Undergraduate Thesis Proposal - Industrial Gas Company

Makanan
Makanan Tembakau
25 20 15 10 5 0
30 25 20 15 10 5 0
Tembakau
Tekstil Pakaian jadi Kulit dan Kayu, Kertas dan Penerbitan, Batu bara, Karet dan Series1 Barang Logam dasar Barang- Mesin dan Peralatan Mesin Radio, Peralatan Kendaraan Alat Furniture Daur ulang
Tekstil Pakaian jadi Kulit dan Kayu, Kertas dan Penerbitan Batu bara, Karet dan Barang Logam dasar Barang-
1.1. Research Background HR in gas company in general.
1. INTRODUCTION
Produktivitas Tenaga Kerja 2009 (persentase)
Jumlah Perusahaan Menurut Sub Sektor 2009 (persentase)
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Mesin dan
Peralatan Mesin Radio, Peralatan Kendaraan Alat Furniture Daur ulang Series1
Petra Christian University
Jumlah Tenaga Kerja Industri Besar Dan Sedang Menurut Sub Sektor 2009 (persentase)
Mak Tem Tekstil Paka Kulit Kayu Kert Pene Batu Kare Bara Loga Bara Mesi Pera Mesi Radi Pera Kend Alat Furn Daur 20 10 0 Series1
Nilai Tambah Menurut Subsektor 2009 (persentase)

20 15 10 5 Makanan Tembakau Tekstil Pakaian jadi Kulit dan Kayu, barang Kertas dan Penerbitan, Batu bara, Karet dan Barang Logam dasar Barang- Mesin dan Peralatan Mesin listrik Radio, Peralatan Kendaraan Alat Furniture Daur ulang 0 Series1
HR is the asset of companies
1.1.1. Description of Internship While the writers are doing the research, the writers are doing internships in one of the biggest industrial gas company in Indonesia. The company is the first industrial gas company in Indonesia. The core business of the company is to supply industrial gases such as Oxygen, Nitrogen, and many other gases and related services to almost any industry such as metal works, metallurgy, chemical processes and petrochemical industry, electronic and electrical industry, medical and pharmaceutical industry, food and beverage industry, drinking water treatment, waste water treatment, agribusiness, etc. Furthermore, the writers are having internship period of January 16th, 2012 until May 16th, 2012, which means that the internship is conducted for about four months. The writers were put in different departments of the company, which is 2
one of the writers is put in Export-Import Department. Meanwhile, the other writer is put in Human Resource Management. Next, the writer who is put in Export-Import department learns a lot during the internship period. With the help of the supervisors and other co-workers, the writer could learn about the export-import documents, the procedure of importing or exporting products to or from Indonesia, creating documents that are needed to conduct the export-import business, and creating a good database of hardcopy and softcopy for the documentation of the export-import activities of the company. Moreover, the writer who is put in Human Resource department also learns a lot during the internship period. Finally, the writers feel really blessed and grateful that the writers could have internship opportunity in one of the biggest industrial gas company in Indonesia. The writers could learn a lot through the help of employees of the company and in finishing the Final Research Report.
1.1.2. Justification for the Research Analyzing the relationship between job satisfaction and organizational commitment is particularly crucial nowadays, as people often do not work at the same company or job throughout their lifetime. It is also sometimes hard to find suitable people for certain positions. So, once an ideal candidate is chosen, companies are more likely willing to make a great effort to retain those employees. If two employees exhibit different levels of job satisfaction and that job satisfaction can be proven to lead to organizational commitment, the employer will likely hire the employee with the higher level of job satisfaction. This is because the employer can expect the more satisfied individual to stay with the company. Next, the main interest of the writers research is to investigate whether an employees job satisfaction will affect his or her level of commitment in the company. It is important to study the relationship between job satisfaction and organizational commitment in the company, because it will help the writers to understand how employees work and their organizational behaviours in the
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company. Also, this is of particular interest for the company, because the costs of hiring and training new employees are high. Therefore, the company should try to keep a constant workforce, which also helps to reduce the risks of deterioration in services offered to its customers. Generally, it is expected that employees are more likely to stay with the company and be highly committed when they can see a strong linkage between the companys performance and their work. Furthermore, according to Aamodt (2010), when employees experience low job satisfaction and organizational commitment, it can be costly since the company has to spend money for advertisement of the vacant position, and training and development cost. Absenteeism may also be a very costly issue because it can result in reduced productivity when lowly committed employees do not see any link between the tasks they do and the companys profitability. Moreover, at times, employees may not leave the company even when they are dissatisfied or do not feel committed to the company. This condition makes studying the two variables serve an even greater importance. When workers are dissatisfied, this may create counterproductive behavior and lack of organizational citizenship behaviors, which can lead to a lower level of organizational commitment. In turn, this may result in severe consequences such as labour strikes. Another reason why the writers are interested in studying whether job satisfaction would lead to organizational commitment is because this may increase productivity. With an improvement in productivity, the company will operate better and have higher growth, which is an important goal for the company. Thus, it is critical to investigate the employees level of satisfaction and their organizational commitment. Finally, if the research shows that job satisfaction and organizational commitment are related, it would be beneficial for the company, since it would only need to increase one variable (job satisfaction) to achieve the positive effect of the other (organizational commitment). For example, the company could reward workers with job advancement opportunities or change a facet of the job in a desirable way, which will increase job satisfaction and ultimately lead to a higher level of organizational commitment. Turnover 13%
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1.1.3. Statement of Research Problem Does pay become the significant facet of job satisfaction that influences the affective commitment of the employees of the company? Does promotion become the significant facet of job satisfaction that influences the affective commitment of the employees of the company? Does supervision become the significant facet of job satisfaction that influences the affective commitment of the employees of the company? Does fringe benefit become the significant facet of job satisfaction that influences the affective commitment of the employees of the company? Does contingent reward become the significant facet of job satisfaction that influences the affective commitment of the employees of the company? Does operating procedure become the significant facet of job satisfaction that influences the affective commitment of the employees of the company? Does co-worker become the significant facet of job satisfaction that influences the affective commitment of the employees of the company? Does nature of work become the significant facet of job satisfaction that influences the affective commitment of the employees of the company? Does communication become the significant facet of job satisfaction that influences the affective commitment of the employees of the company?
1.2. Research Objectives To know whether pay becomes the significant facet of job satisfaction that influences the affective commitment of the employees of the company or not. To know whether promotion becomes the significant facet of job satisfaction that influences the affective commitment of the employees of the company or not.
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To know whether supervision becomes the significant facet of job satisfaction that influences the affective commitment of the employees of the company or not.
To know whether fringe benefits becomes the significant facet of job satisfaction that influences the affective commitment of the employees of the company or not.
To know whether contingent reward becomes the significant facet of job satisfaction that influences the affective commitment of the employees of the company or not.
To know whether operating procedure becomes the significant facet of job satisfaction that influences the affective commitment of the employees of the company or not.
To know whether co-worker becomes the significant facet of job satisfaction that influences the affective commitment of the employees of the company or not.
To know whether nature of work becomes the significant facet of job satisfaction that influences the affective commitment of the employees of the company or not.
To know whether communication becomes the significant facet of job satisfaction that influences the affective commitment of the employees of the company or not.
1.3. Research Benefit 1.3.1. For the Company 1. To be able to determine the level of the job satisfaction and the affective commitment of the employees. 2. To be able to determine the significant attributes of nine facets of job satisfaction that could boost the affective commitment. 3. To be able to gain information for use in better human resource management in the future.
1.3.2. For the University
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Completing the information related with the effect of job satisfaction towards the organizational commitment.
2. 3.
Developing further networking with the company and the department. Providing feedback for prior similar research and serving as a stepping stone for further research in the future.
1.3.3. For the Student 1. Applying the knowledge and theories that the writer got from academicals and theoretical to the real business world. 2. 3. Gaining real-time research experience to develop research skill. Contributing to the company as appreciation for the opportunity given to the writer.
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2. THEORETICAL BACKGROUND
2.1. Concepts and Definitions 2.1.1. Human Resource Management
2.1.2. Organizational Behavior According to Newstrom & Davis (1997, p5), organizational behavior is the study and application of knowledge about how people as individuals and as groups act within organizations. Also, Newstrom & Davis states that organizational behavior is an applied science, which consists of the information about effective practices in one organization is being extended to many others. Newstrom & Davis also states that organizational behavior as a science share four goals. The first objective is to describe, systematically, how people behave under a variety of conditions. Achieving this goal allows employees to communicate about human behavior at work using a common language. A second goal is to understand why people behave as they do. Next, the third goal is predicting, which means to predict the employee behavior in the future. Then, the fourth goal is to control and manage the employees activity at work. According to Robbins & Judge (2011, p ), organizational behavior is a field study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organizations effectiveness. Also, Robbins and Judge try to elaborate more on the organizational behavior as a field study, which means that it is a distinct area of expertise with a common body of knowledge, and it studies three determinants of behavior in organizations, which are individuals, groups, and structure. Therefore, organizational behavior applies the knowledge gained about individuals, groups,
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and the effect of structure on behavior in order to make organizations work more effectively. Furthermore, Robbins and Judge sum up their definition of organizational behavior as the study of what people do in an organization and how their behavior affects the organizations performance. Therefore, organizational behavior concerns
specifically with employment-related situations, such as jobs, work, absenteeism, employment turnover, productivity, human
performance, and management.
2.1.3. Job Satisfaction According to Robbins & Judge (2011, p ), Job satisfaction is a positive feeling about a job resulting from an evaluation of its characteristics. Two Factor Theory Herzberg, Mausner, and Synderman (1959) proposed the motivator-hygiene theory, or as it more commonly known, two factor-theory. Two factor theory assumes that everyone has two types of needs, which are hygiene needs and motivator needs. Hygiene needs include factors extrinsic to the work itself, such as the work environment, supervision, and pay. Motivator needs include intrinsic factors, such as achievement, recognition, and work activities. According to Herzberg, when hygiene needs are not fulfilled, the worker is dissatisfied. When hygiene needs are fulfilled, the worker is not dissatisfied. The fulfillment of the hygiene needs are fulfilled, the worker is not dissatisfied. The fulfillment of the hygiene needs does not produce a state of satisfaction, but rather a state of neutrality. For example, if your garbage is not collected, you will undoubtedly become dissatisfied. However, the fact that your garbage is collected will not make you happy. Our attitude toward
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garbage collection is probably best described as a neutral state that is disrupted only by the absence of garbage collection. When motivator needs are fulfilled, the worker is satisfied; when they are not fulfilled, the worker is not satisfied. However, the state of being not satisfied is not equivalent to being dissatisfied (similar to hygiene needs). For example, when workers obtain a sense of achievement and responsibility from their jobs, they are satisfied. However, if they do not obtain achievement and responsibility at work, they do not feel satisfied, which is different from being dissatisfied. Two-factor theory even implies that a worker can be simultaneously satisfied and dissatisfied because satisfaction and dissatisfaction are separate states. However, according to Dipboye, Smith and Howell (1994), twofactor theory is primarily a descriptive theory. That is, it attempts only to describe the conditions under which workers are influenced to feel satisfied or dissatisfied. Comparison Theory Comparison theory is such one class of cognitive, process-oriented theory of job satisfaction (Dipboye, Smith and Howell, 1994, p.149). Comparison theory asks workers to consider how much of some characteristic they have in their present job and how much of this characteristic they would like to have in their present jobs. The characteristic on question is typically framed in terms of different type of comparisons, such as need, value, or special comparisons. For example, you might be asked to consider how much opportunity for social interaction you have in your present job and how much you would prefer to have. Lawler (1973) incorporated the concept of attained versus desireneeds in his model of facet of satisfaction. It is a facet satisfaction model because satisfaction with various components or facets of the job, such as supervision, pay, or the work itself, is considered. Lawlers model specifies that workers compare what their jobs
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should provide in terms of job facets, such as promotions and pay, to what they currently receive from their jobs. However, simple need comparison theory is extended by also weighing the influence of certain worker characteristic (such as skill, training, and age) and job characteristics (such as degree of responsibility and difficulty). An example, will clarify the relationship implied by Lawlers model. In determining him/her level of job satisfaction, a worker might consider that he/she brings an MBA and ten years of business experience to a responsible managerial job. A coworker, him/her referent other, has only a bachelors degree and eight years of experience. The coworkers job is also a managerial position, but with less responsibility and a slightly higher salary. Consequently, the worker, after weighing the various inputs, outcomes, and amounts received, feels dissatisfied with him/her pay. However, this theory is difficult to apply, especially in finding out the part of referent to others.
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Figure Lawlers (1973) model of facet of satisfaction Source: Lawler, E.E. (1973). Motivation in Work Organizations. Monterey, CA: Brooks/Cole. According to Spector, (1997, p ), job satisfaction is an attitudinal variable that reflects how people feel about their jobs overall as well as about various aspects of them. In simple terms, job satisfaction is the extent to which people like their jobs; job dissatisfaction is the extent to which they dislike them. According to Spector, there have been two approaches to the study of job satisfaction, which are the global approach and the facet approach. The global approach treats job satisfaction as a single, overall feeling toward the job. Meanwhile, the alternative approach is to focus on job facets, or different aspect of the job, such as rewards (pay or fringe benefits), other people on the job (supervisors or co-workers), job conditions, and the nature of the work itself.
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Furthermore, Spector sees the facet approach permits a more complete picture of job satisfaction. He thinks that an individual typically has different levels of satisfaction with the various facets. For example, an employee might be very dissatisfied with pay and fringe benefits, but at the same time be very satisfied with the nature of work and supervisors. For the purposes of the research conducted, nine facets of job satisfaction were identified , namely: pay, promotion, supervision, benefits, contingent rewards, operating procedures, co-workers, nature of the work and
communication (Spector 1997).
Table
Facet Pay Promotion Supervision Fringe Benefits Contingent Rewards Operating Procedures Co-workers Nature of Work Communication Description Satisfaction with pay and pay raises Satisfaction with promotion opportunities Satisfaction with persons immediate supervision Satisfaction with monetary and non-monetary benefits Satisfaction with appreciation, recognition, and rewards for good work Satisfaction with operating policies and procedures Satisfaction with co-workers Satisfaction with type of work done Satisfaction with communication within the organization
Source: Spector, P. (1997). Job Satisfaction: Application, Assessment, Causes and Consequences. California: Sage.
Pay Pay is associated with global satisfaction and even more closely with the facet of pay satisfaction. Although money is important to individuals, research has shown that individuals who earn more are not necessarily more satisfied in their jobs (Spector 2008).
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Promotion Job satisfaction is likely to be experienced by individuals who perceive promotional opportunities to be fair (Robbins 1993; Spector 1997). Promotions provide opportunities for personal growth, more responsibilities and increased social status (Robbins 1993).
Supervision An immediate supervisors behaviour is also a determinant of job satisfaction (Spector 1997). Employee satisfaction increases when the immediate supervisor is understanding, friendly, offers praise for good performance, listens to employees opinions and shows personal interest in them (Robbins 1993).
Fringe Benefits Spector (1997) divides fringe benefits into monetary and non-monetary benefits. Increasing intrinsic and extrinsic fringe benefits that attract an employees attention may subsequently increase their performance and induce higher levels of organisational commitment
Contingent Rewards According to Spector (1997), examples of contingent rewards are appreciation, recognition and rewards for good work. Employee dissatisfaction may result if an employee perceives that their efforts are not recognised or that their rewards are not equitable, tied to their performance or tailored to their needs (Robbins 1993). Contingent rewards support the reinforcement theory of motivation, in terms of which performance-relevant behaviours will increase in frequency if rewarded (Spector 2008).
Operating Procedures Specific job characteristics lead to positive psychological states such as experiencing the meaningfulness of work, feelings of responsibility and knowledge about the products of work, which in turn lead to satisfaction with the job (Judge, Bono & Locke 2000; Spector 1997). Autonomy gives rise to feelings
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of responsibility. Knowledge about the products of work is gained through job feedback. When these characteristics are combined, the scope and complexity of a job is defined. High scope results in high levels of job satisfaction, while low scope leads to boredom and dissatisfaction. Aspects of the job and the organisational environment relate to job satisfaction, and as a result some situations produce positive job satisfaction, while others produce job dissatisfaction (Spector 2008).
Co-workers Perceptions of fairness are important determinants of peoples behaviour and reactions to work (Spector 2008). According to Martins and Coetzee (2007), employee motivation and organisational culture are affected by how an employees needs and objectives are integrated with the needs and objectives of the organisation, worklife balance practices and physical work environment. Work fulfils an individuals social factor need. Therefore, having friendly and supportive co-workers leads to increased job satisfaction (Robbins 1993). According to Ghazzawi (2008), an employees coworkers, the groups they belong to, and the culture to which an individual is exposed all have the potential to influence job satisfaction.
Nature of Work The nature of the work may be influenced by the supervisors behaviour. The nature of work satisfaction is defined as the employees satisfaction with the type of work they do (Spector 1997). Employees prefer work that is mentally challenging in that it provides them with opportunities to use their skills and abilities and offers a variety of tasks, freedom and feedback on how well they are doing (Robbins 1993).
Communication The formation of specific goals, feedback on progress towards these goals, and reinforcement of desired behaviour all stimulate motivation and require communication. The fewer distortions, ambiguities and incongruities that occur in
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communication within organisations, the more satisfied employees will feel with regard to their work (Robbins 1993).
2.1.4. Organizational Commitment According to Dipboye, Smith and Howell (1994, p), organizational commitment is defined as a workers identification with and involvement in a particular organization. Although, like job satisfaction, organizational commitment refers to ones affect toward his or her employing organization, organizational commitment is thought to be more global and enduring than job satisfaction. Specifically, organizational commitment refers to employee attitude about the whole organization and therefore is probably less influenced by daily events (e.g., a disagreement with the supervisor).
The concept of organisational commitment has attracted considerable interest in an attempt to understand and clarify the intensity and stability of an employees dedication to the organisation (Lumley 2010). In the context of the present study, organisational commitment is regarded as an attitude, as it relates to individuals mindsets about the organisation (Meyer & Allen 1991).
Mathieu and Zajac (1990) believe that developing a better perception of the progression associated with organisational commitment has an effect on employees, organisations and the world in general. The level of employees organisational commitment will possibly ensure that they are better suited to receiving both extrinsic rewards (which include remuneration and benefits) and psychological rewards (which include job satisfaction and associations with fellow employees) related to associations. Organisational commitment is generally assumed to reduce adandonment behaviours, which include tardiness and turnover. In addition, employees who are committed to their organisation may be more willing to participate in extra-role activities, such as being creative or
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innovative, which frequently guarantee an organisations competitiveness in the market (Katz & Kahn 1978).
Organisational commitment is viewed as a psychological connection that individuals have with their organisation, characterised by strong identification with the organisation and a desire to contribute to the accomplishment of organisational goals (Meyer & Allen 1997). Meyer and Allens (1991) threecomponent model of organisational commitment is therefore of relevance to this research. Meyer and Allen (1991) conceive of organisational commitment as reflecting three core themes, namely affective, continuance and normative commitment. Also, according to Meyer and Allen (1991) affective, continuance, and normative commitment are distinguishable components of commitment.
Commitment can be seen as an affective point of reference towards the organisation (affective commitment), acknowledgement of the consequences of leaving the organisation (continuance commitment), and an ethical responsibility to stay with the organisations (normative commitment) (Meyer & Allen 1991).
Affective Commitment Affective commitment is the extent to which an employee wants to remain with the organization, cares about the organization, and is willing to exert effort on its behalf. It is the individuals psychological or emotional connection to, identification with and participation in the organisation (Meyer & Allen 1997). Employees who are affectively committed to the organisation will probably carry on working for it because they want to (Meyer & Allen 1991). Individuals who are dedicated at an emotional level usually remain with the organisation because they see their individual employment relationship as being in harmony with the goals andvalues of the organisation for which they are currently working. For example, an employee of the Red Cross might like her coworkers and her boss, share the altruistic goals of the organization, and realize that her efforts will result in better organizational performance.
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Continuance Commitment Continuance commitment is the extent to which an employee believes he/she must remain with the organization due to the time, expense, and effort that he/she has already put into it or the difficulty she would have in finding another job (Meyer & Allen 1997). Continuance commitment is also regarded as an awareness of the costs associated with leaving the organisation (Meyer & Allen 1997). Because of the individuals awareness or consideration of expenses and threats linked to leaving the organisation, continuance commitment is considered to be calculative (Meyer & Allen 1997). Individuals with continuance commitment remain with a specific organisation because of the money they as employees earn as a result of the time spent in the organisation, and not because they want to. This differs from affective commitment, where individuals remain with an organisation because they want to and because they are familiar with the organisation and its principles. For example, a chamber of commerce director who spent ten years making business contacts, getting funding for a new building, and earning the trust of the local city council. Though he/she could take a new job with a chamber in a different city, she would need to spend another ten years with that chamber just to make the gains she has already made. As another example, an employee might hate her job and want to leave, but realizes that no other organization would hire her or give her the salary she desires.
Normative Commitment Normative commitment is the extent to which an employee feels obligated to the organization and, as a result of this obligation, must remain with the organization (Meyer & Allen 1997). Normative commitment also can be explained as a sense of responsibility to continue employment with a specific organisation because he/she believes that he/she owes the organisation (Meyer & Allen 1997). The internalised idea of responsibility and commitment allows employees continued membership that is appreciated by a specific organisation (Meyer & Allen 1991).
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A good example of normative commitment would be an employee who was given him/her first job by an organization, was mentored by him/her manager, and was trained at great cost to the organization. The employee may feel that she is ethically obligated to remain with the organization because of its extensive investment in him/her.
Moreover, Meyer et al. (1993) discuss the nature and origins of the three components of commitment. Figure . shows the major influences on each commitment. Also, different factors are involved in each component. Affective commitment arises from job conditions and met expectations, that is, whether the job provided the rewards the employee expected. Meanwhile, continuance commitment is produced by the benefits accrued from working for the organization and by the lack of available alternative jobs. Finally, normative commitment comes from the employees performance values and from the obligations the person feels toward the employer. These obligations derive from favors that the organization has done, such as paying the persons school expenses.
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Figure Source: Meyer, J.P., Allen, N.J. (1993). Commitment to organizations and occupations: Extension and test of a three-component-conceptualization. Journal of Applied Psychology, 78, 538-551.
2.2. Relationship Between Concepts Strong positive relationships have been observed between organisational commitment and desirable work outcomes such as performance, adaptability and job satisfaction (Angle & Perry 1981; Hunt, Chonko & Wood 1985; Mowday, Porter & Dubin 1974). Research results indicate that satisfied employees tend to be committed to an organisation, and employees who are satisfied and committed
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are more likely to attend work, stay with an organisation, arrive at work on time, perform well and engage in behaviours helpful to the organisation (Aamodt 2010). According to Kotze and Roodt (2005), a strong correlation has been empirically established between job satisfaction, employee commitment and retention. Organisational commitment is most probably affected by factors such as type and variety of work, the autonomy involved in the job, the level of responsibility associated with the job, the quality of the social relationship at work, rewards and remuneration, and the opportunities for promotion and career advancement in the company (Riggio 2009).
2.3. Summary of Relevant Research http://www.rotman.utoronto.ca/~scote/hightermhotel.pdf Title: Job Satisfaction & Organizational Commitment Author: P Heslin The purpose of this study is to analyze the relationship between job satisfaction and organizational commitment. We chose to study this issue on Sleep Wells Seattle branch, the Downtown Hotel. Employees productivity is largely related to their level of job satisfaction and in fact, the turnover rate can be reduced with a higher level of organizational commitment. Therefore, it is important for an organization to study the relationships between these two variables. A survey was made available on the web to collect the information for demographic, job satisfaction and organizational commitment of each employee. Altogether, thirty-two employees responded to the survey. The results from the survey on job satisfaction were compared to the results reported for the level of organizational commitment. After analyzing the data, we found that there is a relatively strong correlation between job satisfaction and organizational commitment. Generally speaking, higher level of job satisfaction will lead to higher level of organizational commitment. Generally, when people are satisfied with their jobs, they will have a positive attitude feeling about their jobs. In their minds, other jobs would not be better than the current one. Therefore, it is unlikely that they will change their jobs.
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Employees prefer to stay in their company and work hard for a return. If employees feel that the company treats them fairly or well, the workers will feel that they are responsible to keep working hard for their companies. Also, in order to maintain their current satisfied jobs, employees will perform well and work effectively, which is beneficial for the company. Therefore, in order to increase the employees level of commitment, the manager can try to increase their employees level of job satisfaction.
https://kucampus.kaplan.edu/documentstore/docs09/pdf/picj/vol3/issue1/Job_ Satisfaction_and_Organizational_Commitment_Among_Probation_and_Parole_O fficers_Vol3_1.pdf Title: Job Satisfaction and Organizational Commitment Among Probation and Parole Officers: A Case Study Author: Seble Getahun, Barbara Sims, and Don Hummer
Numerous studies have focused on job satisfaction and organizational commitment of police officers and correctional personnel, but few have examined these concepts within community corrections agencies. This study draws on prior research into job satisfaction of criminal system actors and looks at the explanatory power of these concepts for probation and parole officers from one county in a northeastern state. Results indicate that employees are most satisfied when their occupational tasks are meaningful experiences into which they have input and are collaborative efforts with supervisors. Background characteristics of officers had no influence on job satisfaction, indicating that organizational culture and management style are the more important factors in explaining employee satisfaction and, possibly, retention.
http://ccsenet.org/journal/index.php/ijbm/article/viewFile/5204/4901.. Title: Job Satisfaction and Organizational Commitment of University Teachers in Public Sector of Pakistan
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Author: Prof. Dr. Muhammad Ehsan Malik, Dr. Samina Nawab, Basharat Naeem, Rizwan Qaiser Danish Study Objectives: The purpose of this investigation was to determine the impact of teachers satisfaction with job dimensions on perceived organizational commitment in public sector universities of Pakistan. In addition, the study aimed at exploring to what extent these teachers are committed to their universities and satisfied with different dimensions to their job. Research Design/Methodology: A survey-based descriptive research design was used. The study was carried on teaching faculty working in two public sector universities of Pakistan. About 650 survey questionnaires were distributed in October, 2009 by employing diverse modes of communication such as email, in person and post. Multiple follow ups yielded 331 statistically usable questionnaires. Stepwise regression analysis and one sample t-tests were used to confirming the research hypotheses. Results: The findings of the study indicated that the satisfaction with work-itself, quality of supervision and pay satisfaction had significant positive influence on organizational commitment of faculty members. They had high degree of organizational commitment and satisfaction with work-itself, supervision, salary, coworkers and opportunities for promotion. Research limitations/implications: The focus of the study was teachers working at public sectors universities in Pakistan only. Self-reported measures were used to measure job satisfaction and organizational commitment. Since respondents were from two public sector universities only so the findings cannot be generalized to faculty members of public sector universities in Pakistan. Practical implications: Considering the importance of university teachers organizational commitment and their effects on effectiveness of the universities, policy makers and academic administrators should take necessary measures for the optimal provision of intrinsic and extrinsic job rewards to make their core workforce highly satisfied and committed. Originality/value: The relevant literature shows that university teachers commitment and job satisfaction is under-researched area particularly in the public sector institutions of higher learning in Pakistan. So, the current
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investigation has contributed to improve the understanding on significant issue. Besides, the study findings are discussed in perspective of practical implications in public sector universities.
The study intended not only to ascertain the influence of job facets satisfaction on organizational commitment of public sector university faculty in Pakistan but to determine their degree of commitment and satisfaction also. Based on the findings, it is concluded that nature of work, salary satisfaction and quality supervision are significant predictors of organizational commitment of the Pakistani public sector university faculty. It was also found out that they were highly satisfied with their supervisor, coworkers, compensation, work-itself and opportunities of advancement in their universities. Common sense confirms that higher education is not immune to the problem of teachers low level of job satisfaction and organizational commitment which could result into unfavorable economic and non economic outcomes such as high exit turnover, reduced teaching effectiveness and intellectual development of the students. So policy makers and academic administrators should take necessary measures for the optimal provision of intrinsic and extrinsic job rewards to make their core workforce highly satisfied and committed to reap the benefits of improved motivation, performance and organizational citizenship behaviors.
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2.4. Framework of the Report
Figure Framework of the report
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2.5. Hypothesis The writers are assuming several possible results depending on the condition. Those are: Hypothesis 1
H0: It is presumed that the employees of the company are not having high affective commitment.
H1: It is presumed that the employees of the company are having high affective commitment.
Hypothesis 2
H0: It is presumed that the employees of the company are not having high continuance commitment.
H1: It is presumed that the employees of the company are having high continuance commitment.
Hypothesis 3
H0: It is presumed that the employees of the company are not having high normative commitment.
H1: It is presumed that the employees of the company are having high normative commitment.
Hypothesis 4
H0: It is presumed that the employees of the company are not having high organizational commitment.
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H1: It is presumed that the employees of the company are having high organizational commitment.
Hypothesis 5
H0: It is presumed that there is no significant relationship between the variables of nine facets of job satisfaction with the affective commitment of the employees of the company.
H1: It is presumed that there is significant relationship between the variables of nine facets of job satisfaction with the affective commitment of the employees of the company.
Hypothesis 6
H0: It is presumed that there is no significant relationship between the variables of nine facets of job satisfaction with the continuance commitment of the employees of the company.
H1: It is presumed that there is significant relationship between the variables of nine facets of job satisfaction with the continuance commitment of the employees of the company.
Hypothesis 7
H0: It is presumed that there is no significant relationship between the variables of nine facets of job satisfaction with the normative commitment of the employees of the company.
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H1: It is presumed that there is significant relationship between the variables of nine facets of job satisfaction with the normative commitment of the employees of the company.
Hypothesis 8
H0: It is presumed that there is no significant relationship between the variables of nine facets of job satisfaction with the organizational commitment of the employees of the company.
H1: It is presumed that there is significant relationship between the variables of nine facets of job satisfaction with the organizational commitment of the employees of the company.
Hypothesis 9
H0: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/ Operating Procedures/ Co-workers/ Nature of Work/ Communication are not the most significant factor that influences the affective commitment of the employees of the company.
H1: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/ Operating Procedures/ Co-workers/ Nature of Work/ Communication are the most significant factor that influences the affective commitment of the employees of the company.
Hypothesis 10
H0: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/ Operating Procedures/ Co-workers/ Nature of Work/ Communication are
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not the most significant factor that influences the continuance commitment of the employees of the company.
H1: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/ Operating Procedures/ Co-workers/ Nature of Work/ Communication are the most significant factor that influences the continuance commitment of the employees of the company.
Hypothesis 11
H0: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/ Operating Procedures/ Co-workers/ Nature of Work/ Communication are not the most significant factor that influences the normative commitment of the employees of the company.
H1: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/ Operating Procedures/ Co-workers/ Nature of Work/ Communication are the most significant factor that influences the normative commitment of the employees of the company.
Hypothesis 12
H0: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/ Operating Procedures/ Co-workers/ Nature of Work/ Communication are not the most significant factor that influences the organizational commitment of the employees of the company.
H1: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/ Operating Procedures/ Co-workers/ Nature of Work/ Communication are the most significant factor that influences the organizational commitment of the employees of the company.
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3. RESEARCH METHOD
3.1. Type of Research Method In this step we need to design the research in a way that the requisite data can be gathered and analyzed to arrive at a solution and to answer the previous problem statements. Different with Cooper and Schindler who categorize research method into three types, which are exploratory, descriptive and causal research methods, Sekaran and Boogie (2010) defines that there are four purposes of the research, namely exploratory, descriptive, hypothesis testing, and case study, depends on the stage to which knowledge about the research topic has advanced. The first purpose of the research is exploratory study, which is undertaken when not much is known about the situation at hand, or no information is available on how similar problems or research issues have been solved in the past. In essence, exploratory studies are undertaken to better comprehend the nature of the problem, since very few studies might have been conducted in that area. Some qualitative studies where data are collected through observation, interviews, or focus groups are exploratory in nature. However, exploratory studies are also necessary when some facts are known, but more information is needed for developing a viable theoretical framework. In sum, exploratory studies are important for obtaining a good grasp of the phenomenon of interest and advancing knowledge through subsequent theory building and hypothesis testing. The second purpose of a research is descriptive study, which is undertaken in order to ascertain and be able to describe the characteristics of the variables of interest in a situation. In addition, descriptive studies are undertaken in organizations to learn about and describe the characteristics of a group of employees, as for example, the age, education level, job status, and length of service. The goal of the descriptive study is to offer a profile or to describe relevant aspects of the phenomena of interest to the researcher from an individual, organizational, industryoriented, or other perspective. The third purpose of a research is actually hypotheses testing, which is a study that usually explains the nature of certain relationships, or establishes the
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differences among groups or the independence of two or more factors in a situation. Hypotheses testing is undertaken to explain the variance in the dependent variable or to predict organizational outcomes. Last but not least is the case study research that involves in-depth, contextual analyses of matters relating to similar situations in other organization. Case studies, as a problem solving technique, are not frequently resorted to in organizations because findings the same type of problem in another comparable setting is difficult due to the reluctance of the companies to reveal their problems. Case studies that are qualitative in nature are, however, useful in applying solutions to current problems based on past problem-solving experiences. Also, case studies are useful in understanding certain phenomena, and generating further theories for empirical testing. Based on those explanations, in this research, the writer conducts exploratory study as well as causal study to answer the statement of research problems and corresponding research objectives. Through exploratory study, the writer will be able to understand what factors are influencing the effectiveness of employee training and development through the components. It is expected that exploratory study helps the writer, the company, and the industry to better understand this research topic because there is no specific research topic in the consulting industry. Furthermore, in this research, the writer also uses descriptive study to have information on the respondents profile and their opinion about training and development. The writer conducts frequencies and crosstabulations analysis as parts of descriptive study.
3.2. Description of Variables The variable used in this research can be classified into two, dependent and independent, approached by Sekaran and Boogie (2009). Dependent variable is the variable of primary interest to the researcher, which is the employee performance. On the other side, independent variable is the variable that influences the dependent variable in either a positive or negative way. The
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components of training and development are the independent variables, while the results or the outcomes are the dependent variables.
3.2.1. Dependent Variable Dependent variable is the variable of primary interest to the researcher. The researchers goal is to understand and describe the dependent variable, or to explain its variability, or predict it. In other words, it is the main variable that lends itself for investigation as a viable factor (Sekaran and Bougie, 2009, p. 70). Furthermore, the dependent variable that the writers would like to use in this research is the organizational commitment by Allen & Meyer (1993). 3.2.1.1. Dimension 1: Affective Commitment Element 1: Job conditions Element 2: Met expectations
3.2.1.2. Dimension 2: Continuance Commitment Element 3: Benefits accrued Element 4: Jobs available
3.2.1.3. Dimension 3: Normative Commitment Element 5: Personal values Element 6: Felt obligations
3.2.2. Independent Variable Independent variable is one that influences the dependent variable in either a positive or negative way. That is, when the independent variable is present, the dependent variable is also present, and with each unit of increase in the independent variable, there is an increase or decrease in the dependent variable (Sekaran and Bougie, 2009, p.70). Also, according to Sekaran and Bougie, to establish that a change in the independent variable causes a change in the dependent variable, all four of the following condition should be met:
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1. The independent and the dependent should covary: in other words, a change in the dependent variable should be associated with a change in the independent variable. 2. The independent variable (the pressunmed causal factor) should precede the dependent variable. In other words, there must be a time sequence in which the two occur: the cause must eccour before the effect. 3. No other factor should be a possible cause of the change in the dependent variable. Hence, the researcher should control for the effect of other variables. 4. A logical explanation (a theory) is needed about why the independent variable affects the dependent variable.
Furthermore, the independent variables that the writers would like to use in this research are the nine facets of job satisfaction by Spector (1997).
3.2.2.1. Dimension 1: Pay Element 1: Satisfaction with pay and pay raises
3.2.2.2. Dimension 2: Promotion Element 2: Satisfaction with promotion opportunities
3.2.2.3. Dimension 3: Supervision Element 3: Satisfaction with persons immediate supervision
3.2.2.4. Dimension 4: Fringe Benefits Element 4: Satisfaction with monetary and non-monetary benefits
3.2.2.5. Dimension 5: Contingent Rewards Element 5: Satisfaction with appreciation, recognition, and rewards for good work
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3.2.2.6. Dimension 6: Operating Procedures Element 6: Satisfaction with operating policies and procedures
3.2.2.7. Dimension 7: Co-workers Element 7: Satisfaction with co-workers
3.2.2.8. Dimension 8: Nature of Work Element 8: Satisfaction with type of work done
3.2.2.9. Dimension 9: Communication Element 9: Satisfaction with communication within the organization
3.3. Description of Data The description of data will cover three main things, which are type of data, source of data, and sampling method.
3.3.1. Type of Data Based on the scales developed, there are four possible data types, which are using nominal, ordinal, interval, and ratio scales data. (Sekaran and Bougie, 2009) Nominal Scale A nominal scale is one that allows the researcher to assign subjects to certain categories or groups (such as male & female for example). Nominal scales categorize individuals or objects into mutually exclusive and collectively exhaustive groups. The information that can be generated from nominal scaling is limited to calculate the percentage (or frequency). Ordinal Scale An ordinal scale rank orders the categories in some meaningful way (not only categorizes the variables to denote differences among the various categories). In an ordinal scale, the categories are to be ordered according to some preferences. Interval Scale
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An interval scale allows the researcher to perform certain arithmetical operations on the data collected from the respondents. Also, interval scale allows to measure the distance between any two points on the scale .This helps researcher to compute the means & the standard deviations of the responses on the variables. Ratio Scale The ratio scale overcomes the deficiency of the arbitrary origin point of the interval scale, in that it has an absolute (in contrast to an arbitrary) zero point which is a meaningful measurement point. The ratio scale not only measures the magnitude of the differences between points in the scale but also taps the proportions in the differences. It is considered as the most powerful of the four scales because it has a unique zero origin and subsumes all properties of the other three scales to calculate the ratio of the weights of two individuals. Table 3.1. Differentiators between Four Types of Scale No 1 2 Scale Difference Order No Yes Distance Unique Origin Nominal Yes Ordinal Yes No No No No Gender (Male/Female) Doneness of meat (well, medium well, medium rare, rare) 3 4 Interval Ratio Yes Yes Yes Yes Yes Yes No Yes Temperature in degrees Weighing balance t-test, F-test t-test, F-test Rank-order correlations X2 Example Tests of significance
Source: Adapted from Sekaran and Bougie (2009, p. 146) In addition to the types of scales mentioned above, Sekaran and Bougie (2009, p. 149) mentions ten rating scales that are often used in organizational research, which are: Dichotomous scale Category scale Semantic differential scale Numerical scale
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Itemized rating scale Likert scale Fixed or constant sum rating scale Stapel scale Graphic rating scale Consensus scale Out of the four possible data types (nominal, ordinal, interval, and
ratio), the writer collects numerical variables from respondents using three types of the data, which are nominal, ordinal, and interval data categories. Nominal data covers the questions on respondents profile, such as gender, age through multiple choice single-response questions in all four kinds of questionnaires being distributed. Those questions are using dichotomous scale and category scale. Ordinal data covers the questions asking for the surveyed item by using Likert Scales. In this rating method, there are 5 representative numbers, which are 1 represents Strongly Disagree (SDA), 2 represents Disagree (DA), 3 represents Neutral (N), 4 represents Agree (A), and 5 represents Strongly Agree (SA). Interval data covers the questions on employee development evaluation questionnaire, related to CheckPoint 360. Unlike the Likert scale, the scale in CheckPoint 360 will be summed for each dimension, thus it is an interval data. In this system, 0 represents Not Applicable (not averaged into scores), 1 represents Never demonstrates this skill, 2 represents Seldom demonstrates this skill, 3 represents Sometimes demonstrates this skill, 4 represents Usually demonstrates this skill, and 5 represents Always demonstrates this skill.
Furthermore, within this research, the ratio data will include the data of age of the respondents. Meanwhile, nominal data will include the respondents profile asked in the questionnaire, comprises of gender, occupation, level of income and amount of gallons of water purchase per month. On the other hand, ordinal data shows an indication of order in its characteristics. Furthermore, the ordinal data
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will be shown in the questionnaire through Likert Scale. The Likert scale is designed to examine how strongly subjects agree or disagree with statements on a five-point scale with the following anchors: strongly disagree, disagree, neither agree nor disagree, agree, and strongly disagree (Sekaran and Bougie, 2009, p. 152).
Strongly Disagree 1
Disagree 2
Neither Agree Nor Disagree 3
Agree 4
Strongly Agree 5
Table 3.1 Likert Scale
3.3.2. Source of Data The data used to complete the research can be classified into primary and secondary data. Based on Sekaran and Bougie (2009, p.180), primary data is the information obtained first-hand by the researcher on the variables of interest for the specific purpose of the study, while secondary data is the information gathered from sources that already exist or someone other than the researcher. In this research, the primary data is obtained from the questionnaires developed by the researchers and were distributed to the targeted respondents that will be explained deeper in sampling section. There are 4 (four) types of questionnaires developed by the researchers (attached in Appendix). First, the researchers distributed the questionnaire to measure the evaluation of four training components from the previous training that has been attended by the respondents, in this case are the employees, right after they joined the training program. Secondly, the researchers distributed the questionnaire to measure the evaluation of employee performance after attending a specific training program, filled by the employees as their self-assessment and also by the supervisor to get more objective information. Third, the researchers also distributed the questionnaire to measure the evaluation of six development program components from the on-going development process that has been implemented to the respondents, in this case are the employees. Fourthly, the researchers then distributed the questionnaire to measure the evaluation of
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employee performance after being developed through an employee development program, filled by the employees as their self-assessment and also by the people around them to get more objective information, such as supervisor and peers, in accordance with Checkpoint 360o Feedback theory mentioned in chapter 2. Nevertheless, the data used in the research background, justification for the research, and summary of relevant research are classified into secondary data, because those were generated from the available data from existing sources, such as text books, published journals, and websites.
3.3.3. Sampling Method According to Sekaran and Bougie (2009), sampling process is the process of selecting a sufficient number of the right elements from the population, so that a study of the sample and an understanding of its properties or characteristics make it possible for the writer to generalize such properties or characteristics to the population elements. In learning how representative data can be collected, according to Sekaran and Bougie, a few terms, as described further, have first to be understood. First is population. The population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate. It is the group of people, events, or things of interest for which the researcher wants to make inferences (based on sample statistics). The second term is element. An element is a single member of the population. The third term is the sample. Sample is a subset of the population. It comprises some members selected from it. In other words, some, but not all, elements of the population form the sample. According to Hair et al (2006), minimum sample size is counted as five observations for each estimated parameter. The fourth term is sampling unit. The sampling unit is the element or set of elements that is available for selection in some stage of the sampling process.
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The fifth term is subject. A subject is a single member of the sample, just as an element is a single member of the population.
Moreover, there are two major types of sampling designs (Sekaran and Bougie, 2009), they are probability and nonprobability sampling. When elements in the population have a known chance of being chosen as subjects in the sample, the writers resort to a probability sampling design. Probability sampling can be either unrestricted (simple random sampling) or restricted (complex probability sampling) in nature. Meanwhile, in nonprobability sampling, the elements do not have a known or predetermined chance of being selected as subjects.
The first probability sampling type is the unrestricted or simple random sampling. In the unrestricted probability sampling design, more commonly known as simple random sampling, every element in the population has a known and equal chance of being selected as a subject. Say, there are 1000 elements in the population with a sample of 100. Suppose we were to drop pieces of paper in a box, each containing the name of one of the elements, and draw 100 of those from the box with eyes closed. We know that the first piece drawn will have a 1/1000 chance of being drawn, the next one a 1/999 chance of being drawn, and so on. In other words, we know that the probability of any one of them being chosen is 1 in the number of the population, and we also know that each single element in the box has the same or equal probability of being chosen. When we thus draw the elements from the population, it is most likely that the distribution patterns of the characteristics we are interested in investigating in the population are also likewise distributed in the subjects we draw for our sample. This sampling design, known as simple random sampling, has the least bias and offers the most generalizability. However, this sampling process could become cumbersome and expensive; in addition an entirely updated listing of the population may not always be available. For these and other reasons, other probability sampling designs are often chosen instead. The second probability sampling type is the restricted or complex probability sampling. As an alternative to the simple random sampling design,
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several complex probability sampling (restricted probability) designs can be used. These probability sampling procedures offer a viable, and sometimes more efficient, alternative to the unrestricted design we just discussed. Efficiency is improved in that more information can be obtained for a given sample size using some of the complex probability sampling procedures than the simple random sampling design. The five most common complex probability sampling designs systematic sampling, stratified random sampling, cluster sampling, area sampling, and double sampling.
For conclusion, in this paper, the writers have decided that the population is
3.4. Analytical Method This research will mainly utilize the Ordinal Logistic Regression, which is a general term for several specific computational techniques. In assisting with the statistical calculation of Ordinal Logistic Regression, this research will use PASW Statistics 18 program.
3.4.1. Validity According to Sekaran and Bougie (2009, p.157), it is important to make sure that the instrument that is being developed to measure a particular concept is indeed accurately measuring the variable, as well as the concept that we set out to measure. Therefore to measure the goodness of the data, the reliability and validity of the measures are then established. Validity test is a test on how well an instrument that is developed measures the particular concept it is intended to measure, which is concerned with whether the right concept is being measured. Validity test is tested by using Cronbachs Alpha after the item deleted bigger than the original Cronbachs Alpha if item deleted. Therefore, if the Cronbachs Alpha after the item deleted bigger than the original Cronbachs Alpha, it means that the data is not valid.
3.4.2. Reliability
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On the other hand, Sekaran and Bougie (2009) states that reliability test is a test of how consistently a measuring instruent measures whatever concept it is measuring, which concerns about stability and consistency of measurement. Cronbachs Alpha is the reliability coefficient that indicates how well the items in a set are positively correlated to one another. The closer the Cronbachs Alpha is to 1, the higher the internal consistency reliability. In general, Cronbachs Alpha less than 0.60 are considered to be poor, those in the 0.70 range are considered acceptable, and those over 0.80 are good. Therefore, the Cronbachs Alpha must be higher than 0.60 which means the questionnaire is reliable. Table 3.. Cronbachs Alpha Meaning Cronbachs Alpha <0.6 0.6-0.8 >0.8 Meaning Poor Acceptable Good
Source: Adapted from Sekaran and Bougie (2009)
3.4.3. Descriptive Statistics Model The writer will use descriptive statistics model to find a picture of the center, spread, and shape of distributions as it is explained by Cooper and Schindler (2009). Basically, it is a simple model that the writer does not have to find the relationship between others. It is only showing the explicit meaning. Meanwhile, Bougie and Sekaran states that descriptive study statistics is undertaken in order to ascertain and be able to describe the characteristics of the variables of interest in a situation (Bougie and Sekaran, 2009). The goal of a descriptive study is to offer to the researcher a profile or to describe relevant aspects of the phenomenon of interest from an individual, organizational, industry-oriented, or other perspective.
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Especially in the research, the writer uses the model to analyze the respondent profile and customer loyalty level. Most of the time, the writer will only use graph and descriptive statistics to explain the questions. According to Jonathan Sarwono (2005), descriptive is used to know the minimum, maximum, mean, standard deviation and the sum value. Then, the writer will test the first hypothesis using mean value of customer loyalty. So, if the customer loyalty level mostly lays above 2.5, it means that the customer loyalty of Pureit through Andalan is high.
3.4.4. Normality Normality test is one of the regression assumptions that requires the error around the line of regression is normally distributed at each value of X. The test is used to test whether in the regression model, the residuals is normally distributed. In the t-test and F-test, it is a basic assumption that residual value is normally distributed. There are two options to check the normality of the distribution which are using the normal probability plot and histogram. Normal probability plot compares the observed values with those expected from a normal distribution. If the distribution is normal, the points on this plot should fall close to the diagonal line (Cooper and Schindler, 2008, p.479). The other option is to use histogram which is commonly used to represent data graphically. If the data is normally distributed, then the histogram will be described as bell-shaped.
3.4.5. Homoscedasticity According to Hoffman (2010), homoscedasticity test is used to know whether the regression model has consistence (same) variance of the residuals in one observation to another or not. This consistence of variance is called as homoscedasticity while if the variance is not consistent, it will be called as heteroscedasticity. Good regression model is the one who has homoscedasticity. To do homoscedasticity test, the writer can see from the scatterplot that is provided in SPSS analysis. If the data is randomly well spread below zero (0) and
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above zero (0) in Y-Axis, it shows that regression has no heteroscedasticity situation.
3.4.6. Autocorrelation Autocorrelation test is used to test the independence of errors which is one of the basic assumptions of regression model. In order to do the test, DurbinWatson test is used, which measures the correlation between each residual and the residual for the time period immediately preceding the one of interest. To use the Durbin-Watson test, first compute the d value and then compare it to the values from a special table of d values available in many regression textbooks and on the internet. Some statistical programs provide values from these tables as part of their output. The values in the table include an upper limit and a lower limit based on the number of coefficients (explanatory variables + 1 or {k + 1} and the sample size (n). The following rules-of-thumb apply to the use of the d values from a linear regression model:
Table 3.4. Durbin-Watson Value Meaning D value dmodel < dlower dmodel > dupper dupper < dmodel < dlower Meaning positive autocorrelation is present no positive autocorrelation the test is inconclusive
Source: Linear Regression Analysis : Applications and Assumptions (John Hoffmann, 2010) In other words, there is a positive autocorrelation when Durbin-Watson value is equal to zero, while there is less likely that the model is affected by autocorrelation if Durbin-Watson value is closer to 2.
3.4.7. Multicollinearity
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One important problem in the application of multiple regression analysis involves the possible collinearity of the exploratory variables. This condition refers to situations in which one or more of the explanatory variables are highly correlated with each other. In such situations, collinear variables do not provide new information, and it becomes difficult to separate the effect of such variables on the dependent variable. One of the methods of assessing multicollinearity is the Variance Inflationary Factors (VIF) for each explanatory variable which is computed by the following formula:
If a set of explanatory variables is uncorrelated, each VIFj is equal to 1. If the set is highly intercorrelated, then the VIFj might even exceed 10. Hoffmann (2010) suggested that if VIFj is greater than 10, there is too much correlation between variable Xj and the other explanatory variables and it indicates multicollinearity happens. A multiple regression model that has one or more large VIF values should be used with extreme caution. The model may be used to predict values of dependent variable only in the case where the values of the independent variables to be used in the prediction are consistent with the values observed in the data set.
3.4.8. Multiple Regression Analysis According to Sekaran and Bougie (2009), multiple regression analysis is used when more than one independent variable to explain variance in the dependent variable. As the descriptive tool, multiple regression is often used in three situations. First of all, it is used to develop a self-weighting estimating equation by which to predict values for a criterion variable (DV) from the values for several predictor variables (IVs). Second, it is used to control the confounding variables to better evaluate the contribution of other variables. Last of all, it is used to test and explain causal theory. However, as the inference tool, multiple regression is used to test hypotheses and estimate population values.
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In this research, since the researchers want to know the influence of components to the outcome, multiple regression analysis will be used. So, the equation for the multiple regression for the effect of job satisfaction to the employee commitment framework will be: Y1 = 0 + 1X1 + 2X2 + 3X3 + 4X4 + 5X5 + 6X6 + 7X7 + 8X8 + 9X9 + Where: Y1 0 X1 X2 X3 X4 X5 X6 X7 X8 X9 = Employee Organizational Commitment = Y intercept (the value of Y when all X equals to zero)
1- 5 = Regression coefficient associated with each Xi = Pay = Promotion = Supervision = Fringe Benefits = Contingent Rewards = Operating Procedures = Co-workers = Nature of Work = Communication = Random error in Y for observation i
Furthermore, the writers would like to use 95% of confidence level. There is a reason behind the usage of 95 % of confidence level. It is because one of the relevant researches, which is the research by Siew, Taiwo, Salim, Downe (2011), is actually using 99% of confidence. However, in this research, the writer would like to use rather pessimistic approach rather than the research of Siew, Taiwo, Salim, Downe (2011) in examining the impacts of reliability, responsiveness, assurance, empathy, and tangible aspects on customer loyalty. Therefore, the writers use 95% confidence level for this research.
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Moreover, the outcome of the multiple regression analysis can be shown in ANOVA table, which includes:
3.4.8.1. The Coefficients of Multiple Determination (Adjusted R Square) The test is used to know the goodness of fit of the regression model. Usually in the past, many researchers used R square value to analyze how far the dependent variable can be explained by the independent variables. However, the R square value has disadvantage of bias to total number of independent variable inserted to the model (Ghozali, 2006, p. 83). For every addition of one independent variable, the R square must be increased, no matter that independent variable significantly affects the dependent variable or not. Therefore, nowadays, many researchers switch to use adjusted R square, because unlike R square, adjusted R square can be increased or decreased if one independent variable is inserted into the model. Finally, the higher value means that the higher independent variables capability to explain the dependent variable. Cooper and Schindler mentioned that the closer it is resulted to 100 %, the better it is (Cooper and Schindler, 2008, p. 548).
3.4.8.2. F-Test F-test, or also called as Fisher Test, is used to know whether the regression model is appropriate to be used for research. If the significant value is less than 0.05, then it shows that the regression model is appropriate to be used in explaining the dependent variable or employee outcome in this research. In other words, the independent variables are affecting simultaneously the dependent variable if the significance-F value is less than 0.05.
Table 3.5. F-Test Result F-Test Result F-value < 5% relationship F-value > 5% with Meaning The set of independent variables has significant the dependent variable. Therefore, the H0 is rejected. The set of independent variable does not have
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significant
relationship
with
the
dependent
variable. Therefore, the H0 is accepted. Source: Draper and Smith (1998, p. 38)
Therefore, if the significant value of total variable is below 0.05, the researchers will reject the H0, which mentions that training elements has negative influence toward employee training outcomes and development elements has negative influence toward employee development outcomes.
3.4.8.3. T-Test T-test determines the relationship between each independent variable with the dependent variable, using the predetermined confidence level. P-value of an independent variable, produced by t-test has two meanings, explained by table 3.6.
Table 3.6. T-Test Result T-Test Result P-value < 5% Meaning There is significant relationship between that particular independent variable with the dependent variable. Therefore, the H0 is rejected. P-value > 5% There is no significant relationship between that particular independent variable with the dependent variable. Therefore, the H0 is not rejected. Source: Draper and Smith (1998, p. 37)
4. ANALYSIS AND RESULTS
4.1. Description of Analysis Procedure
4.1.1. Validity and Reliability of the Data
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4.1.2. Required Procedure
4.2. Report of the Results
4.3. Discussion of the Results
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5. SUMMARY AND RECOMMENDATION
5.1. Summary and Conclusions
5.2. Recommendations
5.3. Limitations of the Research
5.4. Suggestion for Further Research
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BIBLIOGRAPHY
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Katz, D. & Kahn, R. 1978. The Social Psychology of Organizations (2nd edition). New York: Wiley. Kotze, K. & Roodt, G. (2005). Factors that affect the retention of managerial and specialist staff: An exploratory study of an employee commitment model, South African Journal of Human Resource Management, 3(2): 4855. Lawler, E. E. (1973). Motivation in work organization. Monterey, CA: Brooks/Cole. Levine, D.M., Stephan, D. Krehbiel, T.C., and Berenson, M.L. (2005). Statistics for managers using Microsoft Excel 4th ed. Upper Saddle River: Pearson Education Lumley, E. (2010). Exploring the relationship between career anchors, job satisfaction and organisational commitment. Department of Industrial and Organisational Psychology, University of South Africa, Pretoria. Maholtra, N. K. (2010). Marketing Research: An Applied Orientation 6th ed. New Jersey: Pearson Prentice Hall Martins, N. & Coetzee, M. (2007). Organisational culture, employee satisfaction, perceived leader emotional compentency and personality type: An exploratory study in a South African engineering company, South African Journal of Human Resource Management, 5(2): 2032. Mathieu, J. & Zajac, D. 1990. A review and meta-analysis of the antecedents, correlates and consequences of organizational commitment, Psychological Bulletin, 108(2): 171194. Meyer, J. & Allen, N. (1991). A three component conceptualization of organisational commitment, Human Resource Management Review, 1: 61 89. Meyer, J.P., Allen, N.J. (1993). Commitment to organizations and occupations: Extension and test of a three-component-conceptualization. Journal of Applied Psychology, 78, 538-551. Meyer, J.P., & Allen, N.J. (1997). Commitment in the workplace Theory, research and application. Thousand Oaks, CA: Sage
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Mowday, R.T., Porter, W.L. & Dubin, R. 1974. Unit performance, situational factors and employee attitudes in spatially separated work units, Organizational Behaviour and Human Performance, 12: 231248. Newstrom, John.W. & Davis, K. (1997). Organizational Behavior: Human Behavior at Work. McGraw-Hill. Riggio, R.E. (2009). Introduction to Industrial/Organisational Psychology. London: Pearson. Robbins, S. (1993). Organizational Behaviour: Concepts, Controversies, and Applications (6th edition). New Jersey: Prentice Hall. Robbins, S.P. & Judge, T.A. (2011). Organizational Behavior 14th edition. New Jersey: Prentice Hall Sarwono, J. (2005). Teori dan Praktik Riset Pemasaran dengan SPSS. Yogyakarta: Andi Sekaran, U. & Bougie, R. (2009). Research Methods for Business: A skill Building Approach 5th ed. United Kingdom: Wiley Spector, P. (1997). Job Satisfaction: Application, Assessment, Causes and Consequences. California: Sage. Spector, P.E. (2003). Industrial & Organizational Psychology: Research and Practice 3rd ed. John Wiley & Sons, Inc. Spector, P. (2008). Industrial and Organisational Behaviour (5th edition). New Jersey: John Wiley & Sons. Suyatno (2009). Persiapan Analisis Data: Pemilihan Jenis Analisis Data. Universitas Diponegoro, Semarang
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APPENDICES
Appendices A: Acceptance Letter
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Appendices B: Company Profile
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Appendices C: Weekly Attendance
55
Appendices D: Research Schedule
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Appendices E: List of Data
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Appendices F: Detailed Data
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Appendices G: Detailed Graphs
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Appendices H: Other Related Documents
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Appendices I: Questionnaire
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Appendices J: Company Profile 1916-1945 NV WA Hoek Machine en Zuurstof, a Dutch company, built Oxygen factory in Jakarta in 1916, and, later on, in Surabaya in 1920, and in Bandung in 1939. Meanwhile, NV Javasche Koelzoor Fabriek built Carbon Dioxide factory in Surabaya in 1924. Those two companies formed the basis for the establishment of the company.
1945-1971 In 1958, Indonesian government nationalized NV WA Hoek Machine en Zuurstof and NV Javasche Koelzoor Fabriek. NV WA Hoek became PN Zatas and NV Javasche Koelzoor became PN Asam Arang. PN Zatas underwent a rapid development and built factories in Semarang, Makassar, and Medan. In 1971 PN Asam Arang and PN Zatas was merged into a single company, under the Department of Industry. As the status was changed into State Owned Enterprise in 1971, the company had implemented operational policies such as increasing production capacity and modernizing its factories and distribution system.
1996-2003 In 1996, portion of government share in The company (Persero) was sold to Messer Griesheim GmbH (40%) and PT Tira Austenite (10%). In 1999, Messer Griesheim GmbH increased its ownership by taking over all governments share in The company (Persero). The status of The company turned to a Multi National Company, and the share composition is 90% of Messer Griesheim and 10% of Tira Austenite. In its further development, on January 2003 Messer sold its share in the company to the current owner of the company and Tira Austenite. It changed the share composition into 51% of Tira Austenite and 49% of the current owner of the company.
2004-Present
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In 2004, the existing owner bought 100% of PT Tira Austenite share in the company. It automatically transferred the ownership of the company to current owner of the family. The company upholds its vision to be a highly reputable industrial gas company with a wide network. It carries out its service to answer needs of industries. Having such a broad area of services and products. The companys product portfolio covers wide range requirements of just about every branch of industry, engineering and technology. Under its new ownership and management, the companys performance has been doubled ever since.
Figure . The companys distribution network. Source
Vision To be the best industrial gas company with the largest network in Indonesia
Mission 1. To guarantee and fulfill the needs and the desire of the stakeholder 2. To implement an environment-friendly quality management system 3. To increase the competence and performance of the employee in a sustainable way 4. To increase service by expanding the network 5. To pursue with the progress of science and technology in order to support business development
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Corporate Philosophy By upholding our corporate philosophy consists of 5C(s) and 1I; Concentration, Commitment, Communication, Consistency, Coordination, and Continuous Innovation, we are ready to excel in the competitive world.
Corporate Strategy We are committed to play a significant role in improving the living standards and the prosperity of Indonesia. Through the existing and expanding enterprises, The company implements the four key elements of its corporate strategy for the benefit of Indonesias national development. It also operates under eco -friendly environment.
A century of experience supported by committed individuals has brought The company to be the leading industry. Supported by its capable and dedicated employees, The company envisages its corporate strategy into four key elements:
1. Cognitive Human Development Interchanging of knowledge among employees and interpersonal skill and leadership training has built professional management teams, who are capable to create favorable and challenging work environment.
2. Integrated Management Information System The SAP implementation across business units has resulted to the efficiency of our management and administration. Meanwhile, the widespread of filling stations and factories across Indonesia have generated operational efficiency.
3. Operational Excellent Our technical specialists work with customers to improve the efficiency of existing processes, meet customers new technological needs and develop applications to meet specific process requirements towards excellence.
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4. Customer Satisfaction To achieve customer satisfaction, the company implements stringent quality control in accordance to national and international standard. Should problems emerge, integrated solutions are tailored to customer requirements. Products and services are delivered promptly at all time.
Furthermore, the company has got the ISO 9001 : 2000 certification in 2003-2009, which means that the company has done great in having quality control system. Also, the company is able to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements, and aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements. Moreover, the company implements SAPTM (System Applications and Products) for its data processing software of information technology system in order to support more effective management and better performance. SAPTM has become a very good software solution designed to link nearby all transactions that occur during the normal course of everyday business, across the entire organization, from Finance, Controlling, Sales Distribution, Material Management, Plant Maintenance, and Human Resources and Payroll Accounting. Implementation of this system will start from East Java plant and will proceed to West Java, Central Java, North Sumatra, Riau, West Kalimantan, and Sulawesi. The company hopes to streamline business process to produce more effective decision, manage the business better, and most importantly to serve the customers better.
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Undergraduate Thesis Proposal - Industrial Gas Company

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Undergraduate Thesis Proposal - Industrial Gas Company

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1.1. Research Background HR in gas company in general.

Produktivitas Tenaga Kerja 2009 (persentase)

Jumlah Perusahaan Menurut Sub Sektor 2009 (persentase)

Petra Christian University

Nilai Tambah Menurut Subsektor 2009 (persentase)

HR is the asset of companies

1.3.2. For the University

2.1. Concepts and Definitions 2.1.1. Human Resource Management

performance, and management.

communication (Spector 1997).

2.4. Framework of the Report

Figure Framework of the report

3.2.2.2. Dimension 2: Promotion Element 2: Satisfaction with promotion opportunities

3.2.2.3. Dimension 3: Supervision Element 3: Satisfaction with persons immediate supervision

3.2.2.7. Dimension 7: Co-workers Element 7: Satisfaction with co-workers

Neither Agree Nor Disagree 3

Table 3.1 Likert Scale

Source: Adapted from Sekaran and Bougie (2009)

4. ANALYSIS AND RESULTS

4.1. Description of Analysis Procedure

4.1.1. Validity and Reliability of the Data

4.1.2. Required Procedure

4.2. Report of the Results

4.3. Discussion of the Results

5. SUMMARY AND RECOMMENDATION

5.1. Summary and Conclusions

5.3. Limitations of the Research

5.4. Suggestion for Further Research

Appendices A: Acceptance Letter

Appendices B: Company Profile

Appendices C: Weekly Attendance

Appendices D: Research Schedule

Appendices E: List of Data

Appendices F: Detailed Data

Appendices G: Detailed Graphs

Appendices H: Other Related Documents

Figure . The companys distribution network. Source

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