CHAPTER 1

INTRODUCTION
1.1

Introduction
This research will be carried out to find out job satisfaction and its determinant
factors in Malaysian NPK Sdn. Bhd. (Malaysian NPK). In chapter 1, researcher
will introduce on job satisfaction as main focus of the study. It emphasize on
job satisfaction background study, elaborate on the problem statement,
research questions and research objectives, scope of study, significance of the
study as well as definition of key terms.

1.2

Background of the Study

Spector (1997) defined job satisfaction as how people feel about their jobs and
different aspects of their job. In simply put, job satisfaction is a degree to which
people like their job. Job satisfaction is an interesting topic to an organization
as well as people studies them. Job satisfaction has been heavily study
because it affected organization success. Study by Imran et al., (2014), Fu et
al., (2013) and Naseem et al., (2011) showed that job satisfaction lead to
positive attitude towards work, thus resulted into organizational success. In
other way, job satisfaction also relate to human social and influences condition
and quality of life.
Since industrial-organization behavior has been study, most of the research
assessed global job satisfaction in relation to the other variables of interest.
This facets approach is very useful to find out which parts produce satisfaction
or dissatisfaction of the job. Perhaps, the more popular job satisfaction
measurement is Job Descriptive Index (JDI) (Schermerhon et al., 2011,

Ramayah et al., 2001). JDIs facets concerned with pay, quality of supervision,
co-workers, the work itself and promotion opportunities.
Tso et al (2014) argues that employee satisfaction is a time sensitive concept.
He added that, it continuously changing with social and economic changes,
thus, key factors were appropriate for that specific time only. It is supporting
researcher concern that job satisfaction study need to be carried out regularly.
Global study of job satisfaction identified employees concerned on pay, hours
of worked, holiday, working flexibility and time spent communicating to and
from work (Schermehon et al., 2011). In context of Malaysia, employees
choose opportunities for growth and advancement as the top reason to stay
and satisfied in an organization. It is surprised that remuneration placed at
fourth after work-life balance and well matched of the job (Randstad World of
Work Report, 2014).
Ramayah et al., (2001) mentioned that many companies in manufacturing are
having problems with high turnover in Malaysia. They also facing difficulty in
hiring new employees due to scarce human resources and resulted into
increased of labor cost. Thus, it is crucial to retain employees by keeping
employees satisfied. This statement was supported by Malaysia Productivity
corporation (2014) in their productivity report stated that manufacturing sector
faces major challenges in finding and retaining talent. Companies have to
compete for talent not only among local and foreign competitors, but also with
other sub-sectors both domestic and abroad. Thus, this study tries to reveal
the extent of job satisfaction and the factors contribute accordingly at
Malaysian NPK.

1.3

Problem Statement
Job satisfaction generally accepted as one of the factors that are important for
business effectiveness. Schermerhorn et al., (2011) linked job satisfaction with
organizational citizenship and job performance. He also stressed that job
dissatisfaction may be resulted into counterproductive work behavior such as
performing with low quality, avoiding work, acting violent or engaging in
workplace theft.
Gallup Healthways (2014) stated in State of Global Well-Being Report that
the only element which Malaysians are more likely to be suffering is purpose
wellbeing, indicating many do not feel fulfilled in their jobs or daily activities.
Employed Malaysians and those who are not employed are equally likely to be
thriving in this element.
Although employers accept that job satisfaction would benefits organization,
Ranstad (2014) mention that only 41% of their total surveyed participants
conduct regular employee satisfaction surveys and just 20% conducted 360
degree performance reviews to effectively capture employee feedback. A third
of employees admitted that nothing is done to measure their satisfaction.
On the other report by Randstad in World of Work Report: Malaysia (2012),
reported employees low satisfaction levels, with less than 42% of their total
survey either satisfied or very happy in their roles, while 23% were unhappy,
unmotivated and believe their skills werent being used effectively. The report
also mention that 27% of managers will consider another job if it gave them
the opportunity to have better work-life balance. The report also added that the
number of employees who intend to leave their job jumps to an astounding
74% for the various reasons.

According to Jobstreet.com (2012) surveyed, 78% of the Malaysian

respondents claimed that they were unhappy with their current job. The top
factors of dissatisfaction regards to their scope of work. Most of these unhappy
employees said they felt that they have too much work or that their work is
predictable and routine.
Ministry of Human Resources (2012) in Labor and Human Resources Statistic
Report recorded 161 trade disputes in manufacturing industry. From the total
of 309 trade disputes report in 2012, manufacturing industry scores over than
52% of reported cases. The statistic clearly shows that dissatisfaction of
employees in manufacturing is a serious problem.
Focusing on the factory workers itself, there are articles in Sinar Harian and
Berita Harian newspaper reported workers dissatisfaction against the
employer. Sinar Harian (2013) wrote on pekerja kilang mogok kerana
masalah gaji while Berita Harian (2013) wrote about pekerja Myanmar bakar
kereta di Kulai Jaya.
Regards to Malaysian NPK, the issues of job satisfaction arises by the number
of employee resignation. Statistic shows that the number of resignation is
significantly increased from 2011 to 2014 (Aminuddin Salleh, 2014). The
number of resignation increased almost double from 3 in 2013 to 5 until
September 2014. This scenario raises an alarm to the company management
whether job satisfaction is one of the causes. However, study on job
satisfaction has never been carried out at Malaysian NPK. Therefore, this
study will be conducted to investigate job satisfaction and determinant factors
that affecting employees at Malaysian NPK.

1.4

Research Question
Job satisfaction supposed to effect employees at Malaysian NPK Sdn. Bhd.
These are the following questions in order to understand better the job
satisfaction and determinant factors that affect employees.

1.5

i.
ii.
iii.

What is the extent of job satisfaction at Malaysian NPK?

How the remuneration does affects job satisfaction at Malaysian NPK?
How the quality of supervision does affect job satisfaction at Malaysian

iv.
v.

NPK?
How the co-workers do affects job satisfaction at Malaysian NPK?
How the job itself does affect job satisfaction at Malaysian NPK?

Research Objective
The main objective of this study is to investigate the job satisfaction and
determinant factors at Malaysian NPK. Thus, the specific objectives of the
study are as follows:
i
ii

To study the extent of job satisfaction at Malaysian NPK

To examine whether remuneration can affects job satisfaction at

iii

Malaysian NPK
To examine whether quality of supervision can affects job satisfaction at

iv

Malaysian NPK
To examine whether co-workers can affects job satisfaction at

Malaysian NPK
To examine whether job itself can affects job satisfaction at Malaysian
NPK

1.6

Scope of Study
Level
This research will covers on employees from middle level to lowest level at
Malaysian NPK
Territory

The territory is located at Malaysian NPK Sdn. Bhd., Gurun, Kedah

Time
The data for this study will be collected within two weeks

1.7

Significance of the Study

Job satisfaction is a frequently studied subject in work and organizational
literature. This is mainly due to the fact that many believe job satisfaction
trends can affect workers behavior and influence work productivity, work
effort, employee absenteeism and staff turnover.
Job satisfaction also considered as life well-being predictor and effecting
quality of life whether at work or with their families. As working hours may take
about 8-10 hours per day generally, researchers assume that organizations
have significant effects on the people who work for them. Some of those
effects are reflected in how people feel about their work. This makes job
satisfaction an issue of substantial importance for both employers and
employees.
This study of job satisfaction and their determinant factors will reveal the
extent of job satisfaction as well as influencing factors among employees at
Malaysian NPK. This is useful to employer to know the real situation as
employees is a back bone or every organization. With the information,
employer may take measures to maintain or increase satisfaction or to
overcome issues that may arise in this study. Employer will be benefits from
satisfied employees as they are more likely to profit from lower staff turnover,
higher job performance and higher productivity.

1.8

Definition of Terms

1.8.1 Job satisfaction

Job satisfaction defined by Locke (1969) as a concept of satisfaction,
dissatisfaction, value, emotion and appraisal within the organization members
by the data illustrating an approach to the satisfaction level. It is the feeling of
pleasure and achievement which you experience in your job when you know
that your work is worth doing. In simply put, job satisfaction is a person feel
towards their work. It is the attitude expression whether they are happy or not
with their job and job related factors. Therefore, this study tries to reveal the
extent of job satisfaction and the determinant factors at Malaysia NPK.

1.8.2 Remuneration
Kessler (2009) defined remuneration is a way of the employer rewarding their
employee at the workplace. The rewards shall be representing in intrinsic or
extrinsic from. Intrinsic from is a self-generating outcome such as personal
esteem and fulfillment form during performing the work. Extrinsic rewards are
reflected in more tangible monetary and non-monetary payments in terms of
wages or fringe benefits to the employer. In this research, the important
elements of remuneration affect to the employee considered as the wages,
allowance and bonus.

1.8.3 Supervisor
Ramayah (1997) stated that the role of supervision in job satisfaction is
measured by the degree of tolerance and consideration between employees

and their supervisors (Abdullah, et. al., 2007). According to Carifio &
Hess(1987), an ideal supervisor is a person who has high respect and
empathy ability to mentors, and having consistent and detailed personality. As
well as this characteristic, excellent supervisor gives influenceable supervision
to mentor and mentee with situational expression and enough experienced
background. (Kim, Y. & Kim, G., 2014). The fundamental of supervisor in this
investigate is the group of officer level in Malaysian NPK which is directing,
handling, overlook and supervise their subordinates.

1.8.4 Co-worker
Referred to Steers (1976) satisfaction will be high if there is a significant
interaction among workers with similar attitude and can accept each other
(Abdullah, et. al., 2007). Co-workers in this research referring to other
employees on par position whose work in Malaysian NPK.

1.8.5 Job itself

According to Hackman, & Lawler (1971) work itself leads employees to higher
level of satisfaction. This is when they can control the pace and mode of
operating and use or utilize their skills and abilities in various ways as well as
complete the given task (Abdullah, et. al., 2007).

1.9

Conclusion
The topic of job satisfaction has become a primary concern for employees in
organizational behavior to determine how individual relate to and participate in
groups, how leadership is exercised, how organizations function, and how
change is effected in organizational settings. Moreover, the benefits of
determine the job satisfaction is very important to measure the satisfaction
value for every employee and as a benchmarking to the employer to
determine the satisfaction or dissatisfaction among their employees. Job
satisfaction also important since it is heavily related to job performance and
organizational success. This kind of study needs to be carried out regularly as
job satisfaction changes over time and situation.

References
Steers, R.M. (1976). Factors affecting job attitudes in a goal setting environment,
Academy of Management Journal, Vol. 9, pg 6-19.

Abdullah, M. A.,Khalid, H.N.,Shuib, M.,Nor,M.N.,Muhammad,Z., Jauhar, J. (2007).

Job Satisfaction Amongst Employees in Small and Medium Industries (SMIs) in the
Manufacturing Sector : A Malaysian Case. Journal of Asia-Pacific Business, Vol. 8(4)

Hackman, J. R., & Lawler, E. E., (1971). Employee reactions to good perceived
service quality . Journal of Applied Psychology. Vol. 55 pg 259-286.

Kim, Y. & Kim, G. (2014). A Study on the Supervisor Role of the University Students
Mentoring for Multicultural Family Children. Procedia - Social and Behavioral
Sciences 159, pg 329 333

Carifio, M. S. & Hess, A. K.(1987). Who is the ideal supervisor professional

Psychology. Research and Practice, 18(3), 244-250.

Ramayah, T. (1997). Job satisfaction: Effectiveness of different measurement. MBA

Dissertation USM.