Professional Documents
Culture Documents
SUBMITTED TO:
Ma’am Nimra Sharif
SUBMITTED BY:
Shabbir Hussain (33915)
Prakash Naik (34170)
Arif Nadeem (38939)
Tauqeer Burni (33876)
Muhammad Awais (39967)
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ABSTRACT
The main objective of this study was to discover the possible FACTORS AFFECTING
EMPLOYEE WELL – BEING Practices on the job satisfaction of the employees. This job
satisfaction is one of the approaches of the employees. Data is collected from individuals
working within the organizations. The practices, which were used included employee
participation, performance evaluation, reward systems and training & development. After the
statistical analysis was perform on the data, it was figured out that, there was a positive
relationship between these practices and the job satisfaction of the employees. The impact of
FACTORS AFFECTING EMPLOYEE WELL – BEING practices were studied by designing
a research model where respondents were interviewed to gain a first – hand knowledge to be
incorporated in the study. Limitations as well as directions for further research has also been
discussed.
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Table of Contents
1. INTRODUCTION ................................................................................................................. 4
1.1. Background: .................................................................................................................... 4
1.2. Problem statement ........................................................................................................... 4
1.3. Scope of the study ........................................................................................................... 5
1.4. Purpose Statement ........................................................................................................... 5
1.5. Research Question/Objectives......................................................................................... 5
1.6. Significance of the Study ................................................................................................ 5
2. LITERATURE REVIEW ...................................................................................................... 6
2.1. Theoretical Background: ................................................................................................. 6
2.2. Empirical Review: ........................................................................................................... 9
2.3. Summary of the Reviewed Literature: .......................................................................... 10
3. RESEARCH METHOD....................................................................................................... 11
3.1. Theoretical Framework: ................................................................................................ 11
3.2. Hypothesis: .................................................................................................................... 12
3.3. Research Approach: ...................................................................................................... 12
3.4. Research Design: ........................................................................................................... 12
3.5. Sampling Design: .......................................................................................................... 12
3.6. Instruments: ................................................................................................................... 13
3.7. Statistical Analysis: ....................................................................................................... 13
4. Result and Findings.............................................................................................................. 14
4.1. Descriptive profile of date: ............................................................................................ 14
4.2. Result of Multiple linear regression .............................................................................. 14
4.3. Analysis of Variances Test in Multiple Linear Regression........................................... 15
4.4. Coefficients in multiple linear regression ..................................................................... 15
4.5. Regression Model for the Research is Y= 1.89 + .955x + .235 x+ .753x + 1.23x ........ 15
4.6. Hypothesis Testing ........................................................................................................ 15
4.7. Hypothesis testing assessment summary....................................................................... 16
5. Conclusion ........................................................................................................................... 17
5.1. Conclusion..................................................................................................................... 17
5.2. Implications ................................................................................................................... 17
5.3. Limitations .................................................................................................................... 18
5.4. Future Research Recommendations .............................................................................. 18
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1. INTRODUCTION
1.1. Background:
World – wide, fluctuating statistics, talents gaps, and employee lacks can have a Philosophical
and thoughtful consequence on a country’s talents to uphold its attractiveness (Fernandez,
2001; Laprade, 2006). Researchers have classified factors that affect employee’s well – being
into various groups. For instance, (Gong et al. 2009) have observed factors that affect staff
well – being as nine (9) main and significant employee well – being practices in the literature
of the investigation. They have involved the basics and features of service security, wide –
ranging guidance, decline of position variances, discriminating employment, and influence in
consequence creation, routine (performance) assessment, salary commission on routine,
occupation development and improvement, and material distribution. Tremblay (2007) has
also suggested other employee well – being accomplishments, like occupation safety, group
work, and get together rehearses as part of factors that affect staff’s well – being. Employees
form a major part of an organization. They are considered as resources of the organization and
could provide a competitive advantage. If the firm has supple employees, they use the abilities
of the staffs as strategic substitute and increases aggressive benefits and improvements (Wright
and Snell 1998).
Staff member (employee) well – being is considered the essentials for an organization. If the
employees within the organization are disappointed and frustrated, then their morale and
eventually their efficiency as well as routine will be affected. Long – standing employee well
– being practices have transformed to high employee well – being system to find out their effect
on the satisfaction of the employees. Previous studies displayed that various researchers used
various actions to shape the high employee well – being structure and observed the
consequence of the structure on staff boldness and arrogance. For instance, various
investigators deliberated the association among high employee well – being and occupation
fulfilment & administrative/ structural obligation or together (Gardner, Moynihan, Park, &
Wright, 2001; Macky & Boxall, 2007; Takeuchi, Chen, & Lepak, 2009). Only limited
academics originate the influence of high employee well – being system on turnover purpose
(K. Jiang et al., 2012) Kuvaas, 2008; Luna-Arocas & Camps, 2007) and many more originate
how employee well – being activities take part in firm’s routine (J. Y. Jiang & Liu, 2015).
CEOs and occupational bosses and supervisors are requirement to assess and evaluation their
employee well – being tactics and activities if they want to create a reliable workforce; such a
staff could be very helpful in the success of the business
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high-routine employee’s consideration that were included in about reward programs such as
gain sharing and profit sharing. The organizations which do not have such consideration feared
that if such a question will be asked from the prevailing employees then it would affect their
self-esteem, and employees would wonder that why such practices do not exist within their
organization.
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2. LITERATURE REVIEW
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investigation explores sign minimum relation between extrinsic rewards and routine.
(Bohlander G, Snell S. Managing Human Resources (13th ed.). Mason: Thompson;
2004.)
10. Huselid (1995) is forceful about the universal employee training. Though this influence
investigation recognized 2 magnitudes and measurements amongst his high employees
well – being activities, one of which involved staff abilities and expertise, what he
called an “organizational structures” and the second is staff’s inspiration. He
established from his successive analysis (Huselid and Becker 1996) that these could
securely be self – possessed and collected into a single portion.
11. Various additional readings and educations have discovered the occurrence in some
firms of an efficient and effective “PACKAGE” of employee well – being practices.
(Arthur 1992; Kalleberg and Moody 1994; MacDuffie502 British Journal of Industrial
Relations, Blackwell Publishers Ltd/London School of Economics 2000. 1995;
Ichniowski et al. 1997; Pil and MacDuffie 1996; Becker and Huselid 1998; Delaney
and Huselid 1996; Becker et al. 1997).
12. The main variance amongst those who debated for a possible methodology, in which
the precise and comprehensive packets fluctuates by subdivision and professional
strategy (Arthur 1994; MacDuffie 1995; Youndt et al. 1996; Appelbaum et al. 2000).
The concluding assessment appears to have gained the control though modifications
combining of wide – ranging classifications of activities in general “construction” of
strategies that distributes area for various wide – ranging and broad implementation in
various situations (Becker and Huselid 1998: 87±91).
13. Wood and de Menezes (1998: 506), temporarily, debated in contradiction of the
package view, as an alternative considering “administration’s high – commitment” as
a material of grade.
14. Additional important problem is that there is a settlement between those researchers
who have specified a connection between high employee well – being and
organizational routine procedures (see Huselid and Becker 1996; Cutcher-Gershenfeld
1991; Ichniowski, Shaw and Prennushi 1997; Arthur 1994; Youndt et al. 1996;
Appelbaum et al. 2000; MacDuffie 1995). They stated that the relations reflect a
fundamental connection, which flows through individuals from the practices.
Clarifications of how and why this connection should depend on concepts and
philosophies of staff member’s inspiration in response to the types of practice labelled
by employee well – being philosophy and concept. Especially in US, managing and
controlling research takes it generally for granted. In short, the implied disputes that
employee well – being activities may take at appearance worth, as staff authorized.
Staff discovers that their requirements and desires encountered via chances and benefits
these activities deliver and answer by taking creativities without training and
presentation faithfulness and eagerness for their employer. These opinions have tended
to emphasis and influences on the efficiency of a range of staff member’s contribution
creativities, but the high employees well – being methodology takes possessions further
by suggesting a wider collection of effective inventions.
15. Huselid précises the quarrel for the consequence briefly: In common with the high
employee’s well – being explanation, the clarification recommends and proposes a
constructive connection between high employees well – being activities and staff
preference. This suggestion abstracted as an enhancement of preference rising from
firm's need to intensify employee obedience and imaginative ability.
16. Authorized staffs classically labeled as self – encouragement and dedicated
personalities who are responsible to accomplish at elevated level of struggles and
efforts (Thoman & Velthouse, 1990). Nykodym et al., (1994) initiate the authorized
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staff to reduce encounter and uncertainty since these staff members are more
accomplished and additional controlled at their workplace.
17. Neuman (1989) originate that staff grows and accomplishes better if executives control
and encourage their staff members with different forms of prizes.
18. Many gauges of profession fulfillment (Hackman, Oldham, 1975; Herzberg, 1987;
Smith, Kendall & Hulin, 1969; Spector, 1997) contains the surfaces as the nature of
work, improvement chances and public relationships. In 1991, survey of American
workers accomplished successfully that examined 16 characteristics of work.
Respondents described and testified additional satisfaction with such features, having
fascinating work and appreciating a chance to absorb new knowledge, capabilities and
talents (Spector, 1997).
19. High employees well – being practices have increased excessive amount of
attentiveness in current and modern years as the source of competitive benefit in
multifaceted atmosphere (e.g. Peffer, 1998). The purpose of high employees well –
being practices is to intensify business and company’s routine by the assistance of its
staff members (Armstrong, 2001). According to Bamberger and Meshoulam (2000),
high employees well – being activities involve 3 core parts:
People including selective staff, wide – ranging trainings, staff suppleness (for
instance, comprehensive career routes, promotion) and assurance of job safety.
Evaluation and prizes, including routine valuation (specifically long – term),
advantage and additional benefits, such as widespread rewards.
Occupational relationships, containing employment strategy (for instance,
wider job descriptions, elastic and supple job projects) and reassurance of
participation.
20. Significant quarrel of the issues that affect staff member’s well – being is that firms can
attain and accomplish advanced suppleness, advanced merchandise and invention
quality and higher performance by boosting staff to work harder and using their
expertise and knowledge of their staff members efficiently and effectively, making
decision of appropriate evidence and material. Moreover, it expects that factors that
affect employee’s well – being are “WIN – WIN”.
21. Dedicated employees under a high employee’s well – being system are expected to have
a profound connection with the firm and feel both passionate and grateful to contribute
to firms aims and objectives (Blau, 1983; Cohen, 2003).
22. Training and development of employees frequently used to close the gap among up –
to – date future routine. Training and development falls under staff’s well – being
function (Weil & Woodall 2005).
23. Kanfer et al. (2012) shows eagerness and passionate in the work sense as a set of
processes and techniques, which are used to direct an individual’s events and actions,
and what actions and activities they will use to accomplish a desired conclusion. This
emotional technique determines how personal exertion is used in the “direction,
intensity and persistence” of these actions in relation to your work.
24. Adams (1965) describes evenhandedness philosophy as the remark of how you are
treated, as related with the others and that you will be more pleased and inspired if you
think you are being honestly treated.
25. The exploration and investigation generated to explore various influences determining
internal and external prizes of Herzberg's two – factor philosophy and their influence
on banking staff job fulfillment and job performances and activities to inspiration
overall routine of commercial banks of Pakistan. (Jennings J. Portfolio, New York;
2002)
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the staff (Dyer and Shafer 2003). The studies done previously failed to integrate profit sharing
as a part of their prize systems. This study is making it a part of research. “Undesirable or
constructive feelings about something is called attitude” (Greenberg and Baron 1995).
Arrogance may disappoint routine of an individual while on the other hand; it could make an
individual pleased. Job assertiveness (attitude) plays a very significant and vital role within the
organization. The existing study focuses on only one job related arrogance: i.e. Job Satisfaction.
There is a significant influence of the main features on firm’s routine. Employee well – being
guidelines, strategies and practices may affect these arrogances (Rayton 2006). According to
(Blau 1964), assurance level of the staff member may be amplified and improved by executing
best employee well – being practices and this approach is advantageous for the firm.
(Sun et al. 2007) acknowledged that even though high employees well – being practices have
been connected to maintenance and turnover (e.g., Batt, 2002; Guthrie, 2001; Huselid, 1995),
the fundamental mechanisms of this connection remain uncertain. Sun et al., depend on societal
exchange concepts and philosophies, inspected service – oriented firm’s citizenship actions as
a facilitator of the high employees well – being turnover affiliation. However, the writer’s
clarification depends on less on the firm’s citizenship routines per se and more on staff’s
affective attachments that led to these behaviors.
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3. RESEARCH METHOD
Employee Participation
Performance Evaluation
Reward System
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3.2. Hypothesis:
In order to test the influence of employee participation, performance evaluation, reward
systems and employee training and development on employee well – being, several hypotheses
are created and then, the impact on employee well – being is studied and interpreted. The
hypotheses are as follows:
H1 = Employee participation has a positive impact on Employee well – being
H2 = Performance Evaluation has a positive impact on Employee well – being
H3 = Reward systems has a direct relationship with employee well – being
H4 = There is a significant impact of employee training and development on employee
well – being
If the entire hypothesis is accepted, then it would undoubtedly demonstrate that there is a
constructive, significant and direct connection and affiliation among the independent as well
as the dependent variables. If either one of these hypothesis is rejected, then it means that there
is no connection and affiliation between the independent and dependent variables.
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3.6. Instruments:
As we are interested in observing the significance of independent variables on dependent
variable accurately to make the research unbiased and fair – minded to reach to the end of the
objective. We prepared and organized questionnaire against the depth of interview.
Questionnaires were administered to reach to objective. Questionnaire were distributed among
the employees of firms including the employees from all level. The main objective of using
questionnaires were to avoid any subjective manipulation of information that could mislead to
the feelings of employee towards their firms. Questionnaires were circulated to employees
taking the physical entry to organizations. Organizations been shown with benefits of this
research to their organization and access to the findings of this research that would be a mean
to categorize and classify the significant variable that would have capability to contribute to
objective of organization. These research findings would be advantageous and constructive to
all of those organizations who are participating to make their employee well – being better off.
However, questionnaire could have one potential threat that employees would be reluctant and
unwilling to fill the questionnaire appropriately which is insignificant to study but that would
still be the part of results. Furthermore, potential and possible threat is that questionnaire would
be thoroughly understood by some people and others would in confused to answer the objective
question based on their subjective values. Questionnaire has been designed thorough five scale,
starting from strongly disagree from lower end and ending from strongly disagree from upper
end. Grad have been allocated from 1, 2,3,4,5 respectively. Other three answer includes
disagree, neutral and agree.
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Mean, Standard Deviation Table and Co-Relation Based on 95% Confidence Interval
VARIABLES MEAN STANDARD CORRELATION SIG/ P
DEVIATION VALUE
Reward system 2.6 7.89 .43 .004
Performance Evaluation 3.81 4.31 .65 .001
Employee participation 2.95 5.89 .55 .003
Training and development 4.55 2.35 .79 .000
The above table findings from simple linear regression checking the relationship between
dependent and independent value dependent variable individually. This result is based on 95%
confidence interval. As we see, the higher mean for training and development and less sig value
for it as well. Secondly, performance evaluations having second larger mean with second lower
standard deviation would be significant in predicting the job satisfaction thirdly employee
participation will have significant ability to predict the outcomes.at last the reward system will
predict the outcomes as well, here we can say that training and development is highly
significant predictor of job satisfaction along with other variable. Based on rejection rules of
null hypothesis, the sig value must be less than 0.05. So here, we see all sig values are less than
.05. So null hypothesis is rejected all of the cases mentioned above. It means there is significant
relationship between job satisfaction with evaluation form, reward system, employee
participation, and training & development. The relationship for all variable are direct and
positive. Training & development is having highest relationship with value of 79%, followed
by Performance Evaluation with 65%. Reward system and Employee participation have 43 and
55% relationship with job satisfaction respectively. Based on simple linear regression we can
rank our variable with its predictive abilities based on the values of co-relation.
1. Training & development
2. Performance Evaluation
3. Employee participation
4. Reward system
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It shows that data is normally distributed across the regression line. There is less variation in
date and less number of outlier. No data is falling out of range. In conclusion, it can be stated
that most of portion of job satisfaction is explained by four factors under studied. Moreover
43.3% variation in job satisfaction is brought by other variable which are not under this study.
This test predicts the significance variation of variables in predicting the model. Rejection rule
for null hypothesis is sig value must be less than .05. As the sig value for the model is .000 and
F values is highly significant, thus we can assume that the model explains a significant amount
of the variance in Job satisfaction.
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For all those hypothesis having the sig value less than 0.05 and rejecting the null hypothesis
which states about no direct and no relationship with employee satisfaction. All those variable
chosen above have significant impact and positive relationship on employee satisfaction. In
conclusion we can say that all variable been picked for study are significant and meaningful
and possess a potential impact on job satisfaction. There has been shown a great level of
variation explained by predictors. Hence, we can evidence to predict the higher level of
significant of out model.
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5. Conclusion
5.1. Conclusion
The study was suggested from the given research. Previous researcher has been designed to see
the employee satisfaction in relationship other variables. This study is fully focused with
important variables like employee participation, reward system of organization, training &
development and evaluation systems of organization. These Variable been empirically seen to
have positive contribution to employee satisfaction. Definition of Employee satisfaction is
feeling and emotional attachment of employees towards the organization. All variable tested in
relationship between job satisfactions. It is important to note that No variable in study is
automatically correlated and all have significant relationship with employee’s satisfaction. The
most significant variable is training and development that contribute to job satisfaction. It
means that the organizations those are so taken with training and development of employees is
the major source of satisfaction to them. If an organization wants to increase level of
satisfaction must focus on training and development of employee. That would lead to high
performance. Secondly, the most important variable is performance evaluation that can caught
up to foster the level of satisfaction among employee if managed well. This requires the
manager to be unbiased and fair to all while appraising employees in job setting. One of the
major problem of performance evaluation management is the biased and unfair appraising of
employees by manager due to their personal likes and unlike empirically been seen in
organization during study. Thirdly, Reward system of organization seen significant to
Employee satisfaction. Reward system of organization is major problem empirically sighted in
organization. Reward system should be personalized to increase the employee satisfaction. For
example, for youth the travelling tickets are more important than bonus of some amount. If
organization is good at looking at the individual needs of every employee and manage it
accordingly. It is plus point according to study. Finally, Employee participation in decision –
making play a major role. This would boost the morale of and foster psychological satisfaction
and attachment. This contribute to the success of organization. Consideration of employee
decision while taking any decision relevant to their work must be concerned with needs and
conformability of employees. However, lack of such factors would decrease the satisfaction
level significantly and other effort will be insignificant to the performance of employees.
Although it would be better for company to incorporate such organized and significant variable
to support the program of sales, revenue and profit. In conclusion we are now able to state that
the organization must managed it training & development programs, increase the frequency of
evaluation in organization, involve the employee in decision making and focus on personalized
reward of employees to foster a satisfied Environment. If such factors are not managed timely
and correctly. Organization could suffer. It needs to be noted that satisfied employee would
better in organization empirically seen. Satisfaction boost commitment, loyalty and
engagement of employee.
5.2. Implications
The results of the study also suggested that management might be able to increase the level of
commitment in the organization by increasing satisfaction with high employee well – being
practices such as employee participation, Training and development, compensation practices
and performance evaluation. One way of addressing this could be by increasing the interactions
with employees in staff meetings that is allowing them to participate in some matter where
decision making is required. Also discussions should also be held related to important areas of
interest or core issues within the organization. Changes in organizational variables, such as
introducing bonus sharing and profit sharing, employee participation, and increasing the
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frequency of trainings that employees receive could then be made in an effort to increase job
satisfaction. Most of the Pakistani organizations do not consider employee participation,
introducing profit sharing and bonus sharing as a part of compensation practices, training and
development as well performance evaluation on a regular basis to act as a driver of better
employee attitude that is satisfaction; This research is indicating that these are leading
contributing variables towards Job satisfaction.
5.3. Limitations
However, there are certain limitations in this study. Firstly, this model is not applicable to all
the organizations as different organizations have different high employee well – being
practices. There is a different level of impact on job satisfaction of different variables used in
various organizations. This study is also not applicable across various cultures. Since it is
conducted in Pakistan considering the respondents belonging to Pakistan and working in
various organizations. If this study is conducted in a different country with a different culture,
then definitely there are higher chances that the findings would change. There could be a
measurement error as well. Since majority of the data collected was from employees that is
working individuals. Whereas supervisors as well as managers were few in number for the
study. Therefore, there could be a biasness in the study. To be more accurate and more specific
with the results information collected through data should have included equal number of
employees, managers and supervisors.
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