Professional Documents
Culture Documents
CHAPTER 1
INTRODUCTION
1.1
Research Background
corporation. Although it is seems like unavoidable, but the level of this problem can
be eased by generating higher job satisfaction among employees.
The combination of young and experienced employees is highly
recommended in any kind of organization, no matter in manufacturing or service
sector. However, the trend of high turnover rate nowadays has caused most of the
organizations facing the problem of work force majority form by inexperience or
incompetent employees. It is reported that Malaysia facing high average turnover
rate for executive in various industries, for example 23.1% in electrical and
electronics sector and 15.6% in construction sector (Geeta and Pandey,
2012). This problem will hence threaten the development of the organization due to
the inefficiency and lower productivity.
Most people believe that what concerned the employees most is the salary
they paid and it will direct affects the satisfaction level towards the job. However,
there are other factors which also contributing, such as employee benefits (eg.
Insurance or medical and dental service), bonus, working conditions, culture of
company and so on. In this generation, employees will tend to seek for comfort in
work while alleviating the work pressure and personal tension. More and more work
forces had started to agree the good working culture in which aspect to treat them
more than a machine is equally important as others benefits (Antoniou et al., 2003).
1.2
technical knowledge while dealing with hazardous and high risk of working
environment.
Hence, engineering companies need to focus on employee satisfaction issue
in the organization in order for them to gain competitive advantage through the
contribution of competent and experienced work forces. This will not only help to
achieve management efficiency of an organization, it also help to increase the
productivity in overall at the same time.
This study attempts to evaluate job satisfaction of employees in private
corporates, including various streams of engineering disciplines (Mechanical,
Electrical, Civil and Chemical) and different seniority (position) in engineering
sector. It focuses on the relative importance of job satisfaction factors and their
impacts on the overall job satisfaction of employees.
It also investigates the significance of key factors such as relevant of curriculum
study to the job scope, work experience and job position, job stress, pay and
promotion, as well as the company culture and working environment in affecting the
job satisfaction.
1.3
Problem Statement
construction based companies had faced the problem that lack of experience
engineers due to the high turnover rate in Malaysias private engineering sector.
Therefore, to understand employees job satisfaction is the way to retain employees
for longer period and hence solve the high turnover rate problem. In employer point
of view, by having higher employee job satisfaction, good productivity, full
commitment from employees, trustworthy team players and able to achieve
companys objectives and vision. Therefore, job satisfaction should be major
determinant of an organizational behaviour and decide how successful the
organization can be.
In previous studies, a very little or limited researches had been done to find
out the factors which will affect job satisfaction among engineer. Therefore, this
research proposes to examine the impact of salary and benefits, job stress, training
and promotion opportunity, education-job mismatch and working environment
towards the employee job satisfaction in the engineering sector. Furthermore, in prior
studies working experience and gender had never been tested as moderator between
salary and benefits, job stress, training and promotion opportunity, education-job
mismatch and working environment and employee job satisfaction.
1.4
Research Question
1.5
Research Objective
The research questions above stated co-currently with the following research
objectives:
RO1: To examine the significant relationship between salary & benefits and
employee job satisfaction.
RO2: To examine the significant relationship between job stress and
employee job satisfaction.
RO3: To examine the significant relationship between training & promotion
opportunity and employee job satisfaction.
RO4: To examine the significant relationship between educational-job
mismatch and employee job satisfaction.
RO5: To examine the significant relationship between working environment
and employee job satisfaction.
RO6: To examine the moderating affect of position & experience on salary &
benefits and employee job satisfaction.
RO7: To examine the moderating affect of position & experience on training
& promotion opportunity and employee job satisfaction.
RO8: To examine the moderating affect of position & experience on
educational-job mismatch and employee job satisfaction.
RO9: To examine the moderating affect of gender on salary & benefits and
employee job satisfaction.
RO10: To examine the moderating affect of gender on job stress and
employee job satisfaction.
The summary of research gap, research questions, research objectives and the
corresponding hypotheses number are shown in table below:
Table 1.1: Research summary
Research Gap
Research Question
Research Objective
Hypothesis
Hypothesis 1
Hypothesis 2
Hypothesis 3
7
employee job
satisfaction.
employee job
satisfaction.
RQ4: Does
education-job
mismatch affect
employee job
satisfaction?
Hypothesis 4
Hypothesis 5
Hypothesis 6
No prior study
examine the
moderating affect of
working experiences
between training &
promotion
opportunity and job
satisfaction.
Hypothesis 7
No prior study
examine the
moderating affect of
working experiences
between educationjob mismatch and job
satisfaction.
Hypothesis 8
No prior study
examine the
Hypothesis 9
No prior study
examine the
moderating affect of
working experiences
between salary and
job satisfaction.
8
moderating affect of
gender between
salary and job
satisfaction.
No prior study
examine the
moderating affect of
gender between job
stress and job
satisfaction.
RO10: To examine
the moderating affect
of gender on job
stress and employee
job satisfaction.
No prior study
examine the ranking
of importance factors
towards the job
satisfaction in
engineering sector.
1.6
Hypothesis 10
To identify the
ranking of factors
which affect job
satisfaction among
engineers.
Refer to the research gap stated above, previous studies did not examine
salary and benefits, job stress, training and promotion opportunity, education-job
mismatch and working environment as combination factors that affect employee job
satisfaction. In addition, this study will investigate the relationships between these
parameters with the job satisfaction in engineering sector which is different than
others earlier researches. Furthermore, in prior studies working experience and
gender had never been tested as moderator between salary and benefits, job stress,
training and promotion opportunity, education-job mismatch and working
environment and employee job satisfaction. Therefore, it can be said that this study
provides new insights to the job satisfaction study while contributing significantly to
the human resources study in engineering sector. As a result, this will help in solving
the problem of high turnover rate in Malaysias private engineering sector nowadays.
10
CHAPTER 2
LITERATURE REVIEW
2.1
Job Satisfaction
11
2.2
12
Study of Kathawala, Moore and Elmuti showed that salary is the prime factor
that will affect job satisfaction in the automobile industry as the result of survey.
Through the survey, compensation had been ranked as top element among the
various job characteristics that relate to job satisfaction while increase of salary
based on working performance voted as rank one for job motivation.
Employees consider salary as one of the measurement that how valuable are
them to the employer or organization they service (Zobal, 1998). Some studies
reported that salary is a motivator for workers to enhance commitment to the
organization and this is an effective element for talent retention and prevent turnover
of human resources (Chiu et al., 2002; Zobal, 1998).
Working as an engineer is said to be a well-paid and challenging job.
Respondents from a survey pointed that engineering sector is interesting job which
need a lot of motivation but will not get too high salary as others sectors, especially
for the entry pay. Hence, it can be interpreted that engineering graduates may
consider interest and learning opportunity more important than the entry salary pay
(Geeta and Pandey, 2012).
Through the research outcomes done by the previous researchers mentioned
above, some research gaps were noticed such as there are past studies on affect of
salary and benefits to job satisfaction, but seldom in engineering sector. In addition,
no prior study examine the moderating affect of working experiences & gender
between salary and job satisfaction.
2.3
13
14
engineering sector. In addition, only little attention of the previous researches had
been paid on affect of training and promotion opportunity to employee job
satisfaction.
2.4
Over the years, several studies had been done to investigate the influences of
job stress towards the job satisfaction and job performance of engineers. It is
common that most of the organizations demand their engineers to produce higher
productivity (Kaufman, 1974). This is because the working nature of engineer
involves high demand of technical knowledge such as design and process
troubleshooting. Mistakes made by engineer have the possibility lead to the
circumstances of equipment damage, losses to company or even cause lifes
(Andrews and Farris, 1972). Hence, the effect of job stress need to be considered as
an important factor in engineering sector.
Superior and management in organization had played a significant role
undoubtedly in the discussion of job stress among engineers. For instance, the
sources of stress can come from office politics or conflict, role ambiguity with
current work specification and the feeling of meaningless towards the work
responsibility and work scope. Previous research had reported that high job stress
among employees can be related to the worried of unknown superiors evaluation on
their workplace performance (Muhammad and Nasir, 2011). Employee will have the
feel of role ambiguity and resulting job stress consequently normally is due to the
limitation or inadequate of information regarding to their work role.
In addition, the arousal of performance will also cause pressures to
employees. There will be a negative effect on employee performance as well as job
satisfaction whenever the arousal is too high or too low. Through the research on the
factors with respect to the impact towards the job satisfaction among employees, it
15
was found that job stress has brought significant negative impact with job
satisfaction (Jahanzeb, 2010).
Due to the unmanageable workloads and the nature of the engineering job
scope, engineers usually do not able to finish all the work well because of the time
constraint. From the work-life balance point of view, engineers are requested to work
overtime frequently inclusive weekends where this situation will interfere the
personal life of him/her. As a result, role conflict will happen if ones commitment
towards work and family obligation appears to be imbalance. This may become the
highest contribution of stress factor and hence affecting the job satisfaction. Research
proved that employees who had high level of job stress would yield a low job
satisfaction (Muhammad and Muhammad, 2012; Zuraidah, 2014).
Furthermore, the long hours a person works under stress can cause strain
which originated from high job demands and work overloaded. The extent of this
problem will result exhausted of mental and physical resources and finally lead to
health problems for the employee. This circumstance is also a reason for withdrawal
from work and reduced motivation or commitment (Rothmann and Malan, 2006).
As reported by Leather, Beale and Sullivan, stress can bring negative impacts
and hence resulting job dissatisfaction to employees. Others research showed that
stress can come from huge work volume as well as the demand of profession. Low
job satisfaction of employee will be resulted as stress level increasing in the job
environment. Thus, job satisfaction has an important role in improving the
performance of engineers (Antoniou, Davidson and Cooper, 2003). This statement
also supported by others research which proved that occupational stress has
significant and negative affect to the job satisfaction. (Lambert, Hogan, Elechi, Jiang,
Laux, Dupuy, & Morris, 2009).
The above literature review shown the research gaps as there were past
studies on affect of job stress to job satisfaction, but none in Malaysia private
engineering sector. Furthermore, no prior study had examined the moderating affect
of gender between job stress and job satisfaction.
16
2.5
Blenkinsopp
had
defined
the
term
overeducation
as
17
But there were still more than half of the respondents consider the educationjob mismatch is negatively affect the job satisfaction while this result is supported by
the previous research (Kucel and Vilalta-Buf 2012). Some of the respondents think
that undereducation will cause negative effects such as the of feeling useless,
uncertainty, being lost, embarrassment, frustration, work overload and waste of time
(Fuentes and Burgo, 2013).
On the other hand, employees think that both personal and job satisfaction
can be achieved when they have the adequate education to fulfil the job requirement.
Hence, they are able to complete their job confidently and correctly, while
transmitting this positive thought to their co-worker and subordinates (Badillo et al.
2008). However, research result of Allen and van der Velden
showed some
disagreement with others that education-job mismatch with overeducation will not
affect employee job satisfaction.
We can conclude that the research gaps from the previous research outcome
as there were past studies on affect of education-job mismatch to job satisfaction in
Europe region, but none in Asia private engineering sector. In addition, no prior
study had examined the moderating affect of working experiences between
education-job mismatch and job satisfaction.
After summarizing the research outcomes of previous studies, several
hypotheses had been made to be tested in this research. The following table shows all
the hypotheses in this research.
Hypotheses Description
Salary and benefits significantly and positively affects employee
job satisfaction
Job stress significantly and negatively affects employee job
satisfaction
Training and promotion opportunity significantly and positively
affects employee job satisfaction
18
Hypothesis 4
Hypothesis 5
Hypothesis 6
Hypothesis 7
Hypothesis 8
Hypothesis 9
Hypothesis 10
2.6
Research Framework
Using the above literature review as a guide, the relationship between salary
and benefits, job stress, training and promotion opportunity, education-job mismatch
and working environment on employee job satisfaction is proposed. The research
framework is constructed in the following figure.
H
1
H
2
H
3
19
Job satisfaction
Educational-job
mismatch
Working environment
H
4
H
5
Job satisfaction
H
6
Position and
experiences
H
9
Gender
Job satisfaction
H
7
Position and
experiences
Educational-job
mismatch
Job satisfaction
H
8
Position and
experiences
Job satisfaction
Job stress
H10
Gender
20
CHAPTER 3
METHODOLOGY
21
3.1
Research Design
The objective of this research is to examine the effect of salary and benefits,
job stress, training and promotion opportunity, educational mismatch as well as
working environment on employee job satisfaction in engineering sector. The
research design is based on the theoretical framework
3.2
Questionnaire Design
A causal research design with quantitative survey method is used in this
and current
designation.
Section B has 8 questions mainly to survey the current salary and benefits
status of respondents as well as the relationship of this factor to the job satisfaction.
There are 5 questions in Section C measuring the effect of job stress factor while 3
22
3.3
Sampling Design
23
# of elements
15
35
50
# of respondance
30
70
100
Table 3.2: Typical sample size for studies of human and institutional population
Number of
sub-group
analysis
None or few
sub-groups
Average
Many
People of Households
National
Regional/Special
Institution
National
Regional/Special
1000 1500
200 500
200 500
50 200
1500 2500
2500+
500 1000
1000+
500 1000
1000+
200 500
500+
24
3.4
There are several measures to test the goodness of data collected from
quantitative survey such as reliability, validity and sensitivity. Reliability test is a
measure which indicates the extend of data without bias and ensure the consistency
of the results. In this study, internal consistency reliability is tested by Cronbachs
Coefficient Alpha. This is the most popular test of interism consistency reliability
which test for the consistency of respondents answers to all the items in a measure.
Cronbachs Coefficient Alpha is widely used in research and sometimes as the sole
scale of reliability and validity indicator.
Cronbachs Coefficient Alpha test was conducted by using SPSS Version 16
software after the data of pre-test on 20 respondents being collected. In general, the
result of this coefficient at 0.7 and above is acceptable as good data. Cronbachs
Coefficient Alpha will help to identify the reliability of the multi-items as well as to
establish the validity of the questionnaires. After the pre-test checking, the
questionnaire was review and improved again before it distributed to the engineering
sector employees to get the real survey of the research.
3.5
Data for this research were gathered from 1 30 November 2014. Primary
data was collected though survey questionnaires to obtain first-hand information on
the variables of interest for the study of job satisfaction in engineering sector. 100
Engineers with 15 of them in Managerial level had been surveyed on their opinion
regarding different aspects which can lead to job satisfaction.
25
The survey forms were distributed through online and manually. For the
online survey method, a link with Google survey form had been send to respondance
through email and others social network such as Linkin and Facebook messenger. On
the other hand, survey form in paper copy had been distributed through Institution of
Engineers Malaysia (IEM) Johor Bahru branch for manually survey method. The
example of survey questionnaires used in this research as per attached in Appendix.
Both online and manually survey methods allows researcher for reaching out
to the respondents in easy while not too costly way. As this is a voluntary survey,
complete privacy was assured where details of each respondents were disclosed to
others parties.
3.6
SPSS Version 16.0 software was used to analyse the data in this research.
Descriptive analysis had been used to transform the raw data in a way to describes
the basic characteristics such as finding the mode, mean, median and plot into
frequency table as well as means standard deviations curves.
In addition, the correlation test had been done to measure how strong the
relationship between variables and the direction of the linear relationship. For this
purpose, Pearson Correlation Coefficient was used to measure the correlation
between two variables while controlling another variables that may affect the
relationships. By using this Pearson Correlation analysis, the strength of the
correlation between the dependent and independent variables can be justified.
Then, some inferential statistic methods was conducted such as multiple
regression, t-test and ANOVA test to analyse the relationships between independent,
dependent and moderating variables. Multiple regression technique was used to
measures relationship between one dependent variable and a number of continuous
independent variables. ANOVA test will help to confirm whether the model used is
correct, robust of model fit and whether the dependent and independent variable
26
chosen are in order. and Finally, rank order of the independent variables had been
calculated by multiplying the frequency by the rank score for each choice resulting a
new scale. These approaches were consistent with the previous study done by
previous studies.
REFERENCES
27
Allen, J and van der Velden, R (2001). Educational mismatches versus skill
mismatches: effects on wages, job satisfaction, and on-the-job search. Oxford
Economic Papers, (3): 434-452.
Andrews, F. M. and Farris, G. F. (1972). Time Pressure and Performance of
Scientists and Engineers: A Five-Year Panel Study. Organizational Behaviour and
Human Performance, Vol. 8 (2): 185-2000.
Antoniou, A-S, G., Davidson, M.J., and Cooper, C.L. (2003). Occupational stress,
job satisfaction and health state in male and female junior hospital doctors in
Greece. Journal of Managerial Psychology, 18(6): 592-621.
Badillo Amador, L, Lpez Nicols, A and Vila, L E. (2012). The consequences on job
satisfaction of job-worker educational and skill mismatches in the Spanish labour
market: A panel analysis. Applied Economics Letters 19(4): 319-324.
Badillo, L, Lpez Nicols, A, and Vila, L E. (2008). Education and competence
mismatches: job satisfaction consequences for workers. In:XVI Jornadas
ASEPUMA - IV Encuentro Internacional de Profesores Universitarios de
Matemticas para la Economa y la Empresa,Cartagena (Espaa). Vol. 1-12.
Chiu, KR., Luk, VW., Tang, TL. (2002). Retaining and motivating employees,
Compensation preferences in Hong Kong and China. Personnel Rev., 31(4): 402431.
Friedlander, F. and Margulies, N. (1969). Multiple Impacts of Organization Climate
and Individual Values System upon Job Satisfaction. Personnel Psychology. 22:
177-183.
Fuentes, B.J. and Navarro, A.E. (2013). Do educational mismatches influence job
satisfaction? In: Smith, S.D and Ahiaga-Dagbui, D.D (Eds) Procs 29th Annual
ARCOM Conference, 2-4 September 2013, Reading, UK, Association of
Researchers in Construction Management: 237-247.
28
Kathawala ,Y., Kevin, M. and Dean, E. (1990). Preference between Salary or Job
Security Increase. International Journal of Manpower. 11 (7).
Kaufman, H. G. (1974). Relationship of Early Work Challenge to Job Performance,
Professional Contribution, and Competence of Engineers. Journal of Applied
Psychology, Vol. 59 (3): 377-379.
Kucel, A. and Vilalta-Buf, M. (2012). Graduate labor mismatch in Poland. Polish
Sociological Review 3(179): 413-429.
Lambert, E.G., Hogan, N.L., Elechi, O.O., Jiang, S., Laux, J.M., Dupuy, P., and
Morris, A. (2009). A further examination of antecedents of correctional staff life
satisfaction. The Social Science Journal, 46: 689-706.
29
Leather, P., Beale, D. and Sullivan, L. (2003). Noise, psychosocial stress and their
interaction in the workplace. Journal of Environement Psychology, 23: 213-222.
Mora, J. G., Garca-Aracil, A. and Vila, L. E. (2007). Job satisfaction among young
European higher education graduates. Higher Education, (53): 29-59.
Mosammod, M. P. (2011). Factors Affecting Employee Job Satisfaction of
Pharmaceutical Sector. Australian Journal of Business and Management
Research, Vol.1 No.9: 113-123.
Muhammad, I. and Muhammad, A.W. (2012). Impact of job stress on job satisfaction
among air traffic controllers of civil aviation authority: An empirical study from
Pakistan. International Journal of Human Resource Studies, 2(2): 53-70.
Muhammad J., Nasir K., Ayaz K., Muhammad T.J., Shaheed S. (2011). Effect of Job
Stress on Job Performance and Job Satisfaction. Interdisciplinary Journal of
Contemporary Research in Business, 3 (7): 453-465.
Peir, J. M., Agut, S. and Grau, R. (2010). The relationship between overeducation
and job satisfaction among young Spanish workers: The role of salary, contract of
employment, and work experience. Journal of Applied Social Psychology, 40(3):
666-689.
Rothmann, S. and Malan, M.M. (2006). Occupational stress of engineers in South
Africa. Southern African Business Review, Vol. 10, No. 2.
Zuraidah, R. (2014). The Impact of Job Stress to Job Satisfaction among Engineers:
A Literature Review.
Scanduraa, T.A., Williams, E.A. (2004). Mentoring and transformational leadership:
The role of supervisory career mentoring. J. Vocat. Behav., 65: 448-468.
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30
APPENDIX
SURVEY QUESTIONNAIRE
31
Below 25
26-30
31-35
36-40
41-45
46-50
Above 50
3. Marital status
o Single
o Married
4. Education background
o Diploma
o Degree
o Master or above
5. Engineering Discipline
o Civil
o Mechanical
o Electrical
o Chemical
o Others, please state ____________
6. Number of companies served since graduation:
______
7. Year of experience
o Below 3 years
o 4-6 years
o 7-10 years
o 11-15 years
o 16-20 year
o Above 21 years
8. Designation (current position)
32
Section B: The justification of salary and benefits are the factor that will
influence job satisfaction level
1. Income level per month
o Below rm2000
o Rm2001-4000
o Rm4001-6000
o Rm6001-8000
o Rm8001-10000
o Above rm10000
2. Are you satisfied with you current salary? (From 1 Lowest to 5 Highest)
o 1
o 2
o 3
o 4
o 5
3. Do you agree that salary has relationship with the job satisfaction?
(From 1 Strongly Disagree to 5 Strongly Agree)
o 1
o 2
o 3
o 4
o 5
4. Do you mind that salary at entry level is low but higher increment rate in future
service years? (From 1 Lowest to 5 Highest)
o 1
o 2
o 3
o 4
o 5
5. Is your company giving bonus?
o yes
o no
6. Please tick on which of the following benefits are given by your company. (May
tick more than one)
o EPF and SOCSO
o Insurance coverage
o Medical and dental service
o Housing or car allowance
o Technical allowance
o Meal allowance
o Sports and recreation facilities
33
o 5
8. Do you agree that employee benefit is the factor which affect job satisfaction?
(From 1 Strongly Disagree to 5 Strongly Agree)
o 1
o 2
o 3
o 4
o 5
Section C: The justification of Job Stress is the factor that will influence job
satisfaction level
1. How do you agree with your current job specification?
(From 1 Strongly Disagree to 5 Strongly Agree)
o 1
o 2
o 3
o 4
o 5
2. What is your agreeable rate on some circumstances your superior put more job on
you that cause job overload?
(From 1 Strongly Disagree to 5 Strongly Agree)
o 1
o 2
o 3
o 4
o 5
o 4
o 5
o 4
o 5
o 4
o 5
o 3
o 3
34
o 5
35
o 3
o 4
o 5
o 5
o 5
5) Do you agree that an organization with good working environment and culture is
important to the employee job satisfaction?
(From 1 Strongly Disagree to 5 Strongly Agree)
o 1
o 2
o 3
o 4
o 5
) Salary
) Benefits
) Job stress
) Training opportunity
) Promotion opportunity
) Relevant of job to university study
) Working environment