THE EFFECT OF ORGANIZATIONAL CONTEXT AND

JOB SATISFACTION TOWARDS EMPLOYEES

ENGAGEMENT IN PRIVATE HIGHER EDUCATION
IN KOTA KINABALU, SABAH, MALAYSIA

HERI RUTHWIRYO

THESIS SUBMITTED IN PARTIAL FULFILLMENT

FOR THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION (MBA)
FACULTY OF BUSINESS, ECONOMICS AND
ACCOUNTANCY
UNIVERSITI MALAYSIA SABAH
2015

DECLARATION
I hereby certify that this paper constitutes my own product, that where the language of
others is set forth, quotation marks so indicate, and that appropriate credit is given where I
have used the language, ideas, expressions or writings of another.

11 SEPTEMBER 2015

___________________
HERI RUTHWIRYO
MB1312021A

ii

NAME

: HERI RUTHWIRYO

MATRIK NO.

: MB1312021A

TITLE

: THE EFFECT OF ORGANIZATIONAL CONTEXT AND JOB

SATISFACTION TOWARDS EMPLOYEES ENGAGEMENT IN
PRIVATE HIGHER EDUCATION INSTITUTIONS IN KOTA
KINABALU, SABAH

DEGREE

: MASTER OF BUSINESS ADMINISTRATION

VIVA DATE

: 27 AUGUST 2015

CERTIFIED BY

1.

SUPERVISOR
DR. ZAKARIYA BELKHAMZA

Signature

________________

iii

ACKNOWLEDGEMENT

First of all, I am grateful to Almighty God for giv ing me the resolve, patience, strenght and
will to complete this study. It is always true that with HIM, anything is possible.
I wish to express my sincere thanks to my untiring supervisor, Dr. Zakariya
Belkhamza for his wisdom, support and patience in guiding me throughout this research.
I would also like to express my gratitude to all my lecturers and faculty members
especially Dr. Julian Paul Sidin and Dr. Stephen L. Sondoh Jr for all their guidance for me
over the past years. Not to forget the faithful staff of the Facultys Post-Graduate Office,
namely Mr. Husin and Mr. Rahman and to all my fellow coursemates especially my group
members that has gone through thick and thin during this years.
I would also like to take this opportunity to thanks my parents, Frans Hena Rumat
and Sri Hayati, my parents in laws, Ahan Sindin and Rosalind Wong for their constant
support, love and encouragement in my academic career and future endeavours.
Last but not least, I would like to place on record my upmost and deepest sense of
gratitude to my loving wife, Audrey Rose Ahan for her unwavering moral support, love and
patience. Without you, this research study would not have been possible.
May Almighty God bless each one you abundantly.
THANK YOU.

iv

ABSTRACT

There is relatively very little information on the contribution of organizational context

attributes towards employee engagement among higher education sector. The aim of this
study is to investigate the potential of organizational context attributes namely discipline,
stretch, trust and support as the independent variables towards employee engagement as
the dependent variable from the perspective of lecturers and tutors working with private
higher education institutions industry. The study also aims to investigate the relationship
between job satisfaction facets namely pay, promotion, fringe benefits, operating condition,
communication, supervision, nature of work, co-workers and contingent rewards and
employee engagement among employees in private higher education institutions in Kota
Kinabalu, Sabah, Malaysia. A questionnaire was used as the primary instrument for
collecting the data and a total of 225 respondents were involved in the survey. All of the
questionnaires were distributed among lecturers and tutors who are currently attached with
private higher education institutions in Kota Kinabalu, Sabah, Malaysia. The SmartPLS
software was fully utilized to analyze and examine the data collected with the measurement
model for this study. The findings from this study suggest that discipline, support and nature
of work do have significance relationship with employee engagement. The study
recommends that top management and employers of private higher institutions should pay
more attention on employee engagement of their staff especially on operating condition,
supervision and communication.

TABLE OF CONTENTS
Page
DECLARATION

CERTIFICATION

ii

ACKNOWLEDGMENT

iii

ABSTRACT

iv

ABSTRAK

TABLE OF CONTENTS

vi-ix

LIST OF TABLES

LIST OF FIGURES

xi

LIST OF APPENDICES

x ii

CHAPTER 1: INTRODUCTION
1.1

Background of the Study

1-7

1.2

Problem Statement

7-8

1.3

Research Objectives

1.4

Research Questions

8-9

1.5

Definition of Key Terms

1.5.1

Employee Engagement

1.5.2

Organizational Context

1.5.3

Discipline

1.5.4

Support

10

1.5.5

Trust

10

1.5.6

Stretch

10

1.5.7

Job Satisfaction

10

1.5.8

Private Higher Education Institutions (PHEIs)

11

1.5.9

Pay

11

1.5.10 Promotion

11

1.5.11 Supervision

11

1.5.12 Fringe Benefits

11

1.5.13 Contingent Rewards

12

1.5.14 Operating Conditions

12

1.5.15 Co-workers

12

1.5.16 Nature of Work

13
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