Ante una alta rotación de colaboradores, aumente el valor de su propuesta. Retrieved. 07 .... que realizo R. 5. Se premia poco a aquellos que laboran en esta empresa ... Los beneficios que recibimos son tan buenos y mejores que en otras ...
JOB SATISFACTION INFLUENCE ON TURNOVER INTENTION The case of a Peruvian Machinery Supplier for Constructing and Mining MBA32 Magda Elena Minaya Bedon (302602)
Peru Supervised by Dr. Aad van Mourik “This paper was submitted in partial fulfillment of the requirements for the Masters of Business Administration (MBA) degree at the Maastricht School of Management (MSM), Maastricht, The Netherlands, August 2016
Acknowledgement I would like to thank my thesis supervisor, Dr. Aad van Mourik for his support in conducting this study. Dr van Mourik provided valuable suggestions and feedbacks for the improvement of the contents throughout the research process. In addition, I also want to express my gratitude to all the faculties of MSM, to my colleagues, to Luis Rodriguez by his valuable support and to my family.
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TABLE OF CONTENTS
1. INTRODUCTION ……………………………………………………………………………..
5
1.1. Rationale of the study ……………………….……………………………………………..
5
1.2. Problem Statement………………………………………………......……………………..
6
2. LITERATURE REVIEW ………………………………………………………………………
7
2.1. Introduction …………………………………………………………………………………..
7
2.2. Definitions ……………………………………………………………………………………
7
2.2.1 Turnover intentions ………………………………………………………………………..
7
2.2.2 Job satisfaction ………………….……………………………………………………….
7
2.3. Theoretical contributions …………….……………………………………………………
8
2.3.1. Job Satisfaction’s factors ………………………...……………………………………..
8
2.3.2. Recognition ………………………………………………………………………………..
9
2.3.3. Supervisor …………………………………………………………………………………
9
2.3.4. Co-workers…………………………………………………………………………………
9
2.3.5. Pay …………………………………………………………………………………………
10
2.3.6 Relationship between recognition and turnover intention …………………………….
10
2.3.7 Relationship between supervisor and turnover intention ……………………………..
10
2.3.8 Relationship between co-workers and turnover intention ……………………………
10
2.3.9 Relationship between pay and turnover intention …………………………………….
11
2.4 Empirical contribution …………………………………………..…………………………...
11
2.4.1. Relationship between job satisfaction and turnover intention ………………………..
11
2.5. Conceptual model …………………………………………………………………………..
12
2.6 Chapter Summary ……………………………………………………………………………
12
3. METHODOLOGY ……………………………………………………………………………..
13
3.1 Introduction ...........................................................................................................
13
3.2. Research strategy: ……………………………………………………............................
13
3.3. Population and sample: ………………………………………………............................
13
3.4. Measurement instrument: ……………………………………………….........................
13
3.5 Data sources and data collection method …………..................................................
14
3.5.1 Primary data ………………………………………………………………………………..
14
3.5.2 Secondary sources ……………………………………………………………………….
14
3.5.3 Data collection method ……………………………………………………………………
14
3.6. Variables, data processing and analysis….…………………………….........................
15
3.6.1. Independent variable: ……………………………………….……………………………
15
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3.6.2. Dependent variable: ………………………………………………………………………
15
3.6.3 Data processing and analysis ……………………………………………………………
15
3.7. Validity and reliability ………………….…………………………………………………..
15
3.8. Feasibility of study and ethical issues ……………………………...............................
16
3.9 Chapter Summary ..................................................................................................
16
4. FINDINGS AND DISCUSSIONS …………………………………………………………….
17
4.1. Introduction …………………………………………………..…………...........................
17
4.2. Demographic characteristics …………………………………………...........................
17
4.2.1. Gender ………………………………………………………………...…………………..
17
4.2.2. Age ………………………………………………………………...……………………….
17
4.2.3. Level of Education ………………………………………………………………………..
18
4.2.4. Number of years working on the organization …………………………………………
18
4.3. Employees' perceptions of Job Satisfaction ……………………………………………..
19
4.3.1. Respondents perceptions about Job Satisfaction in the recognition domain .......................................................................................................
19
4.3.2. Respondents perceptions about Job Satisfaction in the supervisor domain ………………….................................................................................
20
4.3.3. Respondents perceptions about Job Satisfaction in the co-workers domain ……….............................................................................................
21
4.3.4. Respondents perceptions about Job Satisfaction in the pay domain ………………
21
4.4. The influence of demographic characteristics on turnover intention ………………….
22
4.5. The relationship between Job Satisfaction and Turnover intention ...........................
23
4.5.1. Multicollinearity Check for Job satisfaction domains ............................................
23
4.5.2. Answering the Major Research Question ............................................................
24
4.5.3. The influence of Recognition on Turnover Intention .............................................
25
4.5.4. The influence of Supervisor on Turnover Intention ................................................
25
4.5.5. The influence of Co-workers on Turnover Intention ................................................
25
4.5.6 The influence of Pay on Turnover Intention ..........................................................
25
4.6 Discussions of results……………………………………………………………………….
26
4.7. Chapter Summary …………………………………………………………………………..
28
5. CONCLUSIONS AND RECOMMENDATIONS …………………………………………...
29
5.1. Introduction …………………………………………………………….............................
29
5.2. Summary of main findings ………………………………………………………………..
29
5.3. Implications for theory …………………………………………………………………….
30
5.4. Implications for practice …………………………………………………………………..
30
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5.5. Limitations and future research ………………………………………………………….
31
6. REFERENCES………………………………………………………………………………...
33
Glossary of Terms and Acronyms …………………………………….............................
37
Appendix A1……………………………………………………………….............................
38
Appendix A2………………………………………………………………….........................
40
Appendix B: Reliability analysis ……………………………………................................
42
Appendix C: Multiple linear regression of Job satisfaction and Turnover intention variables and VIF….……………………………………………….
44
Appendix D: Multiple linear regression of Demographic variables and Turnover intention…………………………………………………………….. Appendix E: Information from the Maintenance Manager regarded to the PMSCM
45 46
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1.INTRODUCTION
1.1 Rationale of the study
Peru keeps its position of one of the best performing economies in Latin America. The country has achieved high economic growth since the last 15 years (International Monetary Fund, 2015). In addition to this growth, the development of new sectors, new labour opportunities in the interior regions and a lack of employee value propositions by companies have increased the Peruvian employee turnover rate at a level of 18% (Narváez, 2016) in comparison with a Latin-American range from 5%-10% (Narváez, 2016). According with the Chairman of the Board of the Peruvian Association of Human Resources (APERHU), pay is an important factor to decide to change of job joint to others such as working conditions, position, responsibilities, which should be part of a value proposition to workers for avoid future leavings. This value proposition should be focused on workers’ recognition with the addition of adequate and comfortable working conditions, good relationships among immediate superior, co-workers and subordinates, pay, incentives, benefits and career attractive (Narváez, 2016). According to Jha (2009) “employee turnover has always been a matter of concern for organizations. A large degree of employee turnover is highly detrimental to both the organization as well as the employees”. For an organizational employee turnover implies high costs in termination, advertising, recruitment, selection, and hiring new workers (Abbasi & Hollman, 2000). When an employee leaves an organization, the remaining employees face difficulties to complete their duties (Chan Yin-Fah, 2010). For organizations is very important to maintain a strong workforce in order to remain competitive in the fast expanding global economy in compassing with technological advances (Medina, 2012). How to reduce employee’s turnover is a very pivotal challenge for today’s Human Resources managers. Pay better incentives and employee’s motivational techniques have been useless and old practices of the human resource management (Dorance, 2014). Scholars stated that employee turnover can be predicted measuring job satisfaction’s factors and that high job satisfaction is associated with low employee turnover. More deep inside, a research shows that the relationship between job satisfaction and actual employee turnover is moderated by intentions. For this reason, researchers consider employee turnover intention as the immediately precedent variable for actual employee turnover. Knowing that many studies have shown that job satisfaction is negatively strong associated with employee’s intention to leave an organization; it is valuable to search more about the interactions between job satisfaction and turnover intentions (Medina, 2012).
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Job satisfaction has been identified as an important factor in the working lives for all occupational groups. Employees who are satisfied are more likely to be committed to their organizations and decreased the intention of quit from a job (Chan Yin-Fah, 2010). During the present study, we focus on turnover intentions rather than real turnover because of two reasons: its relation with present employees in contrast with those who have left the organization and its accurate approaching to work factors that firms can manage according to their needs and situations.
1.2 Problem Statement Skilled employees are going from job to job and taking with them the knowledge and technical expertise that is needed for a company (Dorance, 2014), since such movements represent potential costs to organizations in terms of loss of valuable human resources and the disruption of ongoing activities (Sousa-Poza & Henneberger, 2004). The existence of high rates of employee turnover in the Peruvian Machinery Supplier for Constructing and Mining (PMSCM) matter of this study, affects considerably its performance and productivity due to increasing costs regarded to recruitment and training of new employees. During the last six years the PMSCM has experienced an important phenomenon of employee turnover with an annual rate of 14%. This study is carried out to measure how job satisfaction can influence the employees’ intentions to leave from a PMSCM. Therefore, this thesis aims to answer the following major research question: What is the relationship between Job Satisfaction and Turnover Intention of employees in the Peruvian Machinery Supplier for Constructing and Mining (PMSCM)? The minor research questions of this study are: 1. What are the employees’ perceptions from their employer, in regards of job satisfaction, which affect to continue their job for long time in the PMSCM? 2. How does recognition to PMSCM’s employees influence their turnover intentions? 3. How does supervisor’s behavior influence turnover intentions of PMSCM’s employees? 4. How does co-workers’ relationship influence turnover intentions of PMSCM’s employees? 5. How does pay scale influence turnover intentions of PMSCM’s employees?
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2. LITERATURE REVIEW 2.1 Introduction The purpose of this chapter is review critically the theoretical framework of the study. The chapter is organized as follows: section 2.1 is the introduction, in section 2.2 definitions of the main variables are stated, in section 2.3 the theoretical contribution has been explained , in section 2.4 the empirical contribution has been explained, in section 2.5 the conceptual model is showed and finally the section 2.6 states the chapter summary .
2.2 Definitions 2.2.1 Turnover Intention Turnover intention is known as employees’ voluntary intention to leave an organization or profession whose importance to be part of studies relayed on its condition of precursor of employee’s turnover behaviour. As soon as employees realize is easy to move from a job to another they would have desires to leave and finish their relationship with their organization or profession (Jha, 2009).
2.2.2 Job satisfaction Job satisfaction is the group of positive perceptions related to some factors that employees and workers have in their jobs, for this reason job satisfaction may affect person’s physical health, mental health and social life of people. Those persons who are satisfied with their jobs have the same attitude with their lives and experimented happiness. While satisfied workers tend to perform better their jobs and this would lead to increase their job security in the organizations for a sustainable period of years, dissatisfied workers would experienced intentions of leaving from working places. In addition, satisfied workers show positive attitude with customers who would perceive this behaviours and as an outcome, customers will feel more satisfied and loyal to the company (Teck-Hong & Waheed, 2011).
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2.3 Theoretical contributions 2.3.1. Job Satisfaction’s factors According with Herzberg’s Two Factor Theory employees are under the influence of factors that cause job satisfaction (motivators) and factors that cause job dissatisfaction (hygiene factors).The hygiene factors are company policies, supervision, interpersonal relations, salary, status, working conditions and job security. The motivator factors are achievement, responsibility, advancement, growth and work itself (Aziri, 2011). On a research developed by Teck-Hong & Waheed (2011) applying the Herzberg’s Two Factor Theory to examine what motivates sales personnel and the level of job satisfaction in the Malaysian retail industry, the results showed that recognition, company policy, working conditions and salary were the most significant factors in motivating sales personnel. According to Spector (1997), the variables that affect job satisfaction are pay, promotion, supervision, benefits provided, contingent rewards as a means of recognition and appreciation, operating procedures and policies, dealing with co-workers, nature of the work, and communication within the organization. During a research study developed by Dorance (2014) on the possible reasons for an employee to leave the organization the results showed that salary, welfare, relationship with co-workers, career growth and working conditions were the major factors for intention of turnover. A study focused on find out what factors make the personnel satisfied in the sudanese construction industry showed that satisfaction with co-workers, satisfaction with supervisor and satisfaction with pay, satisfaction with job advancement, satisfaction with working hours, satisfaction with benefits and satisfaction with job security were the most significant factors (Thwala, Ajagbe, Enegbuma, Bilau, & Long, 2012). For Andre (2008), each of the factors related with motivation may have influence on Job Satisfaction. The Abraham Maslow’s classic theory of motivation proposes that people prioritize their needs in the order of: 1) Physiological needs, 2) Safety needs, 3) Social needs, 4) Esteem needs, and 5) Self-actualization needs (Andre, 2008). In the mentioned order, we can indentify some job factors related to each of these needs: 1) pay, 2) job security, 3) relation with coworkers/supervisor,
4)
recognition/achievement,
and
5)
growth/advancement.
For assessing the determinants of academic staff turnover intentions in Haramaya University, Hundera (2014) has been used the Job Descriptive Index (JDI) developed by Bowling Green State University - BGSU (2009 Revision). This tool measures satisfaction with six aspects of the job: People on in present Job, Job in General, Work on present Job, Pay, Opportunities for Promotion, and Supervision.
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After having analyzed the information above, the following factors has been selected for assess Job Satisfaction:
Recognition
Supervisor
Co-workers
Pay
2.3.2 Recognition Recognition is the appreciation or approval of positive accomplishment or positive behaviour of an individual. Recognition includes small gestures that are important to employees. Conscious people about the acknowledgment of their jobs, are more confident with themselves which contribute with their proactively. Researchers have showed that both financial and nonfinancial rewards have impacted positively in the job satisfaction and motivation of employees (Tessema, Ready, & Embaye, 2013). To recognize the achievements of the workers is a perfect way to retain and enhance the talent in a company in a highly competitive today's work environment (Conexion ESAN, 2015). The recognition is usually treated as a form of reward. In general, there are two types of rewards that an organization can use to motivate their employees and generate a good performance. The first is the money, which plays a role very important in the reinforcement of employees’ commitment, especially when is applied following models contrasted scientifically. The second type of reward is the recognition not economic (IIC, 2013). 2.3.3 Supervisor Supervisor play important role in organizations by enforcing the practices and rules with subordinates applying some level of flexibility. Employees under the same law enforcement but working in different departments can perceive the same rules and procedures in a different way due to different supervisor’s management styles. Supervisors who support co-workers impact positively on job satisfaction. Many researchers have revealed that the lack of supervisory support tends to increase in job stress and decrease satisfaction (Kula & Guler, 2014). 2.3.4 Co-workers Relationship among co-workers is a type of interpersonal relationship based on two concepts: the leader-member relationship and co-workers' interactions. This relationship show how well the two parties coordinate with one another. Co-workers' behaviours also affect the relationship between the co-workers. The job satisfaction has a positive relation with the leader-member linkage and with co-workers' coordination that means that the better the coordinative relationship between the leaders and subordinates is, the higher the job satisfaction is (Lin & Lin, 2011).
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2.3.5 Pay Money is considering the universal reinforce due to its power to exchange things. Having money allows a person to satisfy basic needs such as food and shelter; then it allows a person to satisfy secondary needs such as travels, a new car, clothes, etc. Further, money can help to achieve the self-actualization of a person. If an individual defines happiness in terms of the things that money can buy, pay will have a positive relationship with satisfaction. If workers believe their pay are fair with modest increments, and they meets their basic needs, their behaviour will remain the same (Andre, 2008). Pay is a motivator for many employees initially, but it is not a powerful motivator in the long term. For decades, pay has had an important role in attracting and retaining people at work and has increased in today’s economic environment (Tessema, Ready, & Embaye, 2013). 2.3.6 Relationship between recognition and turnover intentions Considering that recognition from supervisors is expected by employees as a response from their well performance at work and that recognition contributes with make them feel good and with their life’s purpose, it is negative related with turnover decisions. In a study developed to determine the perceptions and effects of work recognition and other variables on the turnover intentions of IT workers, the results showed that for IT professionals, a huge part of their motivation came from the recognition they got from managers for well work and their perception that they were important members of the organization, decreasing their intentions to leave the public institutions (Burrell, 2014). According with a study developed in a group of American public sector organizations of South Carolina, the perceptions of employee recognition had a significant impact on the intent to leave the organizations (Henryhand, 2009). 2.3.7 Relationship between supervisor and turnover intention Studies have found that support from supervisors not only reduces their works’ dissatisfaction levels regarded to depersonalization and emotional exhaustion, but also reduce their turnover intentions (Jha, 2009). Other studies demonstrates that supervisor‘s background impact strongly on their workers. The leadership style present in a company shapes its work environment, and reflects the personality and philosophy of its leaders (Abbasi & Hollman, 2000). The communication role that supervisors play in organizations as supportive supervisor communication has negative influence on employees’ turnover intentions (Michael, 2012). 2.3.8 Relationship between co-workers and turnover intention After a study developed in the Taiwanese hotel industry, they found that more harmonious coworker relationships between hotel employees have a negative effect of turnover intention of hotel employees (Chun-Chan, Sheng-Hsiung, & Chen- Yi, 2012).
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2.3.9 Relationship between pay and turnover intention If employees feel dissatisfied with their pay, they would feel negative emotions and may affect their decision to remain in the organization. Once they have an intention to leave, they will also look for another job. This turnover intention may happen in a short period of time (A'yuninnisa & Saptoto, 2015). In a organization, the existing breaches between workers efforts and outputs product of their daily work, can influence on their perceptions that they are not valued and they are not in the right place, so, the idea of leaving their actual job is going to increase until the point of turnover happens. Therefore, the relationship between pay and turnover intentions is negative (Sang & Perumal, 2014). 2.4 Empirical contribution 2.4.1 Relationship between Job Satisfaction and Turnover Intention Many researchers have shown that job satisfaction has negative relationship with employee’s intention to leave an organization. In a research by Medina (2012) one of the findings corresponding to a simple linear regression between job satisfaction and turnover intention showed a R-squared coefficient of .167. However, subsequent model analyses using multiple regressions correlated job satisfaction and covariance and its influence on turnover intentions. The results showed a R-squared coefficient of .245. Several studies have shown that dissatisfied employees are willing to leave their jobs or be absent than satisfied employees. Job satisfaction shows correlations with turnover and absenteeism in the –.25 range (Saari & Judge, 2004). Other research as Chan Yin-Fah (2010) evaluated the direct relationship between job satisfaction and turnover intention recording a linear coefficient of 0.447. Several studies and researches have shown that dissatisfied employees are willing to leave (Saari & Judge, 2004). Intention to leave has a behavioural implication related with the grade of commitment and satisfaction of an employee with an organization. In several studies and researches, job satisfaction has been stated as one of the main determinants of turnover. Satisfaction is the perception about a job or job situation; in contrast, dissatisfaction can influence employee intention to quit. Thus, a positive appreciation can contribute to the employee’s intention to stay (Dorance, 2014). Generally, the relationship between job satisfaction and intent to leave is conceptualized to be negative, explaining that dissatisfied employees are likely to voluntarily leave the organization than
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satisfied employees. Meta-analytic studies among various job attitudinal variables showed that overall job dissatisfaction was the best predictor of turnover (Liu, 2005). In this research (Liu, 2005) considered predictors of turnover intentions. Among these predictors, the satisfaction with supervisor showed a beta value of -.16. Even this low value Liu (2005) considered this variable such as one of the principal predictors of turnover intention.
2.5 Conceptual model The conceptual model has been generated after reviewing the above literature (section 2.3.1).The model shows the influence of Job Satisfaction as independent variable on Turnover Intention as dependent variable.
JOB SATISFACTION Recognition
TURNOVER
Supervisor
INTENTION
Co-workers Pay
Figure 2-1: Conceptual Model: Job Satisfaction Influence on Turnover Intention
2.6 Chapter Summary
In this chapter, literature used by various researchers to conceptualize Job satisfaction and Turnover Intention has been reviewed. More specifically, the domains of Job satisfaction has been selected after analyzing related literature and the relationship between them with Turnover intentions have been extensively discussed. This chapter ends with the presentation of the conceptual model that was used as a guide for this study.
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3. METHODOLOGY 3.1 Introduction The purpose of this chapter is describing the methodology of the study which embodies in 9 sections as follows: 3.1 Introduction, 3.2 Research strategy, 3.3 Population and sample, 3.4 Measurement instrument, 3.5 Data sources and Data collection method, 3.6 Variables, Data processing and analysis, 3.7 Validity and Reliability, 3.8 Feasibility of study and Ethical Issues, and finally 3.9 Chapter summary.
3.2 Research strategy According with Blumberg, Cooper & Schindler (2011) the survey method of gathering people’s opinions is the preferred strategy because it has the capability to generate the required answers. For this study, the researcher applied the survey strategy to answer all the research questions. The research strategy was quantitative in nature in order to collect the required data. This strategy had been chosen because the research took the mode of an explanatory and descriptive study. It seeked to determine the relationship between Job Satisfaction and Turnover Intention. Data for the study was collected using field questionnaires.This analysis technique allowed to describe and illustrate statistical relationships among the data collected (Saunders, Lewis, & Thornhill, 2009).
3.3 Population and sample: The population of this study included the employees of the PMSCM who were distributed in eight customer’s headquarters with a number of 142 employees working in the eight customers headquarters in total. According to Saunders, Lewis, and Thornhill (2009) with a confidence level of 95% and an error margin of 5%, the sample size that corresponds to a population of 142 is 108. From the 142 surveys distributed among employees the researcher collected 109 filled surveys which represent a 76.76% of the population.
3.4 Measurement instrument: A 16-item Job satisfaction Questionnaire (Appendix A) was adopted from 36-item survey developed by Spector (1997). This 16-item Job satisfaction Questionnaire contain the most relevant Job satisfaction factors according with the analyses’ results of section 2.5 which are based on the researches and literature described on the same section. The 16-item Job satisfaction Questionnaire was used for collecting data and determines the overall degree of Job satisfaction. It considered 4 factors (domains): pay, supervisor, co-workers and recognition. Each item was rated on a 6-point Likert scale ranging from (1) “disagree very much” to (6) “agree very much”.
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In the Recognition section of the 16-item Job satisfaction Questionnaire, two items regarded to promotion have been considered such as “Those who do well on the job stand a fair chance of being promoted” and “There is really too little chance for promotion on my job”, and also in the Recognition section of the 16-item Job satisfaction Questionnaire, two items regarded to rewards have been considered such as “There are few rewards for those who work here” and “I don't feel my efforts are rewarded the way they should be” due to promotions and rewards are tools used by managers to recognize the well performance and well behaviour of employees (Wharton Executive Education, 2009). In the Pay section of the 16-item Job satisfaction Questionnaire, one item regarded to benefits has been considered such as “The benefits we receive are as good as most other organizations offer” due to commonly benefits mean disbursements of money for organizations. A 3-item Turnover intention questionnaire based on Mobley, Horner, and Hollingsworth (1978) was used for collecting data and determines the overall degree of turnover intentions. Responses ranged by 5-point Likert Scaling from 1= “Strongly disagree” to 5= “Strongly agree”.
3.5 Data sources and Data collection method 3.5.1 Primary data A primary data-collecting approach was used in order to answer the main research question and minor research questions. As suggested by Blumberg, Cooper, and Schindler (2011), primary data allows the researcher to collect data for the specific objective of the study. 3.5.2 Secondary sources Secondary sources were also used to collect information regarding Job satisfaction and turnover intentions. These sources included the information of PMSCM’s activities and management, reports and articles.
3.5.3 Data collection method A data collection mode using hard surveys was applied. This mode enabled data to be collected as many respondents as possible in the PMSCM. Respondents were free to answer the questions. Respondents were distributed in eight different customers’ headquarters; these were machinery’s drivers in mining companies who usually are in field work the whole day. For this reason, the circulation of surveys in hard copies was the most appropriate technique during the time of conducting the survey. Furthermore, it was fast and reaches a large number of respondents. The researcher asked the maintenance manager in the PMSCM to help her to conduct the survey since she could not go to Peru to conduct it personally because she has been living in the Netherlands.
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This minimized the research costs and saved time. The data was collected during the period between July 29th and August 17th, 2016. 3.6 Variables, Data processing and analysis: 3.6.1. Independent variable: Job Satisfaction: Recognition, Supervisor, Co-workers and Pay were the factors (domains) considered. 3.6.2. Dependent variable: Turnover Intention 3.6.3 Data processing and analysis After the researcher had collected data from respondents, Excel software was used in order to transfer all the answers to a numeric coding. It means data was arranged during the input process. Then, the data was entered into statistical data analysis software STATA, and analysis was carried out in order to get valuable information from the collected data. Descriptive statistics and means calculation were used, to describe employees’ perceptions regarding Job satisfaction in the PMSCM. Furthermore, tables were used in the interpretation of these perceptions. Regression analysis was done to establish the relationship between job satisfaction and turnover intention. Multiple regressions were used to analyze the relationship of each job satisfaction’s domain on turnover intention. 3.7 Validity and Reliability In order to increase the validity of the study, the survey was sent to the maintenance manager to explain him the structure of the questionnaire and the sense of the statements for assurance his well understanding when the surveys were distributed among the employees of each customer’s headquarters. The research instrument used confirmed scales and clearly referred to the authors and the publication. Cronbach’s alpha is the statistical value that is calculated for measuring internal consistency known as reliability, that is, how closely are the elements in a group. The Cronbach’s Alpha was carried out for each factor (domain) of Job satisfaction and for Turnover intention statements of both questionnaires. The table 3-1 shows that the Cronbach’s Alpha value for each variable was greater than 0.7 except in the pay factor, indicating the standard for reliability is acceptable of questions or variables. According to Gliem and Gliem (2003) Cronbach’s Alpha values usually ranges from 0 to 1. If the Cronbach’s Alpha values are closer to 1, the reliability of elements in the scale is good. According to George and Mallery (2003), Cronbach’s Alpha coefficients exceeding 0.9 are excellent, values of 0.8 are good, values of 0.7 are acceptable, values of 0.6 are questionable, values of 0.5 are poor and below 0.5 are considered as unacceptable.
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Table 3-1 Cronbach’s Alpha Values for the Study Variables
Variables
Cronbach’s Alpha Values
Recognition (6 items)
0.8749
Supervisor (4 items)
0.7783
Co-workers (3 items)
0.8381
Pay (3 items)
0.6114
Turnover Intention (3 items)
0.7390
Source: Primary data (2016)
3.8 Feasibility of study and Ethical Issues Due to the researcher worked with the maintenance manager in the past in another company, they keep good relationship which makes possible to ask for his cooperation in the provision of necessary information from the PMSCM to develop this study, in distribute and collect the filled surveys. The survey was structured and distributed in hard copy; this was the most suitable form to manage it among employees in a short time, then the maintenance manager scanned filled surveys and sent them to the researcher. This way to approach PMSCM’s employees involved low costs to the research. The identity of the respondents was kept anonymous. The results of this study were kept confidential.
3.9 Chapter Summary In this chapter, the researcher has discussed the research methodology in this study. The research strategy that was used for the study has been discussed. The population and sample of the study, data sources, data collection method, measurement instruments used data processing and analysis have been described and discussed. The chapter concludes with the issues of validity, reliability, feasibility and ethics faced by the researcher in the study.
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4. FINDINGS AND DISCUSSION DISCUSSIONS 4.1 Introduction This chapter presents the findings of the analysis performed on data collected using the methodology explained in chapter 3. The chapter begins with an overview of the demographic characteristics of the sample. The chapter also discusses the findings of th the e study in relation to the objective of the study and provides answers to the formulated research questions.
4.2 Demographic characteristics As already mentioned in chapter 3 of th this study, sample consisted of 108 respondents. As the data was collected through hard copy survey design, where the respondents filled in their answers, missing values were encountered and were eliminated keeping 109 well filled surveys. surveys In this section, the demographic characteristics of the respondents were analyzed in terms of gender, age, level of education and number of years working in the organization.
4.2.1 Gender From the total of 109 respondents, all of them were male, representing 100% of the sample. Figure 4-1 1 illustrates the gender distribution in the sample.
Gender Percentage 1
0 Female
Male
Figure 4-1: Gender distribution
Source: Primary data (2016)
4.2.2 Age Regarding age, the dominant age group was respondents between 21 to 35 years, which represented 53% of the sample ple size. Respondents between 36 to 50 years accounted for 47% of the sample size. Respondents younger than 20 years and older than 50 years accounted for 0%. Figure 4-2 shows the age distributio distribution of respondents in the sample.
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Age Range Percentage 0.53
0.47
21-35
36-50
Figure 4-2: Age distribution
Source: Primary data (2016) 4.2.3 Level of education As indicated in Figure 4-3,, the majority of respondents ((64%) had a technical level, and 36% of the respondents a bachelor degree.
Level of Education Percentage 0.64 0.36
Bachelor degree
Technical
Figure 4-3: Level of Education
Source: Primary data (2016) 4.2.4 Number of years working in the Organization The majority of respondents (59% (59%) had been working orking for 5 to 10 years, the 39% 39 for 1 to 5 years and the 2% % for 10 to 15 years. Figure 4 4-4 illustrates the distribution of number umber of years working in the PMSCM among the respondents.
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Number of years working in the Organization Percentage 0.59 0.39
0.02 1 to 5
5 to 10
10 to 15
Figure 4-4: Number of years working in the Organization
Source: Primary data (2016) 4.3 Employees’ perceptions of Job Satisfaction The 1st minor research question of this study was: “What are the employees’ perceptions from their employer, in regards of job satisfaction, which affect to continue their job for long time in the PMSCM?” To answer this question,, statements of Job Satisfaction questionnaire (see see Appendix A1 for structure of questionnaire) were asked with the aim of finding out how employees perceive Job Satisfaction in the PMSCM.. Data analysis was done in relation to each of the Job Satisfaction factors (domains) discussed in the literature review, i.e. Recognition, Supervisor, Co-workers Co and Pay (see chapter 2). In order to measure the central tendency of employee’s ’s perceptions regarding each of the Job Satisfaction domains,, mean values were taken into consideration. For purposes of the analysis, the central tendency was 3.5. Therefore, mean values below this point were considered as being in disagreement with the corresponding statement, while mean values above this point were considered as being in agreement. eement. For all the analyses in this section a confidence level of 95% was used. In subsections 4.3.1, 4.3.2, 4.3.3, and 4.3.4 .4 the findings regarding customers’ custo perceptions are presented. 4.3.1 Respondents perceptions about Job Satisfaction in the Recognition domain Table 4-1 1 shows the mean of respondents’ perceptionss about each item in the recognition domain and the overall mean of the recognition domain regarding job satisfaction. It can be seen that the overalll mean for recognition domain (2 (2.87) was below 3.50, meaning that respondents re disagreed with the items regarding job satisfaction in this domain.
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The item “Those who do well on the job stand a fa fair ir chance of being promoted” has the highest score (4.63), 3), meaning that employees agreed with this item.. On the other hand, the item “I “ don’t feel that the work I do is appreciated appreciated” has the lowest score (1.91)) meaning that employees disagreed with this item. Table 4-1: Respondents perceptions about Job Satisfaction in the Recognition domain
4.3.2 Respondents perceptions about Job Satisfaction in the Supervisor domain It can be seen in the Table 4 4-2 that the overall mean value (3.48)) for supervisor domain is below 3.50 regarding job satisfaction. It means that respondents express expressed slightly disagreement about the items under this domain. The item “My supervisor shows too little interest in the feelings of subordinates” has the highest score (4.11)) meaning that employees agreed with this item. In contrast, the item “I like my supervisor” has the lowest score (3.04) that mean employees disagreed with this item. item Table 4-2: Respondents perceptions about Job Satisfaction in the Supervisor domain
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4.3.3 Respondents perceptions about Job Satisfaction in the co-workers workers domain Table 4-3 3 shows an overall mean of 2.70 for co-workers domain which is below 3.50, meaning that respondents disagreed with the items in this domain. It can be seen that the item “There is too much bickering and fighting at work” had the highest score (4. (4.01)) meaning that employees agree with this item. In contrast, the item “I like the people I work with” has the lowest score (2.02), meaning that employees disagree with this item.
Table 4-3: Respondents perceptions about Job Satisfaction in the Co-workers domain
4.3.4 Respondents perceptions about Job Satisfaction in the pay domain In relation to the perceptionss about job satisfaction in the pay domain, ain, the overall mean value of 2.80 indicates that the respondents disagreed with the items under this domain. omain. As shown in the Table 4-4, all the items are below 3.50; therefore all respondents disagreed with all the items in the pay domain. Table 4-4: Respondents perceptions about Job Satisfaction in the Pay domain
In conclusion, the majority of respondents had negative perceptions regarding all the domains of Job satisfaction. Job satisfaction regarding the supervisor domain provided the highest ghest score (3.48), (3 the recognition domain provided a score of 2.87, pay domain provided a score of 2.80 and co-workers domain
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provided the lowest score of 2.70. It means that respondents were disagreed and had negative perceptions regarding all the job satisfaction domains. These general findings provide answer to the 1st minor research question. 4.4
The influence of demographic characteristics on turnover intention
Given the key role that Job satisfaction plays on sustainability of businesses it is important to understand if demographic variables have an influence on the Turnover Intentions of PMSCM’s employees, and if that is the case, to understand what demographic characteristics have a stronger influence on turnover intention. To test the influence of the demographic characteristics on turnover intention, a multiple regression test was performed. In order to be aligned with multiple regression terminology, the researcher has considered named “demographic variables” to the five demographic characteristics. Table 4-5 Multiple regression of demographic variables and Turnover Intention
Predictors
Prob >F
R
2
Gender
95% Confidence Interval
Coef.
Std. Err
t
P-value
-
-
-
-
-
-
.3125
.1102
2.84
0.006
.0939
.5311
.0050
.0576
0.09
0.930
-.1092
.1194
.0392
.094
0.42
0.678
-.1473
.2257
-.0255
.0237
-1.07
0.285
-.0725
.0215
3.4326
.4491
7.64
0.000
2.5420
4.3233
0.0244 0.1012 Age Education
F (4.104)
Adj- R2
Workingyears Company
2.93
Constant
0.0666
Source: Primary Data (2016) Although the R-squared=0.1012 of the model is moderate (Acock A. C., 2012), it was evident that there exists relationship between the demographic variables and Turnover Intention due to P=0.0240.05 at 95% confidence interval).This finding provides an answer to mino++r research question 3 of this study. 4.5.5 The influence of Co-workers on Turnover Intention Minor Research question 4 of the study was: “How does co-workers’ relationship influence turnover intentions of PMSCM’s employees?” To answer this question, a multiple regression analysis for Job satisfaction on turnover intention was performed. The results in Table 4-9 indicate that co-workers had not a significant influence on turnover intention (P=0.490>0.05 at 95% confidence interval). This finding provides an answer to minor research question 4 of this study. 4.5.6 The influence of Pay on Turnover Intention Minor Research question 5 of the study was: “How does pay scale influence turnover intentions of PMSCM’s employees?” To answer this question, a multiple regression analysis for Job satisfaction on turnover intention was performed. The results in Table 4-8 indicate that pay had a significant influence on turnover intention (P=0.001
