OHQ)

Psychological well-being (Happiness) will be measured by using Oxford Happiness Questionnaire, developed
by Hills and Argyle (2002). In the original form of OHQ which has 29 items. Each item is presented as a single
statement which can be endorsed on a uniform six-point Likert scale. OHQ had excessively large positive
correlations with self-esteem (r=0.81), sense of purpose (r=0.77), and extraversion (r=0.61). Hills and Argyle
report acceptable construct validity for the OHQ by providing data on correlations with other self-report scales
of personality traits, human strengths, and SWB.

1.4 Results
Data collection was completed on the above mentioned scales and responses were coded and analyzed.
Correlation, multiple regression and mediation analysis were used to analyse the responses of the participants.
Results of the present study primarily contain a correlation and multiple regression analyses, including
simultaneous and hierarchical to examining prediction power of organizational climate (overall and four
domains), and happiness in the determination of turnover intentions in BPO employees. After that mediation
analyses to determine the interceding role of overall organizational climate, and happiness for each other in the
prediction of turnover intentions in BPO employees were presented. Results were presented below.
Table- 2
Summary of Correlation between Demographical Variables, Predictor (Total and Dimensions) Variables
and Turnover Intentions (Total and 2 Factors)

Demographical Variables
Organizational Region
Gender
Age
Marital Status
Experience (work Tenure in
Current Organization)
Predictors
Overall Organizational Climate
Rewards and Interpersonal
Relation
Organizational Processes
Clarity of role and sharing of
information

Overall
Turnover
Intentions
.015
-.021
-.041
.066

Factor -1 Management
and Organizational
Processes
.109*
.011
.038
-.008

Factor -2
Nature of Work and
Growth Opportunities
-.104*
-.055
-.127**
.140*

-.046

-.103*

.036

-.670**

-.508**

-.694**

-.583**

-.419**

-.631**

-.656**

-.544**

-.623**

-.581**

-.407**

-.643**

Altruistic Behaviour
-.519**
-.403**
-.526**
**
**
-.304
-.304
-.224**
Happiness
P<*.05, P<**.01
Note- Organizational Region is coded as: 1= Delhi Region, 2=Kolkata Region
Gender is coded as:
1= Male,
2= Female
Marital Status is coded as:
1= Married,
2= Un-married
Results of the above correlation table 2 shows that, organizational region, age, marital status and work tenure
have some significant association with one or both domain of turnover intentions. Correlation between
predictors and criterions show that both the proposed predictors like organizational climate (overall and all four
domains) and happiness are significantly and negatively associated with turnover intentions as whole and its
both factors namely mismanagement related turnover intentions and nature of work and other opportunities
related turnover intentions.

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Table- 3
Summary of Multiple Regression (Simultaneous) Analysis for Demographic Variables Along with Tenure
as Predictors and Turnover Intentions (Total and 2 Factors) as Criterion.

Total
Turnover
Intentions

Demographical Variables

Organizational Region
Gender
Age
Marital Status
Experience (work Tenure in
Current Organization)
R

Management and
Organizational
Processes

Nature of Work and

Growth Opportunities

.042
-.034
-.063
0.13

.107*
-.021
.080
.028

-.049
-.041
-.123*
.090

-.040

-.145**

.100

.089

.171

.198

.008
.029
.039
R Square
-.003
.018
.029
Adjusted R Square
.718
2.721*
3.706**
F
P<=*.05, P<**=.01
Note- Organizational Region is coded as: 1= Delhi Region, 2=Kolkata Region
Gender is coded as:
1= Male,
2= Female
Marital Status coded as:
1= Married
2= Unmarried
Note- Standardized is reported in tables
Table 3 presents the results of simultaneous regression analysis for demographics on turnover intentions. Table
specifies that demographic variables (gender, age, marital status), working region and tenure is significantly
contributing in the prediction of both factors of turnover intentions as mismanagement related turnover
intentions (R2= .029, F= 2.72, p<.05), and nature of work and other opportunities related turnover intentions
(R2= .039, F= 3.71, p<.01), whereas results reveal no significant association of any variable with overall
turnover intentions. But specifically working region (=.107, p<.05), age (= -.123, p<.05) and work tenure (=
-.145, p<.01) are showing little contribution in explaining turnover intentions of employees. So forth, here is
strong reason to control these variables in further analysis, hence, further analysis computed to test proposed
hypotheses, hierarchical regression analysis was performed with demographic, working region and tenure
treated as control variable.

2.0 Hierarchical Regression

2.1 Role of organizational climate
To examine the predictive values of organizational climate as a whole and its domains for turnover intentions of
employee hierarchical regression analysis were performed, and results are presented in table 4 and 5.
Table- 4
Summary of Hierarchical Regression Analysis for Overall Organizational Climate as Predictors and
Turnover Intentions (Total and 2 Factors) as Criterion (N= 460)

Demographical Variables

Organizational Region

Overall Turnover
Intentions

Management and
Organizational
Processes

Step-1
.042

Step-1
.107*

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Step-2
-.019

Step-2
.061

Nature of Work and

Growth Opportunities
Step-1
-.049

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Step-2
-.112
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Global Journal Of Management Science and Technology (www.gjmst.com)

Gender
Age
Marital Status

-.034
-0.13
.063

.068
.038
.071

-.021
.080
.028

.057
.144**
.009

-.041
-.123*
.090

Experience (work Tenure in

-.040
.016
-.145**
-.102*
.100
Current Organization)
Predictor
Organizational Climate
-.687***
-.521**
2
.457
.288
Overall R
.450
.279
Adjusted R2
2
.450
.259
R Change
a
0.72
63.65***
2.72*
30.56***
3.71**
F
*P<.05, **P<.01, ***P<.001
a- Degree of Freedom on Step-1 = 5, 454, and Degree of Freedom on Step-2 = 6, 453
Note- Standardized is reported in tables

Vol. 1 Issue. 6
.065
-.037
.064
.157***

-.710***
.520
.514
.481
81.91***

Results of hierarchical regression presented in table 4 shows that overall perception of organizational climate is
significantly negatively associated with overall turnover intentions (= -.687, p<.001), and both factor as
mismanagement related turnover intentions (= -.521, p<.01), and nature of work and other opportunities related
turnover intentions (= -.710, p<.001).
The results further reveals that overall perception of organizational climate explains 45 percent of total variance
in overall turnover intentions, 25.9 percent of total variance in mismanagement related turnover intentions, and
48.1 percent of total variance in nature of work and other opportunities related turnover intentions, over and
above the effect of control variables.
To predict the role of different domains of organizational climate in determining turnover intentions of
employee was also one of the important aims of the present study. To achieve this aim hierarchical regression
analysis was performed, and results are presented in fallowing table.
Table- 5
Summary of Hierarchical Regression Analysis for Domains of Organizational Climate as Predictors and
Turnover Intentions (Total and 2 Factors) as Criterion (N= 460)

Demographical Variables

Organizational Region
Gender
Age
Marital Status
Experience (work Tenure in
Current Organization)

Overall Turnover
Intentions

Management and
Organizational
Processes

Nature of Work and

Growth Opportunities

Step-1
.042
-.034
-0.13

Step-2
-.018
.077
.013

Step-1
.107*
-.021
.080

Step-2
.060
.064
.061

Step-1
-.049
-.041
-.123*

Step-2
-.109**
.073*
-.049

.063

.032

.028

.005

.090

.057

-.040

.031

-.145**

-.091*

.100

.171***

Predictor
Rewards and Interpersonal
Relation
Organizational Processes
Clarity of role and sharing of
information
Altruistic Behaviour

Domains of Organizational Climate

-.285***
-.480***

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-.190**
-.587***

-.326***
-.223***

.161*

.342***

-.103

-.198***

-.177***

-.173***

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Overall R2
Adjusted R2
R2 Change
Fa

.488
.478
.480
0.72

47.63***

.350
.337
.321
2.72*

26.89***

Vol. 1 Issue. 6
.529
.520
.490

3.71**

56.18***

*P<.05, **P<.01, ***P<.001

a- Degree of Freedom on Step-1 = 5, 454, and Degree of Freedom on Step-2 = 9, 450
Note- Standardized is reported in tables
Table 5 present the results of hierarchical regression analysis for domains of organizational climate as predictors
and turnover intentions (overall and two factors) as criterion. Demographic variable as well as organizational
region and work tenure are treated as control variable. Table shows that rewards and interpersonal relation
domain of organizational climate has significant negative association with overall turnover intentions (= -.258,
p<.001), mismanagement related turnover intentions) (= -.190, p<.01), and nature of work and other
opportunities related turnover intentions (= -.326, p<.001). Organizational processes and altruistic behaviour
domains are also showing significant positive association with overall turnover intentions (= -.480, p<.01) and
(= -.198, p<.001), mismanagement related turnover intentions (= -.587, p<.001) and (= -.177, p<.001), and
nature of work and other opportunities related turnover intentions (= -.223, p<.001) and (= -.173, p<.001)
respectively. But clarity of role and sharing of information domain of organizational climate shows significant
positive association with overall turnover intentions (= .161, p<.05), and mismanagement related turnover
intentions (= .342, p<.001), while insignificant negative association with nature of work and other
opportunities related turnover intentions (= -.103, p>.05).
The results also reveals that all four domains of organizational climate contributes 48 percent of total variance in
overall turnover intentions, 32.1 percent of total variance in mismanagement related turnover intentions, and 49
percent of total variance in nature of work and other opportunities related turnover intentions, over and above
the effect of control variables.

2.2 Role of happiness

To examine the predictive values of happiness for turnover intentions of employee hierarchical regression
analysis were performed, and results are presented in table 6.

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Table- 6
Summary of Hierarchical Regression Analysis for Happiness as Predictors and Turnover Intentions
(Total and 2 Factors) as Criterion (N= 460)

Demographical Variables

Organizational Region
Gender
Age
Marital Status
Experience (work Tenure in
Current Organization)

Overall Turnover
Intentions

Management and
Organizational
Processes

Step-1
.042
-.034
-0.13
.063

Step-2
-.027
.018
-.078
.064

Step-1
.107*
-.021
.080
.028

Step-2
.050
.022
.026
.029

Step-1
-.049
-.041
-.123*
.090

Step-2
-.115*
.008
-.184**
.091

-.040

.076

-.145**

-.048

.100

.209***

0.72

-.341***
.107
.095
.099
9.03***

2.72*

-.285***
.098
.086
.079
8.19***

3.71**

-.322***
.127
.116
.088
11.01***

Nature of Work and

Growth Opportunities

Predictor
Happiness
Overall R2
Adjusted R2
R2 Change
Fa

*P<.05, **P<.01, ***P<.001

a- Degree of Freedom on Step-1 = 5, 454, and Degree of Freedom on Step-2 = 6, 453
Note- Standardized is reported in tables
The hierarchical regression analysis presented in table 6 was performed to use happiness of employee as
predictor variable, turnover intentions overall and its both factors as criterion variable, while demographics as
well as work tenure and organizational region are treated as control variable. Results shows that happiness of
employees is significantly negatively associated with overall turnover intentions (= -.341, p<.001) and both
factors namely mismanagement related turnover intentions (= -.285, p<.001) and nature of work and other
opportunities related turnover intentions (= -.322, p<.001).
The analysis also reveals that happiness explains 9.9 percent of total variance in overall turnover intentions, 7.9
percent of total variance in mismanagement related turnover intentions, and 8.8 percent of total variance in
nature of work and other opportunities related turnover intentions, over and above the effect of control variables.
Both the predictor variables show significant association and contribution in the variance of turnover intention
as whole and in its both factors in same direction as negative, so results enlighten to examine the combined
effect of these variables in further analysis to know the interceding role (if any) for each other in association
with turnover intentions. For this purpose, first of all correlation between predictors were examined and the
results are given in the following table.

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Table- 7
Summary of correlation between all predictor variables
Overall
OC

OC
Factor-1

OC
Factor-2

OC
Factor-3

Overall Organizational Climate (OC)

Rewards and Interpersonal Relation (OC Factor-1)

.921**

Organizational Processes (OC Factor-2)

.902**

.688**

Clarity of role and sharing of information (OC

Factor-3)

.912**

.759**

.831**

Altruistic Behaviour (OC Factor-4)

.675**

.520**

.615**

.685**

**

**

**

**

.540

Happiness

.404

.587

.531

OC
Factor-4

1
.399**

*P<.05, **P<.01
Above correlation table shows highly significant positive association between all predictor variable. It gives
sufficient reason for examining combined predictive power of these variables for turnover intention. However,
only overall scores were analysed in regression model, because factors of organizational climate are highly
associated with overall score.

3.0 Mediating role of perceived organizational climate in association

between happiness and turnover intentions
In order to test the mediating effect of organizational climate in association between happiness and turnover
intentions, all the required regression analyses and Sobel tests were performed and results are presented in table
8.
Table- 8
Mediated Regression Analysis: Happiness (Predictor), Organizational Climate (mediator), Turnover
Intentions (Criterion)
Criterion Variable: Turnover Intentions
Overall
Turnover
Intentions

Predictor Variable

Happiness
Step1
Step2
Step3

Happiness OC
Happiness TI
OC TI
Happiness TI

Aroian version of Sobel

test

t- statistics
p-value

Management and
Organizational
Processes

Nature of Work
and Growth
Opportunities

Mediator Variable:
Overall Organizational Climate Perception (OC)
.598***
.598***
.598***
-.341***
-.285***
-.322***
-.741***
-.543***
-.791***
.102*
.040
.151***
-11.09953348
1e-8 +

-8.59242686
1e-8 +

-11.65625763
1e-8 +

*P<.05, **P<.01, ***P<.001

Note: Standardized is reported in table
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Table 8 presents the results of the mediated regression analysis. Results of mediating effect of organizational
climate in relationship between Happiness and turnover intentions (overall and both factor) are displayed. The
four conditions of Baron and Kenny (1986) and Kenny (2003) in testing the mediating effect of organizational
climate were fulfilled. As reported above, Happiness has significant positive association with organizational
climate (= .598, P<.001) and significant negative association with turnover intentions overall (= -.341,
P<.001), and both factor as mismanagement related turnover intentions (= -.285, P<.001) and nature of work
and other opportunities related turnover intentions = -.322, P<.001) over and above the effect of demographic
variables. Thus, two of the four conditions are meeting necessary for demonstrating mediation. The third
condition meets by the finding that organizational climate significantly negatively predicting to turnover
intentions overall (= -.741, P<.001) and both factors like mismanagement related turnover intentions (= -.543,
P<.001) and nature of work and other opportunities related turnover intentions (= -.791, P<.001). The fourth
conditions is fulfilling by the results of direct associations of Happiness with turnover intentions overall (=
.102, P<.05), mismanagement related turnover intentions (= .040, P>.05) and nature of work and other
opportunities related turnover intentions (= .151, P<.001), which turn as positive when effect of organizational
climate was controlled.
Results of Aroian version of Sobel test further indicates that the organizational climate fully mediates the
relationship of Happiness with overall turnover intentions (t- statistics= -11.09953348, p<1e-8), mismanagement
related turnover intentions (t- statistics= -8.59242686, p<1e-8) and nature of work and other opportunities
related turnover intentions (t- statistics= -11.65625763, p<1e-8).

4.0 Discussion
The main objective of this study was to examine the role of organizational climate (OC) as organizational factor
and happiness as individual factor in turnover intentions (TI) of Indian BPO employees, and it was hypothesized
that healthy organizational climate and happiness would be negatively associated with turnover intentions of
BPO employees.
The findings of this study showed a negative association between organisational climate and turnover intention.
The results indicated that a good organisational climate was associated with low turnover intention among BPO
employees. The findings are consistent with current previous research findings on organisational climate and
turnover intention (Liou & Cheng, 2010; Ohly & Fritz, 2010). It is contended in these studies that organisational
climate strongly influences an employees decision or intention to quit and the reduction in turnover intentions
(Donoghue, 2010; Russel et al., 2010). It was found in this study that BPO employees who reported that their
organisational climate was not friendly or relaxed reported higher turnover in- tention (Ion, Cowan, & Lindsay,
2010). Furthermore, the results are similar to previous studies on the relationship between organisational
structure (Pyman, Holland, Teicher, Cooper, 2010), rewards (Colley & Price, 2010), policy making processes
(Dixon et al., 2008) and intent to leave.
Another finding of this study was negative association between happiness in general life and intentions to leave.
Although, no any direct research on this relationship were found in earlier literature, but well-being, work stress,
emotional exhaustion and quality of work life are studied with turnover intentions in various way, like emotional

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exhaustion was found positively associated with turnover intention (Knudsen, Ducharme & Roman, 2009). And
these variables are importantly associated with happiness.
Activity at work is always achievement oriented. Employees go work to achieve things. They are paid to
produce outcome at the end of a certain time period, and have a clear sense of purpose. As an example,
employees can look at the stereotypical corporate types who strive naturally towards business success. For
them, the key drivers are to achieve their monthly targets, their personal KPIs (key performance indicators), and
to contribute towards the stated objectives of their organization. They focus on outputs, achievements and
tangible outcomes. They will often carry over this energetic perspective into their social and recreational lives
as well. They are drawn towards events that provide social networking opportunities, climbing ever upwards
towards a higher social standing and a higher net worth. They also love to be competitive in their chosen sports.
They like to win and they like to the best. But all work and no play make Jack a dull boy! An excessive
competitive drive towards achievement at the expense of pleasure can often lead to burnout, stress and anxiety,
underpinned by the fear of failure. There is little contentment, little happiness and little joy. There is often a
generalized sense of restlessness and dissatisfaction with life. Success is achieved but rarely celebrated. There is
always another goal to aim for and another level to reach. Thus, it can be said that negative association of
happiness and turnover intentions seems to be reasonable.
Although, separately both organizational climate and happiness were found negative predictors of turnover
intentions, and it seems also reasonable, but interesting results were found in condition of cluster of both
variables. In this situation happiness showed significant positive association however organizational climate was
still negative. It was the sign of mediation effect, and for the clarifying this phenomena when mediation analysis
was done, the results were found that perception of organizational climate fully mediates the association of
happiness and turnover intentions of BPO employees. In fact, it can be said that perceived organizational
climate is the variable which explains the negative association of happiness and turnover intentions. It is a rare
result and no any empirical finding available to support it, but on the basis of human nature it can be explained.
Human beings are basically having hedonic approach in this materialistic working life, therefore, if employees
will feel sufficient level of happiness in there general life, they also tried to avoid work in any stressful situation
like BPOs. But, in the condition of a good and healthy working environment they can prepare themselves to
work in even some stressful situations. Thus, positive association of happiness and turnover intentions in BPO
employees seems rational in condition of controlling perception of organizational climate seems rational.

5.0 Conclusion
Results suggests that all the stated predictors like organizational climate as whole and domains and happiness
are the important negative predictors of turnover intentions, that means improvement in the climate factors and
happiness can reduced to the intentions to quite in BPO employees. But results further reveals that happiness is
seems fruitful for the retained BPO employees in the conditions of appropriate reward structure, healthy
interpersonal relations, well organized processes, clear role structure, reasonable level of information sharing
and altruistic behaviour in the organizations. Therefore, a healthy and attractive working environment is very
strong element for retaining BPO employees, but happy employees may perceives better climate and in turn low
level of intentions to leave. So, management should try to enhance both organizational climate and happiness of
employees.

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