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Abstract
Purpose:
The purpose of this research is to test the effect of Perceived Organisational
Support on Job satisfaction and to determine the effect of mediation of Trust on
Job Satisfaction in the two different sectors of employment- Public and Private.
Here Sector of Employment acts as a moderator and Job Trust as the mediator.
Design/methodology/approach:
A questionnaire was prepared and administered to 182 employees working in the
public and the private sector in different industries like Banking, Mining, Power
Generation and Information Technology.
Findings:
The research has established positive relationships between the three constructs of
perceived organizational support, job satisfaction and job trust for the overall
model and public sector employees, whereas these relations are not significant in
case of private sector employees. The mediation effect of Trust is significant at
10% for the overall model sans separately in the private and public sector.
Research limitations/implications:
The respondents have varied profiles in terms of age/ years of experience,
seniority level and the industries that they work in. These results may not be
generalizable to all employees in other organisations in different industries and
geographic areas. Also, a large percentage of responses have been collected through
the internet which is not an entirely accurate and reliable form of data
collection.
Practical implications:
The research findings are expected to help the existing organizations in the public
and private sector to figure out reasons for decreasing job satisfaction of the
employees and devise ways to improve the perception of organizational support.
Originality/value:
This paper studies the difference in the relationships exhibited between Perceived
organisational support, job trust and job satisfaction in the private and public
sector in the Indian context. This is one of the first attempts towards studying
the employment sectors on a comparative basis.
Keywords:
Perceived Organisational Support, Job Trust, Job Satisfaction, Public Sector,
Private Sector
Introduction:
Job Satisfaction is a measure of how content an individual is with his job. Quite a
few models have been developed in order to explain causes and effects of job
satisfaction, for example, affect theory, dispositional theory, two factor theory
and the job characteristics model. For years researchers have been trying to
establish relationship among various parameters affecting the job satisfaction, job
commitment, job dedication and job performance of the employees in the
organizations. This is particularly important for organizations in order to improve
working conditions, figure out the motivating factors and thus increase employee
productivity by creating a healthy work environment. Job Satisfaction is an
indicator of employee perceptions and feelings about their jobs. It can also
predict work behaviours like organisational
citizenship,absenteeismandturnover.Another important and relevant research finding
is the relationship between life satisfaction and job satisfaction which is found
to be reciprocal. It means that a person who is satisfied with his job may be quite
satisfied with his life and vice versa. Job satisfaction is believed to positively
affect the productivity of the employee which is vital to business units that are
aiming to increase outputs.
Job Trust
Trust is one of the most important fundamentals on which an employer-employee
relationship is based. This relationship goes a long way in instilling confidence
and destructing fear by creating a work environment free of worry and suspicion
(Zeffane et.al, 2003). Trust has also been suggested to be a psychological state
according to which it is measured on the basis of perceived vulnerability or risk
due to the uncertainty involved (Kramer, 1999).
In our research work we are concerned with the trust within the organization i.e.
the extent of trust the employees have in the organization they work for, basically
between employees and managers or supervisors. Thus in an organizational context
trust is based on the social exchange theory mainly (Whitener et al., 1998), which
explains trust to be an outcome of exchange of benefits between the two parties
involved. The underlying concept involved here is �reciprocity�, which establishes
the fact that investment in the employees in an organization in terms of
recognition, empowerment, justice, support and other favours will always be
returned and not go waste (Gouldner, 1960). According the research done by Prusak
and Cohen (2001), it is possible for managers to develop an environment of trust in
the organization by encouraging mutual trust, and support. This in turn increases
the level of perceived faith in the organization by the employees. It has also been
argued that this trust (McAllister, 1995) is the key to organizational trust and
control. It leads to increased level of employee participation which involves
decision making power in the hands of the subordinates which would inevitably lead
to increase in mistakes. Thus, by delegating this power to the subordinates the
organization increases the risk factor but at the same time, since this delegation
needs a bond of trust (Yukl, 1994), gives a clear indication that organization
believes in its employees and thus the individual perceives this organizational
trust and in turn contributes effectively and positively towards the organization.
It is also true that each individual perceives the level of trust differently. So,
it is futile to hold common assumptions across all work relationships and thus
context based analysis is required. The trust levels also vary on the basis of who
is participating in the relationship i.e. at what level of the organization (Graham
et al., 2006). Thus, this trust existing in an organization determines to a large
extent an organization's culture and work dynamics, by influencing factors like
organizational structure, job satisfaction and commitment (Zaffane et. al, 2003).
Hence, we have taken this as one of the constructs (as a mediator) in our analysis
of the relationship between perceived organizational support and job satisfaction.
Job Satisfaction
Job satisfaction was attributed to greatest possible earnings with the least amount
of work done (Taylor, 1970). This controversial theory encouraged a number of other
studies to prove the significance of other factors in determining job satisfaction.
These factors were identified as communication apprehension, perceptions of
immediate supervisors and employee esteem (Falcione, 1977). Also, job satisfaction
was determined to be influenced by the returns or rewards expected by the
individual and the extent to which she was able to achieve them in the job.
(Jorgensen, 1973). Employee perceptions were considered more important in
determining job satisfaction than physical evidences like pay (Brayfield et al.,
1951). The short form version of Brayfield and Rothe's scale was developed to
measure employee perceptions about their job and organization (Algho et al., 1992).
A lot of research has been targeted at job satisfaction and the turnover rates in
the organizations or the employee's intention to quit. (Spector et al., 1997). In
this regard, job satisfaction was proved to be related to job identification. Both
of them were determined to be organizational anchors and were used to predict the
turnover within organizations (De Moura et al., 2009). A precedent to job
satisfaction was identified as job insecurity (Reisel et al., 2010) and an
antecedent was found to be role conscientiousness and performance of extra-role
tasks (Nathan et al.). Job satisfaction has often been positively linked to
training and development opportunities in the organization. A significant positive
relationship was observed between employer provided training satisfaction and
overall job satisfaction of employees. Satisfaction with training and development
significantly affects career decisions and is a valued factor among employees, thus
significantly impacting job satisfaction (Schmidt, 2007). Also, job satisfaction
was conceptually established as a mediator between perceived organizational support
and job commitment. Empirically, a positive relationship was established between
perceived organizational support and job satisfaction (Chiu et al., 2010). In a
recent study on job satisfaction, a total of nine factors grouped under four
headings were considered as precedents of job satisfaction. The four headings
included organizational change, organizational support, job characteristics and
managerial role. It was empirically proved that decentralization, informal
communication, support from supervisor, participative organizational culture,
autonomy and empowerment of employees and the type of role in the organization
significantly influenced the job satisfaction of employees (Lee et al., 2008). The
role of supervisory or immediate boss support was determined to be significant. As
per the study, supervisors were perceived as the representatives of the
organization by employees and are responsible for acting as the interface between
organization and employees. Thus, they naturally build a relationship with
employees. Quality of this relationship was the significant determinant of employee
perceptions and job satisfaction (Ladebo, 2008). The use of information systems in
the organization has been observed to have a positive impact on employee job
satisfaction. In the evolving workplaces of present, the ability to work flexibly
and efficiently is observed to have a major impact on the technologically advanced
employees. Thus, the installation of an efficient Information System, which
provided easy access to information was observed to increase the job satisfaction
scores significantly (Chen et al, 2008).
The relationship between POS and Job Satisfaction
POS is related to, yet different form the constructs like job satisfaction. POS is
determined to have a strong influence on employee reactions to their jobs on
various dimensions, including job satisfaction, job involvement and job commitment
(Rhoades, 2002). As per the norms of reciprocity, an employee would react
positively to good treatment from the supervisor or immediate boss. As the
immediate boss is the direct representative of the organisation, a fair treatment
from him would be seen to be organisational support and would encourage employees
to go beyond their normal call of duty to reciprocate the good treatment (Rousseau,
1989). POS is defined as the perception which employees have of how much the
organization values them, their contributions or cares about them. High POS would
meet psychological needs of employees, e.g. approval, esteem and social identity
needs. It would also motivate the employees by raising the expectations of rewards
on above average or above expected performance (Eisenberger et al., 1986).
Percieved organisational support has a positive relationship with psychological
well being which is defined in terms of job satisfaction and life satisfaction.
This relationship is mediated by effective commitment (Meyer et al., 2002). POS is
most often observed to be positively related with organizational commitment (Shore
et al., 1991). However, POS is still distinct from organisational commitment
because while POS measures the extent to which organisation cares about its
employees as per their perceptions, organisational commitment measures the extent
to which employees see themselves as being committed to the organisation and thus
satisfied (Shore et al., 1993) Without POS, employees may be unhappy with the tasks
associated with their jobs and may be dissatisfied. POS is affected by the various
aspects of an organization's treatment of its employees (Tansky et al., 2001).
Organizational support is measured in terms of customized training opportunities
and options of flexible working hours. Career satisfaction acts as a mediating
variable for relationship between perceived organizational support and employee's
intentions to continue in the organization (Armstrong et al., 2009). Training and
mentoring before special assignments has been seen to be a strong indicator of
organisational support. These initiatives give a sense of security to employees and
reassure them and organization will help them meet challenges. Thus, they identify
more with the job and do it more efficiently (Cuplan, 2002).
Many senior women managers have complained of the management's failure to recognise
their talent and lack of support and advancement opportunities within the
organisation. Women form only a tiny fraction of males in senior positions
(Wellington et al., 2003). Such perceptions often lead to quitting the job, which
is a significant indicator of reduced job satisfaction at negative perception of
organisation justice (Jawahar et al., 2008). Both POS and JS are observed to be
having significant relationship with organisation commitment, which shows the
presence of a correlation between these variables. Organisational identification is
seen to have a strong positive effect on outcome variables like job satisfaction
(Abrams et al., 2001). Organisational support however indicates how well
organisation takes care of the OID for their employees. POS theory suggests that if
organisation takes good care of employees, they will develop a stronger attachment
to the organisation (Rhoades et al., 2001), hence being more satisfied and
committed (Rhoades et al., 2002).
The job trust is mostly perceived as the trust between the employees and their
managers or the superiors. It has been further proven that if the employees show
trust in their superiors then the superiors have greater influence on them (Goris
et al. 2003). The reason being the superiors are responsible for many duties which
shape the career of their subordinates like performance evaluations, guidance in
terms of job responsibilities and training. Thus if the trust on the basis of such
parameters in a manager increases then as a result job satisfaction also increases
(Dirks et al. 2001). Also, this increased level of trust encourages cooperation,
reduction in conflicts and thus improved job satisfaction.
Many studies have been conducted on measuring the levels of job trust (Dietz and
Den Hartog, 2006) and POS in organisations. Trust between two entities is stated as
the readiness of one (Trustor) to be susceptible to the actions of the other
(Trustee). This readiness of the trustor is basically his expectation that the one
he trusts will act in his favour irrespective of exercising control and supervision
(Mayer et al., 1995). Job Trust is considered of high importance in today's
organisations because it has been empirically established that when trust levels
are high, organisation commitment is high (Brockner et al., 1997). As per the
definition of trust used above lack of trust means a higher need of monitoring
(Handy, 1995) and increased trust levels suggests lower need for supervision
(Bradach and Eccles, 1989; Ouchi, 1979). POS as defined above is believed to affect
Job Trust though there is not enough empirical evidence available. There is enough
research available on the antecedents of POS and its outcomes but none talks about
the Job Trust with specific mention.
POS is has its theoretical roots in the social exchange relationship (Allen and
Brady, 1997), in which the employee is obliged to reciprocate to the organisation
like he feels about it (Eisenberger et al., 2001). If employees believe that their
organisation or for that matter immediate superior is truly interested in their
well being then trust will develop (Doney et al., 1998). Researches indicate that
increased perception of organisational support results in increased efforts jointly
put in by the employees to achieve the organisation's objectives (Eisenberger et
al., 1986). Research conducted by Cook and Wall(1980) noted that there is a
positive correlation between trust and involvement with the work organisation.
Similarly studies reveal a positive relationship between POS, affective attachment
and expectations of performance related rewards (Eisenberger et al., 1990).
According to a research conducted by Florence et al., (2006), the relationship
between procedural justice and trust is partially mediated by POS. Also trust has
been found to mediate the relationship between procedural justice and
organisational citizenship behaviour (Konovsky and Pugh, 1994), POS is also a
mediator of the link between the above two (Moorman et al., 1998). Thus we can
expect a possible linkage between trust and POS.
In this research we have taken into account the moderating effect of the
dichotomous moderator: the employment sector of the respondent i.e. public and
private sector. The definition of employment sector in the Indian context refers to
the government owned and operated organisations which come under public sector and
privately owned entities which are termed the private sector organisations.
Employee job satisfaction has been studied extensively on various occasions but a
research aiming to bring out differences in the levels of observed POS, Trust and
Job Satisfaction and the relationships between them in Public and Private sector
have not been studied in depth. Since the work culture of these two sectors are
very different and so are the job factors. The work environment in the private
sector is more competitive, open and result-oriented while in public sector it's
conservative, less open to new ideas and generally plunged by stagnation in the
long run. So, we aim to analyze the variables of POS, trust and job satisfaction in
these two sectors and try to find the differences in perception due to the way the
system works.
0.322* 0.553*
0.253*
0.096/ 0.412*
Methods
Sample
In all 183 respondents employed in managerial capacity in public and private sector
establishments in India were administered this survey asking their perceptions
about the job, organisational support and satisfaction. The questionnaires were
electronically mailed to the target group which constituted equal number of
respondents from both sectors and a wide arena of industries like banking,
information technology, power generation etc.
Measures
Unless otherwise stated all the following constructs have been measured by Likert
scales with responses ranging from strongly agree to strongly disagree.
Job trust: Trust that the employee has in his or her organization has been measured
using a 7 item and a 5 point scale developed by Tyler (2003). A sample item is In
my organization, my views are considered when decisions are made.
Job Satisfaction: The contentment that the employee derives from the nature of his
job is measured by a 7 item and 7 point scale developed by Brayfield and Rothe
(1951). A sample item is . I feel fairly satisfied with my present job.
Second, the respondents in the public and the private sector work in entirely
different industries. For example, the respondents from the public sector
undertakings are mainly from the banking and power generation sector whereas
private sector respondents belong to information technology, consultancies etc.
Direct comparison of public and private sector employees working in the same
industry has not been brought out clearly.
Third, the method of data collection through the internet is not entirely accurate
and reliable.
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