Impact of organizational commitment on job satisfaction and employee retention in pharmaceutical industry

Abstract

The purpose of this study is to investigate the relationship between employee retention, job satisfaction, perceived supervisory support and compensation by considering the organizational commitment as mediating variable in pharmaceutical industry in Pakistan. For this purpose, primary data collection method was used. A total of four hundred and fifty (450) questionnaires were sent to employees of six pharmaceutical companies. Out of the total, three hundred and twenty (320) usable questionnaires were included for data analysis. Structural Equation Modeling (SEM) was carried out by the means of AMOS 18.0 for model testing purpose. The results signify that positive and significance relationship exists between compensation,Supervisory Support, and organizational commitment. The results further conclude that organizational commitment has strong and positive relationship with employee job satisfaction and employee retention. Key words: Compensation, supervisory support, organizational commitment, employee satisfaction, employee retention.