MK7227 DISSERTATION PROPOSAL

MBA DISSERTATION PROPOSAL

EFFECTS OF EMPLOYEE BENEFITS TOWARDS JOB
SATISFACTION

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1 Table of Contents

1. INTRODUCTION ............................................................................................................... 2
1.1 Topic...................................................................................................................................... 3
1.2 Focus ..................................................................................................................................... 3
1.3 Research Question ........................................................................................................... 5
1.4 Objectives ............................................................................................................................ 5
2. LITERATURE REVIEW ..................................................................................................... 6
2.1 Literature Selection .......................................................................................................... 6
2.2 Key Debates ........................................................................................................................ 7
2.2.1 Social Support and Employee Productivity ..................................................................... 7
2.2.2 Fringe Benefits and Employee Productivity .................................................................... 7
2.4 Summary .............................................................................................................................. 8
3. RESEARCH METHODOLOGY ....................................................................................... 10
3.1 Research Objectives ...................................................................................................... 11
3.2 Research Strategy .......................................................................................................... 12
3.3 Data Collection ................................................................................................................. 13
4. CONCLUSION ................................................................................................................. 14
5.1 Recommendations .......................................................................................................... 15
5. TIME PLAN ...................................................................................................................... 16
REFERENCES ...................................................................................................................... 177
APPENDICES ......................................................................................................................... 23

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1. INTRODUCTION
In organization, employees are the key resources through which all the other objectives are
achieved. Academic staff are the employees of the educational organizations and their job
satisfaction promotes teaching and learning. Employees will demonstrate pleasurable
positive attitudes when they are satisfied with their jobs. Thus, high job satisfaction will
increase the productivity of an organization, in turn increasing the overall organizational
performance. Compensation plays a vital role in determining an employee's level of job
satisfaction. Reward practices linked to job satisfaction have been applied differently by
public and private enterprises. No resource is more critical to an organization’s success than

its human resources are (DeNisi & Griffin, 2008，p. 5); people are the only strategic weapon

a company has that cannot be copied by its competition (DeCenzo & Robbins, 2010, p. 4).

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1.1 Topic
Effects of Employee Benefits Towards Job Satisfaction
Job satisfaction is one of the most widely studied subjects in the management field (Loi
and Yang, 2009), as it is considered as one of the determinants of the quality of the working
context in any organization. The starting point in exploring employees‟ satisfaction and
motivation was Taylor‟s scientific study in 1911, but the real beginning of job satisfaction and
motivation researches began with Mayo‟s Hawthorne studies (1924), which shed light on the
importance of the human element as being the most valuable resource in any organization.

1.1.1 Employee Benefits

Employee benefits typically refers to retirement plans, health life insurance, life insurance,
disability insurance, vacation, employee stock ownership plans, etc. Benefits are increasingly
expensive for businesses to provide to employees, so the range and options of benefits are
changing rapidly to include, for example, flexible benefit plans. Benefits are forms of value,
other than payment, that are provided to the employee in return for their contribution to the
organization, that is, for doing their job. Some benefits, such as unemployment and worker's
compensation, are federally required. (Worker's compensation is really a worker's right,
rather than a benefit.)

1.2 Focus
Job satisfaction refers to the positive attitudes or emotional dispositions people may gain
from work or through aspects of work. Employees’ job satisfaction becomes a central
attention in the researches and discussions in work and organizational psychology because it
is believed to have relationship with the job performance. The purpose of this article is to
begin to address this academic research-practice gap by identifying core topics in the benefits
literature, and for each topic, identifying emerging issues for future benefits research. To this
end, five benefit topics are identified:(1) the context of employer-sponsored benefits, (2)
benefits satisfaction, (3) pensions, (4) health care, and (5) work family benefits. For each topic,
extant research is examined, and future research propositions are provided. The subject of
compensation and benefits has been widely researched in the literature, and the role of
Human Resources is underlined as the most important when considering this issue. But very

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little attention has been paid to compensation and benefits in employees’ motivation
particularly in MNEs based in Malaysia.
Many organizations including our organization have found it difficult to retain good
employees and enhance their productivity. We lose employees to other organizations,
especially our competitors who offer them good packages putting our strategies to dealing
with the competitors at risk. As a HR Payroll manager, I have come to realize that this is really
can affect any organizations

Figure 1. Components of job satisfaction (The Pennsylvania State University, 2010).

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1.3 Research Question

Research topic will be investigated by addressing the following questions:
1. The importance of compensation and benefits in employees’ motivation in the process
of recruitment and retaining talent in the 21st century. Compensation and benefits
philosophy.
2. How do compensation and benefits impact employees’ loyalty to the company.
Managing compensation and benefits for expat and local employees in MNEs, mainly
in Malaysia. Methods for grouping similar jobs for the sake of broad banding (as
promotions are limited) as well as the measurement systems for compensation and
benefits.
3. Internal and external motivation. Benefits as an indirect reward that an employee gets
for being part of an organization. Compensation as the reward given to an employee
to complement the time or any resource that he/she might have used.
4. What is the relationship between compensation and job satisfaction?
5. What is the relationship between benefits and job satisfaction?
6. Does compensation and benefit impact on job satisfaction?

1.4 Objectives
The purpose of the study was to investigate the effects of the company’s benefits towards
employees. The factors under investigation in the study were the physical environment, job
related factors and the fringe benefits impact on employees / staff productivity. The study
respondents acknowledged the management’s effort to provide fringe benefits during their
work among which medical cover was the most coveted. However, respondents indicated
that the management should consider the harmonization of fringe benefits offered across
Departments, Leblebici (2012) acknowledges that higher salaries and compensation benefits
may seem the most likely way to attract employees.

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2. LITERATURE REVIEW

2.1 Literature Selection

I explore this area by defining Research on Compensation and Benefits in Employee Job
Satisfaction and its key benefits, characteristics and evolution of compensation and benefits.

Summary of literature review:

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2.2 Key Debates

2.2.1 Social Support and Employee Productivity
Imtiaz and Ahmad (2010) study on the impact Of Stress on Employee Productivity,
Performance and turnover found many workers express that their job is prominent source of
stress in their life but reduced workload, improve management and supervision, better pay,
benefits, and vacation times can reduce the stress among employees. Accordingly, Lambert
(2005) identifies the management functions to provision of adequate fringe benefits,
supervision, work method and organization. Nwachukwu (1987) also identified supervision,
subordinates, the environment and outcome as the major variables that influence
productivity

2.2.2 Fringe Benefits and Employee Productivity

A study conducted by Ellickson and Logsdon (2002) reflected that job satisfaction of public
sector employees was significantly influenced by perceptions of employee satisfaction in
terms of pay, promotional opportunities, relationships with supervisors, employees’
performance management systems and fringe benefits

Source: https://wikispaces.psu.edu: Work Attitudes and Job Motivation

According to Syptak, Marsland, and Ulmer (1999), there are numerous aspects of a job
through which an organization can manage increase satisfaction in the workplace, such as
company policies and job security.

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2.3 Summary
The literature reviewed suggests the work environment can be described in terms of physical
and behavioural components. These components can further be divided in the form of
different independent variables. Office environment can be described in terms of physical and
behavioural components. These components can further be ere divided in the form of
different independent variables. Stallworth and Kleiner (1996) argue that increasingly an
organization’s physical layout is designed around employee needs to maximize productivity
and satisfaction

Some of the organisational factors which affect job satisfaction are:

Benefits

Source: According to E.A. Locke Model and Fieldman and Arnold

1. Salaries and Wages:

Wages and salaries play a significant role in influencing job satisfaction. This is basically
because of a few basic reasons. Firstly, money is an important instrument in fulfilling one’s
needs. Money also satisfies the first level needs of Maslow’s model of satisfaction. Secondly,
employees often see money as a reflection of the management’s concern for them. Thirdly,
it is considered a symbol of achievement since higher pay reflects higher degree of
contribution towards organizational operations.

2. Promotion Chances:

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Promotional chances considerably affect the job satisfaction because of the following
reasons: Firstly, Promotion indicates on employee’s worth to the organisation which is highly
morale boosting. This is particularly true in case of high level jobs

3. Company Policies:

Organizational structural and policies also play on important role in affecting the job
satisfaction of employees. An autocratic and highly authoritative structure causes resentment
among the employees as compared to a structure which is more open and democratic in
nature.

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3. RESEARCH METHODOLOGY

This section presents the explanation behind the research design for this study and
includes the rationale for the approach taken and the methods used for primary data
collection. This research design explanation is then followed by descriptions of the
methods used for data collection and the procedures employed for the analysis of this
data by both quantitative and qualitative means. For ease of reference and to provide an
acceptable base model from which to design the research methodology it was decided to use
Saunders et al (2012) ‘research onion’, outlined in figure 1 below

Figure xx: The research onion (Saunders et al, 2012)

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Figure xx: Summary of research paradigms and methods (Anderson, 2013)

3.1 Research Objectives

The overall objective of the study was to identify the influence of the work environment on
the productivity among employees in organizations. The study was guided by the following
objectives.
1. To identify influence of physical work environment on productivity among
employees
2. To assess the effects of office ergonomics among employees
3. To establish the extent that job – related factors affect employee productivity
among employees
4. To recommend ways of improving work environment to increase employee
productivity among employees

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3.2 Research Strategy

Many research choices are available to the researcher the mono-method; using
either quantitative or qualitative data capture and analysis method, the multi-method
which also uses either a quantitative or qualitative analysis method but uses multiple
forms of data capture techniques within the research design, or the mixed-method
which uses a combination of quantitative or qualitative data capture and analysis
methods (Saunders et al, 2012). For this study a mixed-method of research method choice
has been selected in order that quantitative or qualitative data can be obtained and analyzed
within a single research strategy. The mono-method was disregarded since it offers only the
ability to capture and analyses data in either a quantitative or qualitative method;
multi-method was also disregarded on the same basis in that even through it offers the
opportunity to collate data via different forms it still only offers the ability to analyze in
either a quantitative or qualitative method

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3.3 Data Collection

Primary data has been collected using various journals, research papers, case studies, etc. A
quantitative research method and a survey design were deemed appropriate for examining the
impact of compensation, benefits on job satisfaction. Quantitative research looks at numbers and
statistical interpretation of the data gathered from questionnaires as opposed to looking at processes
and meanings as in qualitative research65. Quantitative research is concerned with the facts or
responses of participants.

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4. CONCLUSION
Regarding the variable of the physical environment it is the study’s conclusion that this has
an impact on the productivity of administrative employees given their responses on the
indictors. This is like the findings of Brill et al. (1984) where he identifies several factors which
affect productivity as furniture, noise, flexibility, comfort, communication, lighting,
temperature and the air quality. The study findings also support Leaman (1995) findings that
the productivity of the work is affected because the people were unhappy with temperature,
air quality, light and noise levels in the office. In as much as employee motivation may be
expensive, it is advisable that we should look at the long-term perspective of the study.

The study is very broad and not all employees may be satisfied. In this regard, the human
resource management department should work on achieving most of the basic forms of
motivation. This include ensuring a better working environment, treating each employee
equally, appraising performance of the employees, if possible allow the employees to
contribute to the management of the company and ensure the reward scheme is very
favourable. Meeting all these will ensure that at least 85% of the workers are satisfied with
the organization.

As a result, many employees will be attracted, the existing ones will be retained as in effect,
increased productivity, market share and growth and expansion of the organization. Let
organizations take care of the most valuable and delicate asset and this will minimize costs
associated with breakdown of machines, ineffective and inefficient work force.

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5.1 Recommendations
Finally, based on the data obtained, there is need to make the following recommendations:
We need a strategic approach to help us in implementing the changes that we would like to
introduce. To assist us in doing this, I would like to recommend that a team be selected form
all the departments who will assist in designing a strategy that we will use to implement the
changes. Caution however should be taken, as many employees may be resistance to change.

In formulating the total compensation scheme, as the one we have offered is a sketchy one,
we would like the overall management of the organization, that is the president of the
company, to help us with resources including human and other required resources; finances.

The human resource department, on my part will come up with ways of evaluating the
employees, recruiting, and doing the performance appraisal in conjunction with training and
development of the employees.

However, I would like you to note that the above recommendation will be very costly to the
organization at the onset but once the strategies are implemented, I assure you the benefits
derived will far much exceed the costs experience. In effect, it is a long-term plan, five years
plan. In addition, the program will not be introduced once but rather in stages and therefore
there is no course for alarm. I further recommend that caution be taken when
implementation of the various strategies as they are likely to be met by opposition from some
employees.

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5. TIME PLAN
The Following Work Plan Shows the Proposed Timelines for Each Activity:

Period Highlight: 12 Plan

DISSERTATION TIME PLAN
MONTH 1 - 2 MONTH 3 - 4 MONTH 5 - 6
ACTIVITY % COMPLETE
1 2 3 4 5 6 7 8 9 10 11 12
Literature Review 0%
Research Methodology 0%
Data Collection & Analysis 0%
Conclusions 0%
Recommendations 0%
Introduction 0%
Formatting & Editing 0%

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APPENDICES
Appendix 1: Key Informant Interview Guide

1. How long have you worked at xxxx

2. In your opinion, what are some of the work environmental factors influencing employees’
productivity?
3. Would you please describe how these factors in (2) above influence the productivity of
employees?
4. What are the major contributors to employee absenteeism among staff?
5. What are some of the fringe benefits afforded to employees?
6. Are these employee incentives reviewed? If Yes, how is these does and after a period of how
long

Appendix 2: Top 5 Employee Motivators

Source: Glassdoor, Inc. 2008-2018 #GDwebinar

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MK7227 DISSERTATION PROPOSAL

Appendix 3: Factors Impacting Job Satisfaction

A study published by The Families and Work Institute shows that, despite the numerous aspects of a
job, there are a few that specifically allow for greater improvement of satisfaction. According to their
study, workplace support and job quality collectively account for 70 percent of the factors
influencing job satisfaction. Surprisingly, earnings and benefits only account for 2 percent (Employee
Retention Headquarters, n.d.).

Source: Factors impacting job satisfaction (Employee Retention Headquarters, n.d.).

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