Warehouse operations employees: Linking person-organization fit, job satisfaction, and coping responses

Journal of Business Logistics, 2003 by Autry, Chad W, Daugherty, Patricia J

One of the biggest challenges facing companies today and for the foreseeable future is attracting and retaining quality logistics workers (Copacino 1999; Daugherty et al. 2000; Metz and Richardson 2000; Mississippi State University 1999). The shortage of logistics personnel is not a new phenomenon (Richardson 1989). For example, driver retention in the motor carrier industry has long been considered a critical issue. Annual driver turnover rates average 100%, but some companies are as high as 200 to 300% (Keller and Ozment 1999a). Retention rates aren't much more encouraging in the warehousing industry. Annual estimates indicate that at least 20% and in some cases as much as 75% of all warehouse workers will leave their job within one year of hire date, and the cost of replacing each employee is estimated to be in the thousands of dollars (Gooley 2001; Mullins, 2002; Wilson 2001). Traditional recruiting strategies may be too passive. Logistics management must begin to be more innovative with respect to human resource development (Hale 1999).

Development of a more effective selection process that yields better compatibility between individual employees and hiring organizations is needed. Such compatibility is referred to as personorganization fit (P-O fit). P-O fit occurs when an organization satisfies individual s' needs, desires, or preferences (Kristof 1996). In other words, when there's a good match between the characteristics/requirements of the job and the expectations of the potential employee, there's a good fit. Lack of compatibility or poor P-O fit directly impacts employee retention. A recent survey by The Herman Group, management consultants and business futurists, identified principal reasons why employees leave a company (Gooley 2001). The primary reasons cited were employee discomfort with or misunderstanding of the corporate culture and the general lack of a sense of belonging.

The current research was undertaken to gain greater insight into the topic of person-organization fit. The researchers were particularly interested in examining the relationship between P-O fit and job satisfaction, as well as how employees deal with work situations, i.e., coping responses. Warehouse operations employees were selected for investigation. Greater understanding of the relationship between P-O fit and job satisfaction has important managerial implications because of the current and anticipated continued shortage of warehouse operations employees. While recent poor economic conditions may have temporarily alleviated the shortage, it is likely to be a recurring problem in the future.

The following narrative provides an overview of relevant literature relating to the research constructs, details research hypotheses and the methodology, and discusses results of the research as well as its managerial implications.

BACKGROUND

Three constructs are of primary interest to the research project: person-organization fit, job satisfaction, and coping behaviors.

Person-Organization Fit

As mentioned previously, P-O fit refers to a match in needs, desires, or preferences (Kristof 1996). The needs, desires, or preferences can be studied from the viewpoint of either the employee or employer (organization). Stated another way, person-organization fit can be examined from two different perspectives - either needs-supplies or demands-abilities (Caplan 1987; Kristof 1996). From the needs-supplies perspective, P-O fit occurs when an organization satisfies individual's needs, desires, or preferences. The emphasis is on whether the individual is going to be happy/content in the work environment. Alternatively, the demands-abilities perspective suggests that P-O fit occurs when an individual has the abilities required to meet organizational demands. The emphasis is on the degree to which an organization is happy/content with the hire. The current research focuses on the needs-supplies perspective by investigating warehouse operations personnel and their perceptions of P-O fit. The researchers looked at the employees' perspectives (needs-supplies) - what they want in the work environment. The results have the potential for making strong managerial contributions relating to successful hiring/retention. Time and resource constraints prevented a dyadic examination including employers' perspectives (demands-abilities). However, the researchers acknowledge considerable insight could be added by looking at both sides of the dyad.

Individuals make job choice decisions based on person-organization fit. Job seekers are generally believed to prefer organizations that have the same "personality" as they do (Cable and Judge 1994). This means that potential employees are going to be more attracted to companies if the individuals believe their own personal characteristics are aligned with organizational attributes (Cable and Judge 1994; Chatman 1989; Judge and Bretz 1992). They want to feel that they will fit in and become part of the group. However, it should be acknowledged that the assumption regarding the importance of P-O fit may be more relevant to professionals versus operating-level or manual laborers. Warehouse employees may place more emphasis on immediate rewards, i.e., the highest paying job, rather than considering how well they will fit in a particular organizational culture.