MBA435 Attitude and Job Satisfaction PDF

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MBA 435: Organisational Behaviour Trimester 1, 2021 University of the South Pacific Laucala Bay Campus

Major Research Project

Attitudes and Job Satisfaction

Group 1 Raymond Bangamuseve - S11172026 Dion Young - S11167605 Naomi Tinai - S11060494

TABLE OF CONTENTS

Introduction……………………………………………………………………...3 1.1 Thesis statement 1.2 Executive Summary 1.3 Situational Analysis 1.4 Research Limitations Literature Review………………………………………………………………..5 Content…………………………………………………………………………..7 Methodology and Data Analysis………………………………………………...8 Results…………………………………………………………………...……...10 5.1 Implication 5.2 Recommendation Conclusion……………………………………………………………………..16 References……………………………………………………………………..17 Appendix………………………………………………………………………19

1.1 Thesis Statement An employee’s attitude towards work is directly linked to job satisfaction hence employees who are content with their jobs perform better and excel at what they do.

1.2 Executive Summary Employee attitude plays a pivotal role between job satisfaction and performance. Attitude is the way that we perceive or feel about a person or object. Job satisfaction is a measurement of the extent of an employee’s contentment with a job. Several factors contribute to employee satisfaction, this can range from salary to relationships between co-workers or with their supervisors to the performance management/appraisal process. Employees with positive attitudes tend to be more productive and can deal with the pressures associated with their job.

Companies that promote positive attitudes tend to have less attrition or job turnover and more likely to attract talented employees. Positive attitudes also lead to other positive variables such as organisational commitment, perceived organisational support, employee engagement and organisational citizenship behavior (Robbins et al. 2017). Attitudes can reveal how satisfied employees are with their work and this can influence the overall performance of the company.

The desire to comprehend and elucidate job satisfaction is motivated by 2 reasons (i) utilitarian reasons – the need to increase productivity and organisational commitment, reduce absenteeism, attrition, and ultimately the need to increase the organisations efficacy (ii) humanitarian reasons – the notion that employee’s merit to be treated with respect and have their physical and psychological wellbeing maximised. Furthermore, it is important for organisations to find out what influences job satisfaction as dissatisfied employees show an enhanced propensity for detrimental actions such as burnout, withdrawal, and workplace aggression (Ellickson and Logsdon, 2001).

The core intention of this research is to examine how attitude affects organisational performance in Mindpearl. We will use the summation of job facets to measure the overall job satisfaction and also calculate how it correlates to the following variables of job attitude: I. II. III. IV. V.

Job knowledge and Resources Communication Employee Recognition and Appreciation Commitment to organisation Training and Development

We will also look at the main causes of job satisfaction, whether its intrinsic or extrinsic factors. We prepared a questionnaire with 5 questions where employees need to rake at what motivates them the most. 1.3 Situational Analysis Mindpearl has a very controlled environment where everything is monitored from employee breaks to lateness and adherence. It provides transportation to all employees to ensure everyone arrives on time. In addition, it provides daily meal vouchers to all employees which they can use to buy food from the inhouse restaurants. Mindpearl utilises several ways to assess attitude and job satisfaction levels of employees. The most used one is the pulse survey. Whilst the original intention was to conduct this survey quarterly, this has not eventuated due to several factors such as resistance from managers, low participation, and a lack of follow up or rather action from the HR team.

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Pulse Surveys – this is an anonymous 18 questions survey where employees are asked to rate based on different scales. A copy can be found under Survey 1 in the appendix section. The survey is conducted online via the embrace platform. All respondents are given codes randomly which they use to access the survey. The codes often consist of more than 20 alpha numeric characters. This has been attributed as one of the reasons for the low participation as the codes are too long hence time consuming. Intention is to avoid people from doing the survey more than once. It is very difficult to differentiate the numbers from characters for example small caps letter L can interpreted as an I or 1. People get frustrated easily and do not attempt to re-enter code.

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Exit Survey – this is given to an employee when they resign. Often employees tend to be brutally honest when they have nothing to lose and are about to exit the company. Mindpearl uses this survey to get any constructive feedback of things management is not aware of.

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Suggestion boxes – these can be found in several places around the building and employees can drop their feedback. They are opened weekly by the Call Centre Manager, with plan of action sent to everyone.

1.4 Research Limitations I. II. III. IV. V.

Confidentiality limitations as employees could not expand on answers. Sample size. High probability for biasness which can distort the information. Time limitation. Unable to access results from previous surveys.

Literature Review The productivity of workers is one of the key factors of organisational success. It is easy to say that managers want happy workers who have appositive perspective of the job.

Previous studies suggest the analysis of employee attitude has shifted from being mainly theory based to one based on a combination of theoretical and practical grounds with work attitude being word of choice as opposed to job satisfaction (Wright, 2006). A common view from early periods also suggested job attitudes were strongly associated with absenteeism and attrition than they were with performance (Harrison, Newman and Roth 2006). The use of performance pay schemes by organisations was shown to increase employee productivity, effort and earning (Lazear, 2000).

Positive associations were found between employee satisfaction with engagement, benefits, lower employee turnover, and customer satisfaction measured by organisational performance (Harter, Schmidt and Hayes, 2002). Green and Heywood (2008) concluded that employees that are intrinsically motivated have a higher level of job satisfaction than ones that are extrinsically motivated. This mirrors the findings of the 2-factor theory. Furthermore, they also found out performance related pay appeared to be associated with low levels of job security. Other studies also suggest either illicitly or explicitly, job satisfaction increases linearly or monotonically with age (Kalleberg and Loscocco, 1983). Later research found that satisfaction may be dependent largely on the intrinsic aspects of work rather than on other aspects of the job like race and gender (Tatsuse & Sekine, 2011). Other later research also found that dissatisfaction is associated with negative outcomes (Pinsker, 2012). Locke’s value percept theory as cited in Pinkster (2012) says that job satisfaction is the outcome of what one values about their job. This clearly proves that important fulfilled values result in job satisfaction. Based on Herzberg’s two-factor theory, Pinkster (2012) suggests that the only way to increase satisfaction is to amplify the motivating factors. Another later research

found out that women had a greater job satisfaction than man and this was attributed to the woman’s improved position in the labour force relative to their expectations (Carleton and Clain, 2011). We tested this result in our research as well and the results are explained in section 1.3 of this paper. Contemporary research shows that there are stronger connections between job satisfaction and performance. A research was conducted using the job description index on a large Croatian company with 5806 employees and the results backed this assertion (Bakotic, 2016). Shaju and Subashini (2017) revealed a significant relationship between job satisfaction and job performance in the automotive industry in Punjab. The survey conducted on this research considered demographics like age, gender, nativity, and educational background. Training programs have positive connections with work recognition and commitment to work. The training and development of workers should be key focus and embedded in the overall company strategy. Studies have shown that specific training of workers can have a greater impact on productivity and a direct correlation between intensity and profitability for organisations (Bercu, 2017). In her research Ana Bercu, did a survey of 227 employees in the wood industry to assess the impact of training on job satisfaction and the results showed positive correlations. In a study to review the impact between intrinsic and extrinsic rewards by Rajesh Singh, he found out that employee engagement, culture of trust, respect and rapport and recognition had a higher impact of attitude (job satisfaction) than money and autonomy. This study by Rajesh involved 98 Masters students who were asked the above 5 questions. 67% of the respondents chose recognition, autonomy, and engagement as a primary motivator whilst 22% chose organisational culture (trust, respect and rapport). Only 11% found money as a primary motivator (Singh, 2016). A research done in 2018 using the 5-point index scale revealed that personal values play a significant part in job satisfaction which leads to improved performance. Matching these value priorities to the nature of the job can result in better behavioural and attitude outcome (Ismail, 2019). According to Tanasescu & Leon (2019) research conducted on Romanian banking system, rewards have a positive influence on employee satisfaction. The studies were derived using a 5-point index questionnaire focusing on variables like work environment, promotions, and motivating factors.

Content Attitude reflects a person’s feeling or judgement about work. Attitude consists of three integral elements: affective component, cognitive component, and a behavioural component. Affective component refers to feelings about a job while the cognitive component constitutes a belief or feeling regarding a job. These 2 elements are usually related. On the other hand, the behavioural component implies intentions to behave in a certain way towards work. These three elements work together to support our understanding of the complexity of attitude (Robbins et al. 2017).

Job satisfaction has been a point of focus for organisational behaviour. The analysis makes up different aspects of the job, this includes job knowledge and resources, communication, employee recognition and appreciation, commitment to organisation, and training and development. In simple terms, job satisfaction is related to how one’s expectations of work is compatible with the result. Generally, job performance can be defined as the outcome of job satisfaction perceived in its three components. Job performance may also be interpreted as how an individual performs his work based on the set of behaviours or attitude they display.

Figure 1: Research Model The below model demonstrates the relations between attitude, job satisfaction and performance.

It exhibits how attitude influences job satisfaction and performance. Since job satisfaction is conditional to one’s attitude towards his or her job, it is deemed to influence job performance. Job performance is a vital component of an organisation, amongst other factors as it reflects the employee satisfaction level. If a worker is highly satisfied with work, they tend to display a high level of commitment.

Methodology & Data Analysis Research methods: a. Quantitative Research Analysis Our research used 2 questionnaires. The first questionnaire was used to assess job satisfaction on 40 employees in Mindpearl. The satisfaction level was assessed based on a series of question’s derived from 5 facets of job satisfaction. The survey has 18 questions (refer to Appendix for questionnaire sample) that are designed to assess the employees attitude concerning the following 5 job facets: I. II. III. IV. V.

Job knowledge and Resources Communication Employee Recognition and Appreciation Commitment to organisation Training and Development

Second questionnaire asked employees to rank what they value the most with 1 being the most important and 5 the least important. The following variables were assessed: I. II. III. IV. V.

Recognition and Appreciation Growth & Promotion Opportunity Fair Treatment Salary Open and Respectful Communication

b. Qualitative Data Analysis Use of textbooks, journal articles, edited works, and other research publications to compile findings on the thesis statement. 1.1 Participants For the first questionnaire, the sample consists of (N=40) employees holding Agent, Support and Management level positions. The response rate was 100%.

Job Title

Gender

30.00% Agent 52.50%

30.00% 70.00%

Female

Manager Male

17.50%

Support

Tenure

Age Group 15.00%

2.50%

15.00%

23-26

17.50% 47.50%

27-30 25.00%

42.50%

31-34 35-38

35.00%

2-4 5-7 8-11

39-42

Fig 1.2 shows how each of the 5 facets are operationalised and linked to the questionnaire (survey questions). We have appended a sample copy of the survey in Appendix A. We used a Likert scale to ascertain the strength of the participants responses to question 2-19 where 1 represents Strongly Disagree, 2 represents Disagree, 3 represents Neutral, 4 represents Agree, and 5 represents Strongly Agree. Question one was also measured on a Likert scale however 1 represents Very Dissatisfied, 2 represents Dissatisfied, 3 represents Neutral, 4 represents satisfied, and 5 represents very satisfied. The first Column of table 1.1 contains the dependent and independent variables. The second column has the survey questions that are related to the corresponding facets.

The scores were averaged for each question to get the mean score per variable. Questions 2-5 were averaged under job knowledge and Resources, Questions 6-9 are Communication, Questions 10-13 under Employee Recognition and Appreciation, Questions 14-15 under Commitment to the Organisation and Questions 16-19 under Training and Development. Additionally, we collected demographic information in relation to their Age, Sex, Tenure and Job title as illustrated in table 1.2.

Fig 1.2

Table 1.2 shows the Demographic questions from the survey and how each is coded. Demographic questions Tenure

Open Comment

Age

Open Comment

Position

CSSR = Agent, SPT = Support Staff & MGR= Manager

Gender

M= Male, F =Female

We used the correlation matrix to test whether there is any positive or negative relationship between overall job satisfaction and each job satisfaction facet.

For the second questionnaire, the sample consisted of (N=40) employees and the response rate was 100%.

Results This chapter presents the results of the survey and gives us an understanding of how the 5 job facets (attitude) influence job satisfaction levels in Mindpearl.

It also shows how job

performance is related to overall satisfaction.

1.3.1. Overall job satisfaction was the dependent variable for this research. Fig1.2 provides the results of the overall job satisfaction. The findings reveal only 2.5% are very satisfied, 32.5% satisfied, 10% neutral, 27.5% dissatisfied and 10% very dissatisfied.

Fig 1.3

Overall Satisfaction 10.00% 2.50% 27.50%

Dissatisfied Neutral Satisfied

32.50%

Very Dissatisfied 27.50%

Very Satisfied

Pearson’s r (correlation coefficient) Effect size: if r=-+.5 it is large, +-.3 it is medium, and +-.1 it is small. For all the respondents to the survey Job knowledge and Resources, Employee Recognition and Appreciation, and Commitment to the organisation were correlated with higher overall satisfaction scores, r=.53, r=.72, r=.7 respectively, which can be considered a large effect. This means these 3 variables play a critical role in the overall satisfaction of employees in Mindpearl and that is where management need to focus more on. Communication and Training & development were also correlated with high satisfaction scores, r=.48 and r=.42, which can be considered a medium effect. Table 1.3 shows the correlations between job satisfaction and the 5 facets. Table 1.3 Variables

Overall Satisfaction

Job knowledge and Resources

0.53

Communication

0.48

Employee Recognition and Appreciation

0.72

Commitment to the organisation

0.70

Training and Development

0.42

Fig 1.4 shows Employee Recognition and Appreciation and Commitment to organisation scored the lowest with an average of 45% and 33% respectively choosing either strongly disagree or disagree. Job knowledge & Resources and Training & Development had the highest

satisfactions recording 73% and 63%respectively. The overall ranking per variable starting with the highest were as follows: 1. 2. 3. 4. 5.

Job knowledge and Resources Training and Development Communication Commitment to the Organisation Employee Recognition and Appreciation

For Overall Satisfaction, 35% either chose very satisfied or satisfied whereas 38% chose either dissatisfied or srongly dissatisfied. 28% were neutal. Fig1.4

1.3.2 Overall satisfaction by Performance Our research results showed that top performers had higher satisfaction levels than the low performers. The 20 top performers had a satisfaction score of 3.4 whereas the lower performers had a score of 2.4.

Overall Satisfaction by Job Performance 5 4.5 SATISFACTION SCORE

4 3.4

3.5 3

2.4

2.5 2 1.5

1 0.5 0 Top Performers

Low Performers

1.3.3 Demographics Many studies suggest either illicitly or explicitly, job satisfaction increases linearly or monotonically with age (Kalleberg and Loscocco, 1983). Our research cements this notion as Fig1.2 shows satisfaction level increased with age and tenure in Mindpearl. This can mildly be attributed to experience, the longer you stay in the job the more knowledge you will gain which in turn makes employees content. Fig1.2

OVERALL SATISFACTION

Overal Satisfaction by Age 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

4.0 3.3 2.7

2.8

2.9

23-26

27-30

31-34 AGE

35-38

39-42

Fig 1.3

OVERALL SATISFACTION

Overall Satisfaction by Tenure 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

3.43 2.86

2.74

2-4

5-7

8-11

TENURE

Fig 1.4 and 1.5 shows the satisfaction levels by gender and Position. Males have a higher satisfaction scores, but it is important to note only 30% of respondents were males. The support staff had higher satisfaction levels than the agents and managers. This can be attributed to the pressures of work; agents deal directly with the clients whereas managers are directly answerable to the CEO if ...