Impact of Managerial Credibility on Employees’ Turnover’s Intentions

Introduction/Background. The paper will examine the impact of a largely unexplored variable, managerial credibility, on employees’ turnover’s intentions. The research paper aims to add value to the existing literature which has cited job satisfaction, job security, and compensation plan to be the variables that influence employees’ turnover’s intentions. Existing literature revealed three major determinants of managerial credibility, trustworthiness, competence, and good will. Moreover, to observe the relationship more closely, turnover was specified as voluntary, avoidable, and dysfunctional turnover. Methodology. The research program uses quantitative data gathered through 326 respondents, who were employees who had been working in both private and public sector organizations in Karachi for more than a year. The respondents were contacted personally, and were asked to fill out questionnaires. For turnover intention, close-ended questionnaire based on 3-point Likert scale was used, and for managerial credibility, 5-point Likert scale was used. These variables were entered into the multiple regression models for analysis. Results. Overall the employees’ turnover’s intentions increased by 14.7% due to variance in Goodwill (reciprocal), Competence, and Trustworthiness. Furthermore, intent to turnover and the independent variables had a relationship of 39.3% between them (p<0.05). A unit increase in intent to turnover is associated with a statistically significant decrease of 44% (p<0.000) in Trustworthiness, 40% in Competence (p<0.001), and 277% in Goodwill (p<0.010). Discussion. The credibility of the manager does have an impact on the employees’ intent to turnover. Increment in the determinants of managerial credibility can decrease the employees’ intent to turnover, and potentially save the organisation from dysfunctional turnover. Conclusion. The results unearthed a new variable that has an impact on the employees’ turnover’s intentions. The impact is low, but nonetheless, it is a factor that organizations should strive to nullify


Introduction
Overview Motivation behind this research study is to see whether the credibility of the manager has any effect on the employees' turnover's intentions. Employee turnover is a standout subject amid the prevalent subjects amongst organization scholars and professionals in light of the fact that turnover for organizations is an exceptionally essential issue (Dalton, Todor, & Krackhardt, 1982). In spite of there being an impressive number of researches present on turnover, there has not been a great deal of researches which weigh into record components next to dissatisfaction. This study investigates an alternate chief variable, managerial credibility, and its effect on employees' turnover.
Manager's credibility is focused around the manager's picture that the employees see (Neuliep, Hints, & Mccroskey, 2005). There are some key elements which assume a part in structuring that picture. One of the key elements is the element of competence. A manager's competence is shaped by the level of learning or proficiency that he or she has.
Another variable that develops or weighs down the credibility of the manager is the manager's trustworthiness. A reliable manager is one, who is reasonable with the employees, who is moral, and keeps a genuine record of the things that he/she handles. A manager's goodwill is additionally seen as a part of the manager's credibility. The goodwill viewpoint highlights the manager's compatibility with the employees which covers the manager's responsiveness towards the employees and his/her capability to rouse the employees (McCroskey & Teven, 1999;Jalilvand, Samiei, Zadeh, Khorrami& Ahmadi, 2011). Tanner (2014) noticed a bungle between the manager and the organization. A manager's credibility could be harmed if his/her acts are not synchronized with the acts of the organization. A manager could be working as indicated by the acknowledged standards yet in the event that those standards are not a part of the organization's then that could imperil his/her credibility.
Presently, turnover is going to break down into its subparts in order to find out which kind of turnover is affected by managerial credibility. Turnover is subdivided into voluntary and involuntary turnover. At the point when the organization chooses to lay off its employees, it is involuntary turnover. At the point when the employees choose to leave the organization, it is voluntary turnover which are going to concentrate on.
It was for the most part accepted that all turnovers are dysfunctional for the organization however pointed out that a few turnovers end up being functional for their organization (Dalton, Todor, & Krackhardt, 1982). For instance, if an organization is despondent of their worker however the organization cannot let go of that employee on account of the Qeios, CC-BY 4.0 · Article, July 31, 2023 Qeios ID: PWS7DP · https://doi.org/10.32388/PWS7DP 2/14 impact it may have on the rest of the employees and if that employee intentionally leaves the organization then that was a functional turnover for the organization. That is functional turnover for the organization on the grounds that it has more profits than expenses for the organization. Basically, the inverse of that is dysfunctional turnover where there is more cost than profit for the organization.
Additional attention was paid to the differentiation of avoidable turnover and unavoidable turnover when looking into the antecedents for dysfunctional turnover (Dalton, Todor, & Krackhardt, 1982). The purpose for that is there are a few components to turnovers that are past an organization's control, for example, responsibility to family, representative's wellbeing, and soon. Thus, studying the effect managerial credibility has on voluntary, dysfunctional and avoidable turnover is of the utmost priority.

Problem Statement
To investigate the impact caused by a lack of a managerial credibility on the development of turnover's intentions in the employees. Previously, there have not been many researches that have tried to establish this relationship. The factors commonly explored are dissatisfaction, salary, career opportunities, and job security. Despite there being a large number of researches, the organizations are still not satisfied and are facing problems related to employee's turnover. There have been researches in the past which tried to form a relationship between the turnover intentions of the employees and components of managerial credibility. This study is going to try to answer the question whether there is a link between managerial credibility and the turnover intentions of the employees. If yes, the degree of the impact was explored.
Background, Objectives and Significance of the study Employees' turnover is a considerable problem for the organizations; one that they have been trying to negate for a number of years now. Despite this being one of the favorite topics of organizational theorists, there has not been a conclusive answer yet. The problem is not that there has not been enough research on the subject; the problem is that not enough factors have been explored. The same factors have been explored many times with the angle of the research being the only difference amongst researches. This has not bided well for the organizations as they have not been able to completely root out the problem of employees' turnover. Furthermore, there also have been several researches that highlight the importance of the relationship between the credibility of the managers and their employees. There have not been many researches which have tried to establish the relationship between the managers' credibility and employees' turnover's intentions. This study aims to rectify that and would attempt to explore the relationship between the two.

Outline of the Study
The following is going to be followed in this research study. Chapter 1 explains the central point of this study. Chapter 2 judges the earlier research work on the topics of managerial credibility and its impact on employees' turnover's intentions and the hypotheses is also verified. Chapter 3 includes the sample size of the study, a clarification of the technique used for gathering the data to conduct an analysis from this data and also the research model used for analysis to support the Qeios, CC-BY 4.0 · Article, July 31, 2023 Qeios ID: PWS7DP · https://doi.org/10.32388/PWS7DP 3/14 results. Chapter 4 explains the consequences of the analysis, and also their thorough interpretation. Furthermore, it assesses the hypotheses taken for the present study. Chapter 5 encompasses the interrelated discussion of the impact of managerial credibility on the employees' turnover's intentions, provides some practical suggestions, cites implications of the policy and summarizes the whole study. This chapter also proposes different potential channels for future research work pertinent to this study.

Managerial Credibility
The extent to which managers are believable is the extent to which managers are credible. Managers' credibility is found to be dependent on the degree of alignment the managers' words have with their actions. Furthermore, managerial credibility was found to have three major components: trustworthiness, goodwill, and competence.

Turnover
The developing of intent that leads employees to leave their workplace. There are several types of turnover but the turnover which is going to be explored in this study is the one which proves to be avoidable, voluntary, and dysfunctional to the organization.
Literature Review Blomqvist (1995) defined credibility as the believability of the manager, meaning that the managers' subordinates trusted the managers' deeds to be aligned with their words. It was referred to as a difficult thing for managers to have as it was not something that they had innately; it was something that they had to earn from the people they were in charge of.
Trustworthiness was established as perhaps the most important component of credibility. In order for employees to trust their manager, managers needed to go beyond the occupational interactions, and had to attempt to build relationships with their employees. It had been observed when the managers made effort, the employees reciprocated, and the foundation for a relationship of trust was laid between the two of them. Another important step in the development of this relationship was the display of appreciation from the manager. When the managers were found to be just while making decisions, and were found to be giving credit to employees where it was due, the employees' perception of managers' trustworthiness increased greatly. Blomqvist (1995) mentioned five categories of behavior which played a part in developing employees' perception regarding the trustworthiness of their manager. Consistency in the behavior of the manager -Irregularities in managers' behavior decreased the employees' perceptions of the managers' trustworthiness. Integrity in the behavior of the manager -If managers' actions were supported by their words, they were believed to have integrity. Efficient delegations of control Qeios, CC-BY 4.0 · Article, July 31, 2023 Qeios ID: PWS7DP · https://doi.org/10.32388/PWS7DP 4/14 -Employees trusted their managers when the managers shared the workload efficiently with their subordinates. Effective communication -In order to communicate effectively with the underlings, the managers had to be open, accurate and clear. Display concern for employees -Protecting the needs of the employees and considering their interests before making the decisions.
McCroskey and Teven (1999) talked about a manager's goodwill being a very important factor in the determination of credibility. They found that the manager's goodwill was formed by demonstration of concern for the society, and the subordinates and employees' perceptions of managers' responsiveness and empathy.
Goodwill was found to be a sensitive aspect when it was looked at from the perspective of different organizations. In departments or organizations which were supposed to be working for the public benefit, the goodwill aspect of manager's credibility became more important than others. The managers' responsibilities heightened because not only did they have to look out for their and their employees' interests but also the interests of the public. Managers' failure in doing so resulted in them becoming a target of both organizational and public scrutiny. Managers, in a situation such as this, needed to have the right balance. If the managers ended up focusing too much on the public benefit then they faced doubters from their organization, their superiors and their underlings; in this context, managers only paid heed to the needs of the public, and ended up causing the subordinates and the organization losses. The other way round, they ended up with doubters within the organization; in this context, managers acted in their self-interest, and did not work for the benefit of the society.
The third vital component of credibility mentioned by McCroskey and Teven (1999) was competence. Because of a lack of a widely accepted definition, competence was often debated in the literary communities. Competence was a difficult concept to define as the meaning of concept varied with different organizations; if competence were to be used as a measure to gauge performance in one organization, it meant something completely different in another organization (Jubb & Robotham, 1997). Nordhaug and Gronhaug (1994) based on the extensive experience in production sector explained competence as an employees' capability to execute a task pertaining to their field at an optimum level. Gorsline (1996) found that competency continuously evolved because of technological advancement and the dynamic nature of the modern markets; the changes in technology and markets meant that there was more reliance on the competency of the knowledge workers.
Moreover, for those knowledge workers to remain competent, they needed to remain updated with the technology and the markets.
According to Garavan and McGuire (2001), competence can be defined from three different viewpoints. Firstly, competence was treated as an innate individual characteristic, and a trait which could not be learned. Second was the treatment of competence as the characteristic of an organization which implied that the organization had numerous tools at its disposal and one of them was human competencies which aided the organization in developing competitive edge.
These human competencies were developed through experience and accumulation of knowledge. Labour and education market had treated competency as a central way to improve communication by third viewpoint.
Qeios, CC-BY 4.0 · Article, July 31, 2023 Qeios ID: PWS7DP · https://doi.org/10.32388/PWS7DP 5/14 Mampilly (2005) referred to managers' competence as the knowledge possessed by the managers, the validity of it, and the managers' willingness to share it. By the virtue of this definition, competency as a trait is developed by the managers after spending considerable in their respective fields. Employees, especially during the nascent years of their careers, looked up to this trait of their managers. They wanted their manager to have the right knowledge, considerable experience and a willingness to share with them so that they learned things which helped them climb the career ladder, and things that cannot be learned from textbooks.
Manager's competency was also determined by other skills from their catalogs; their qualification, for one. Often the case was made that a manager had to be highly qualified or highly experienced but with the passage of time, both of them were found to be equally important. This was especially vital for employees with high qualifications; since they are highly qualified, they wanted their managers to be highly qualified as well. If their managers were not highly qualified, these employees perceived them to be incompetent. Interpersonal skills were also fundamental for a manager to be viewed as competent.
Managers may have had all the knowledge in the world but if they did not have the necessary interpersonal skills to communicate themselves, they were viewed as an incompetent manager. In a managerial position, one of the foremost and crucial responsibilities of a manager was to effectively and efficiently manage the funds at their disposal. If managers failed at this, they were not only perceived as incompetent by their employees, but also their superiors. Mampilly (2005) referred to credibility as an important asset for the manager as it aided the manager in attaining and retaining the loyalty of the subordinates. This was vital to the organization because when employees were loyal to a manager, they cooperated willingly with the manager, and felt committed to them. Eventually, they felt the ownership, and a sense of commitment towards their organization. When managers assessed the performance of these committed employees, they recognized them for that and gave those employees deserved rewards, which in turn made the employees trust their managers more, and offered them their best work. Jalilvand et al. (2011) cited various researches that concluded the dependency of the success of the managers and their consequential organizational advancement on the perception of the employees' perception of their managers' credibility.
Moreover, employees' perception of managers' credibility made them feel secure about the future of their job, and if the employees perceived the manager to be credible; subsequently, they perceived the manager to be effective as well (Peterson, 1972;Ellis, 1992;Boren & McPherson, 2009).
Tanner (2014) referred to a gap which damaged a manager's credibility substantially. This gap occurred when managers did not adapt themselves to the culture of their organization. Implication of this was that if managers were perceived to be credible in one organization, it did not necessarily mean that they were also perceived as credible in a different organization. Then goodwill component of credibility further explained this point.
Managers, who were perceived to be credible amongst their staff, worked for an organization which focused more on the organizational benefit than the public benefit. If the managers switched to an organization which focused more on the public benefit, they continued to operate in the same manner as they did in their previous organization. They were Qeios, CC-BY 4.0 · Article, July 31, 2023 Qeios ID: PWS7DP · https://doi.org/10.32388/PWS7DP 6/14 deemed to be lacking credibility; this also stood true for different departments within the same organization. Hence, it was established that in order for a managers to be consistently perceived as credible managers, they needed to be adaptable to the demands of their organizations.
It was generally believed that all turnovers are dysfunctional to the organization. Dalton et al. (1982) devised a method to find the level of voluntary turnover which actually did hurt the organization. Voluntary turnover was divided into further subcategories, functional turnover and dysfunctional turnover. Dalton et al. (1982) defined function turnover as the resignation of employees whom the organizations wanted to make redundant but could not for any number of reasons.
This enabled the organizations to zero-in on the turnover which was actually dysfunctional for the organization. Negating parts of the voluntary turnover which were beneficial for the organization allowed us to further subdivide the dysfunctional turnover into unavoidable dysfunctional turnover and controllable dysfunctional turnover. Unavoidable dysfunctional turnover included employees who had passed away, quit because of medical problems, or those employees who had left the organization because their spouses were forced to move for a job.
Only a handful of researches have previously talked about the relationship between lack of managerial credibility and employees' turnover's intentions. The reasons commonly cited and researched upon were dissatisfaction, lack of career advancement opportunities, salary, working conditions and job security. Involuntary turnover had always been a major problem for organizations as they often ended up losing employees that they valued. Because most of the employers' attention was on the aforementioned factors, they sometimes allowed other factors to slip past them. Branham (2005) mentioned loss of trust and confidence in senior leaders as one of the hidden reasons which caused the employees to leave their jobs. He focused on the manager's responsibility of creating a culture of integrity and trust. The mangers needed to keep up with the contemporary business practices so that their underlings did not feel that the managers' practices were obsolete. Branham said that the employees' disenchantment towards their manager was fairly observable through a change in their attitude and a noticeable decline in their work performance.
Another factor that was taken into consideration was the level of commitment that an employee had with the organization. Shore and Wayne (1993) cited the three critical types of employee commitment: Normative, Continuance & Affective.
Employees with normative commitment were those who felt obligated to the organization, and thought it their duty to stay at the organization for as long as they could. Employees with continuance commitment were those who could not leave the organization because of a lack of opportunities or remuneration. In the organization, employees with affective commitment felt a sense of commitment and looked to move up the hierarchal ladder of organization. Employees with continuance and normative commitments were disregarded, in the context, as they were not willing to quit their jobs on the account of a superior who lacked credibility.
Employees with affective commitment valued the organization and in return expected the organization to value their work. Mampilly (2005) pointed out that if employees ended up with a manager who they perceived to not be credible, they got agitated then protested, and gradually, they became dissatisfied with the workplace and then they considered leaving the organization.
Employees with affective commitment were indispensable assets to the organization and they fell into the category of the Qeios, CC-BY 4.0 · Article, July 31, 2023 Qeios ID: PWS7DP · https://doi.org/10.32388/PWS7DP 7/14 dysfunctional voluntary turnover that the organizations focused on. It was highly unlikely for employees with such a high commitment level to leave their organization because their stay with the organization was due to positive feelings rather than necessity and obligation. Employees such as these were a pleasant sight for any manager hence for new managers, keeping these employees satisfied was a high priority task. Instead of molding the employees to their style of management, they had to focus more on adapting to the style of management that the employees were used to. Sudden change in style lead the employees to develop a negative perception about the manager's credibility because they were used to a certain style of management which had kept them more than satisfied. In a scenario such as this, the point made by Mampilly (2005) was exemplified, employees started getting irritated and then they started making noise but with time, they got used to it. They started getting disenchanted with the work (which lead to a decline in their performance at the workplace), the manager, and consequentially the organization. This disenchantment turned into the employees skipping work and this increase in the rate of absenteeism resulted into the employees developing turnover intentions (Price & Mueller, 1986). Eventually, these negative feelings grew, and lead them to develop intent to leave the organization. They scoured the market for potential opportunities, and if there were any, they resigned. Contrastingly, if there were not any than they continued working silently but their job performance declined.

Hypotheses
Following hypotheses have been proposed to explore this study: H1: Competence of a manager has an impact on employees' turnover intention.
H2: Trustworthiness of a manager has an impact on employees' turnover intention.
H3: Goodwill of a manager has an impact on employees' turnover intention.
These hypotheses were effectively tested by applying multiple regression tests which calculated the impact of managerial credibility on employees' turnover intentions.

Method of Data Collection
In this study data was gathered through one-on-one interview with respondents using hard copy survey questionnaire designed in English language. Employees who have been working in both private and public sector organizations in Karachi city were contacted personally to gather the data. Data was then be entered into SPSS version 19. Once entered, data was cleaned and subjected to the proposed analysis.

Sampling Technique
Respondents were identified using purposive homogeneous non-probability sampling technique. Employees who have Qeios,.0 · Article, July 31, 2023 Qeios ID: PWS7DP · https://doi.org/10.32388/PWS7DP 8/14 been employed in the same organization under the same supervisor for more than a year were the respondents.
Sample size 326 respondents working in private or public sector organizations in Karachi City has been taken as sample size in this study.

Instrument of Data Collection
Semi-structured close-ended questionnaire based on 3 point likert scale (Cummann et al, 1979) for turnover intention and five point likert scale Wang and Yang (2010) for managerial credibility was used to collect the data from respondents.

Findings and Interpretation of the Results
The objective of this research study is to analyze the impact of manager credibility (competence, trustworthiness and goodwill) on employees' turnover intentions, therefore, multiple regression analysis is used for analyzing data.  Table 3 summarizes that the regression model is significant and is fitted for the analysis (p-value < 0.05). have successfully managed to establish the link between them and turnover intentions. The study brought to attention though some new factors which also had an on employees' turnover intentions, and these factors should also need to be worked upon by organizations.

Conclusion
This study aimed to create a link between development of turnover intentions in employees and the lack of credibility of the manager. The credibility of the manager was defined with three variables, competence, goodwill, trustworthiness. The results depicted that goodwill of the manager did not have a substantial impact on the turnover's intentions of the employees but trustworthiness and competence were found to have a meager impact on the employees' turnover's intentions. The data showed that these variables have a combined effect of 15.7% in the development of employees' turnover's intention, and that other variables such as job security, remuneration, and dissatisfaction has playing a vital role in the development of the intent to turnover. Nonetheless, organizations should focus on negating the 15.7% impact while focusing on exploring the other variables more.

Policy Implications
The organizations should urge their human resource management departments to make their policies regarding managerial positions more rigid. Despite the fact that the impact is meager, organizations should still focus on eliminating it. The policies should ensure that employees promoted to a managerial position or new individuals hired for that position should be thoroughly screened before holding the position. For employees within the organization, the human resource management should employ techniques such as succession planning and should make sure that employees' are adequately developed in this regard before holding the managerial position. As for the new individuals, their experiences, knowledge and honesty should be measured meticulously through relevant tests. Managers should be given some trainings on how to build trustworthiness through their competence among their subordinates and managers should be given an impression that the management has observing their attitudes and their success is dependent on their team's prosperity.

Future Research
Studies should also be conducted in future to explore factors that will increase managerial credibility and their effect towards the success of organization in long term. Furthermore, future researches should also focus more on the elimination of the impact of the other factors as their relationship with employees' turnover's intentions is already established.