Beruflich Dokumente
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THESIS
WILLIAM SUHAIDIR
1306357730
FACULTY OF ECONOMICS
MASTER OF MANAGEMENT
MM-MBA
JAKARTA
JULY 2015
UNIVERSITY OF INDONESIA
THESIS
Submitted to fulfill one of the requirements to obtain degree of Magister
Management Master of Business Administration
WILLIAM SUHAIDIR
1306357730
FACULTY OF ECONOMICS
MASTER OF MANAGEMENT
MM-MBA
JAKARTA
JULY 2015
STATEMENT OF ORIGINALITY
This final paper either represents my own effort, any idea or excerpt from other
writers in this final paper, in form of publication or in other form of publication, if
any, has been acknowledged in this paper in accordance to academic standard or
reference procedures.
Name
: William Suhaidir
NPM
: 1306357730
Signature
Date
: July 2015
ii
PREFACE
All praise and gratitude writers dedicate to God for his gift, mercy and blessing in the
completion of this thesis. I would also like to give my sincerest thanks to following
individuals that give me the chances, motivation and support to complete my writing:
1. Harryadin Mahardika, Ph.D. as the director of Magister Management program
to give me the chances to produce and publish my research in the form of
thesis.
2. Dr. Yanki Hartijasti, MBA, M.Si as my thesis supervisor who has guide me
week by week and also give up her weekend time to guide me and my
colleague in finishing our final assignment in the program.
3. My beloved wife, Alsiyas Susanto who supports me in finishing my thesis.
Im really grateful when you patiently accompany me to do my thesis until the
middle of the night.
4. My beloved parents who always give their love and support me in everything
I do.
5. My thesis colleagues, Jonas, Caroline, Pak Jaman and Aulia. I thank you for
the support and the discussion we all have in finishing our thesis.
6. My colleagues in MBA-13. I thank you for the amazing fun experience in
doing our study together.
7. Management and staff of PT XYZ, PT ABC and PT DEF that give me the
chances and provide me with the data to finish the research.
I hope my thesis can be a useful source both for the company and the industry also
for our society.
Jakarta, July 2015
William Suhaidir
iv
: William Suhaidir
NPM
: 1306357730
Program
: MM-MBA
Faculty
: Economy
Assignment Type
: Thesis
Declared at Jakarta
on July 2015
(William Suhaidir)
ABSTRACT
Name
Program
Thesis Title
: William Suhaidir
: MM-MBA
: Mediating Role of Job Satisfaction on Human Resources
Practices and Turnover Intention in Information Technology
Consulting Company (Case Study among Information
Technology Professional in Jakarta)
Human resource is a substantial resource in winning the market share and in having a
sustainable business especially in a service based industry. One of the important issue
in human resources management is employees turnover. It can cause a lot of damage
for the company. Finding the right variable that affect turnover intention among the
employees will be a useful knowledge for management to minimize the turnover rate.
Past conceptual study proved that job satisfaction has a mediating role on HR
practices and turnover intention. Current study will test this argument empirically.
The survey was conducted among IT professional in three selected IT consulting
companies in Indonesia, 152 feedbacks were obtained and processed. The result
showed that job satisfaction fully mediated the relationship between HR practices and
turnover intention. Further analysis into the dimension level found that
communication and coworkers dimensions fully mediate the relationship between
performance appraisal and turnover intention.
Keywords:
Job Satisfaction, HR Practices, Turnover Intention, Mediation, IT Professional
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ABSTRAK
Nama
Program
Judul Thesis
: William Suhaidir
: MM-MBA
: Peran Mediasi dari Kepuasan Kerja terhadap Hubungan
antara Praktek Sumber Daya Manusia dan Turnover Intention
di Perusahan Information Technology Consulting (Studi
kasus pada Information Technology Professional di Jakarta)
Sumber daya manusia adalah sumber daya yang penting untuk memenangkan pangsa
pasar dan bisnis yang berkelanjutan khususnya dalam industri yang berbasiskan jasa.
Keluarnya karyawan dari perusahaan merupakan salah satu masalah yang penting
dalam manajemen sumber daya manusia. Hal ini dapat menyebabkan banyak
kerugian bagi perusahaan. Menemukan variabel yang mempengaruhi turnover
intention akan menjadi pengetahuan yang berguna untuk manajemen perusahaan
dalam mengurangi turnover rate. Penelitian sebelumnya secara konseptual
membuktikan bahwa kepuasan kerja memiliki peran mediasi terhadap praktek sumber
daya manusia dan turnover intention. Penelitian ini akan coba melakukan pembuktian
empiris terhadap hal ini. Survei dilakukan dengan responden profesional IT dari 3
perusahaan IT consulting di Indonesia, 152 jawaban dikumpulkan dan di proses.
Hasil dari penelitian menunjukkan bahwa kepuasan kerja memediasi secara penuh
hubungan antara praktek sumber daya manusia dengan turnover intention. Analisis
lebih lanjut dengan melihat dimensi dari tiap variabel menemukan bahwa dimensi
communication dan coworkers memediasi penuh hubungan antara performance
management dan turnover intention.
Kata Kunci:
Kepuasan Kerja, Prakter Sumber Daya Manusia, Turnover Intention, Mediasi,
Information Technology Professional
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TABLE OF CONTENTS
TITLE ........................................................................................................................ i
STATEMENT OF ORIGINALITY ......................................................................... ii
LETTER OF APPROVAL ...................................................................................... iii
PREFACE................................................................................................................ iv
LETTER OF AGREEMENT ................................................................................... v
ABSTRACT ............................................................................................................ vi
ABSTRAK ............................................................................................................. vii
TABLE OF CONTENTS ...................................................................................... viii
LIST OF FIGURES .................................................................................................. x
LIST OF TABLES .................................................................................................. xi
LIST OF APPENDIX ............................................................................................ xiii
1. INTRODUCTION .............................................................................................. 1
1.1 Background..................................................................................................... 1
1.2 Problem Findings............................................................................................ 3
1.3 Research Objectives ....................................................................................... 9
1.4 Implication of Research ................................................................................ 10
1.5 Scope of Research ........................................................................................ 10
1.6 Systematic of Writing ................................................................................... 11
2. LITERATURE REVIEW ................................................................................ 12
2.1 Turnover Intention ........................................................................................ 12
2.2 Job Satisfaction ............................................................................................. 14
2.2.1 Minnesota Satisfaction Questionnaire (MSQ)..................................... 16
2.2.2 Job Description Index (JDI) ................................................................ 17
2.2.3 Job Satisfaction Survey (JSS) .............................................................. 17
2.3 Human Resources (HR) Practices ................................................................ 23
2.4 Relationship among HR Practices, Job Satisfaction & Turnover Intention . 27
3. RESEARCH METHODOLOGY .................................................................... 33
3.1 Research Design ........................................................................................... 33
3.2 Research Variables and Operational Definition ........................................... 33
3.3 Research Measurement ................................................................................. 37
3.3.1 Research Instrument ............................................................................ 37
3.3.1.1 Demographic Information ....................................................... 38
3.3.1.2 Job Satisfaction ........................................................................ 38
3.3.1.3 Turnover Intention ................................................................... 42
3.3.1.4 HR Practices ............................................................................ 43
3.3.2 Research Instrument Testing ............................................................... 45
3.4 Data Collection Method ............................................................................... 48
3.5 Sampling Method ......................................................................................... 49
3.6 Data Analysis Method .................................................................................. 49
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LIST OF FIGURES
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LIST OF TABLES
Table 2.1 Past Studies about Job Satisfaction and Turnover Intention
Relationship ............................................................................................................ 28
Table 2.2 Past Studies about HR Practices and Turnover Intention Relationship . 29
Table 2.3 Past Studies about HR Practices and Job Satisfaction Relationship ...... 30
Table 3.1 Likert 6-Point Scale ................................................................................ 37
Table 3.2 Spector JSS Items Mapping ................................................................... 39
Table 3.3 HR Practices Items ................................................................................. 44
Table 3.4 Cronbachs Alpha Consistency .............................................................. 46
Table 3.5 Research Instrument Testing Result ....................................................... 47
Table 3.6 Multicollinearity Analysis on HR Practices Dimension ........................ 51
Table 3.7 Multicollinearity Analysis on Job Satisfaction Dimension .................... 52
Table 4.1 Respondent Response Rate .................................................................... 58
Table 4.2 Gender .................................................................................................... 59
Table 4.3 Age ......................................................................................................... 59
Table 4.4 Marital Status ......................................................................................... 60
Table 4.5 Number of Dependents ........................................................................... 60
Table 4.6 Education Background ........................................................................... 61
Table 4.7 Current Position ...................................................................................... 61
Table 4.8 Working Period in Current Company .................................................... 61
Table 4.9 Number of Times Relocated to another Company ................................. 62
Table 4.10 Worked Outside IT Consulting Industry .............................................. 63
Table 4.11 Job Satisfaction Mediating Role Test Result ....................................... 63
Table 4.12 Coworkers Dimension Mediating Role ................................................ 66
Table 4.13 Communication Dimension Mediating Role ........................................ 67
Table 4.14 Turnover Intention Descriptive Analysis ............................................. 69
Table 4.15 Factor Influencing Turnover Intention Result ...................................... 70
Table 4.16 Job Satisfaction Descriptive Analysis .................................................. 71
Table 4.17 Pay Descriptive Analysis...................................................................... 72
Table 4.18 Promotion Descriptive Analysis ........................................................... 73
Table 4.19 Supervision Descriptive Analysis ........................................................ 73
Table 4.20 Fringe Benefits Descriptive Analysis ................................................... 74
Table 4.21 Contingent Reward Descriptive Analysis ............................................ 75
Table 4.22 Operating Condition Descriptive Analysis........................................... 75
Table 4.23 Coworkers Descriptive Analysis .......................................................... 76
Table 4.24 Nature of Work Descriptive Analysis .................................................. 76
Table 4.25 Communication Descriptive Analysis .................................................. 77
Table 4.26 Factor Influencing Job Satisfaction Result ........................................... 78
Table 4.27 HR Practices Descriptive Analysis....................................................... 78
Table 4.28 Training and Development Descriptive Analysis ................................ 79
Table 4.29 Performance Management Descriptive Analysis ................................. 80
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LIST OF APPENDIX
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CHAPTER 1
INTRODUCTION
1.1 Background
Information technology is growing fast and revolutionizes our way of life, in
how we work, communicate and socialize. Now, various activities can be executed
accurately in relatively short time. This changes the way on how business is done.
Competition is becoming fierce and companies need to find a new way to gain a
competitive advantage so they can grow and enjoy sustainability. They are racing to
implement information technology to make their process transparent, accurate and
faster in pursuit of efficiency and effectiveness.
According to BMI Research (2015), Indonesia IT spending is forecasted to
increase 11.4% from 2014 to 170.2 trillion in 2015 which is 1.5% of Indonesias
GDP. Responding to this huge demand there are many Information Technology
consulting company emerge in Indonesia and try to meet the demand. Some of the
companies are multinational companies and some are local ones. They are racing to
get the big portion of the demand by providing excellent services to the customer.
The services industry is characterized differently than manufacturing industry
especially on sales since it is intangible. The sales in service industry depends more
on the knowledge, skill and ethics of the people who provide the services. In other
words, the service company most important asset is the human resources and
managing them become more strategic rather than administrative. The winner of the
competition is the one who has the highest standard of human capital to differentiate
them from the others.
Having a high performing human resources is a must to win the race in IT
consulting industry while losing them is a disaster for the company. Since the early
day of information technology industry, turnover has always been a big issue and still
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continues to the present (Moore, 2000). According to Jiang and Klein (2002), the
turnover rate in 1990s already reached 25 to 33 percent annually. This data is
supported by Hayes (1998). He states that Fortune 500 firms also have the same
turnover rate among their IT personnel. Due to the economic downturn and overall
weak labor market in 2000s, there is a decline in the overall turnover rate (Dinger,
Thatcher, Stepina & Craig, 2012) where IT turnover rate still in 15% rate annually
and the number is even higher among information system consultants (Nelson &
Todd, 2004). This problem is getting worse by growth and maturity rate in the IT
industry that is not supported by the growth rate of available skill supplies
(McLaughin, Sherry, Carcary & OBrien, 2012). In the US, all job types are projected
to grow by 10% within 2006-2016, but IT professional jobs are projected to grow by
25% (Dohm & Sniper, 2007). The demand will automatically increase. While
according to Saunders and Lockridge (2011), the student enrollment in IT programs
has dropped which created a shortage in supply.
The turnover itself causes considerable amount of damage to the company.
Boushey and Glynn (2012) argue that turnover will cause a significant business cost.
Some of them is elaborated by Hinkin and Tracey (2000) as separation cost,
recruiting cost, selection cost, hiring cost and lost productivity cost. Organization
with a high turnover rate cannot perform it optimally. This is supported by research
conducted by Tariq, Ramzan and Riaz in 2013, which stated that turnover would
decrease organization efficiency. Moral of the other employees will also decline
along with the increasing turnover rate (Abassi & Hollman, 2000). All of this will
impact company performance at the end where many research showed that turnover is
negatively related with company performance (Watrous, Huffman & Pritchard, 2006;
Ton & Huckman, 2008). Company needs to take this matter seriously since this can
lead to customer dissatisfaction (Butali, Wesangula & Mamuli, 2014).
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30%
26%
25%
25%
21%
20%
15%
XYZ Rate
10%
5%
0%
2012
2013
2014
Figure 1.1 above show that PT XYZ turnover rate is fluctuating every year but
it is always bigger than 20% and can be considered high. PT XYZ CEO stated that
the high turnover rate is causing a lot of problem and cost. He said that having a high
performing, good quality employee is a strategic issue for the company since in
service industry human capital is the strategic assets. Turnover is damaging the
company since PT XYZ is losing knowledge and money from the investment it has
done to the employee while there is another recruitment and knowledge development
cost ahead for the new recruit. In addition, PT XYZ also suffers from opportunity
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cost that is lost when PT XYZ have to turn down a prospect project due to lack of
available resources (Kurnia, personal communication, January 12, 2015).
It needs to be able to tackle and reduce the turnover rate knowledge about the
variables which causing the turnover intention among the employees. The manager of
PT XYZ HR reveals some reasons obtained from employees exit interviews. Most of
the main factors are pay and benefits, supervision, long working hours and some of
them said that they got another good opportunities in another company (Triastuti,
personal communication, January 12, 2015). Many studies have been conducted to
find out what variable cause turnover intention. Most of them try to link the turnover
intention with job satisfaction and some of them also try to link it with HR practices.
According to Wang & Feng (2003), the higher the job satisfaction level of the
employee, the more likely employee will have a good attitude toward their jobs and
more likely to be loyal to the company. This also supported by Wright & Bonnet
(2007) who argued that employee that have high level of job satisfaction will have a
decreased tendency to look for a new job and decreased propensity to leave the
organization. Job satisfaction is negatively related with the turnover intention (Mahdi,
Zin, Nor, Sakat & Naim, 2012; Yucel, 2012). Some of the researches also try to find
out dimension of job satisfaction that matter the most in affecting turnover intention,
for example is the research by Nazim (2008) who discovered that pay, contingent
reward, fringe benefits and promotion as the most influencing dimension. Another
research in another industry found that supervisor and pay has significant relation
with turnover intention (Tnay, Ekhsan, Othman, Siong, Lim, 2013).
The world is changing and also HR Practices from Transactional HR to
Transformational HR (Noe, Hollenbeck, Gerhart, & Wright, 2009). HR practices in a
company according to many researches also have an effect to the employees
turnover intention. According to Cho and Guchait in 2010, HR practices will lower
the employee turnover intention. HR practices in a company are negatively related
with intention to quit among the employees (Khilji & Wang, 2007). Another research
found that compensation & benefit practices, performance management and training
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have a negative significant relation to turnover intention (Long, Ajagbe & Kowang,
2013).
Looking from another perspective, there are also researches that prove HR
practices are influencing job satisfaction. In 2009 Verma, Malhotra and Bedi
conducted a research in an IT Company and found that HR Practices can encourage
job satisfaction among the employees. HR practices have a positive relation with job
satisfaction (Syed & Yan, 2012). Some of the researches also go deeper to specific
HR Practices that influence job satisfaction like HR Planning, Compensation,
Training and Development as the most significant practices that influence job
satisfaction (Absar, Azim, Balasundaram & Akhter, 2010). Pasaoglu and Tonus
(2014) also conducted same study in private hospitals and found that recruitment,
training and development are the most significant practices.
In response to the result of previous studies that link turnover intention with
job satisfaction and HR practices a preliminary questionnaire has been sent to all of
PT XYZ employees as a sample. The questionnaire can be found in Appendix 1 page
125. The questionnaire consists of open answer question that try to grab some
information related to job satisfaction and HR practices. Total feedback acquired for
the initial questionnaire is 42 feedbacks out of 70 PT XYZ total employees. Below
are the temporary findings from the initial questionnaire and some sample feedbacks
from the respondents:
Job Dissatisfaction
Pay (40%)
- My salary doesnt fit with my job task and with the pressure
that I got.
- My current salary barely fit my necessity to support my
family and the increase in petrol price making it worse.
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Benefit (19%)
- Im not satisfy with the amount of health benefit that is
provided by the company.
- There is no reimbursement on employee child birth.
Supervision (10%)
- There are some supervisors that doesnt really care about their
subordinates problem.
- Some supervisors doesnt give a constructive feedback in a
performance appraisal.
Job Satisfaction
Coworkers (52%)
- I love my relation with my coworkers, we are like family and
helping each other in doing our job.
- Cooperative working environment with my coworkers,
kinship but still professional.
Nature of Work (52%)
- I love my job since it gives me a lot of experience and
knowledge.
- I love to go in a business trip and study new business processes
in every new client.
Inadequate HR Practices (50%)
HR Department only functioned in administrative or transactional
area and not in the strategic area.
HR practices need to be turned on again especially in compensation,
performance and knowledge enhancement.
The result from the questionnaire indicates that there is a link between high
turnover rate in the company with HR practices and job satisfaction. Many
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researchers believe that HR practices do not directly link to turnover intention but to
an existing a mechanism that can explain how HR practices are able to influence it
(Huselid & Becker, 2011; Jiang, Lepak, Hu & Baer, 2012). According to Ribeiro and
Semedo (2014), organizational justice mediates the relationship between HR
practices and turnover intention. There is also a study among IT professionals that
argues organizational commitment as the mediating variable between HR practices
and turnover intention (SamGnanakkan, 2010). This study also conducted in
Malaysia across industries, which result an organizational commitment, partially
mediates HR practices and turnover intention (Juhdi, PaWan, Milah, Hansaram &
Othman, 2012). Another study by Joarder, Sharif and Ahmmed (2011) said that
affective commitment mediates the relationship between HR practices and turnover
intention. Another view is provided by Manistitya and Fongsuwan (2015), they
conducted a study on IT Staff in Thailand and the findings is that the company
implements a good HR Practices will eventually lead to employees satisfaction and a
satisfied employee will be committed to their work and loyal which result in a
reduction of turnover intention. Analyzing from some previous studies and
preliminary research provided above, it is clear that job satisfaction has a significant
potential to become a mediating variable between HR practices and turnover
intention.
Mudor and Tooksoon in 2011 conducted a research related to the relationship
between HR practices, job satisfaction and turnover intention. The result is the
conceptual framework between the variables given in figure 1.2 below. The
conceptual framework explain that HR practices specifically supervision, job training
and pay practices have a positive and significant relation with job satisfaction but
negative and significant relation to turnover intention. Job satisfaction has a positive
significant relation to turnover intention. It plays an important role since employee
with low job satisfaction will have a high turnover intention.
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response bias and the research itself is a cross-sectional study. The data was collected
between April and May 2015.
The research did not include all the potential dimensions that can affect job
satisfaction only the one that is considered important and under control by the
organization. The research also did not include all the HR practices and only include
some relevant HR practice for the company.
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CHAPTER 2
LITERATURE REVIEW
Internal Turnover
This turnover happens internally in the company. It includes movement in
position, job description or maybe transfers to another department. This type
of turnover is fully controllable by the company.
External Turnover
If internal turnover happen within the company, external turnover happens
across company. The employee move to another company and it can be
caused by many factors like job dissatisfaction, salary increase and other
reasons.
Voluntary Turnover
This type of turnover comes from the initiative of the employee itself and
sometimes and usually to attain personal satisfaction related to job. The
company cannot control this type of turnover but it can be reduce and the
Human Resources Department can decline some of it.
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Involuntary Turnover
This type of turnover comes from the initiative of the company and based on
factors, which are beyond the control of management. There are many factors
that can cause involuntary turnover like bad performance of the employee,
conflict or sometimes because of the poor financial performance of the
company.
Turnover in a company is usually a major concern for the company human
resources department (Peterson, 2004) but since there are many studies related to
turnover effect and many companies realized how turnover can do a lot of damage to
the company itself then it becomes a major concern of the whole company (Ton &
Huckman, 2008). Some cost identified by Hinkin and Tracey (2000) are separation
cost, recruiting cost, selection cost, hiring cost and lost productivity cost. When an
employee quit the company for the separation company needs to provide severance
pay, effort to do exit interview and some paper work. Company also needs to endure
cost for advertising and attracting potential replacement candidates then another cost
is needed for doing the selection process like medical test, background check and
others. A big portion of cost is needed to redevelop a new employee, i.e., providing
them with training so they have the required skill to do the work and at the end one
the biggest concern is loss productivity cost. This argument is supported Tariq,
Ramzan and Riaz (2013) who says that turnover will decrease organization efficiency
and productivity and it will lead to customer dissatisfaction (Butali, Wesangula &
Mamuli, 2014).
According to Morrel, Clarke and Wilkinson (2004) there are two main factors
that influence employee decision to quit their job. First, the perceived ease of
movement can represent the employee assessment of opportunity to get alternatives
or better job in other organization. Second, the perceived desirability of movement is
influenced usually by job satisfaction for instance. There is another research that
support this theory like the research by Firth, Mellor, Moore and Loquet (2004) that
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Job satisfaction represents both positive and negative emotional state that
employees have towards their job. It characterizes the extent to which
expectations match the real reward. Job satisfaction is closely connected to
employee's behavior in the work place (Davis & Nestrom in Aziri, 2011).
Job satisfaction is how employees feel about their job in various dimensions
(Spector, 1997).
Job satisfaction consists of many feelings and beliefs that employees have
about their current work which can range from extreme satisfaction to
extreme dissatisfaction. Employee also can have attitudes about many aspects
of their job and work place, for example like the kind of work they do, their
coworkers, supervisors or subordinates and their payment or benefit (George
& Jones, 2008).
There are a lot of research in job satisfaction since many believes that job
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suggest that job satisfaction has a positive relation with job performance and suggest
company have to apply managerial strategy to improve job satisfaction and
eventually it will improve the company performance. Another research by Sarwar and
Abugre (2013) also found that job satisfaction can increase employee performance
and eventually customer satisfaction.
Herzberg in Kreitner and Kinicki (2010) state that there is a separate and
distinct cluster of factors that can influence job satisfaction or influence job
dissatisfaction. Mode of Herzberg motivators and hygiene theory is given below in
figure 2.1
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2.2.1
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Responses are summed or averaged to obtain a total score. The lower the score, the
lower the level of job satisfaction. MSQ captures following facets of job: activity,
independence, variety, social status, supervision (human relations), supervision
(technical), moral values, security, social services, authority, ability utilization,
company policies and practices, compensation, advancement, responsibility,
creativity, working conditions, coworkers, recognition and achievement.
2.2.2
Coworkers
Supervision
Nature of Work
The scale of five facets is defined by relevant, not relevant and no opinion. Smith,
Kendall and Hullin do not recommend to sum all the five facets into an overall score.
2.2.3
Spector in 1997 and called a Job Satisfaction Survey (JSS). JSS itself contains 36
items to measure 9 dimensions below:
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Pay
Mondy in 2008 tried to give definition to pay where he said that pay is a
compensation given to the employees by a company as an exchange of their
intellectual or manual skills in form of monetary like salaries. Dessler in 2007
said that pay is arising from the status of employment in the company. Spector
himself include this dimension to measure the amount of fairness or equity in
salary given by the company. Stringer, Didham & Theivananthampillai (2011)
argued that pay is a determinant factor of job satisfaction. Another research
conducted by Roberto and Arocas in 2007 prove that salary have a positive
relation with job satisfaction and negative relation on turnover intentions.
Promotion
Promotion refers to the movement of an individual position to an upper level
position (Mondy, Wayne & Noe, 2005). It gives the opportunity for employee
to develop and gain more responsibility in the job. Promotion also give a
boost on the social status of the employee (Varhol, 2000).
Even though promotion can give a positive effect on job satisfaction,
management still needs to pay attention on how they award a promotion to
their employees. According to Lawler (2008), management of the company
needs to understand what is the employee perceived criteria for promotion,
since if a candidate get promoted but the other employees think that the
candidate is not fit for the promotion award then it will lead to a job
dissatisfaction. Thus, the company management needs to measure the
employee job satisfaction regarding the promotion in the company, give the
employee a proper feedback and also a good visibility on the promotion
criteria (Wilmott, 2006).
Spector try to measure the opportunity fairness of promotions in the company
by putting this dimension in JSS. Awang, Ahmad and Zin in 2010 proved that
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Supervision
According to Herzberg in Elliot (2007), supervision is related to the level of
independence received by employees in performing their work and also the
technical skill or the level of competency of their superiors. In this dimension
Spector wants to measure the fairness and the competence at managerial task
by ones superior or supervisor. Job satisfaction will increase when a
supervisor respect and support the subordinates, having a friendly attitude and
also good listening ability (Mathis & Jackson, 2003). McAuliffe, Daly,
Kamwendo, Masanja, Sidat and Pinho (2013) conducted a study that proved
that supervision could improve job satisfaction and lower turnover intention.
Fringe benefits
There are some definitions of fringe benefits. Merchant in Sihombing (2009)
says that benefit are additional income that paid by company outside the
salary, for instance medical allowance, transport allowance and others.
Tremblay, Sire & Balkin (2000) in their research found that there is a
significant difference between satisfaction on pay and satisfaction on fringe
benefits and a good benefits system can maintain a best talent to stay in the
company.
Artz (2010) found that fringe benefits have a positive relation with job
satisfaction. Study conducted in China by Kasper, Muehlbacher, Kodydek and
Zhang (2012) found that fringe benefits has a negative relation with turnover
intention. There are also another researches that are related to fringe benefits
like the research conducted by Frauenheim in 2006 that found job satisfaction
is not only affected by fringe benefits but also another dimension like the
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relationship with other coworkers. Another research by Dreher, Ash and Bretz
in Sinclair, Leo and Wright (2005) also found that the employee knowledge
and perception about the fringe benefits plays an important role in influencing
the job satisfaction. This mean communication dimension in the company
needs to be improved as well in order to have the employee satisfied with
their benefits.
Contingent rewards
Contingent reward is a non-monetary reward for employees in which
company gives to employees in the form of recognition, praise or maybe
special responsibility, job or assignment because of the employees merit
(Lawler, 2003). Lawler also argued that the existence of this kind of reward in
a company would increase job satisfaction. Spector defined this measurement
as a level of perceived respect, appreciation and recognition accepted by the
employees. Contingent reward has a negative relationship with turnover
intention according to Jackson, Rossi, Rickamer, Hoover and Johnson in
2012. According to Aplander and Lee in Sihombing (2009) that a reward
system needs to be tested and to be analyzed from time to time regarding their
effect toward the employee. By conducting this review, a company can
maximize the reward effectiveness in order to improve job satisfaction among
the employees.
Operating condition
Spector put this dimension to analyze on the company policies, rules and
procedures, whether they support the employee in doing their job or inhibit
them. In addition, Elliot (2007) in his dissertation defined operating condition
are factors such as facilities to support employee in doing their job. Working
condition like lighting, room layout and equipment also can be considered an
operating condition. Bakotic and Babic on their research on 2013 find that
operating condition plays a big part in influencing employee job satisfaction.
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Milman (2002) argued that poor working condition would lead to turnover
intention.
Coworkers
According to Spector, this dimension will try to measure coworkers in
perceived competence and perceived pleasantness. Simmons (2006)
mentioned that since human basically is a social beings, the opportunity to be
able to work with other people can give a big difference in job satisfaction
level and also it will influence the working life quality. Luthans in Kehinde
(2011) argued that this phenomenon happened because a group people
working together normally can provide the source of comfort, support, advice
and also assistance to the individual worker.
Sias (2005) stated that relationship with coworkers in working environment
can influence the decision-making and information sharing or communication.
A good relationship among coworkers will help information like best
practices in doing a task, company vision and mission, opportunity in training
and other constructive information spread more quickly and effectively in an
organization.
Coworkers can also contribute in shaping someone behavior, both for a
positive behavior and a negative behavior (Raabe & Beehr, 2003). If senior
employees in the organization talk and behave positively about their jobs,
most likely the new employees will model this behavior and are satisfied with
the job. It applies to the reverse condition (Aamodt, 2004).
Robbins and Judge (2013) said that a good relationship with coworkers will
increase job satisfaction, which Ali and Baloch (2008) also supported this
statement by arguing that coworkers have a positive relation with job
satisfaction but a negative relation with turnover intention. Cooper (2002)
stated that company needs to be aware with the relationship among their
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employees since a bad relation with coworkers can decrease the job
satisfaction and its effect amplifies when there is a role or task ambiguity
among the employees.
Nature of work
Through this dimension, Spector wants to measure the employees satisfaction
with the type of work they do. Saleem, Majeed, Azis and Usman conducted a
research in 2013 and found that nature of work is significantly related with
job satisfaction. In addition, the nature of work also have a negative
relationship with turnover intention (Mbah & Ikemefuna, 2012).
Communication
According to Gibson, Ivancevich, Donnely and Konospake (2006)
communication refers to how a company ability to receive, collect, spread and
react upon appropriate information to be able to connect individual, groups
within the organization and also with the external environment effectively.
Downs and Hazen in Jones (2006) stated that communication elements in an
organization are including:
o Organization perspective
o Personal feedback
o Horizontal communication
o Communication climate
o Organization integration
o Supervision communication
o Communication media quality
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Booppanon also said that there are many factors that influence the
communication quality in the organization including the interpersonal quality
of each individual and their level of relationship. In this dimension, Spector
wants to measure how well is the information sharing in the company.
Carrire and Bourque in 2009 argued that a good internal communication will
improve job satisfaction. According to Mohamad (2008), it will also reduce
turnover intention among the employees.
Job Satisfaction Survey (JSS) will be used in current study. JSS is one of the
most frequently used job satisfaction measurement (Giri & Kumar, 2010; Yelboga,
2009). Based on the respondents comments from preliminary questionnaire sent to
PT XYZ, JSS 9 dimension is expected to capture the information regarding job
satisfaction in the target IT consulting companies more accurate.
Maintaining and retaining the human resources over the long term
Wright and Kehoe (2008) supported the statement above and also give
24
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Performance Management
Performance management is a process where company managers ensure their
employees activities is aligned with the company goals. Some of the
activities are to understand what activities and outputs that are desired then
observe whether the activities are occurring or not and finally provide
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be
used
for
and
negative
Pay Practices
Pay practices is one of the essential elements and it includes all types
of pay, benefits, and rewards received by the employees arising from their
employment according to Dessler in 2007. This practice is very important
since according to Aswathappa (2008), it influences employees satisfaction,
loyalty and productivity. Singh in 2004 argued that pay practices especially
performance based compensation system will increase company performance.
Managing compensation and reward through pay practices strategy in a
company can strengthen business strategy by improving individual employee
performance. Lobburi (2012) argued that pay and reward practices have a
positive relationship with job satisfaction and negative relationship with
turnover intention. Pay practices are very important in keeping the employees
in the company but alone it is not enough to keep them stay in the company
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since according to Lawler in Lochhead and Stephens (2004) the key issue is
the amount of total compensation relative to the amount offered by the other
company. Another research that support this argument is done by Smith
(2001) in which he argued that money gets employees to join the company but
it doesnt keep them there. It is very clear that the other HR practices play a
key to retention, not the pay alone.
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Table 2.1 Past Studies about Job Satisfaction and Turnover Intention
Relationship
Researcher
Mahdi, Zin, Nor,
Sakat & Naim
Year
2012
Data
Printing
CompanyMalaysia
Findings
Both intrinsic and
extrinsic job satisfaction
have a negative relation
with turnover intention
Ali
2008
Private Sector
CollegePakistan
Tnay, Ekhsan,
Othman, Siong, &
Lim
2013
Production
IndustryMalaysia
Job satisfaction
supervisor and pay
dimension have a
negative relationship
with turnover intention
2007
West Coast
Large
OrganizationUSA
Job satisfaction
negatively related with
turnover intention
especially when the
well-being is low
Yucel
2012
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industries where the study was conducted also vary including service, banking,
leasing and pharmacist.
Table 2.2 Past Studies about HR Practices and Turnover Intention Relationship
Researcher
Year
Data
Findings
2010
Service
IndustryIndia
Perceived HR Practices
by the employee have a
significant relationship
with turnover intention
2007
Banking
IndustryPakistan
HR Practices negatively
related with turnover
intention with age and
company performance
moderate significantly
this relationship
& 2013
Conceptual
Research
HR practices negatively
related to turnover
intention
Seston, Hassel,
Ferguson & Hann
2009
PharmacistUK
Ruwan
2007
Leasing
companySri Lanka
HR practices have a
negative relation with
turnover intention with
the most strong
predictors are
compensation and job
analysis
Long, Ajagbe
Kowang
It can be seen that although the researches are conducted in different countries and
across industries, all the research yielded into a same overall conclusion that
perceived HR practices negatively related with turnover intention. There are some
slight variation on the dimension and other findings, for example research by Ruwan
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(2007) proved that in Sri Lankan leasing company, remuneration practices and job
analysis are the most related practices with turnover intention. Another research by
Khilji & Wang (2007) managed to prove that demographic variables like age and also
company performance are the moderator variable between the relationship of HR
practices and turnover intention.
Current study will analyze the relationship among the 3 variables on previous
studies given in table 2.3 related to the relationship between HR practices. Job
satisfaction also reviewed in this study. Many studies have been conducted and also
support the same argument that HR practices is positively related with job satisfaction
or if employees have a good perception of HR practices in their company then it will
lead to a higher job satisfaction.
Table 2.3 Past Studies about HR Practices and Job Satisfaction Relationship
Researcher
Year
Data
Findings
Absar, Azim,
Balasundaram &
Akhter
2010
Manufacturing
firms-Bangladesh
HR practices have a
positive relationship
with job satisfaction
with training and
development as the
most influential
practices
Pasaouglu &
Tonus
2014
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Table 2.3 Past Studies about HR Practices and Job Satisfaction Relationship
(contd)
Researcher
Year
Data
Findings
2012
Verma, Malhotra
& Bedi
2012
IT Industry-India
HR practices like
information, variety,
closure and pay
practices have a
strong positive
relationship with job
satisfaction
Kooji, Jansen,
Dikkers and De
Lange
2010
Meta-Analysis
HR practices have a
strong positive
relationship with job
satisfaction
HR practices that influence job satisfaction the most is quite vary among
different countries and industries. For instance; in Bangladesh manufacturing firms,
Absar, Azim, Balasundaram & Akhter (2010) found that training and development is
the most influential practices towards job satisfaction while in Turkey health industry,
Pasaouglu & Tonus (2014) found that not only training and development that has the
significant influence to job satisfaction but also performance management,
remuneration and recruitment practices as well.
Mudor and Tooksoon in 2011 conducted a study to find out the relationship
among the three variables. Their result support past studies mentioned above that HR
practices has a positive relation with job satisfaction and job satisfaction has a
negative relation to turnover intention as well as HR practices to turnover intention.
In addition, they argued that job satisfaction mediate the relationship between HR
practices and Turnover Intention. Mudor and Tooksoon conducted a conceptual
research by reviewing some past studies to come up with the result. Current study
will conduct an empirical research to test Mudor and Tooksoon relationship model in
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CHAPTER 3
RESEARCH METHODOLOGY
33
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Job satisfaction adopted Spector (1997) model. In total, there are 36 questions
in the questionnaire with four questions for each dimension. Job satisfaction is a
mediating variable in this current study. According to Baron and Kenny in 1986,
mediating variable is the variable that mediates the relationship between the
dependent variables and the independent variables.
The dependent variable in current study is the turnover intention. There are
six questions in the questionnaire to capture the information about respondent
intention to quit the organization.
According to Deming (1994), operational definition is a procedure or
definition that is agreed upon for interpretation of a concept or in a research context it
is a description of a variable and how it is measured within the study. Below is the
operational definition of the three variables and each dimensions.
Job Satisfaction
Job satisfaction is how the employee feel or the emotional state that employee
currently at related to their job in various dimensions which in current study
Spector 9 dimensions are used including pay, promotion, supervision, fringe
benefits, contingent reward, operating condition, coworkers, nature of work
and communication.
Pay
Pay dimension is related to whether the employee satisfied with the
compensation given by the company. It includes also the pay raise aspect and
the suitability between the job task and responsibility with the compensation
given.
Promotion
Promotion itself means that the employee is moving to a higher level with
additional responsibility. In this present study, promotion dimension wants to
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Supervision
Supervision dimension refers to the satisfaction of the employee regarding
their direct supervisor competency, the fairness, and the attention given by the
direct supervisors to their subordinates.
Fringe Benefits
Fringe benefit is the additional income paid by the company outside the
salary. Some examples of fringe benefits are medical allowance, project
allowance, transport allowance, etc. This dimension will measure the level of
employee satisfaction regarding their received benefits, whether it is sufficient
or there should be other additional amount or benefits.
Contingent Reward
Contingent reward is a non-monetary reward given by the company to
appreciate their employees good work. The dimension measures whether the
employee receives the reward when they have to and how the company
appreciates the employees on their success.
Operating Condition
The dimension refers to company policies and procedure. It measures whether
the employee is satisfied with the company policy and procedure. The
dimension captures whether the company policies are supporting the
employees in their job task or inhibit them in doing it.
Coworkers
Coworkers dimension measures whether the employees enjoy working with
their coworkers or not. Employees satisfaction with their coworker
competency is also measured in the dimension.
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Nature of Work
Nature of work dimension measures the employee satisfaction on how they
see and enjoy their job. This dimension also gives understanding whether the
employee proud of their job or not.
Communication
Communication dimension refers to how well the information flow in the
company internally, for example whether the management passed on the
purpose of the company and other relevant information to their employees
well enough or not and whether the employees understand their job tasks that
are communicated by the supervisor or they feel confuse about their tasks.
HR Practices
A Human Resources practice refers to activities, rules, policies, and practices
developed by the company to manage their human resources. The practices
are developed to better plan, obtain, develop, utilize, evaluate, maintain, and
retain the employees. There are some types of HR practices but current study
use 3 HR practices including pay practices, performance management and
training and development.
Pay Practices
Pay practices refers to HR practices that is related to all type of compensation
like salary, benefits, incentives, or bonus. For example, a policy on the pay
raises and benefits. This dimension measures the employee perception on how
the pay practices is applied in the company.
Performance Management
Performance management refers to the employee perception of the
performance appraisal process on the company. It measures if there is a
regular evaluation and feedback in the company also if the evaluation process
is objective and transparent to the employees.
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Turnover Intention
Turnover intention refers to the intention of the employees in leaving their
current company and move to another company because of various reasons.
Description
1
2
3
4
5
6
Strongly Disagree
Disagree
Somewhat Disagree
Somewhat Agree
Agree
Strongly Agree
Source: Spector (1997)
3.3.1
Research Instrument
Current study combined and modified some previous studies questionnaires to
better fit the industries and Indonesian working environment. There are four main
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information that wanted to be captured in the questionnaire and are divided into 4
section. Provided below is the elaboration of each section.
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mapping of each dimension on the questionnaire. Number with the r sign indicates
the reverse statement.
Dimension
Pay
Promotion
Supervision
Fringe Benefits
Contingent Rewards
Operating Condition
Coworkers
Nature of Work
Communication
Statement
Number
1, 11r, 22r, 32
3r, 13, 24, 38
4, 14r, 25r, 35
5r, 15, 26, 34r
6, 16r, 27r, 37r
7r, 17, 28r, 36r
8, 18r, 29, 39r
9r, 20, 31, 40
10, 21r, 30r, 41r
22r: I feel unappreciated by the organization when I think about what they pay
me.
13: Those who do well on the job stand a fair chance of being promoted.
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of respondents regarding the supervision from their direct supervisor. Two questions
are reverse question.
satisfaction of respondents regarding the benefits they received outside of salary, for
example like medical benefits, transport benefits and other benefits. Two questions
are reverse question.
15: The benefits we receive are as good as most other organization offer.
27r: There are few rewards for those who work here.
37r: I do not feel my efforts are rewarded the way they should be.
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7r: Many of our rules and procedures make doing a good job difficult.
of respondents regarding their coworkers or people that they work with. Two
questions are reverse question.
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30r: I often feel that I do not know what is going on with the organization.
that asks respondents about the 1st, 2nd and 3rd factors that according to them will
influence their job satisfaction in the company. The list of the factors is given below:
Leader that give a clear explanation if there is any job technical changes.
Feedback of my performance.
Others
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I already have plan to move the work from where I work today
If there is a friend who invites me to join his company I will fulfill the request
above in the questionnaire. The question asks the respondents about the 1st, 2nd and
3rd factors that according to them will influence their intention to quit the company.
The list of the factors is given below:
Others
3.3.1.4 HR Practices
Questionnaire for HR practices is adopted from both Narang & Singh (2012)
and also Sivasubramanian & Umaselvi (2012). Both researches study the HR
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practices and their relations with other variables. Current study use items related to
pay practices, performance management, and training & development practices.
Performance Management
Statement Number
1, 8, 15, 22
3, 10, 17, 24
4, 11, 18, 25
Table 3.3 above gives the mapping of each item in the questionnaire. Every practice
consists of four questions and in total there are 16 questions in Bahasa Indonesia to
capture the information about the perceived HR practices in a company. Scoring
system also use a 6-points Likert scale.
There are 4 questions related to pay practices that capture the information
about perceived HR practices by the respondents related to the pay practices in their
company.
22: The benefits that I received in our organization are similar to what most of
the other organizations in the industry provide to their employees.
There are four questions related to training and development that capture the
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17: I am assigned challenging jobs to charge our enthusiasm and develop our
skills.
11: I feel our performance appraisal has been fair and objective.
3.3.2
used. According to Sekaran and Bougie (2010) it is necessary to make sure whether
our instrument measuring the right variable and measuring it accurately. Therefore,
the test to ensure the quality of the instrument needs to be conducted. The first test
needs to be conducted is validity test using factor analysis. According to Malhotra
(2007), factor analysis is a tool that has a purpose to decrease the amount of data so it
will remove duplication and redundancy from a set of correlated variables. Factor
analysis will be used in current study to test the validity of the research instrument.
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Consistency
Level
Excellent
Good
Acceptable
Poor
Unacceptable
Table 3.5 below gives the summary of both validity test and reliability test conducted
on the instrument. Detail result can be seen at Appendix 2 page 126.
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Dimension
Before
Factor
Analysis
After
Factor
Analysis
Items
Not
Included
Cronbachs
Alpha
Pay
Promotion
Supervision
Fringe Benefits
Contingent Rewards
Operating Condition
Coworkers
Nature of Work
Communication
Turnover Intention
Training and Development
Performance Management
Pay Practices
4
4
4
4
4
4
4
4
4
6
4
4
4
4
4
4
4
4
4
4
4
4
6
3
4
4
0
0
0
0
0
0
0
0
0
0
1
0
0
0.774
0.793
0.848
0.834
0.770
0.753
0.665
0.722
0.736
0.774
0.793
0.848
0.834
Based on the validity test result, it can be seen that most of the dimensions still
keeping their original items after the factor analysis test, which mean each item in the
dimensions, pass the factor analysis test. One dimension that one of its items has to
be removed is the training and development practices. According to the factor
analysis test, item number 3 of the training and development dimension has a
communalities percentage amounted on 0.185, which is way below 0.5 accepted
limits. This mean item number 3 of the training and development practices cannot be
explain well by the factor and have to be removed. This left the training and
development dimension with 3 item only which all of them are accepted by the factor
analysis.
The reliability test measured the Cronbachs alpha of each dimension in each
variable. The test is using all the 152 questionnaire data. As stated previously, George
and Mallery (2003) argued that Cronbachs alpha value needs to be above 0.5 to be
accepted. Since the result show that all the dimension Cronbachs alpha are above 0.5
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then it can be concluded that all the dimensions are accepted and can be used for
further analysis.
3.4 Data Collection Method
Sekaran and Bougie (2010) stated that data could be obtained from both
primary resources and secondary resources. Primary data is the information obtained
first hand by the researcher while secondary data obtained from the sources that
already exist like literature for example. Current study use both primary and
secondary data in order to come up with the conclusion of the research.
Primary Data
Current study use questionnaire method to capture the primary data.
Questionnaires were sent to all IT professional in PT XYZ, PT ABC and PT
DEF. Respondent were asked to fill the questionnaire and told about the
purpose of the study. Confidentiality statement is told verbally and written in
the first section of the questionnaire. Since the three IT consulting companies
often require employee to work on the client site so the data collection process
is the combination of both traditional paper questionnaire and online
questionnaire. Link to the online questionnaire is sent through email for
employees who are not in the office at the time of data collection. All these
activities are supported by the HR Department of the company and based on
the company management approval. Since turnover intention question
considered a sensitive information, respondents were told that the survey is
anonymous and only the summary of the result that will be given to the
company management. This is necessary to ensure the honest answers are
given in the questionnaire.
Secondary Data
Secondary data for this study were taken from sources as books, journal, and
all related previous studies. The data will be used as a basic theory in order to
analyze the data from the primary resources.
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3.6.1
Descriptive Statistic
Descriptive statistic or analysis will be used to get the information about the
level of the variables. This will be calculated from the 6 points of likert scale
provided in the questionnaire starting from strongly agree (6) to strongly disagree (1).
The classification of the mean score () will adopt Spector (1997) classification. HR
practices and job satisfaction mean score () will be classified as below:
3 : Not Satisfied
4 : Satisfied
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3 : Low
4 : High
3.6.2
Inferential Statistic
According to Singh (2006) an inferential statistic involves the selection for
study of a small group, which assumed to represent the characteristic of the large
group from which the small group is drawn. This approach is taken since the main
purpose of the research is to find out the principles that have universal application,
however to measure the whole population to come up with the conclusion is
sometimes impracticable and impossible. Inferential statistic will observe the sample
and certain inferences can be made about the population.
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its effect on it. Current study will try to find out the weight and relationship between
the 9 dimensions of job satisfaction to turnover intention and also the HR practices
like performance management, pay practices and training to turnover intention.
Tolerance
VIF
Pay Practices
Training & Development
Performance Management
0.627
0.577
0.498
1.594
1.732
2.009
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Dimension
Tolerance
VIF
Pay
Promotion
Supervision
Fringe Benefits
Contingent Rewards
Operating Condition
Coworkers
Nature of Work
Communication
0.575
0.480
0.463
0.513
0.363
0.525
0.480
0.490
0.588
1.740
2.082
2.162
1.948
2.755
1.906
2.085
2.043
1.701
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Two causal variables go into one outcome variable. Path c represents the direct
impact of the independent variable while path b represents the mediator impact on the
outcome variable. In addition there is one more path which is path a as a link between
independent variable to the mediator. There are conditions that need to be met by a
variable to be considered as a mediator variable (Baron & Kenny, 1986):
There are three possible outcomes. First, there is no mediating relationship. The
second one is a full mediation that means there is a single dominant mediator. The
third one happens when there is a multiple mediator presents or can be said as partial
mediating relationship.
Current study will test if job satisfaction is the mediating variable of HR
practices to turnover intention. There are four steps to be done which involved a
simple linear regression analysis and also multiple linear regression analysis in order
to see whether the conditions above are met and there is a mediating relationship:
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Step 4: Use the same equation as step three and analyze the relationship from
independent variable to outcome variable (path c) when mediator variable is
controlled.
Full mediation condition happen when step 1 to step 3 are met and path c is no
longer significant in step 4. If step 1 to step 3 are met but path c in step 4 is still
significant then partial mediation exist. There is no mediation if one of the step is not
fulfilled.
MacKinnon, Fairchild and Fritz in 2007 argued that an inconsistent mediation
may exist. The condition happen when c has an opposite sign to ab which can be the
case when step 1 is not met but there is still mediation. Mediator variable acts as the
suppressor variable in this case.
According to Baron and Kenny (1986) to get the amount of total effect, direct
effect and indirect effect need to be added altogether. The indirect effect is the
product of a and b and the direct effect is the c which mean Total effect = c + ab.
According to Pearl (2001) direct effect try to measures the changes in the outcome
variable when the independent variable is change while indirect effect try to measures
the changes in the outcome variable from the independent variable through the
mediator variable. Indirect effect is also called a mediated effect or the amount of
mediation.
PT XYZ
PT XYZ is founded in 2005 with main business as an IT consulting company.
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product sold by PT XYZ is specialized for asset intensive industry like mining, power
and utilities, oil & gas and for military. PT XYZ main product is the Enterprise Asset
Management (EAM).
HR Manager of PT XYZ stated that currently the company has 75 employees
excluding 4 board of directors. There are five division led by Finance Director:
Finance, Accounting, General Affair, IT Support, and Human Resources. Marketing
and Sales Director lead a sales division consist of salesperson that responsible in
selling PT XYZ Product.
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PT ABC
PT ABC is an IT consulting company that have diverse solutions ranging
from hardware to software. Their main business is on virtual technology but they also
provide business intelligence and enterprise resource planning solutions.
HR Manager of PT ABC stated that currently the company has 90 employees and
among them there are 70 IT professionals with the average turnover rate is 20%.
Figure 3.3 above give a brief picture of PT ABC organizational structure where most
of the IT professionals are housed in business application and infrastructure division.
Sales team will handle marketing and sales activity. While back office consists of
HR, Accounting, General Affair and other department related to the company
supporting activities (Masmono, personal communication, April 2 2015).
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3.7.3
PT DEF
PT DEF is an IT consulting company that was founded in 2010 and its main
business is on data security and protection. Thus they have many clients in banking
industry. PT DEF is an authorized business partner of IBM. HR Manager of PT DEF
stated that the company currently has 30 employees excluding the board of directors.
Figure 3.4 below gives a brief picture of PT DEF organizational structure. The team
consists of sales and marketing team, human resources, and finance and accounting,
general affair and most of them are in operation or engineering team. PT DEF has 25
IT professionals in the operation division with the average turnover rate around 19%
(Hie, personal communication, March 10, 2015).
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CHAPTER 4
RESEARCH RESULT ANALYSIS
PT XYZ
PT ABC
PT DEF
Total
Total
Employees
Total IT
Professional
Total
Questionnaire
Sent
Total
Questionnaire
Feedback
75
90
30
61
70
25
61
70
25
156
61
66
25
152
Table 4.1 above indicates the total number of the respondents. It can be seen from the
table that for both PT XYZ and PT DEF current study have the whole population
primary data which is 61 out of 61 for PT XYZ and 25 out of 25 for PT DEF. From
PT DEF current study received 66 feedbacks out of 70, which gives the response rate
94.2% from the total population. In total, there are 152 respondents data to be
processed and analyze in current study.
4.2 Demographic Data
There are nine questions included in questionnaires in order to capture the
demographic data of the respondents. The questions are capturing the information on
58
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gender, age, marital status, number of dependents, education background, current job
position, working period in current company, how many times the respondents have
moved to another company and whether the respondents had worked outside the IT
consulting industry.
Female
Male
Total
N
35
117
152
%
23%
77%
100%
< 25 Years
25-30 Years
31-35 Years
36-40 Years
41-45 Years
Total
N
36
77
21
13
5
152
%
23.7%
50.7%
13.8%
8.6%
3.3%
100%
Table 4.3 above indicates the demographic information regarding age interval
of the respondents. Most of the respondents age is between 25-30 years old for about
50.7% and there are only 3.3% respondents that have the age above 40 years old.
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Table 4.4 below indicates the demographic information regarding the marital
status of the respondents. There are slight differences between the amount of married
and single respondents. Most of the respondents are single amounted to 59.2% and
40.8% of the respondents are married.
Married
Single
Total
N
62
90
152
%
40.8%
59.2%
100%
Table 4.5 below indicates the demographic information regarding the number
of dependents that the respondents have. Most of the respondents do not have a
dependent, which is 56.6%. The frequency is gradually decreasing along the increase
on the number of dependents.
0
1
2
3
4
>4
Total
86
22
28
10
5
1
152
56.6%
14.5%
18.4%
6.6%
3.3%
0.7%
100%
61
SMA
Diploma
S1
S2
Total
N
13
20
109
10
152
%
8.6%
13.2%
71.7%
6.6%
100%
The second and third position is Diploma and SMA, which nowadays is quite
common in medium IT consulting to hire a diploma or SMA candidate in order to
reduce their operating cost.
Staff
Supervisor
Manager
Senior Manager
Total
N
108
22
18
4
152
%
71.1%
14.5%
11.8%
2.6%
100%
Table 4.7 above indicates the demographic information regarding the current
position of the respondents. Most of the respondents are still in Staff position, which
amounted to 71.7% of the respondents. 2.6% senior manager respondents took part
on the questionnaire.
1-2 years
> 2-5 years
> 5-10 years
Total
N
73
46
33
152
%
48%
30.3%
21.7%
100%
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Table 4.8 above indicates the demographic information regarding how long
the respondents had worked in their current company. Most of the respondents can be
considered a new employee since they fall in 1-2 years (48%) group. The longest
period is 5-10 years since all the three IT consulting companies was founded no
longer than 10 years ago.
None
1 times
2 times
3 times
4 times
5 times
6 times
> 6 times
Total
N
48
33
29
21
11
7
1
2
152
%
31.6%
21.7%
19.1%
13.8%
7.2%
4.6%
0.7%
1.3%
100%
Table 4.9 above indicates the demographic information regarding how many
times the respondents have changed or moved to the other companies before working
in their current position. Most of the respondents had never moved to another
company before (31.6%) which mean their current company is their first company
they are working for.
Table 4.10 below indicates the demographic information regarding how many
of the respondents had worked before outside IT consulting industry. From the data it
can be seen that the amount of respondents that had worked before outside the
industry and the amount who had not is quite balance. 55.3% respondents never
worked before outside the industry and 44.7% had worked outside the IT consulting
industry.
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Yes
No
Total
N
68
84
152
%
44.7%
55.3%
100%
Dependent
Variable
Turnover Intention
Job Satisfaction
Turnover Intention
Turnover Intention
Independent
Variable
HR Practices
HR Practices
Job Satisfaction
HR Practices
Path
Sig.
c
a
b
c
-0.407
0.496
-0.906
0.021
Significant
Significant
Significant
Not Significant
Table 4.11 above indicates the result of mediating relationship analysis test using
both simple linear regression test and multiple linear regression test. Detailed
calculation can be seen at Appendix 3 page 155.
In step 1, simple linear regression analysis is conducted on HR practices
variable to turnover intention. The result gives this equation: Turnover intention =
4.721 0.407*HR practices. Beta coefficient explains the amount of influence given
by the HR practices to turnover intention, the greater the beta coefficient then the
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greater the influence (Santoso, 2006). The result shows that with 95% confidence
level or = 0.05 the coefficient ( 0.407) is significant which mean HR practices
have a negative relationship to turnover intention. If an employee perceived HR
practices is increase then the turnover intention of the employee will decrease.
In step 2, simple linear regression analysis conducted on HR practices
variable to job satisfaction. The result give this equation: Job Satisfaction = 2.186 +
0.496*HR practices. Beta coefficient explain the amount of influence given by the
HR practices to job satisfaction which the result shows that with 95% confidence
level or = 0.05 the coefficient (0.496) is significant which mean HR practices give a
positive influence or positive relationship to job satisfaction. If an employee
perceived HR practices is increase then the job satisfaction of the employee will also
increase.
In step 3, the relationship between job satisfaction and turnover intention is
measured. As stated in previous chapter that in doing this measurement HR practices
variable needs to be controlled as well. Multiple regression analysis is conducted
which put turnover intention as the criterion variable and HR practices and job
satisfaction as the predictors. The result give this equation: Turnover intention =
6.771 + 0.021*HR practices 0.906*job satisfaction. Beta coefficient explain the
amount of influence given by the job satisfaction to turnover intention where the
result shows that with 95% confidence level or = 0.05 the coefficient ( 0.906) is
significant which mean job satisfaction have a negative relationship to turnover
intention. If an employee perceived job satisfaction is increase then the turnover
intention of the employee will decrease.
The last step, to confirm on the job satisfaction mediating role or step number
4 is by analyzing the result from previous multiple linear regression analysis. The
result shows that with 95% confidence level or = 0.05 HR practices influence to
turnover intention (path c) is no longer significant. As stated in chapter 3 that if HR
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Amount of the total effect comes from the amount of direct effect add by the
amount of indirect effect. Since the full mediation relationship happen in the model
then there is no direct effect from HR practices to turnover intention which gives the
amount of total effect ab or 0.496 * -0.906 = - 0.449. This mean that turnover
intention is affected by HR practices through job satisfaction as the mediator variable
with total effect amounted to 0.449.
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Further analysis looks into the level of dimensions of each variable. Mediation
analysis is conducted and the result shows that there are 2 models that are significant
in the dimension level. Detailed calculation is provided in Appendix 4 page 162.
Table 4.12 below indicates the mediation test result of the first significant
dimension, which are performance management from HR practices, and coworkers
dimension from job satisfaction. Since step 1 until step 3 is fulfilled and the
relationship between performance management and turnover intention is no longer
significant when coworkers is controlled, then a full mediation relationship is found
in the model.
Table 4.12 Coworkers Dimension Mediating Role
Step
1
2
3
4
Dependent
Variable
Turnover
Intention
Performance
Management
Turnover
Intention
Turnover
Intention
Independent
Variable
Performance
Management
Coworkers
Coworkers
Performance
Management
Path
Sig.
-0.320
Significant
0.258
Significant
-0.201
Significant
0.000
Not Significant
Figure 4.2 below indicates the summary of the relationship model between the
dimensions. It can be seen that performance management have a positive relationship
with coworkers (0.258). Coworkers and turnover intention have a negative
relationship (-0.201). Performance management have a negative relationship with
turnover intention (-0.320) but when coworkers is controlled then the relationship
between performance management and turnover intention is no longer significant
(0.000) denoted by c.
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Dependent
Variable
Turnover
Intention
Performance
Management
Turnover
Intention
Turnover
Intention
Independent
Variable
Performance
Management
Communication
Communication
Performance
Management
Path
Sig.
-0.320
Significant
0.411
Significant
-0.283
Significant
0.000
Not Significant
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Figure 4.3 below indicates the summary of the relationship model between the
dimensions. It can be seen that performance management have a positive relationship
with communication (0.411). Communication and turnover intention have a negative
relationship (-0.283). Performance management have a negative relationship with
turnover intention (-0.320) but when communication is controlled then the
relationship between performance management and turnover intention is no longer
significant (0.000) denoted by c.
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Combining the result together gives the model presented by Figure 4.4 above.
Turnover intention is significantly influence by two dimensions of job satisfaction
including coworkers and communication. Coworkers influence turnover intention (0.213), while communication influences turnover intention (-0.265). It can be seen
from the model that both coworkers and communication dimensions from job
satisfaction is significantly influenced by performance management dimension in HR
practices. Performance management influences coworkers (0.258) and influences
communication (0.411). The total effect from performance management to turnover
intention through communication (-0.116) is bigger than the total effect from
performance management to turnover intention through coworkers (-0.052).
Keyword
Plan to move
Invitation from friend
Argument with supervisor or colleagues
Prepare application to move
Mature plan to move
Offer better compensation package
Mean
3.27
3.81
3.03
2.81
2.64
4.38
Std Dev
1.00
1.10
1.16
0.97
1.01
1.17
3.32
0.85
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The result shows that the level of turnover intention in the companies by averaging all
the respondents data is amounted to 3.32, which is included on the moderate
category. There are six statements in the questionnaire related to turnover intention
and the descriptive analysis for each question also presented in table 4.14 above.
Most of the statements fall in the moderate turnover intention category but there are
two statements that fall in the low turnover intention category and one statement that
fall in the high category. High average score in statement no 6 means that most of the
employee will move to another company if they are given a better compensation
packages. Two statements that fall in the low category is number 4 and 5 which
asking whether the employee have a plan to move to another company.
To capture more information regarding the turnover intention from the
respondents there are additional questions in the questionnaire that ask regarding the
first, second and third factor that the respondents thing give the most influence to
their turnover intention.
Table 4.15 above indicates the questionnaire result that stated that most
respondents chose the first factor that influence turnover intention is if they receive a
better offer from the other company. The second factor is if they do not feel
appreciated and the third factor is if there is only a small chance of promotion.
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Mean
4.44
4.42
4.38
4.13
3.68
3.67
3.62
3.41
3.25
3.89
Std Dev
0.79
0.97
0.84
0.89
0.94
1.01
0.95
0.91
1.05
0.64
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4.5.1
Pay
Pay dimension falls on the 8th rank and is one of the lowest score dimension in
current study. Even though pay dimension is in the bottom rank dimension, pay
dimension is still in moderate satisfaction category with average score 3.41. There are
four questions related to pay satisfaction and the summary of the answers are given in
the table 4.17 below. Statement no 1, 3 and 4 fall in the moderate satisfaction
category while there is only one statement which fall in not satisfied category which
is statement number 2 with the average score 2.88. Question no 1, 3 and 4 is related
to satisfaction with the pay amount and the chances of getting a pay increase in the
company, while question no 2 is the statement related to satisfaction with the time
distance between each pay raises. The result show that there is dissatisfaction with the
time distance or the interval between each pay raises.
4.5.2
Keyword
Fair amount of pay
Pay raises interval
Company appreciation through pay
Pay raises chances
Mean
3.49
2.88
3.55
3.74
Std Dev
1.07
1.24
1.13
1.27
Promotion
Promotion dimension falls on the 6th rank in overall with average score 3.67
which falls on the moderate satisfaction category. There are 4 statements related to
promotion satisfaction in the company and the summary of the answers are given in
the table 4.18 below.
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Keyword
Promotion chances
Promotion fairness
Promotion interval
Promotion chances
Mean
3.37
3.91
3.85
3.57
Std Dev
1.25
1.38
1.25
1.25
In overall all the statements average score fall in the moderate satisfaction category
which mean the employee are moderately satisfied with their chances of being
promoted, the fairness of promotion process and the time needed to get promoted.
4.5.3
Supervision
Supervision dimension falls on the 2nd rank in overall with average score 4.42
which falls on the satisfied category. This dimension is one of the top dimensions in
current study. There are 4 statements related to supervision satisfaction in the
company and the summary of the answers are given in the table 4.19 below.
Keyword
Supervisor competency
Supervisor fairness
Supervisor awareness
Supervisor likeability
Mean
Std Dev
4.53
4.62
4.28
4.28
1.20
1.15
1.16
1.15
In overall all the statements average score fall in the satisfied category which mean
the employees are satisfied with the competency of their direct supervisor, the
attention given to them by their direct supervisor and also the fairness of their direct
supervisor.
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4.5.4
Fringe Benefits
Fringe benefits dimension falls on the 9th rank in overall with average score
3.25 which falls on the moderate satisfaction category. This dimension is the lowest
rank dimension in current study. There are four statements related to fringe benefits
satisfaction in the company and the summary of the answers are given in the table
4.20 below.
Keyword
Benefits satisfaction
Benefit comparison
Benefit equitability
Benefit fairness
Mean
3.16
3.26
3.21
3.36
Std Dev
1.43
1.20
1.19
1.28
In overall all the statements average score fall in the moderate satisfaction category
which mean the employees are moderately satisfied with the benefit they received
and also with the comparison with the benefits given by other company.
4.5.5
Contingent Reward
Contingent reward dimension falls on the 5th rank in overall with average
score 3.68 which falls on the moderate satisfaction category. There are four
statements related to contingent reward satisfaction in the company and the summary
of the answers are given in the table 4.21 below. In overall the statements average
score fall in the moderate satisfaction category which mean the employees are
moderately satisfied with the reward they receive when they do a good job. There is
one statement that falls in a satisfied category, that is question no 2 which mean that
the employee satisfied with the feeling of being appreciated in the company.
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4.5.6
Keyword
Reward fairness
Appreciation
Reward availability
Reward fairness
Mean
3.76
4.00
3.24
3.71
Std Dev
1.26
1.22
1.21
1.19
Operating Condition
Operating condition dimension falls on the 7th rank in overall with average
score 3.62 which falls on the moderate satisfaction category. There are 4 statements
related to operating condition satisfaction in the company and the summary of the
answers are given in the table 4.22 below. In overall the statement average score fall
in the moderate satisfaction category which mean the employees are moderately
satisfied with the policy and the procedure in the company and also with the amount
of administration thing that they have to do in the company.
Keyword
Procedures, policy
Procedures, policy
Job quantity
Paperwork
Mean
3.67
3.81
3.41
3.58
Std Dev
1.39
1.34
1.12
1.12
Coworkers
Coworkers dimension falls on the 1st rank in overall with average score 4.44
which falls on the satisfied category. This is the top job satisfaction dimension in
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Keyword
Coworkers likeability
Competency
Coworkers enjoyment
Bickering and fighting
Mean
4.95
3.88
4.85
4.09
Std Dev
0.84
1.26
0.95
1.35
In overall the statements average score fall in the satisfied category which mean the
employees are satisfied with their coworkers. The highest average score is on
statement no 1 which is amounted to 4.95. The question is about how much an
employee like their coworker. However, statement no 2 falls in the moderate
satisfaction category which amounted to 3.88. This mean even though in overall the
employee satisfied with their coworkers but they are only moderately satisfied with
the competency of their coworkers.
4.5.8
Nature of Work
Nature of work dimension falls on the 3rd rank in overall with average score
4.38 which falls on the satisfied category. This is one of the top job satisfaction
dimensions in current study. There are 4 statements related to nature of work
satisfaction in the company and the summary of the answers are given in the table
4.24 below.
Keyword
Job meaning
Job likeability
Job pride
Enjoyable job
Mean
4.03
4.46
4.61
4.41
Std Dev
1.30
1.22
0.94
1.04
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In overall the statements average score fall in the satisfied category which mean the
employees are satisfied with the nature of their job. They are proud and think that
they are job meaningful and enjoyable as well.
4.5.9
Communication
Communication dimension falls on the 4th rank in overall with average score
4.13 which falls on the satisfied category. This is one of the top job satisfaction
dimensions in current study. There are four statements related to communication
satisfaction in the company and the summary of the answers are given in the table
4.25 below. In overall the statements average score fall in the moderate satisfaction
category only one question no 1 that falls in the satisfied category. However,
statements no 2, 3 and 4 are almost fall in the satisfied category. In overall the
employee seems satisfied with the flow of information in the company related to the
purpose of the organization and job task and any other relevant information.
Keyword
Internal communication
Organization goal
Latest information update
Work assignment
Mean
4.63
3.99
3.95
3.95
Std Dev
1.02
1.29
1.20
1.25
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factor is the fairness and transparency in the promotion process. The third factor is
related to coworkers that help each other out in doing the job.
Mean
3.41
3.71
3.18
3.50
Std Dev
1.18
0.97
0.97
0.84
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3.41 which falls in the moderate category. There are four statements originally related
to training and development in the company but one of the question is removed due
to the low validity level. The summary of the answers are given in the table 4.28
below.
Keyword
Training availability
Training opportunity
Training quality
Mean
3.43
3.43
3.38
Std Dev
1.29
1.28
1.23
In overall the statements average score fall in the moderate satisfaction category
which mean the employees are moderately satisfied with the chances to get a training
and the quality of the training and development program.
4.6.2
Performance Management
A performance management practice is in the 1st position with average score
3.71 which falls in the moderate category. There are four statements related to
training and development in the company and the summary of the answer is given in
the table 4.29 below.
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Keyword
Appraisal interval
Appraisal fairness
Feedback
Appraisal transparency
Mean
3.81
3.59
3.82
3.61
Std Dev
1.14
1.28
1.07
1.29
In overall the statements average score fall in the moderate satisfaction category
which mean the employees are moderately satisfied with the performance appraisal
process regarding its interval, fairness, feedback quality and transparency.
4.6.3
Pay Practices
Pay practices is in the 3rd position with average score 3.18 which falls in the
Keyword
Adequate Pay
Pay increment satisfaction
Benefit satisfaction
Benefit comparison
Mean
3.45
3.02
3.14
3.12
Std Dev
1.16
1.12
1.21
1.17
Table 4.31 below indicates the data whether the respondents have received
socialization about HR practices in the company or they have not received it. The
result shows that most of the respondents amounted to 78.29% have not received the
HR practices socialization from their company.
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N
119
33
%
78.29%
21.71%
Table 4.32 below indicates the data about the perceived effectiveness of HR practices
socialization from the respondents who had received it from the company. The result
show that 60.61% of the respondents feel that the socialization process is somewhat
effective while 27.27% of them feel that the process is effective and the other 12.12%
feel the process is not effective.
N
9
20
4
%
27.27%
60.61%
12.12%
4.7 Discussion
4.7.1
developed by Mudor and Tooksoon (2011) that stated job satisfaction mediate the
relationship between HR practices and turnover intention. On the way to prove the
mediating role of job satisfaction, direct relationship between the variables needs to
be tested and the result is similar with previous research stated in chapter two. First,
current study proved that HR practices have a significant negative relationship toward
turnover intention. This result is similar and supported the previous researches stated
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different with Hequet (as cited in Mudoor & Tooksoon, 2011) that stated pay
practices and training and development have a significant negative relationship.
Training in the three IT consulting companies is very important since it will
enable the employee to work on a specific position, for example: network engineer,
SAP consultant, Java programmer and others. This specific position is also needed in
other company, which gives the homework for management to think whether
providing the employee with training will reduce the turnover intention or maybe it is
a double edge sword that will give the employee an opportunity to leave the
company. Many IT consulting companies use a contract agreement with the employee
to tackle this issue, for instance employees will be able to have a training only if they
signed a several year contract to stay in the company.
Pay practices as stated before is closely related to pay satisfaction and is one
of the hygiene factors in Herzberg model. Herzberg always refers hygiene factors as
the carrot and stick mechanism which provides employees with something or
incentives in order to make them do something. This carrot and stick mechanism will
just provide a short run success since job satisfaction is intrinsic to the job itself. This
is the reason why management needs to pay attention to the motivator factors as well.
Performance management is related with the motivator factors since it influence the
development, promotion, reward and recognition of the employees.
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There is another reason that might explain the differences in the findings from
past researches in term of the dimension that gives a significant influence. Andreassi,
Lawter, Brockerhoff, and Rutigliano (2012) researched across 48 nations and found
that the differences might be due to cultural and industry differences.
There are two job satisfaction dimensions that have a significant influence to
turnover intention, they are coworkers and communication. As stated in chapter two
that according to Simmons (2006) since human is a social beings then the opportunity
to work with coworkers in the working environment have a big influence to job
satisfaction. In the three IT consulting companies, employee is required to work in a
team because the nature of the job itself. IT professional mostly will work in a
clients office in a project team. Usually a project team consists of a project manager,
functional consultant, technical consultant, and quality assurance. This type of work
makes employees depend on their coworkers to finish the job. Luthans in Kehinde
(2011) said that coworkers can be the source of comfort, support, advice and also
assistance, this mean not only the competency of the coworkers that matters but also
the level of the relationship within the team. Raabe & Beehr (2003) argued about how
coworkers can influence not only a positive behavior but also a bad behavior is also a
proof that coworkers dimension is important in the working environment. The third
factor, which influences job satisfaction that captured in the questionnaire, is also
related to how coworkers provide support to each other. Some of the respondents give
comments on the questionnaire as well related the necessity to improve coworkers
dimension:
There is a hope that Coworkers will always cooperate in doing the job
(Respondent no 24).
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Performance appraisal process is not transparent, there are many case where
someone that is not suitable or worthy are promoted, while someone who is
more worthy for promotion was left behind (Respondent no 70).
Many unfit promotions took place, employees who were promoted cannot
manage their subordinate well (Respondent no 84).
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could create rivalry, politics, inspire hatred and distrust among the employees. Bretz,
Milkovich and Read in Warokka, Gallato and Moorthy (2012) put the fairness of the
performance appraisal as the most important issues. Skarlicki and Folger in Gupta &
Swaroop (2012) emphasize the negative effect of this by stating an unfair, political
and biased performance appraisal will create extreme job dissatisfaction. In the three
IT consulting companies where most project have to be done in a team, a damage
coworker relationship in the team will affect the productivity of the project.
Performance management can be related in building the competency of the employee.
Feedback and advice regarding employees works will be given in the performance
management activities, which can direct employee toward team or organization goals
and improving their competency and productivity (Jenks in Debrincat, 2011).
Coworkers competency is very important since an incompetent coworker will inhibit
individual or a team to move forward in finishing the job and cause job
dissatisfaction.
Performance management also has a significant influence to communication
dimension in job satisfaction. OBoyle (2013) in his study said that performance
management can improve the communication between the management and the
employees. This is not a surprise since many communication activities involved in
performance management. As Noe, Hollenbeck, Gerhart, & Wright (2009) stated that
performance management is a process where company ensure their employee
activities is aligned with the company goals. This mean a good performance
management must ensure the company goals are communicated well from the
management to the employees. In order to maintaining the alignment to company
goal management needs to communicate or provide feedback to the employees. One
of way to give feedback is by conducting coaching activities. Communication play
important part in coaching since management has to evaluate employees by
indicating what were done well and distinguished those from that were not right. Give
advice to employee while also hearing opinion from the employee side. Respondent
no 100 also gave a comment about the necessity of performance appraisal and
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4.7.2
which falls in the moderate category. Turnover causes many damage to the company
as stated in chapter 2. A company needs to take an action to reduce the turnover rate.
Turnover intention itself cannot be translated directly to turnover action, as stated by
Morrel, Clarke and Wilkinson (2004) that there are two factors that influence
employee decision to quit the company. The first factor is the perceived desirability
of movement which is represented by the turnover average score 3.32 in current
study. The second one, which is out of the scope of this study, is the perceived ease of
movement or the perceived opportunity in getting a better job in other organization.
In order to retain employees, company needs to consider these two factors and do
improvements accordingly.
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4.7.3
category with average score 3.89. Further analysis is taken to have a deeper look
inside the nine dimensions of the job satisfaction.
Lumley
(2011)
South Africa
Supervision
Nature of Work
Coworkers
Pay
Promotion
Promotion
Pay
8th
Operating
Condition
Pay
Contingent
Reward
Operating
Condition
Pay
Contingent
Reward
Operating
Condition
Communication
9th
Fringe Benefits
Fringe Benefits
1st
2nd
3rd
4th
5th
6th
7th
Current Study
Yuwana
(2015)
(2011)
Indonesia
Indonesia
Coworkers
Nature of Work
Supervision
Coworkers
Nature of Work
Supervision
Communication Communication
Contingent
Reward
Promotion
Operating
Condition
Contingent
Reward
Fringe Benefits
Kaltenbaugh
(2008)
United States
Nature of Work
Supervision
Coworkers
Operating
Condition
Communication
Fringe Benefits
Fringe Benefits
Contingent
Reward
Pay
Promotion
Promotion
Table 4.33 above indicates the comparison between current study result with some
past studies result. Yuwana (2011) conducted a job satisfaction research on
Indonesian Directorate Railway. Sihombing (2009) conducted a job satisfaction
research in a retail industry in Indonesia. Lumley, Coetzee, Tladinyane and Ferreira
(2011) conducted a job satisfaction research in 4 IT companies in South Africa while
Kaltenbough (2008) conducted a job satisfaction study in United States education
industry. Below are some notable things that can be seen from the results above:
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Supervision satisfaction in South Africa and United States are higher than
Indonesia.
Indonesia has the fringe benefits dimension as the lowest dimension while
South Africa and United states have promotion as the lowest one.
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condition like comments from respondent 115 which said communication needs to be
improved in order to reduce the misunderstanding.
Since current study also proved that coworkers and communication dimension
have significant influence to turnover intention, company in Indonesia should put
more attention on these dimensions. Another reason is coworkers can influence either
positive or negative behavior (Raabe & Beehr, 2003). If an employee communicates a
positive comment about the job then most likely the new employees will also have a
positive attitude towards the job and vice versa (Aamodt, 2004). This effect will be
amplified in collectivism culture like Indonesia where teamwork and communication
are valued.
91
100
80
60
78
65
49
63 62
46
40
62
Indonesia
48 49 46
34
40
South Africa
26
US
14
20
0
Power
Distance
Individualism Masculinity
Uncertainty
Avoidance
Long Term
Orientation
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a meeting always accept their supervisor decision without giving their point of view
first because of their fear toward their supervisor (Triastuti, personal communication,
January 12, 2015). This clearly can decrease the communication quality in the
company as the comment given by respondent no 10. Meanwhile, country with lower
power distance as United States and South Africa will generally considered to be
equal regardless the position. Employees can have the argument with their supervisor
and there is no distance between them. Andreassi, Lawter, Brockerhoff, and
Rutigliano (2012) argued that employee from high power distance culture will value
equality in the workplace. This might be the reason why satisfaction in supervision
dimension is higher in United States and South Africa.
Country with higher score of masculinity according to Andreassi, Lawter,
Brockerhoff, and Rutigliano (2012) places more value on achievement than the lower
country since masculinity is deeply related with competitiveness. This is the reason
why in United States and South Africa which have a higher masculinity have a
promotion dimension in the bottom rank while in Indonesia which have a lower
masculinity score have the fringe benefits in the bottom one. Employees in masculine
culture will put more attention on achievement. Promotion is associated with
achievement so if management do not put much attention on the promotion
dimension, it will easily fall into the bottom position. Another reason would be
related to Maslows hierarchy of needs model. Indonesia is a developing country
while United States and South Africa can be considered as developed country. Since
Indonesia is still developing so most of the people will put more attention on the
basic needs and safety or the lower part of Maslows hierarchy of needs model. It is
the reason why fringe benefits dimensions get more attention and harder to satisfy.
There are a lot of comments from current study respondents that are related to their
dissatisfaction in fringe benefits. They demanded a raise in the benefits along with the
raise of Indonesias living cost. Meanwhile most people in developed country have
fulfilled their basic needs and safety. Government supports the society very well with
medical insurance, housing, pension fund, and others. Therefore, the people move to
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the next level of needs, which is esteem, and self-actualization, which is deeply
related with promotion.
The job satisfaction dimensions ranking various industries in Indonesia is very
similar with each other. Current study conducted the research on IT consulting
industry, Sihombing (2009) in retail industry while Yuwana (2011) in public
company directorate railway. Pay and fringe benefits always sit in the lowest position
while coworkers, nature of work, supervision, and communication is always in the
top four positions.
Further analysis on current study dimensions ranking found that coworkers
dimension ranks first in term of the level of satisfaction. This dimension is in the
satisfied category. It is stated in chapter 2 that peoples are a social being and a
coworkers can be the provider of comfort, support, advice and also assistance to the
individual workers (Luthans in Kehinde, 2011). In the three IT consulting companies,
an employee is required to work in a team because the nature of the job itself. IT
professional mostly will work in a clients office in a project team. Usually a project
team consists of a project manager, functional consultant, technical consultant, and
quality assurance. This type of work makes employees depend on their coworkers to
finish the job. Long working hours in IT project makes individual exposure to the
other individual relatively long. This along with foreign working environment in the
clients office will increase the chance employees to bond with each other.
Demographic factor also plays the important role, people with a similarity will tend to
have an easier time forming relationship (Williams, Parker & Turner, 2007). Looking
at the demographic statistic from the employee it can be seen that most of them are in
the same age around 25-30 years old (50.7%) and same education background, which
is S1 degree (71.7%).
Supervision dimension ranks 2nd and falls in the satisfied category. Interview
with the HR Manager of the PT XYZ reveals that the company invest on a leadership
training to improve leadership capability of their employee. However, the training is
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Supervisor needs to give examples not only giving order and dictating the
subordinate (Respondent no 81)
Some supervisors do not have enough competencies and could not manage
their team (Respondent no 84).
Nature of Work dimension ranks 3rd and falls in the satisfied category. It
means that the employees are satisfied with their job meaning; pride and they are
enjoying their job. Job as an IT professional in the three IT consulting companies
required an employee to work long hour but sometimes employee enjoy the job
because of their hobby usually are in technology. According to interview with the HR
Manager of PT ABC, most of the candidates he interviewed for IT professional
position said that they will enjoy the job because they have a hobby in technology.
The candidates also said they will be proud of the job since they will be giving a
consultancy to the client regarding technological aspect. Sometimes they feel superior
to the client (Masmono, personal communication, April 2, 2015).
Communication dimension ranks 4th and falls in the satisfied category.
According to the result though as overall the respondents satisfied in the
communication dimension but some of the questions only result on moderate
satisfaction category. For example, the communication about job task, company goal
and about the latest news in the company. Communication is one of the important
dimension and needs to be improved as stated previously.
Contingent Reward dimension ranks 5th and falls in the moderate satisfaction
category. Question regarding the reward availability scored the lowest then the other
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Issue regarding the fairness of the reward also found from the comments. This issue
is related to performance management practices as stated previously.
Promotion dimension is rank 6th and falls in the moderate satisfaction
category. Promotion score quite low and is in the bottom four position. There are
comments that asked for promotion that need to be conducted more often
(Respondent 60). Issue regarding the fairness of the promotion also found from the
comments.
Operating Condition dimension is rank 7th and falls in the moderate
satisfaction category. The three IT consulting companies required their employee to
be mobile and working outside the office. Management needs to have a control on the
employees that are mobile and cannot be supervised directly. Consequently, a
complex policies and procedures have to be developed to maintain control. This have
a downside effect on the operating condition dimension because employees need to
do a lot of administration work like timesheet and other document works for example
and sometimes this can interfere their main task.
The two bottom positions are Pay and Fringe Benefits. Pay dimension on rank
8th which falls in the moderate satisfaction category and Fringe Benefits dimension
on rank 9th which also falls in the moderate satisfaction category. The lowest score
question is regarding the interval of pay raises. There are also some comments
regarding these dimension:
Prioritize on employee first on giving the pay raises and bonus (Respondent
no 5).
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Financial power of the company is closely related with this satisfaction. Some big
companies will have an advantage on giving a better compensation package for the
employees while smaller size company wouldnt have the same kind of advantage.
4.7.4
the moderate satisfaction category. With the average score fall on moderate
satisfaction category it means there is still a room to improve. IT consulting
companies in Indonesia especially the medium-sized company usually do not put
much attention on the HR practices in their company. One of the reasons is because
of the amount of investment needed in building HR practices. According to Long,
Ajagbe and Kowang (2013) medium enterprises usually lack of financial resources.
Companies need to invest not only on money but also big investment on time where
usually some companies dont have the luxury to spend. Comment from respondents
supported the opinion that functionality of human resources management in the
company needs to be improved. Below are some of the comments:
practices itself to the employee. Result shows that 78.29% employees have not
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received socialization about HR practices and most of those who had received it think
that the socialization is not effective. Comments below supported this finding:
First is the training and development practices which falls on the moderate
satisfaction category. Company can improve the satisfaction level of the training in
term of availability, opportunity to have it and the quality. Below is some comments
from the respondents related the necessity of training improvement:
falls on the moderate satisfaction category. There are many comments related to
performance management from the respondents regarding its fairness, interval, and
transparency. Cleary, management needs to improve the performance management
practices to improve job satisfaction.
Third dimension of HR practices is pay practices which is also falls in the
moderate satisfaction category but stand in the last position compare to another HR
practices. This practices have a close relationship with pay dimension in job
satisfaction, since the success in pay practices design by the company will be
reflected on the satisfaction level of pay in job satisfaction dimension. Pay practices
in a company also have a link to the company financial power. A big companies will
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have more advantage and financial power in giving and designing a pay practices
while a small and medium companies do not have this advantage. A satisfaction on
the pay practices does not always come from the amount only but also on the policy
or procedures on how it is distributed. Comments from respondents related to pay
practices is given below:
Pay cuts policy when an employee coming late to the office is not fair and
effective. The policy needs to be reviewed. (Respondent no 4, Respondent no
22 & Respondent no 26).
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Universitas Indonesia
CHAPTER 5
CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
Job satisfaction fully mediates the relationship between HR practices and
turnover intention. Looking further into the dimension level current study found that
coworkers and communication dimension fully mediate the relationship between
performance
management
and
turnover
intention.
Both
coworkers
and
101
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5.2 Recommendations
Present study found that coworkers and communication dimension fully
mediate the relationship between performance management and turnover intention.
The three IT consulting companies need to improve performance management as well
coworkers and communication dimension in order to decrease the turnover intention
among the employees.
Communication and performance management are very closely related since
performance management process involves a lot of internal communication activities.
Performance appraisal needs to be fair and transparent. To be able to achieve this,
company internal communication needs to be improved. Employees need to
understand the company goals or expectations, their current performance results and
how they are rated. Company can socialize HR practices regularly and always
provide coaching and feedback based on the result of the performance appraisal
(OBoyle, 2013). A performance management that is followed by a good internal
communication eventually will reduce the employees turnover intention.
Performance appraisal needs to be conducted on a regular interval to be
effective. The frequency for the optimum result for performance appraisal is still
debatable. Schraeder, Becton and Portis (2007) argued that performance appraisal
that is done quarterly can give a positive impact while Sudarsan (2009) argued that
more frequent appraisals is better. Employees will feel that the management is
concerned with their works and thus will reduce uncertainties (Spinks, Wells &
Meche, 1999).
Companies also needs to put attention on coworkers dimension especially in
company which required a lot of teamwork in delivering the services. Conflict
between coworkers will impact directly to the quality of the services. Performance
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management and coworkers is also related with each other. Bretz, Milkovich and
Read in Warokka, Gallato and Moorthy (2012) argued that perceived fairness on the
performance review is the most important issue in the performance appraisal. If
employees believe that the process is unfair and biased, it will create extreme job
dissatisfaction (Skarlicki & Folger in Gupta & Swaroop 2012). Thus, having a fair
and transparent appraisal mentioned previously will also improve coworkers
dimension by preventing coworker conflicts.
Finally, performance management needs to be linked to promotion, bonus,
incentives or salary increase. Employee will know that company appreciates their
performance. Employees will be satisfied if their efforts are rewarded with promotion
or bonus. This activity needs to be supported by a fair and transparent performance
appraisal. The employees will fully support the management decision to appreciate
their work which in turn lessen conflict between coworkers, environmental
distraction can be avoided as well as promoting an increased level of trust within the
organization (Mayer & Gavin, 2005).
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Universitas Indonesia
124
Dear xxxx,
In order to improve People & Company Development in PT XYZ and to identify
factor that need to set as priority by management, please answer this following
questions honestly.
Please sent this questionnaire to xxx@XYZ.co.id at most on Friday, 5 December
2014 at 15.00 WIB.
2. What factors that cause a dissatisfaction and reduce your working motivation
in PT XYZ?
Answer:
Regards,
xxxx
HR Personnel & Payroll
125
Pay
Factor Analysis
.757
161.676
6
.000
Anti-image Matrices
pay1
pay2_r
pay1
pay2_r
Anti-image Covariance
pay3_r
pay4
pay1
pay2_r
Anti-image Correlation
pay3_r
pay4
a. Measures of Sampling Adequacy(MSA)
.581
-.102
-.225
-.202
.739a
-.165
-.381
-.313
-.102
.651
-.211
-.144
-.165
.782a
-.337
-.210
pay3_r
-.225
-.211
.598
-.033
-.381
-.337
.734a
-.050
pay4
-.202
-.144
-.033
.721
-.313
-.210
-.050
.788a
Communalities
Initial
Extraction
pay1
1.000
pay2_r
1.000
pay3_r
1.000
pay4
1.000
Extraction Method: Principal
Component Analysis.
Component
1
2
.668
.601
.634
.508
.533
13.320
90.000
.400
10.000
100.000
126
Component Matrixa
Component
1
pay1
.817
pay2_r
.775
pay3_r
.796
pay4
.713
Extraction Method:
Principal Component
Analysis.
a. 1 components extracted.
Reliability
Scale: ALPHA
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.774
4
Mean
Item Statistics
Std. Deviation
pay1
pay2_r
pay3_r
pay4
3.4868
2.8750
3.5526
3.7434
pay1
pay2_r
pay3_r
pay4
1.06719
1.23585
1.13225
1.27376
N
152
152
152
152
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
8.249
.636
.694
7.761
.581
.718
8.135
.599
.709
7.999
.509
.760
127
Scale Statistics
Variance
Std. Deviation
13.286
3.64502
Mean
13.6579
N of Items
4
Promotion
Factor Analysis
.792
167.847
6
.000
Anti-image Matrices
promo1_r
promo2
promo1_r
promo2
Anti-image Covariance
promo3
promo4
promo1_r
promo2
Anti-image Correlation
promo3
promo4
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial
Extraction
promo1_r
1.000
.597
promo2
1.000
.666
promo3
1.000
.573
promo4
1.000
.632
Extraction Method: Principal Component
Analysis.
.650
-.180
-.097
-.163
.800a
-.292
-.147
-.257
-.180
.587
-.174
-.166
-.292
.771a
-.276
-.274
promo3
-.097
-.174
.673
-.151
-.147
-.276
.811a
-.234
promo4
-.163
-.166
-.151
.622
-.257
-.274
-.234
.791a
128
Component
1
2
.496
12.397
88.571
.457
11.429
100.000
Reliability
Scale: ALPHA
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.793
4
Item Statistics
Mean
Std. Deviation
promo1_r
promo2
promo3
promo4
3.3684
3.9079
3.8487
3.5724
1.25378
1.37795
1.25418
1.25335
N
152
152
152
152
129
promo1_r
promo2
promo3
promo4
Mean
14.6974
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
10.077
.587
.749
9.081
.643
.721
10.195
.568
.758
9.898
.615
.736
Scale Statistics
Variance
Std. Deviation
16.318
4.03960
N of Items
4
Supervision
Factor Analysis
.783
254.877
6
.000
Anti-image Matrices
superv1
superv2_r
superv1
superv2_r
Anti-image Covariance
superv3_r
superv4
superv1
superv2_r
Anti-image Correlation
superv3_r
superv4
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial
Extraction
superv1
1.000
.753
superv2_r
1.000
.662
superv3_r
1.000
.634
superv4
1.000
.699
Extraction Method: Principal Component
Analysis.
.419
-.169
-.059
-.226
.745a
-.356
-.120
-.507
-.169
.538
-.183
-.030
-.356
.804a
-.327
-.060
superv3_r
-.059
-.183
.580
-.130
-.120
-.327
.834a
-.248
superv4
-.226
-.030
-.130
.473
-.507
-.060
-.248
.766a
130
Component
1
2
.450
11.256
93.033
.279
6.967
100.000
Reliability
Scale: ALPHA
Case Processing Summary
N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.848
4
Item Statistics
Mean
Std. Deviation
superv1
superv2_r
superv3_r
superv4
4.5263
4.6184
4.2763
4.2763
1.19573
1.15049
1.16345
1.14624
N
152
152
152
152
131
superv1
superv2_r
superv3_r
superv4
Mean
17.6974
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
8.341
.741
.782
8.974
.666
.815
9.040
.642
.825
8.841
.694
.803
Scale Statistics
Variance
Std. Deviation
14.888
3.85849
N of Items
4
Fringe Benefit
Factor Analysis
.791
266.879
6
.000
Anti-image Matrices
benefit1_r
benefit2
benefit1_r
benefit2
Anti-image Covariance
benefit3
benefit4_r
benefit1_r
benefit2
Anti-image Correlation
benefit3
benefit4_r
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial
Extraction
benefit1_r
1.000
.689
benefit2
1.000
.783
benefit3
1.000
.787
benefit4_r
1.000
.458
Extraction Method: Principal Component
Analysis.
.517
-.135
-.122
-.072
.846a
-.306
-.277
-.117
-.135
.375
-.205
-.065
-.306
.746a
-.549
-.123
benefit3
-.122
-.205
.374
-.093
-.277
-.549
.747a
-.176
benefit4_r
-.072
-.065
-.093
.746
-.117
-.123
-.176
.909a
132
Component
1
2
.388
9.692
93.958
.242
6.042
100.000
Component Matrixa
Component
1
benefit1_r
.830
benefit2
.885
benefit3
.887
benefit4_r
.676
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
Reliability
Scale: ALPHA
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.834
4
Item Statistics
Mean
Std. Deviation
benefit1_r
benefit2
benefit3
benefit4_r
3.1645
3.2566
3.2105
3.3618
1.43487
1.20428
1.18842
1.28439
N
152
152
152
152
133
benefit1_r
benefit2
benefit3
benefit4_r
Mean
12.9934
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
9.520
.674
.789
10.275
.754
.752
10.330
.759
.751
11.532
.500
.860
Scale Statistics
Variance
Std. Deviation
17.543
4.18844
N of Items
4
Contingent Reward
Factor Analysis
.767
150.841
6
.000
Anti-image Matrices
c_reward1
c_reward2_r
c_reward1
c_reward2_r
Anti-image Covariance
c_reward3_r
c_reward4_r
c_reward1
c_reward2_r
Anti-image Correlation
c_reward3_r
c_reward4_r
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial
Extraction
c_reward1
1.000
c_reward2_r
1.000
c_reward3_r
1.000
c_reward4_r
1.000
Extraction Method: Principal Component
Analysis.
.583
.597
.676
.516
.672
-.198
-.163
-.087
.783a
-.297
-.259
-.125
-.198
.657
-.182
-.079
-.297
.773a
-.293
-.115
c_reward3_r
-.163
-.182
.586
-.221
-.259
-.293
.737a
-.340
c_reward4_r
-.087
-.079
-.221
.718
-.125
-.115
-.340
.786a
134
Component
1
2
.514
12.852
88.844
.446
11.156
100.000
Component Matrixa
Component
1
c_reward1
.764
c_reward2_r
.773
c_reward3_r
.822
c_reward4_r
.719
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
Reliability
Scale: ALPHA
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.770
4
Item Statistics
Mean
Std. Deviation
c_reward1
c_reward2_r
c_reward3_r
c_reward4_r
3.7566
4.0000
3.2368
3.7105
1.26070
1.21797
1.20560
1.18842
N
152
152
152
152
135
c_reward1
c_reward2_r
c_reward3_r
c_reward4_r
Mean
14.7039
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
8.368
.563
.720
8.501
.574
.714
8.184
.642
.678
9.013
.510
.747
Scale Statistics
Variance
Std. Deviation
14.064
3.75021
N of Items
4
Operating Condition
Factor Analysis
.744
155.375
6
.000
Anti-image Matrices
sop1_r
sop2
sop1_r
sop2
Anti-image Covariance
sop3_r
sop4_r
sop1_r
sop2
Anti-image Correlation
sop3_r
sop4_r
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial
Extraction
sop1_r
1.000
sop2
1.000
sop3_r
1.000
sop4_r
1.000
Extraction Method: Principal
Component Analysis.
.703
.527
.715
.383
.545
-.163
-.254
-.101
.712a
-.261
-.469
-.150
-.163
.715
-.150
-.020
-.261
.804a
-.242
-.026
sop3_r
-.254
-.150
.536
-.143
-.469
-.242
.707a
-.216
sop4_r
-.101
-.020
-.143
.819
-.150
-.026
-.216
.834a
136
Component
1
2
.535
13.380
90.819
.367
9.181
100.000
Component Matrixa
Component
1
sop1_r
.838
sop2
.726
sop3_r
.846
sop4_r
.619
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
Reliability
Scale: ALPHA
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.753
4
Mean
sop1_r
sop2
sop3_r
sop4_r
Item Statistics
Std. Deviation
3.6711
3.8092
3.4145
3.5789
1.39429
1.33587
1.11844
1.12483
N
152
152
152
152
137
sop1_r
sop2
sop3_r
sop4_r
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
7.471
.647
.636
8.582
.508
.720
8.692
.667
.638
10.188
.403
.767
Scale Statistics
Variance
Std. Deviation
14.344
3.78730
Mean
14.4737
N of Items
4
Coworkers
Factor Analysis
.623
139.481
6
.000
Anti-image Matrices
co_worker1
co_worker2r
co_worker1
co_worker2r
Anti-image Covariance
co_worker3
co_worker4r
co_worker1
co_worker2r
Anti-image Correlation
co_worker3
co_worker4r
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial
Extraction
co_worker1
1.000
co_worker2r
1.000
co_worker3
1.000
co_worker4r
1.000
Extraction Method: Principal Component
Analysis.
.638
.330
.709
.439
.528
.033
-.329
-.082
.582a
.050
-.641
-.127
.033
.836
-.121
-.235
.050
.678a
-.186
-.287
co_worker3
-.329
-.121
.501
-.074
-.641
-.186
.592a
-.118
co_worker4r
-.082
-.235
-.074
.801
-.127
-.287
-.118
.750a
138
Component
1
2
.637
15.916
92.251
.310
7.749
100.000
Component Matrixa
Component
1
co_worker1
.799
co_worker2r
.574
co_worker3
.842
co_worker4r
.662
Extraction Method: Principal
Component Analysis.
1 components extracted.
Reliability
Scale: ALPHA
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.665
4
Item Statistics
Mean
Std. Deviation
co_worker1
co_worker2r
co_worker3
co_worker4r
4.9474
3.8750
4.8487
4.0855
.84406
1.26236
.95432
1.35169
N
152
152
152
152
139
co_worker1
co_worker2r
co_worker3
co_worker4r
Mean
17.7566
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
7.136
.492
.589
6.132
.374
.656
6.468
.554
.542
5.441
.444
.613
Scale Statistics
Variance
Std. Deviation
10.066
3.17272
N of Items
4
Nature of Work
Factor Analysis
.695
181.559
6
.000
Anti-image Matrices
nat_job1_r
nat_job1_r
nat_job2
Anti-image Covariance
nat_job3
nat_job4
nat_job1_r
nat_job2
Anti-image Correlation
nat_job3
nat_job4
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial
Extraction
nat_job1_r
1.000
.250
nat_job2
1.000
.770
nat_job3
1.000
.497
nat_job4
1.000
.782
Extraction Method: Principal Component
Analysis.
.879
-.044
.037
-.123
.821a
-.071
.047
-.201
nat_job2
-.044
.430
-.134
-.268
-.071
.655a
-.240
-.627
nat_job3
.037
-.134
.731
-.109
.047
-.240
.831a
-.196
nat_job4
-.123
-.268
-.109
.424
-.201
-.627
-.196
.651a
140
Component
1
2
.555
13.873
93.454
.262
6.546
100.000
Component Matrixa
Component
1
nat_job1_r
.500
nat_job2
.878
nat_job3
.705
nat_job4
.884
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
Reliability
Scale: ALPHA
Valid
152
70.7
a
Cases
Excluded
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's Alpha
N of Items
.722
4
Item Statistics
Mean
Std. Deviation
nat_job1_r
nat_job2
nat_job3
nat_job4
4.0329
4.4605
4.6053
4.4145
1.30418
1.22275
.93609
1.04498
N
152
152
152
152
141
nat_job1_r
nat_job2
nat_job3
nat_job4
Mean
17.5132
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
7.390
.307
.797
5.852
.663
.559
8.018
.448
.698
6.447
.703
.553
Scale Statistics
Variance
Std. Deviation
11.271
3.35728
N of Items
4
Communication
Factor Analysis
.747
125.702
6
.000
Anti-image Matrices
commun1
commun2r
commun1
commun2r
Anti-image Covariance
commun3r
commun4r
commun1
commun2r
Anti-image Correlation
commun3r
commun4r
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial
Extraction
commun1
1.000
.406
commun2r
1.000
.572
commun3r
1.000
.636
commun4r
1.000
.623
Extraction Method: Principal Component
Analysis.
.815
-.029
-.162
-.146
.791a
-.038
-.222
-.199
-.029
.686
-.209
-.206
-.038
.735a
-.314
-.305
commun3r
-.162
-.209
.650
-.175
-.222
-.314
.736a
-.266
commun4r
-.146
-.206
-.175
.662
-.199
-.305
-.266
.744a
142
Component
1
2
.519
12.985
87.687
.493
12.313
100.000
Component Matrixa
Component
1
commun1
.637
commun2r
.756
commun3r
.798
commun4r
.789
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
Reliability
Scale: ALPHA
Case Processing Summary
N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.736
4
Item Statistics
Mean
Std. Deviation
commun1
commun2r
commun3r
commun4r
4.6316
3.9868
3.9539
3.9539
1.02087
1.28664
1.19789
1.24666
N
152
152
152
152
143
commun1
commun2r
commun3r
commun4r
Mean
16.5263
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
9.115
.413
.736
7.310
.537
.673
7.412
.591
.640
7.253
.580
.645
Scale Statistics
Variance
Std. Deviation
12.701
3.56389
N of Items
4
Turnover Intention
Factor Analysis
TI_1
.829
673.866
15
.000
Anti-image Matrices
ti_2
ti_3
TI_1
.223
ti_2
-.022
ti_3
-.042
Anti-image
Covariance
ti_4
-.078
ti_5
-.069
ti_6
-.044
TI_1
.881a
ti_2
-.067
ti_3
-.132
Anti-image
Correlation
ti_4
-.384
ti_5
-.335
ti_6
-.132
a. Measures of Sampling Adequacy(MSA)
-.022
.487
-.041
.027
-.037
-.288
-.067
.751a
-.086
.089
-.122
-.590
ti_4
-.042
-.078
-.041
.027
.456
-.044
-.044
.185
-.039
-.104
-.095 9.506E-005
-.132
-.384
-.086
.089
.944a
-.150
-.150
.817a
-.131
-.551
-.201
.000
ti_5
ti_6
-.069
-.044
-.037
-.288
-.039
-.095
-.104 9.506E-005
.191
.043
.043
.489
-.335
-.132
-.122
-.590
-.131
-.201
-.551
.000
.821a
.140
.140
.710a
144
Communalities
Initial
Extraction
TI_1
1.000
ti_2
1.000
ti_3
1.000
ti_4
1.000
ti_5
1.000
ti_6
1.000
Extraction Method: Principal
Component Analysis.
Component
1
2
.815
.423
.683
.774
.778
.374
.393
6.551
90.156
.309
5.151
95.307
.162
2.694
98.001
.120
1.999
100.000
Component Matrixa
Component
1
TI_1
.903
ti_2
.650
ti_3
.827
ti_4
.880
ti_5
.882
ti_6
.612
Extraction Method:
Principal Component
Analysis.
a. 1 components
extracted.
145
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.879
6
Mean
TI_1
ti_2
ti_3
ti_4
ti_5
ti_6
TI_1
ti_2
ti_3
ti_4
ti_5
ti_6
Item Statistics
Std. Deviation
3.27
3.81
3.03
2.81
2.64
4.38
Mean
19.94
.996
1.102
1.156
.975
1.013
1.168
N
152
152
152
152
152
152
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
17.918
.805
.839
18.949
.577
.876
17.350
.728
.850
18.406
.758
.847
18.117
.761
.846
18.937
.531
.886
Scale Statistics
Variance
Std. Deviation
25.698
5.069
N of Items
6
146
Performance Management
Factor Analysis
.783
222.237
6
.000
Anti-image Matrices
Perf_Mgt1
Perf_Mgt2
Perf_Mgt1
Perf_Mgt2
Anti-image Covariance
Perf_Mgt3
Perf_Mgt4
Perf_Mgt1
Perf_Mgt2
Anti-image Correlation
Perf_Mgt3
Perf_Mgt4
a. Measures of Sampling Adequacy(MSA)
.610
-.067
-.095
-.220
.808a
-.120
-.165
-.386
-.067
.505
-.235
-.149
-.120
.764a
-.452
-.288
Perf_Mgt3
-.095
-.235
.537
-.090
-.165
-.452
.780a
-.169
Perf_Mgt4
-.220
-.149
-.090
.530
-.386
-.288
-.169
.785a
Communalities
Initial
Extraction
Perf_Mgt1
1.000
.601
Perf_Mgt2
1.000
.695
Perf_Mgt3
1.000
.665
Perf_Mgt4
1.000
.687
Extraction Method: Principal Component
Analysis.
Component
1
2
.413
10.326
91.313
.347
8.687
100.000
147
Component Matrixa
Component
1
Perf_Mgt1
.776
Perf_Mgt2
.834
Perf_Mgt3
.815
Perf_Mgt4
.829
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
Reliability
Scale: ALPHA
Case Processing Summary
N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.828
4
Item Statistics
Mean
Std. Deviation
Perf_Mgt1
Perf_Mgt2
Perf_Mgt3
Perf_Mgt4
Perf_Mgt1
Perf_Mgt2
Perf_Mgt3
Perf_Mgt4
3.81
3.59
3.82
3.61
1.144
1.283
1.070
1.287
N
152
152
152
152
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
9.569
.610
.803
8.460
.681
.772
9.655
.660
.784
8.449
.679
.772
148
Mean
14.83
Scale Statistics
Variance
Std. Deviation
15.189
3.897
N of Items
4
Pay Practices
Factor Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Approx. Chi-Square
Bartlett's Test of Sphericity
df
Sig.
.742
294.276
6
.000
Anti-image Matrices
Pay_Practices1 Pay_Practices2 Pay_Practices3 Pay_Practices4
Pay_Practices1
Pay_Practices2
Pay_Practices3
Pay_Practices4
Pay_Practices1
Pay_Practices2
Anti-image
Correlation
Pay_Practices3
Pay_Practices4
a. Measures of Sampling Adequacy(MSA)
Anti-image
Covariance
Communalities
Initial
1
2
-.217
.400
-.098
-.090
-.511
.770a
-.254
-.192
-.133
-.098
.374
-.231
-.324
-.254
.747a
-.511
.079
-.090
-.231
.544
.160
-.192
-.511
.719a
Extraction
Pay_Practices1
1.000
Pay_Practices2
1.000
Pay_Practices3
1.000
Pay_Practices4
1.000
Extraction Method: Principal Component
Analysis.
Component
.450
-.217
-.133
.079
.722a
-.511
-.324
.160
.660
.764
.794
.560
.292
7.306
93.716
.251
6.284
100.000
149
Reliability
Scale: ALPHA
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.851
4
Item Statistics
Mean
Std. Deviation
Pay_Practices1
Pay_Practices2
Pay_Practices3
Pay_Practices4
Pay_Practices1
Pay_Practices2
Pay_Practices3
Pay_Practices4
3.45
3.02
3.14
3.12
1.156
1.119
1.215
1.173
Item-Total Statistics
Scale Mean if Item Scale Variance if
Deleted
Item Deleted
9.28
9.145
9.72
8.800
9.59
8.124
9.62
9.456
152
152
152
152
150
Mean
12.74
Scale Statistics
Variance
Std. Deviation
15.043
3.879
N of Items
4
.771
355.034
6
.000
Anti-image Matrices
Train_Devt1
Train_Devt2
Train_Devt1
Train_Devt2
Anti-image Covariance
Train_Devt3
Train_Devt4
Train_Devt1
Train_Devt2
Anti-image Correlation
Train_Devt3
Train_Devt4
a. Measures of Sampling Adequacy(MSA)
Communalities
Initial
Extraction
Train_Devt1
1.000
Train_Devt2
1.000
Train_Devt3
1.000
Train_Devt4
1.000
Extraction Method: Principal Component
Analysis.
.811
.872
.185
.856
.330
-.111
.024
-.114
.811a
-.381
.044
-.386
-.111
.256
-.090
-.143
-.381
.744a
-.187
-.549
Train_Devt3
.024
-.090
.898
-.008
.044
-.187
.856a
-.016
Train_Devt4
-.114
-.143
-.008
.264
-.386
-.549
-.016
.753a
151
Component
1
2
.229
5.728
95.809
.168
4.191
100.000
Component Matrixa
Component
1
Train_Devt1
.900
Train_Devt2
.934
Train_Devt3
Train_Devt4
.925
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
.759
339.718
3
.000
Anti-image Matrices
Train_Devt1
Train_Devt1
Train_Devt2
Train_Devt4
Train_Devt1
Anti-image Correlation
Train_Devt2
Train_Devt4
a. Measures of Sampling Adequacy(MSA)
Anti-image Covariance
.330
-.113
-.114
.807a
-.380
-.386
Train_Devt2
-.113
.266
-.149
-.380
.739a
-.562
Train_Devt4
-.114
-.149
.264
-.386
-.562
.737a
152
Extraction
Train_Devt1
1.000
.843
Train_Devt2
1.000
.877
Train_Devt4
1.000
.878
Extraction Method: Principal Component
Analysis.
Component
1
2
5.656
100.000
Component Matrixa
Component
1
Train_Devt1
.918
Train_Devt2
.936
Train_Devt4
.937
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
Reliability
Scale: ALPHA
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.922
3
153
Train_Devt1
Train_Devt2
Train_Devt4
Mean
10.24
3.43
3.43
3.38
1.290
1.285
1.233
N
152
152
152
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
5.802
.818
.907
5.679
.853
.878
5.908
.855
.878
Scale Statistics
Variance
Std. Deviation
12.553
3.543
N of Items
3
154
Model Summary
R Square
Adjusted R
Square
1
.424a
.180
.175
a. Predictors: (Constant), HR_PRACTICES
Model
Model
Regression
1
Residual
Total
Sum of Squares
19.416
88.375
107.791
ANOVAa
df
1
150
Mean Square
19.416
.589
F
32.955
Sig.
.000b
151
Model
(Constant)
Coefficientsa
Unstandardized
Coefficients
B
Std. Error
4.721
.251
HR_PRACTICES
-.407
a. Dependent Variable: TURNOVER_INTENTION
.071
Standardized
Coefficients
Beta
-.424
Sig.
18.786
.000
-5.741
.000
155
Model
Regression
1
Residual
Total
Sum of Squares
28.848
33.453
62.302
ANOVAa
df
1
150
Mean Square
28.848
.223
F
129.350
Sig.
.000b
151
Model
(Constant)
Coefficientsa
Unstandardized
Coefficients
B
Std. Error
2.186
.155
HR_PRACTICES
.496
a. Dependent Variable: JOB_SATISFACTION
.044
Standardized
Coefficients
Beta
.680
Sig.
14.135
.000
11.373
.000
156
Model Summary
R Square
Adjusted R
Std. Error of the
Square
Estimate
1
.673a
.453
.446
.629
a. Predictors: (Constant), JOB_SATISFACTION, HR_PRACTICES
Model
Model
Regression
1
Residual
Total
Sum of Squares
48.877
58.913
107.791
ANOVAa
df
2
149
Mean Square
24.439
.395
F
61.809
Sig.
.000b
151
Coefficientsa
Unstandardized Coefficients
Model
B
(Constant)
1
6.771
HR_PRACTICES
.021
JOB_SATISFACTION
-.906
a. Dependent Variable: TURNOVER_INTENTION
Std. Error
.314
.090
.118
Standardized
Coefficients
Beta
.021
-.689
Sig.
21.545
.000
.236
-7.699
.814
.000
157
Model Summary
R Square
Adjusted R
Std. Error of the
Square
Estimate
1
.517a
.267
.252
.731
a. Predictors: (Constant), Performance_Management, Pay_Practices,
Train_Development
Model
Model
Regression
1
Residual
Total
Sum of Squares
28.809
78.982
107.791
ANOVAa
df
3
148
Mean Square
9.603
.534
F
17.995
Sig.
.000b
151
Model
(Constant)
Coefficientsa
Unstandardized
Standardized
Coefficients
Coefficients
B
Std. Error
Beta
4.960
.247
Pay_Practices
-.273
Train_Development
.124
Performance_Management
-.320
a. Dependent Variable: TURNOVER_INTENTION
1
.077
.066
.086
-.314
.173
-.369
Sig.
20.076
.000
-3.532
1.866
-3.705
.001
.064
.000
158
Dependent
Variable
pay
promotion
supervisor
benefit
cont_reward
sop
co_worker
nat_work
communic
Parameter
Parameter Estimates
B
Std.
Error
Intercept
Pay_Practices
Train_Development
Performance_Management
Intercept
Pay_Practices
Train_Development
Performance_Management
Intercept
Pay_Practices
Train_Development
Performance_Management
Intercept
Pay_Practices
Train_Development
Performance_Management
Intercept
Pay_Practices
Train_Development
Performance_Management
Intercept
Pay_Practices
Train_Development
Performance_Management
Intercept
Pay_Practices
Train_Development
Performance_Management
Intercept
Pay_Practices
Train_Development
Performance_Management
Intercept
Pay_Practices
Train_Development
Performance_Management
.980
.494
-.033
.263
1.873
.374
-.356
.493
2.461
.076
.071
.399
.526
.748
.036
.059
1.369
.450
-.141
.365
1.926
.350
.027
.131
3.141
.110
-.003
.258
3.172
.030
-.173
.459
2.406
-.010
.068
.411
.221 4.426
.069 7.126
.059
-.562
.077 3.392
.282 6.640
.088 4.230
.076 -4.711
.099 4.991
.283 8.701
.089
.855
.076
.939
.099 4.027
.237 2.215
.074 10.063
.064
.561
.083
.709
.241 5.684
.075 5.968
.065 -2.189
.084 4.334
.285 6.754
.089 3.922
.076
.353
.100 1.310
.247 12.700
.077 1.421
.066
-.040
.087 2.981
.257 12.321
.081
.371
.069 -2.507
.090 5.092
.263 9.160
.082
-.116
.070
.962
.092 4.473
Sig.
.000
.000
.575
.001
.000
.000
.000
.000
.000
.394
.349
.000
.028
.000
.575
.480
.000
.000
.030
.000
.000
.000
.725
.192
.000
.157
.969
.003
.000
.711
.013
.000
.000
.908
.338
.000
95% Confidence
Interval
Lower
Upper
Bound
Bound
.542
1.417
.357
.631
-.151
.084
.110
.416
1.315
2.430
.199
.549
-.506
-.207
.298
.688
1.902
3.020
-.099
.251
-.079
.221
.203
.594
.057
.995
.601
.895
-.090
.161
-.105
.223
.893
1.845
.301
.600
-.269
-.014
.199
.532
1.362
2.489
.174
.527
-.124
.178
-.067
.328
2.652
3.629
-.043
.263
-.134
.128
.087
.429
2.664
3.681
-.129
.189
-.310
-.037
.281
.637
1.887
2.925
-.172
.153
-.071
.207
.230
.593
159
Model Summary
Model
R
R Square
Adjusted R
Std. Error of the
Square
Estimate
1
.706a
.498
.455
.624
a. Predictors: (Constant), communic, benefit, nat_work, Train_Development,
sop, pay, co_worker, promotion, supervisor, Performance_Management,
cont_reward, Pay_Practices
Model
Regression
1
Residual
Total
Sum of Squares
53.679
54.111
ANOVAa
df
12
139
107.791
151
Mean Square
4.473
.389
F
11.491
Sig.
.000b
160
Model
(Constant)
Coefficientsa
Unstandardized
Coefficients
B
Std. Error
6.930
.350
Pay_Practices
-.069
Train_Development
.071
Performance_Management
.000
pay
-.055
promotion
-.095
1 supervisor
.013
benefit
-.090
cont_reward
-.150
sop
.042
co_worker
-.201
nat_work
-.090
communic
-.283
a. Dependent Variable: TURNOVER_INTENTION
.096
.063
.087
.082
.077
.080
.081
.091
.075
.093
.087
.077
Standardized
Coefficients
Beta
Sig.
19.787 .000
-.079
.099
.000
-.060
-.114
.014
-.111
-.167
.047
-.188
-.089
-.298
-.723
1.119
.003
-.674
-1.242
.158
-1.113
-1.647
.564
-2.152
-1.036
-3.693
.471
.265
.997
.501
.216
.875
.268
.102
.574
.033
.302
.000
161
Pay Practices
Independent Variable
Dependent Variable
Notation
Sig
Pay Practices
Pay
0.494
0.000
Pay
Turnover Intention
-0.055
0.501
Pay Practices
Turnover Intention
-0.273
0.001
Turnover Intention
c'
-0.069
0.471
Pay Practices
Promotion
0.374
0.000
Promotion
Turnover Intention
-0.095
0.216
Pay Practices
Turnover Intention
-0.273
0.001
Turnover Intention
c'
-0.069
0.471
Pay Practices
Supervision
0.076
0.394
Supervision
Turnover Intention
0.013
0.875
Pay Practices
Turnover Intention
-0.273
0.001
Turnover Intention
c'
-0.069
0.471
Pay Practices
Fringe Benefits
0.748
0.000
Fringe Benefits
Turnover Intention
-0.090
0.268
Pay Practices
Turnover Intention
-0.273
0.001
Turnover Intention
c'
-0.069
0.471
Pay Practices
Contingent Rewards
0.450
0.000
Contingent Rewards
Turnover Intention
-0.150
0.102
Pay Practices
Turnover Intention
-0.273
0.001
Turnover Intention
c'
-0.069
0.471
Pay Practices
Operating Condition
0.350
0.000
Operating Condition
Turnover Intention
0.042
0.574
Pay Practices
Turnover Intention
-0.273
0.001
Turnover Intention
c'
-0.069
0.471
162
Independent Variable
Dependent Variable
Notation
Sig
Pay Practices
Coworkers
0.110
0.157
Coworkers
Turnover Intention
-0.201
0.033
Pay Practices
Turnover Intention
-0.273
0.001
Turnover Intention
c'
-0.069
0.471
Pay Practices
Nature of Work
0.030
0.711
Nature of Work
Turnover Intention
-0.090
0.302
Pay Practices
Turnover Intention
-0.273
0.001
Turnover Intention
c'
-0.069
0.471
Pay Practices
Communication
-0.010
0.908
Communication
Turnover Intention
-0.283
0.000
Pay Practices
Turnover Intention
-0.273
0.001
Turnover Intention
c'
-0.069
0.471
Dependent Variable
Notation
Sig
Training
Pay
-0.033
0.575
Pay
Turnover Intention
-0.055
0.501
Training
Turnover Intention
0.124
0.064
Turnover Intention
c'
0.071
0.265
Training
Promotion
-0.356
0.000
Promotion
Turnover Intention
-0.095
0.216
Training
Turnover Intention
0.124
0.064
Turnover Intention
c'
0.071
0.265
Training
Supervision
0.071
0.349
Supervision
Turnover Intention
0.013
0.875
Training
Turnover Intention
0.124
0.064
Turnover Intention
c'
0.071
0.265
163
Independent Variable
Dependent Variable
Notation
Sig
Training
Fringe Benefits
0.036
0.561
Fringe Benefits
Turnover Intention
-0.090
0.268
Training
Turnover Intention
0.124
0.064
Turnover Intention
c'
0.071
0.265
Training
Contingent Rewards
-0.141
0.030
Contingent Rewards
Turnover Intention
-0.150
0.102
Training
Turnover Intention
0.124
0.064
Turnover Intention
c'
0.071
0.265
Training
Operating Condition
0.027
0.725
Operating Condition
Turnover Intention
0.042
0.574
Training
Turnover Intention
0.124
0.064
Turnover Intention
c'
0.071
0.265
Training
Coworkers
-0.003
0.969
Coworkers
Turnover Intention
-0.201
0.033
Training
Turnover Intention
0.124
0.064
Turnover Intention
c'
0.071
0.265
Training
Nature of Work
-0.173
0.013
Nature of Work
Turnover Intention
-0.090
0.302
Training
Turnover Intention
0.124
0.064
Turnover Intention
c'
0.071
0.265
Training
Communication
0.068
0.338
Communication
Turnover Intention
-0.283
0.000
Training
Turnover Intention
0.124
0.064
Turnover Intention
c'
0.071
0.265
164
Performance Management
Independent Variable
Dependent Variable
Notation
Sig
Performance Management
Pay
0.263
0.001
Pay
Turnover Intention
-0.055
0.501
Performance Management
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Performance Management
Promotion
0.493
0.000
Promotion
Turnover Intention
-0.095
0.216
Performance Management
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Performance Management
Supervision
0.399
0.000
Supervision
Turnover Intention
0.013
0.875
Performance Management
Performance Management &
Supervision
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Performance Management
Fringe Benefits
0.059
0.480
Fringe Benefits
Turnover Intention
-0.090
0.268
Performance Management
Performance Management & Fringe
Benefits
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Performance Management
Contingent Rewards
0.365
0.000
Contingent Rewards
Turnover Intention
-0.150
0.102
Performance Management
Performance Management & Contingent
Rewards
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Performance Management
Operating Condition
0.131
0.192
Operating Condition
Turnover Intention
0.042
0.574
Performance Management
Performance Management & Operating
Condition
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
165
Independent Variable
Dependent Variable
Notation
Sig
Performance Management
Coworkers
0.258
0.003
Coworkers
Turnover Intention
-0.201
0.033
Performance Management
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Performance Management
Nature of Work
0.459
0.000
Nature of Work
Turnover Intention
-0.090
0.302
Performance Management
Performance Management & Nature of
Work
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Performance Management
Communication
0.411
0.000
Communication
Turnover Intention
-0.283
0.000
Performance Management
Performance Management &
Communication
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997