ANALYZING THE INFLUENCE OF MANAGEMENT-EMPLOYEE RELATIONS ON JOB SATISFACTION
ABSTRACT
Impact of Management-employee relations on job
satisfaction has been discussed in many research articles and many other
research studies. This study’s basic aim was to make relationship between
Management-Employee relations on Job satisfaction. In our research there are
two independent variables and one dependent variable. Independent variables are
Job Security and Promotion and Job Satisfaction is dependent variable. The
relation between the employee’s job satisfaction, job security and promotion at
their job was tested by conducting a survey on the 102 employees of 16 banks
located in Gilgit. The collected data then analyzed by SPSS 16 version applying
descriptive statistics Reliability, regression, Correlation was run so to check
the accuracy of presented hypothesis. A direct relation was found after
conduction this study between these variables. And the relation of the
independent variables with dependent variable is positive. The findings
indicate that the overall respondent’s evaluate the bank positive but still
there is room of improvement.
Keywords: Management-Employee Relation, Job
Satisfaction
CHAPTER NO 01
1.0 INTRODUCTION
This
paper investigates job satisfaction in relation to a management attitude
towards employees. A good managerial employee relationship is essential for the
satisfactory organization and for the loyalty of employees with the wok place. There
should be independence of the employees in their work field run by the
management to achieve targeted goals set by the management in an organization.
This will increase the productivity and loyalty of the employees towards the
organization. For this reason the management-employee relations in every field
are essential. The study of this issue is the aim and one of the aids to this
paper. Gregory and Milner (2007) says that the employees who are enjoying the
work place will be high satisfied and provide better services to their
organization due to which the productivity will increase. As Malhotra and
Mukherjee (2004) found that in service sector it is very essential for the
worker to be committed and satisfied with an organization to deliver better
services. MC Neely (1984) found that job satisfaction between male and female
employees is different in the same working place.
1.1 Background of the study
Job
satisfaction can be defined as psychological stat of how much an individual
feels towards work; it is people’s feelings and attitudes about variety of
necessary and extrinsic elements towards jobs and the organizations they
perform their jobs in. Job satisfaction is primary objective of an organization
and research paper from which we find out our research topic is “investigation
of job satisfaction in relation to managerial attitude toward employees and
firm size”. In this research paper they find out that the level of satisfaction
is low in large firms and level of satisfaction is high in small firms.
1.2 Significance
of the study
In
our knowledge, the relationship between these two variables (Management-Employee
and Job satisfaction) with has not been fully explored in Pakistan context yet.
This study emphasize on how the management-employee relation effect the
employees satisfaction toward their workplace in Banks, located in Gilgit
Baltistan. The findings and the results of the study will provide a more
reliable in-depth understanding of the factors that effect job satisfaction and
to help shape the future policy formulation of the organization. To the
management of any organization, the findings are expected to provide answers to
the question of how the employees in any organization will be satisfied. Though there are many studies conducting by
many researchers on these variables but they have been conducted in some other
countries context. So there was the gap of being generalized and that gap is
tried to be covered in this research but analyzing whether those studies are
applicable in Pakistan context or not.
1.3 Problem statement
What
are the main factors that influence the management-employee relationship on job
satisfaction?
1.4 Research aim and objective
To
find, out the influence of management-employees relationship on job satisfaction.
1.5 Research questions
This study
is set out to find the answer to the question:
·
Is job security influences job satisfaction of employees?
·
Is there any impact of promotion on job satisfactions of
workers?
1.6 Delimitations of the study
Though
this study discovers new aspects of managerial-employee relationship on job
satisfaction, but this study has still few delimitations. Due to time
constraint and financial problem this study cannot be examined in more detail.
As we have many organizations like hotels, NGOS, health sector, education
sector and banking etc but we limit the dimensions of this study and we limit
the research to banking sector in Gilgit Baltistan.
Chapter
no 02
2.0 LITERATURE REVIEW
2.1Concepts & Definitions
Job satisfaction is connected to opportunities for
promotions (Pergamit & veum, 1999; Peterson et al, 2003; Sclafane 1999).
There is positive relationship between job satisfaction and promotion (Kreitner
& Kinink 2000). The promotion has a stronger impact on job satisfaction
then achievements (Amold and Feldman 1996:88). One survey found that a perceived lack of promotion opportunity was the
strong reason why federal employees left government services (U.S Merit Systems
Protection Board-1987). The wish to be promoted stems from the desire for
psychological growth, the desire for justice and for social stay. Management
should therefore bear in mind that promotion can serve as a positive motivating
tool for the higher level of job satisfaction of the employees in organization (Locke
1976:1323).
Job security is an important determinant of employee
health (Kuhnert et al-1989).Job security increases job performance (Rosow &
Zager-1985). Burchell et al (1999). Dabd Brockner et al, (1988) found that job increase
will decrease the employer- employee relationship. Blanchflower and Oswald,
(1999) indicates that employees with secure job will performing well and
increase the productivity of an organization.
“Job
satisfaction” is about what an individual feels about his/her job. Satisfied employees
would have positive feeling towards job and the unsatisfied employees would
have negative feeling towards their work (Garcia, Gargallo, Marzo, and Rivera
2005). Locke defines the job satisfaction as a positive emotional state (1976:
1304). Spector (2005) found that the job of employees is pleasing end
satisfying then they will be satisfied. Satisfied employees are in successful
organization and displeased organization has dissatisfied employees. Job
satisfaction consists of in general job satisfaction as well as selection of
job facets (Galup, Klien & Jiany 2008). Steyn & Van Wyk (1999:30-40) says that the
employee of an organization feels either positive or negative towards job.
According to Rue & Byers (1994:294_295), job satisfaction is made up of
five components i.e. attitude towards colleagues, general working conditions,
attitude towards the education system, financial benefits, attitude towards
supervision. According to Gibson, Donnely & Lvacevich (2000:352-353) job
satisfaction is the thing which is required for performing the work well.
2.2 Literature Gap:
The research
is conducted in Gilgit by taking three variables to study the relationship
between management-employees relations and Job satisfaction. And also study the
factors that contribute to the increase job satisfaction of employees in an
organization.
2.3 Theoretical framework
Job security increases job performance (Rosow &
Zager). One survey found that a perceived lack of promotion opportunity was the
strong reason why federal employees left government services (U.S Systems
Protection Board-1987).
The model develops for the present study includes
the constructs related to Management-Employee relations and to increase the job
satisfaction of employees.
H1 +ve
|
H2 +ve
2.3 Analyzing
the influence of Management-Employee relations on Job satisfaction
2.4 Hypothesis development
The following hypothesis was developed:
H1: Job security has positive impact on employee’s job
satisfaction working in banks in Gilgit.
H2: Promotion has positive impact on employee’s job
satisfaction working in banks in Gilgit.
Chapter
no 03
3.0RESEARCH METHODOLOGY
3.1 Sample Selection
To achieve the objective of this study some of the
branches of banks were selected as sample for this study out of total
population and the branches are Habib Bank Limited, Karakorum Co-Operative Bank
Limited, National Bank, Alfala Bank, ZTBL, and Islamic Bank. The total sample
for this study was consisting of 102 employees from 16 banks of Gilgit.
3.2 Population Frame:
The employee’s from the branches of different banks
located in Gilgit-Baltistan was the population of the study.
3.3 Unit of analysis:
The unit of study was the individual employees of
banks in Gilgit.
3.4 Type of Study:
This research is casual study. Casual study emphases
on determined the cause and effect relationship between the variables. Casual
study is done to identify the effect of one variable on another.
3.5 Instrument Development/ Selection:
The survey questionnaire includes 15 questions
related to dependent and independent variables. About 5 point’s Likert-scale
item is developed to measure the factors that affect the relations between
management and their employees in Gilgit. The 5 points Likerts-scale is labeled
such as: 1= Strongly Disagree and 5= Strongly Agree.
The questionnaire consisted of two parts: the first,
job security of individual employees; the second, Promotion of employees.
Most of these questions were adapted from the Parvin
& Kabir (2011) and Hazkman, Pablo & Robert (1975). Self-administrated
questionnaire was issued for this purpose.
3.6 Data collection Procedure
Here the primary data has been collected and the
data was collected from the 102 employees of 16 banks located in Gilgit. Before
collecting the data, we met with the branch manager of each selected bank so to
know their preferences about, whether they give us the permission to fill the
questionnaire from their employee’s or not. Each of the selected banks gave us
permission so the questionnaires along with cover letter were given to manager
to get them solved from their employees. 102 questionnaires were distributed among
16 banks and all of them were returned from the respondents.
3.7 Data Analysis Techniques:
(SPSS) version 16 has been used to analyze data.
This is the casual study in measure of association, having two independent
variables and one dependent variable. The mean, correlation and regression
analysis were done mainly to test the hypothesis. Correlation and regression
was mainly used to see the association between promotion on job satisfaction
and job security on job satisfaction. Reliability analysis test is carried out
to measure the strengths of the date collected.
Chapter
no 04
4.0 DATA ANALYSIS AND
INTERPRETATION
4.1 Gender Distribution:
Given below is the data distribution according to
gender of employees in banks.
Table
# 4.1 GENDERS:
frequency
|
%
|
|
Male
|
90
|
88.23
|
Female
|
12
|
11.76
|
Total
|
102
|
100
|
The above table shows that male contributed 88.23%
while female contributed 11.76 of total percentage of respondent.
4.2 Age:
The data given below shows the distribution of
employee with respect to age.
Table # 4.2 AGE:
Frequency
|
%
|
|
21-25
|
11
|
10.78
|
26-30
|
53
|
51.96
|
31-35
|
17
|
16.66
|
36 & above
|
21
|
20.58
|
Total
|
102
|
100
|
The table #4.2 shows that different age group falls
into different categories. It shows that majority of the respondents fall in
the age limit of 26-30 which is 51%.
4.3 Education:
Education of the employees is shown in the table
given below:
Table # 4.3 EDUCATION:
Frequency
|
%
|
|
Bachelor’s
|
64
|
62.74
|
Master’s
|
35
|
34.31
|
PHD
|
-
|
-
|
Other
|
03
|
2.94
|
Total
|
102
|
100
|
The above table # 4.3 shows the distribution of
employees with respect to education.
It shows that most of the respondent’s education is
Bachelors, which is 62.74%.
4.4 Reliability Analysis:
The reliability of all variables is shown below:
Table 4.4 #RELIABILTY STATISTICS
Variables
|
N of Items
|
Cronbach’s Alpha
|
Job satisfaction
|
05
|
.75
|
Promotion
|
05
|
.57
|
Job security
|
05
|
.859
|
The
above table shows the reliability statistics of the variables. In reliability
test of the job satisfaction, the level of Cronbach’s Alpha is 0.75. So
reliability of item in job satisfaction is high, which means there is
consistency in its questions. In
reliability test of the job security, the level of Crobach’s Alpha is 57%. In reliability test of Promotion,
the level of Crobach’s Alpha is 0.85. So the reliability of items of Promotion
is high, which means there is consistency in questions.
4.5 Correlation Analysis
Table # 4.5 CORRELATIONS
|
||||
Job satisfaction
|
Job Security
|
Promotion
|
||
Job satisfaction
|
1
|
|||
Job Security
|
.616**
|
1
|
||
Promotion
|
.540**
|
.444**
|
1
|
|
**. Correlation is significant at the 0.01 level (2-tailed).
|
||||
The
above table # 4.5 shows that all the variables have a positive relationship between
the independent variables.
4.6 Regression Analysis
This
table shows the linear regression analyses:
Table
# 4.6 MODEL SUMMARY
Model
|
R
|
R Square
|
Adjusted R Square
|
Std. Error of the
Estimate
|
|||
1
|
.684a
|
.468
|
.457
|
.53524
|
|||
a. Predictors: (Constant), PRO, JSEC
|
|||||||
The
result of table # 4.6 indicates the adjusted (R2) = .457, indicating
that the model developed can be generalized to the population.
Table # 4.7 ANOVA:
|
|||||||
Model
|
Sum of Squares
|
df
|
Mean Square
|
F
|
Sig.
|
||
1
|
Regression
|
24.966
|
2
|
12.483
|
43.573
|
.000a
|
|
Residual
|
28.362
|
99
|
.286
|
||||
Total
|
53.327
|
101
|
|||||
a. Predictors: (Constant), Promotion. Job Security
|
|||||||
b. Dependent Variable: Job Satisfaction
|
|||||||
The
table#4.7 shows the ANOVA that the overall model explains the fit for research.
The ANOVA test shows that the significance level = 0.000. This significance
shows that there is a relationship between all the IVs with DV.
Table # 4.8 COEFFICIENTS:
|
||||||
Model
|
Unstandardized
Coefficients
|
Standardized
Coefficients
|
t
|
Sig.
|
||
B
|
Std. Error
|
Beta
|
||||
1
|
(Constant)
|
.528
|
.333
|
1.587
|
.116
|
|
JSEC
|
.578
|
.101
|
.469
|
5.732
|
.000
|
|
PRO
|
.289
|
.071
|
.332
|
4.056
|
.000
|
|
a. Dependent Variable: Job Satisfaction
|
||||||
The
table # 4.8 shows the results of coefficient; indicates that the sig. value of
job security and promotion are 0.00 and 0.00. It means significance is less
than 0.05. So, the hypothesis H1 and H2 are accepted. To test the hypothesis,
significance level was used to accept or reject the hypothesis.
Chapter
no 05
5.0
DISCUSSIONS & CONCLUSION
5.1 Discussions:
The
study was to check the effect of the job Security, Promotion on job
satisfaction of the employees either positive or negative. A results show that there is positive effect
of all the independent variables on job satisfaction of the employees on the
job satisfaction.
The
result of this study proves that if management of the organization provide to
their employees Job security and promotion then their job satisfaction will
increases. According to Eaton (2001), if management relations with their
employees in an organization is positive then the level of job satisfaction of
their workers is high. When the management-employee relations increase the
level of job satisfaction and productivity of employees also increases.
5.2 Conclusion:
The
result of this study proves that if the relations between management and the
employees of an organization are satisfactory then employees are satisfied with
their job and vice-versa. According to Abbas and Nadeem (2009) to reduce the
work life conflict the management plays an important role towards employees. If
they are supportive then the employees are satisfied and they will raise the
productivity of an organization. So when the management- employee relation
increases then job satisfaction and productivity of the workers will increase.
5.3 Limitations of the Study:
Though
this study discovers new aspects of management-Employee relations on job
satisfaction, this study still have few limitations. The findings of this study
cannot be generalized for banks which are outside Gilgit and outside banking
industry because, for this study only sixteen banks from only one geographical
location that is Gilgit were taken to collect data which shows that this study
external validity is relatively low.
Due
to convenient sampling which was used to gather data from the employees of
Gilgit banks our study is consist of low generalizability and biasness. And
this study cannot examine in more detail and other aspects of this study are
not checked due to constraint of time.
5.4 Recommendations:
Recommendations
are based on findings of this study:
1. Employees should need to improve
performance in order to achieve success.
2. It is very essential for the
employees that they should proper guidance from their top managers.
3. It is very important for every
individual to seek and maintain good relationship with clients and other
organizations. Due to this the efficiency and effectiveness in an organization.
4. The government should develop
organizations which oversee activities of employees and address their problem. These
organizations will provide advice and also conduct training courses for their
employees.
5.5 Future Direction
Some
future directions are granted to search this study more correctly by overcoming
limitations of the study. This study was about analyzing the impact of
management-employee relations on job satisfaction of only bank employees. From
other organizations of Gilgit-Baltistan banks culture is different. This study
must need to conduct in different geographical and sectors to increase external
validity and generalizability. This study should be tested in diverse sectors
in future e.g. educational sectors, health sectors.
The
other is that in this research cross sectional study level is used.
Longitudinal study can be conducted. So through these respondents biasness will
be reduced when questions of independent and dependent variables will be inquired
at different times and through this robustness of this study will be increased.
In future to make study more generalized probability sampling can be used.
In
this research the focus is only on two factors; Promotion, job security. Other
factors associated with Management-Employee can be conducted in the selected
population.
REFERENCES
Ø Malhotra and Mukherjee(2004)
"The relative influence of organizational commitment and job satisfaction
on service quality of customer-contact employees in banking call centers".
Journal of Services Marketing, 18 ( 3),162 – 174
Ø Lee, D.J., Nisius, A.M., Senasu, K., Singhapakdi, A.,
SirgyJ.M., and Yu, J.B. (2014). Gender disparity in job satisfaction of
Western versus Asian manager. Journal of
Business Research, 67(6), 1257-1266
Ø Hobfoll, S. E. (1989). Conservation
of resources: A new attempt at conceptualizing stress. American
Psychologist, 44, 513-524.
Ø Hamermesh, D. (2001), “The changing
distribution of job satisfaction”, Journal of Human Resources, Vol. 36 No. 1, pp.
1-30.
Ø Locke, E.A. (1976), “The nature and
causes of job satisfaction”, in Dunnette, M.D. (Ed.), Handbookof Industrial and
Organizational Psychology, Rand McNally, Chicago, IL, pp. 1297-1348
Ø Smerek, R. E., & Peterson, M.
(2006). Examining Herzberg’s Theory: improving job satisfaction among
non-academic staff at a university. Research in Higher Education, 48(2),
229-250.
Ø
Prof. Yunki KIM, Ph.D.,
Korea (2001), “Determinants of public official job satisfaction: A case study
of Korea”
Ø Jamshed
Halepota (2009), “Predictors of Job Satisfaction of Public Employees”. PhD.
Dissertation
Ø Locke,
E. A. (1970), “Job Satisfaction and Performance: A Theoretical Analysis,
Organizational Behavior and Human Performance”. Academic press Inc, 5(5), pp.
484-500.
Ø Freeman, RN (1978), “Job
Satisfaction as an Economic Variable”. American Economic Review, Vol.68,
No.2, pp.135-141.
Ø Akerlof, GA, Rose, AK and Yellen JL
(1988), “Job Switching and job satisfaction in the US labour market”. Brooking
Papers on Economic Activity, Vol. 2, pp495-582.
APPENDIX
QUESTIONNAIRE
Dear respondent,
We are the students of MBA-III at
Karakoram International University, and as part of our course we are conducting
a study on the “Analyzing the Impact of Management-Employee relations on Job
Satisfaction”.
(The information provided in this
questionnaire will be kept confidential).
Keys: Strongly Disagree =SD; Disagree =D; Neutral =N;
Agree =A; Strongly Agree =SA.
Please tick the appropriate box for the questions that follow below:
|
|
Gender: Male Female
|
|
|
Age group:
21-25 26-30 31-35 36 & above
Level
of Education:
|
|
|
|
Bachelor’s Masters PHD Other
Positions:
|
|
|
Owner Manger Employees
|
|
|
|
Time period of
your service:
Less than 5 years 5-10 years 11-15years over 16 years
s/no
|
Items
|
SD
|
D
|
N
|
A
|
AS
|
|
1
|
While
doing my job, I feel I am on the right place.
|
1
|
2
|
3
|
4
|
5
|
|
2
|
On
my job, I am independent to take the decisions.
|
1
|
2
|
3
|
4
|
5
|
|
3
|
Sense
of responsibilities gives me personal satisfaction and achievements.
|
1
|
2
|
3
|
4
|
5
|
|
4
|
Cooperation
between different departments of my organization is satisfactory.
|
1
|
2
|
3
|
4
|
5
|
|
5
|
My
supervisor treats his/her employees equally.
|
1
|
2
|
3
|
4
|
5
|
|
6
|
I
am satisfied with my organization for providing me the benefits.
|
1
|
2
|
3
|
4
|
5
|
|
7
|
I
am glad with the job security of my organization.
|
1
|
2
|
3
|
4
|
5
|
|
8
|
I
feel relaxed while carrying my responsibilities.
|
1
|
2
|
3
|
4
|
5
|
|
9
|
I
will lose my job if I will not achieve my targets.
|
1
|
2
|
3
|
4
|
5
|
|
10
|
For
my best contribution, my organization provides me different benefits.
|
1
|
2
|
3
|
4
|
5
|
|
11
|
I
have been awarded right set of duties.
|
1
|
2
|
3
|
4
|
5
|
|
12
|
I
am satisfied from promotion and upward environment of my organization.
|
1
|
2
|
3
|
4
|
5
|
|
13
|
The
process used to determine promotion is on skill bases.
|
1
|
2
|
3
|
4
|
5
|
|
14
|
The
promotion and the grade are fair among all employees.
|
1
|
2
|
3
|
4
|
5
|
|
15
|
I
feel that my career to be growing with my current organization.
|
1
|
2
|
3
|
4
|
5
|
|
Thank you for your cooperation.
