Lee Et Al. (1999) The Unfolding Model of Voluntary Turnover
Lee Et Al. (1999) The Unfolding Model of Voluntary Turnover
Author(s): Thomas W. Lee, Terence R. Mitchell, Brooks C. Holtom, Linda S. McDaniel and
John W. Hill
Source: The Academy of Management Journal , Aug., 1999, Vol. 42, No. 4 (Aug., 1999),
pp. 450-462
Published by: Academy of Management
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The Academy of Management Journal
THOMAS W. LEE
TERENCE R. MITCHELL
University of Washington
BROOKS C. HOLTOM
Vanderbilt University
LINDA S. McDANIEL
University of North Carolina
JOHN W. HILL
Indiana University
This work reports further theoretical development of Lee and Mitchell's (1994) u
folding model of voluntary turnover, which describes different psychological pat
that people take when quitting organizations. Ambiguities in the model were iden
fied, and hypotheses aimed at resolving these ambiguities were tested on a sample of
229 former employees from the "Big 6" public accounting firms. The results provide
theoretical and quantitative extension of an earlier qualitative assessment of th
unfolding model. Implications are discussed.
organizations, they appear to follow one of four ples include unsolicited job offers, changes in mar-
psychological and behavioral paths when quitting. ital state, transfers, and firm mergers. People com-
In the only published test of the unfolding model, pare shocks and their surrounding circumstances
Lee, Mitchell, Wise, and Fireman (1996) demon- to their own images (that is, their values, goals, and
strated that these four paths completely described plans for goal attainment; see Beach [1997]) and, if
the leaving process for approximately 63 percent of the two are incompatible, thoughts of leaving oc-
their sample; conversely stated, 37 percent did not cur. Second, a script is a preexisting plan of action,
precisely fit the four theorized leaving processes. and it can be based on past experience, observation
The purpose of the study reported here was to of others, reading, or social expectations. Third,
suggest and empirically test several improvements search is the activities involved with looking for
to the unfolding model. alternatives to a current job and the evaluation of
those alternatives. Fourth, image violations occur
THEORY AND HYPOTHESES when an individual's values, goals, and strategies
for goal attainment do not fit with those of the
The Unfolding Model's Major Components and
employing organization or those implied by the
Paths
shock. Fifth, lower levels of job satisfaction occur
First, a shock is a particular, jarring event that when people come to feel over time that their jobs
initiates the psychological analyses involved in no longer provide the intellectual, emotional, or
quitting a job. A shock can be positive, neutral, or financial benefits they desire.
negative; expected or unexpected; and internal or Figure 1 depicts the unfolding model's four the-
external to the person who experiences it. Exam- orized paths. In path 1, a shock triggers the enact-
FIGURE 1
Search and/or
Engaged Image Evaluation of
Shock Script Violation Satisfaction Alternatives Likely Offer Path
_- Yes* Yes*
Yes
m No 10- No --- 1
Yes
Yes -- 3
' Low Yes
' ~ _- NYes _o.
No*
No No* No*
No*
Yes*
Yes*
Irrelevant Ye
No
No 2
Yes*
Yes*
Yes 1 4b
Yes
Yes
IMI,No
No
No No*
K
No* NoYes *
No
No 0- 4a
ment of a preexisting action plan or script. The a qualitative study that involved semistructured
person who has experienced the shock leaves with- interviews with 44 nurses who had recently quit
out considering his or her current attachment to the their jobs, and they found that these quits could be
organization and without considering alternatives. reliably classified by the essential features of each
Moreover, levels of job satisfaction are essentially decision path specified by the theory. All the es-
irrelevant in path 1. In path 2, a shock prompts the sential features of paths 1, 2, 3, 4a, and 4b were
person to reconsider her or his organizational at- found for 6, 6, 8, 7, and 6 nurses, respectively (33 of
tachment because image violations have occurred. 44). Thus, some evidence to support the unfolding
After completing these deliberations, the person model was obtained. However, the 11 nurses who
leaves without a search for alternatives. In path 3, a did not exactly fit a path pointed to potential con-
shock produces image violations that, in turn, ini- ceptual ambiguities in the model and became one
tiate the person's evaluation of both the current job basis for further theorizing. In addition, this initial
and various alternatives; thus, in path 3, leaving study highlighted several undefined gaps, which
typically includes search and evaluation. With are those issues and circumstances not addressed
path 4, lower levels of job satisfaction are the pre- or specified by the theory. Thus, the developers of
cipitator, instead of a shock. In path 4a, lower lev- the model deemed it necessary to identify and re-
els of satisfaction become so salient that people solve the conceptual ambiguities relating to (1)
leave without considering alternatives, but in path scripts and (2) alternatives and the theoretical gaps
4b, these lower levels explicitly lead to job search involved in (3) job offers as shocks and (4) individ-
and subsequent evaluation of alternatives. The uals' search and evaluation of alternatives.
other possible routes, identified in Figure 1 by as- Scripts. Originally, scripts about leaving in re-
terisks, do not define paths 1-4b and constitute sponse to a shock were theorized to affect quitting
potential falsifications of the unfolding model; in path 1 but were theorized to not affect quitting in
these routes are ways that people could leave orga-paths 2-4b. More specifically, leaving an organiza-
nizations that would not fall into one of the unfold-
tion under path 1 conditions was viewed as begin-
ing model's paths. ning with an event that prompts an individual to
Path 4b represents the process suggested by most consider quitting. As a result of this shock, the
turnover theories, whereby people leave because of person searches his or her memory for a preexisting
lower levels of job satisfaction, but only after they behavioral plan for leaving under these or very
have engaged in searching for, evaluating, and select- similar circumstances. If such a recollection is
ing alternative jobs; this outline constitutes a very found in memory, a match occurs, and if the co
rational choice process. In the unfolding model, the sponding script is deemed appropriate, it is
other paths suggest ways that people leave that have acted. If such a recollection is not found, a matc
not typically been discussed in the literature. First, does not occur, and another path might be evok
three paths (1, 2, and 3) are initiated by a distinct, That is, a shock can initiate leaving via paths 2
jarring, and recognizable event-a shock. Second, the 3 as well. Whereas the role of scripts appears
processes that describe three of the paths (1, 2, and sonably well specified in path 1, Lee and Mit
4a) do not involve search or comparisons between a (1994) did not unambiguously specify the natur
current and alternative jobs. Third, in one path (1), scripts in the other paths. In particular, they
people leave by following a scripted behavioral se- peared to equate the absence of a direct effec
quence. The descriptions of these paths (and their scripts on quitting in paths 2-4b with its nonex
combinations of psychological events and behaviors) ence.
are new to turnover research. Theoretically, the paths Recent theory and research on fram
suggest that leaving is far more complex than it has 1997: 21, 23) and "sensemaking" (Weic
typically been deemed. In particular, the model sug- 125, 129) have suggested that scripts
gests that variables other than lower levels of satisfac- widely held than was originally prop
tion can prompt leaving a job. The content of various unfolding model. More specifically, w
jarring events (shocks), for instance, may help explain rect effect may be limited to path 1,
who leaves, how quickly they leave, and why they theorized, the existence of scripts may
leave. ited to path 1. Instead, they may coexis
factors while paths 2, 3, 4a, and 4b
instance, an employee might have de
Conceptual Ambiguities, Theoretical Gaps, and
script about leaving in response to a sh
Suggested Improvements
decided not to enact it because the scrip
To date, only Lee and colleagues (1996) have with other scripts or because actual ena
directly tested the unfolding model. They reported too difficult or inappropriate. As Walle
ell (1991) demonstrated, anticipating an event may ing an organization for an alternative meant becom-
be very different from actually experiencing it. ing an employee with another organization. Theory
Moreover, the empirical evidence, albeit quite lim- has failed to address alternative forms of work,
ited, appears to support this point. In Lee and col- such as purchasing a firm or returning to graduate
leagues' (1996) study, six nurses left under path 1 school. We also suggest expanding the meaning of
conditions (scripted quitting), but four other job alternative to include alternative forms of work
nurses, who were classified as quitting via paths 3 and nonwork options; furthermore, pursuing these
or 4, held scripts that did not affect their leaving. In nonjob alternatives implies search and evaluation
order to clarify the nature of scripts, we propose processes that are similar to those that occur with
that a script may exist in paths 2, 3, and 4 but that traditional job alternatives.
that script must not be engaged, or carried out, in
Job offer as shock. Lee and Mitchell (1994: 66-
those paths.
68) initially theorized that the shocking effect of an
Job alternatives. In its original form, the unfold-
unsolicited job offer or inquiry must occur via path
ing model posited that job alternatives are evaluated
3, because some mental comparison of the current
in path 3 (shock-induced search and evaluations)
job and the unsolicited offer was presumed to fol-
and in path 4b (lower job satisfaction-induced
low. No such deliberations were thought to occur
search and evaluations). Unfortunately, Lee and
Mitchell (1994) did not clearly specify the nature of for paths 1 (scripted leaving) and 2 (no search), and
alternatives. Like most turnover theories, the model path 4 is precipitated by lower levels of satisfaction
implied that an alternative was a person's holding instead of by a shock. However, an unsolicited job
some subjective probability, substantially greater offer or inquiry can also initiate a preexisting script
than zero, that another job could be obtained. Two with no other mental deliberations. For example,
problems arise. First, it is not clear whether this an employee could (1) receive an unsolicited offer,
probability must have a value of one or can be less (2) have a preexisting script in place (for example,
than one; in other words, need the person actually "They offered a job before. I turned it down, and I
have an offer in hand? Second, it is not clear what was sorry. If they offer again, I'll accept it"), (3)
constitutes an alternative. Can it be a general labor enact the script, and (4) quit. We suggest that an
market perception, a specific job, or a nonwork unsolicited job offer (or inquiry) can be a prompt-
option? Evaluating a job alternative appears to re- ing shock in path 1 as well as in path 3. It is
semble the process of judging the likelihood of a important to note that an enacted script must not be
unique event (Beach, 1997: 94-95). People first accompanied by an active search or evaluation of
gather information about the event and then sub- alternatives for leaving to be classified as path 1. If
jectively determine the probability of its occur- active search or evaluation occurs, leaving should
rence. In the unfolding model, they would deter- be classified as path 3.
mine whether the subjective probability of Search and evaluation. Lee and Mitchell (1994:
obtaining another job (or some nonwork option) is 66-69) initially theorized that job search and eval-
sufficient for them to take subsequent action (that uation of alternatives must occur together. How-
is, the probability exceeds a threshold value
ever, such coupling presumes that job search pro-
viewed as justifying expending effort on evaluating
duces an alternative to evaluate. It is quite possible,
specific attributes or as justifying quitting). In view
for example, to search for a job and find no alter-
of the available theory and research, it seems un-
natives to evaluate. If the shock itself is a job offer,
likely that a job alternative must have a subjective
there may be no search, but an evaluation of alter-
probability of 100 percent to prompt action. We
natives would likely occur. Moreover, the decision
suggest that a job offer need not be in hand for it to
affect the cognitive deliberations involved with to pursue nonjob options involves the same issues.
quitting; instead, an alternative to a current job Thus, search and evaluation should be decoupled.
need only be perceived as highly likely to prompt Either search or evaluation needs to occur in paths
subsequent action. Moreover, the limited empirical 3 and 4b. In sum, five modifications to the unfold-
evidence appears to support this suggestion. In Lee ing model that add richness and real-world com-
and colleagues (1996), several nurses quit their jobs plexity to our understanding of voluntary turnover
after conducting job searches, with no actual offers are proposed and were tested in the reported study.
in hand. They appeared to view getting new jobs as
quite likely and thus compared their likely alterna- Hypothesis 1. A higher proportion of individu-
tives to their current jobs. als leaving jobs will be classified into the the-
Like virtually all turnover theories, the unfolding orized paths using the revised unfolding model
model initially contained the assumption that leav- of voluntary turnover than the original model.
randomly selected, and three of the authors applied Some evidence of validity could be inferred from
tentative rules to their survey responses; only mi- empirical support for Hypotheses 2a and 2b, 3a, 3b,
nor inconsistencies were found among the three and 3c, and 4a and 4b, in which the paths are
participating authors. We then drew on these minor associated with other measures. Further evidence
inconsistencies to further modify our decision of validity could be inferred from correlations be-
rules and applied them to another randomly se- tween different items purporting to measure simi-
lected 25 leavers; 100 percent agreement among the lar constructs. Such correlations were calculated
three authors and an additional judge, a doctoral and indicated substantial validity. As illustrations,
student, was reached. These modified rules were some theoretically meaningful and statistically sig-
then applied to the entire sample. To help mini- nificant (p < .001) correlations included the fol-
mize potential for bias, we recruited a volunteer to lowing: (1) "Was the event expected?" had a corre-
replicate the classification judgments made by the lation coefficient of -.91 with "Was the event
four prior judges. This volunteer had no prior con- unexpected?"; (2) "How many acceptable altern
nection to the current study, the researchers, or the tive jobs did your search produce before you le
researchers' institutions, and he was explicitly in- the firm?" and "How many total job offers did y
structed to be skeptical, question broadly, and have before you left your former firm?" had a .5
identify inconsistencies. After reviewing all pub- correlation; and (3) "How compatible were you
lished materials on the unfolding model and hold- personal values/ethics with those of your form
ing discussions with the third author, the volunteer firm?" had a correlation of .64 with "How compat
independently replicated the classification process ible were your professional values/ethics with
and reached 100 percent agreement with the prior those of your former firm?"
judgments.
Classification of leavers into decision paths for
Measures for Hypotheses 2a-4b
Hypothesis 1. Our final classification rules, the
specific survey items that assessed the presence or Volition andpersonal characteristics. Althoug
absence of shocks, scripts, image violations, job the Big 6 firms had listed each respondent as
satisfaction, search, evaluation, and offers-the voluntary leaver, we included the yes/no quest
major features of the decision paths-and the "Did you voluntarily leave the firm?" Tenure (
items' response formats are listed in the Appendix. months), age (in years), gender, and highest degr
We made an explicit effort to write survey items earned and its year were assessed by one quest
that resembled Lee and colleagues' (1996) inter- each.
view questions. However, those researchers relied Speed of decisions. Two fill-in questions were
primarily on single questions in their interviews used to gather data to test Hypotheses 2a and 2b.
and then made multiple judgments based on the The first was "After your first thoughts about leav-
interview data; in contrast, we adopted multiple ing, how long did it take for you to make the final
questionnaire items when feasible. Because we fo- decision to leave the firm? Please specify, in terms
cused more on theory development than on falsifi- of months, weeks or days." The second question
cation, correct classification (or avoiding type II was "After you made the final decision to leave the
errors) was deemed more important than incorrect firm, how long did you stay on the job before you
nonclassification (avoiding type I errors). Thus, an actually left? Please specify, in terms of months,
essential feature for a decision path was deemed weeks or days." Number of days was used in the
present (1) if a respondent answered yes to one or analysis.
more of several questions written to assess the es- Shock characteristics. The specific shock char-
sential feature and (2) if the respondent's other acteristics relevant for Hypotheses 3a-3c were as-
answers did not contradict the prior yes response sessed with the following yes/no questions: (1)
or responses (that is, convergent and discriminant "Was the event expected?" (2) "Was the event un-
validity were demonstrated). If such evidence was expected?" (3) "Would you characterize the event
not found, the essential feature was deemed not as positive?" (4) "Would you characterize the event
present. For example, for survey responses to be as negative?" (5) "Would you characterize the event
classified as constituting a path 1 scenario, evi- as neither positive or negative?" (6) "Did the event
dence of a shock and an active script had to be involve purely personal issues (i.e., unrelated or
present, but no evidence for search, evaluations, orexternal to the job itself)?" (7) "Did the event in-
offers could be present. volve purely firm issues?" (8) "Did the event in-
Validity. Although the agreement among judges volve a combination of personal and firm issues?"
indicated reliable classification, the validity of (9) "Was an unsolicited job offer or inquiry the
these classifications was a more complicated issue. event that first led you to think seriously about
leaving?" If a shock had not occurred, these ques- been classified into path 1 and two others, into path
tions were bypassed. 3, but missing data involving a single theoretical
Image violations. Image violations were deter- characteristic prevented their classifications. In
mined with the eight items shown in the Appendix sum, 13 respondents did not report evidence of
and were anchored by five-point Likert scales. image violations, and 4 did not report sufficient
Their alpha reliability was .82. information to classify them.
Job satisfaction. Levels of job satisfaction were The frequency distribution of this study's sample
determined with the 13 items shown in the Appen- into the unfolding model's paths suggests two ad-
dix and anchored by five-point Likert scales. For ditional points. First, we compared the frequency
the classification of persons into paths (Hypothesis distributions of the paths for our sample of accoun-
1), a response of 1 or 2 to any of the 13 questions tants and Lee et al.'s (1996) sample of nurses. Paths
was taken to mean at least some lower level of 1, 2, and 4a occurred significantly more often
satisfaction existed. In contrast, the measurement among nurses than among accountants (X2 = 7.11,
of job satisfaction for Hypotheses 4a and 4b was p < .01, x2 = 6.39, p < .02, and x2 = 9.34, p < .01,
made by averaging these 13 items. Thus, much respectively); in contrast, path 3 occurred signifi-
more information about job satisfaction was ac- cantly more often among accountants than among
cessed and analyzed for Hypotheses 4a and 4b than nurses (X2 = 10.94, p < .001); and no significant
for Hypothesis 1. Factor analysis with "varimax" differences were found for path 4b. These results
rotation indicated a single-factor structure; coeffi- indicate that different occupational groups have
cient alpha was .76, and an averaged composite different patterns of (or paths for) leaving their jobs.
was used in subsequent analyses (x = 3.39, s.d. Second, the sample sizes for paths 1, 2, and 4a
.51). among the accountants were somewhat small and
may have precluded meaningful statistical tests.
The statistical power for these tests ranged from
RESULTS virtually 0 to 20 percent. When significance levels
were reached, substantial effects could be inferred.
Hypothesis 1
Six persons were classified into path 1; 7 persons
Hypotheses 2a and 2b
into path 2; 136 into path 3; 8 into path 4a; and 55
into path 4b. In comparison to the original model The time between the first thoughts of quitting
(defined by the classification method used by Lee and the decision to leave and the time between the
and colleagues [1996]), our modified unfolding decision to leave and actual leaving were hypoth-
model (defined by the current changes to their clas- esized to be shorter for paths 1 and 2 than for paths
sification method) was hypothesized to result in 3, 4a, and 4b and also shorter for path 3 than for 4b.
classification of a higher proportion of individuals The time between the decision to leave and actual
into paths. Application of the original classification leaving was also hypothesized to be shorter for path
method to our current sample resulted in 143 clas- 4a than for path 4b. Because Lee and his coauthors
sifiable quits (62.5%), whereas the modifications (1996) found the time from first thoughts to actual
resulted in 212 classifiable quits (92.6%), a net quitting to be nonnormally distributed, we calcu-
increase of 69 cases (+30.1%, X2 = 59.63, p < .001). lated Q plots and Kolmogorov-Smirnov goodness-
Visual inspection indicated that the modification of-fit tests (KS) for our separate times and found
to scripts alone accounted for a net increase of 47 evidence of nonnormality (KS = 4.40, p < .001, and
cases (+20.5%, X2 = 24.31, p < .001), and the KS = 4.52, p < .001, respectively). Thus, paramet-
modification to job alternatives alone accounted for ric methods were inappropriate for our data.
a net increase of 18 cases (+7.9%, x2 - 3.17, p = To test the hypothesized differences in path
.07). Four other persons became classifiable be- speed, we used logistic regression models to com-
cause of modifications to both scripts and job alter- pare the decision paths' durations. In each regres-
natives. sion, the outcome variable was the occurrence of
Among the 17 individuals who could not be clas- one path (for instance, path 1, coded as 0) as op-
sified by the modified unfolding model, only aposed to that of another path (such as path 2, coded
single theoretical inconsistency in each case pre-as 1). The time between the first thoughts of quit-
cluded classification. In particular, 1 person wouldting and the decision to leave was entered first, and
have been classified into path 2, but no image vio- the time between the decision to leave and actual
lations were reported. Similarly, 12 others would
leaving was entered second. As hypothesized, th
have been classified into path 3, but again no imagefirst duration (between first thoughts of quittin
violations were reported. Two people would haveand the decision to leave) was significantly shorter
Hypothesis 3a-3c
DISCUSSION
It was hypothesized (1) that path 1 would be
positively related to personal shocks, (2) that path 2 In the present study, we sought further con
would be positively related to negative shocks, and tual refinement of the unfolding model of vol
(3) that path 3 would be positively related to orga- turnover. Specific modifications to the unf
nizational and job offer shocks. Using two-by-two model were proposed and tested via Hypoth
contingency tables, we cross-tabulated the absence These modifications resulted in a significa
or presence of each decision path (coded 0 and 1, increase of 30.1 percent in the classification o
respectively) with the absence or presence (coded 0 leavers. In particular, changes concerning
and 1) of each of the hypothesized shock character- alone accounted for a net increase of 20.5 p
istics. To gain additional insights about shocks, we and changes concerning job alternatives alo
content-analyzed respondents' written comments counted for another net increase of 7.9 perce
using an open coding scheme (Lee, 1999: 48). As addition, the present study provided theo
extensions to the unfolding model. As impl
hypothesized, path 1 was positively related to per-
sonal shocks (X2 = 3.11, p = .08, 4 = .17). More- not specified by the unfolding model, paths 1
over, path 1 respondents reported experiencing one occurred significantly more quickly than path
merger and five personal (family) shocks. Contrary 4b, and path 3 occurred more quickly than 4b
to hypothesis, path 2 was not significantly related potheses 2a and 2b); different shock character
to negative shocks. Path 2 respondents reported were associated with each path (Hypothe
five organizational shocks (such as mergers, trans- 3c); and, finally, job satisfaction was higher i
fers, and colleagues' dismissals) and two personal 3 than in path 4b and negatively correlated
shocks, such as family problems or liability suits. image violations (Hypotheses 4a and 4b). O
As hypothesized, path 3 was positively related to whole, these results appear to extend our u
organizational shocks (X2 = 7.67, p = .006, 4 = .27) standing of the unfolding model beyond that
and unsolicited offer shocks (X2 = 3.42, p = .06, and colleagues (1996). The two studies sugge
4 = .18). Path 3 respondents reported experiencing people use different, distinct, and systematic
58 organizational shocks, 65 job offer shocks, and chological processes, or paths, when leaving o
13 personal shocks. izations.
cations. For example, shock (versus no shock) quired to leave firms, and the different roles of job
places people into path 1, 2, or 3, ruling out path satisfaction in quitting. Although substantial re-
4; search (including evaluation and offers) places search remains to be done, the unfolding model's
people into path 1 or 2, ruling out path 3, or into basic foundation seems sound.
path 4a or 4b; and script (versus no script) places
people into path 1 or 2. Second, the empirical
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Terence R. Mitchell is the Edward E. Carlson Professor of Linda S. McDaniel is an associate professor of account-
Business Administration and a professor of psychology ing at the University of North Carolina at Chapel Hill.
at the University of Washington. He earned his Ph.D. in She earned her Ph.D. in accounting at the University of
social psychology at the University of Illinois. His cur- Michigan. Her current research interests include the ef-
rent research interests include employee turnover, em- fects of environmental factors on auditors' judgments
ployee motivation, and decision making. and the effects of accounting policies on analysts' deci-
sions.
Brooks C. Holtom is a visiting assistant professor at the
Owen Graduate School of Management, Vanderbilt Uni- John W. Hill is an associate professor of accounting at
versity. He received his doctorate in human resource Indiana University. He earned his Ph.D. in accounting at
management and organizational behavior from the Uni- the University of Iowa. His current research interests
versity of Washington. His current research interests in- include auditor liability and auditor turnover.