Factors Affecting Job Satisfaction Contents Chapter 1 ......................................................................................................................................... 3 Introduction ..................................................................................................................................... 3 Background ..................................................................................................................................... 3 Problem Statement .......................................................................................................................... 4 Operational definitions of Terms .................................................................................................... 4 Research question ........................................................................................................................... 5 Hypothesis....................................................................................................................................... 5 Objectives ....................................................................................................................................... 5 Significance of the study ............................................................................................................. 5 CHAPTER 2 ................................................................................................................................... 7 LITERATURE REVIEW ............................................................................................................... 7 Job satisfaction ............................................................................................................................ 7 Psychological capital and job satisfaction ...................................................................................... 9 Theoretical framework .................................................................................................................. 10 Hertzberg’s Two Factor Theory ................................................................................................ 10 Definition of variables and Conceptual Framework ..................................................................... 12 The conceptual framework ........................................................................................................ 12 Definition of variables ............................................................................................................... 12 Psychological factors (independent variable) ........................................................................ 12 Dependent variable .................................................................................................................... 12 Independent variables (job satisfaction) .................................................................................... 12 CHAPTER 3 ................................................................................................................................. 14 Study Design and Methodology.................................................................................................... 14 Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 1 Factors Affecting Job Satisfaction Data collection Methods and Instruments..................................................................................... 14 Study Population and Sample ....................................................................................................... 14 Ethical considerations ................................................................................................................... 15 Data analysis methods................................................................................................................... 15 Mechanisms to assure quality ....................................................................................................... 16 Study period .................................................................................................................................. 16 Resources required ........................................................................................................................ 16 Participants in the study ................................................................................................................ 16 Dataset features (Demographics of the respondents).................................................................... 17 Respondents by Sex .................................................................................................................. 17 Respondents by Age group ....................................................................................................... 18 Respondents by Position level................................................................................................... 18 Respondents by education level ................................................................................................ 19 Chapter 4 ....................................................................................................................................... 20 Results and discussion .................................................................................................................. 20 Overall job satisfaction.............................................................................................................. 20 Self-efficay and job satisfaction ................................................................................................ 21 Optimism and job satisfaction ...................................................................................................... 22 Hope and job satisfaction .............................................................................................................. 22 Resilience and job satisfaction ...................................................................................................... 23 Monetary incentives and job satisfaction ...................................................................................... 24 Supervision and job satisfaction ................................................................................................... 25 Non-monetary incentives .............................................................................................................. 26 Pearson’s correlation ..................................................................................................................... 28 References ..................................................................................................................................... 36 Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 2 Factors Affecting Job Satisfaction Factors affecting public sector employees’ job satisfaction (A case study in the head office of Ministry of Foreign Affairs). Chapter 1 Introduction This research will investigate the factors affecting public sector employees’ job satisfaction with specific focus on psychological capital. The paper also intends to use SPSS for simple analysis and is based on quantitative approach. Employees of the Ministry of Foreign Affairs have been chosen as the target population of the study. Background Employee’s satisfaction is considered as an all round module of an organization’s human resource strategies. According to Simatwa (2011) job satisfaction “means a function which is positively related to the degree to which one’s personal needs are fulfilled in the job situation”.. Job satisfaction means pleasurable emotional state of feeling that results from performance of work (Simatwa, 2011). Boynes (2007) “focuses on the reasons of involuntary turn over, voluntary turnover and promotion for employees to leave the company”. Most time series studies have failed to draw out the impact of psychological capital on job satisfaction (Simatwa, 2011). Consequently, there is increasing demand for the public sectors to enhance employee satisfaction in their organization (Tshering, 2015). With the advent of 21st century, Bhutan’s major Human Resource Management policies have required public sectors to enhance their employee job satisfaction and build organizational competitiveness (Tshering, 2011). Although most researches have concluded that job satisfaction is affected by monetary incentives, social relations, promotional opportunities, decision and participation strategies, however, no time series studies have studied the impact of psychological capital on job satisfaction (Boynes, 2007). Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 3 Factors Affecting Job Satisfaction Problem Statement Public sectors in Bhutan continue to struggle with a lack of capital and governance capacity. Furthermore, like elsewhere, Bhutanese public sector sometimes becomes slow in providing public services whereas, the private sector in the same country is sometimes reputed for its faster service delivery. It has been suggested that differences may, in part be attributed to the fact that public sector employees are often faced with number of adverse factors that impact their overall well-being. These factors can include a lack of motivation as well as low levels of job and life satisfaction (Saari & Judge, 2004). The reality is Bhutanese Public service standards are not improving or even falling below standard (The Bhutanese, 2014). Every year, trends show an increasing employee turnover in the Bhutanese public sector (civil servants), which perhaps Dorji (2013) state that “there could be specific reasons for those insensitive public service delivery and increasing turnovers”. Despite reasonable pay scales and good working conditions, what affects their job satisfaction and decisions to leave the sector are questionable. Most research studies have focused to establish a positive correlation between monetary incentives, social relations, promotions and time management and job satisfaction, however, time series studies have been ignorant of psychological capital and job satisfaction (Kakabadse, Kakabadse & Myers, 1998; Oshagbemi, 2001; Parnell, Koseoglu & Dent, 2012). This research responds to these literature gaps through the investigation of relationship between psychological capital and job satisfaction in the public sector (Ministry of Foreign Afairs, Thimphu). It will study the psychological capital and its impact on job satisfaction in the public sectors of Thimphu (Capital of Bhutan). Operational definitions of Terms Public sector: The part of an economy that is controlled by the state (provision of goods and services that cannot be provided by the private sector). Job satisfaction: The attitudes and feelings people have about their job. It is the degree to which an employee has positive emotions towards the job role. Organization: Refers to social arrangement which pursues collective goals, controls its own performances and has boundary separating it from its environment (Harrison, 2005). Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 4 Factors Affecting Job Satisfaction Target population: Refers to all the members of a real hypothetical set of people, events or objects to which a researcher wishes to generalize the results of a research study. Work environment: Entails word procedures, the physical design of workplace, protective and healthy equipment and flexible work schedule. Psychological capital: The positive and developmental state of an individual as characterized by high self-efficacy, optimism, hope and resiliency. Employee: A person in the service of another under contract of hire, express or implied, oral or written where the employer has the right to or power to control and direct the employee in the material detail on how the work is to be done (Arthur, 1995). Research question What are the important factors that affect public Sector employees’ job satisfaction? What Psychological factors are important in job satisfaction of public sector employees? Hypothesis H1: There is a positive relationship between psychological factors and job satisfaction H2: There is positive relationship between motivational factors and job satisfaction Objectives To examine the relationship between psychological capital and job satisfaction Recommend organizations and the managers some strategies to enhance job satisfaction in the organization To find out the factors that has the greatest impact on job satisfaction Significance of the study The research is based in the human resource management practice that is motivation which is a deliberated fact in our country; very few researchers are working in this area. The research in this area was chosen to explore new ideas in this field and will also provide an insight into the fact that how job satisfaction can be enhanced within the public sectors in Bhutan. Bhutanese bureaucracy as a public sector has ten ministries, five constitutional bodies and Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 5 Factors Affecting Job Satisfaction several other agencies and corporate organizations that function towards meeting social mandate. Although there might be different human resource strategies in different organizations, it is important to understand that motivating employees in every organization play crucial role along with other HR strategies. Moreover, civil servants are one of the main service providers to the general public, so, keeping them motivated so as to have fast and efficient public service delivery is important. According to Dorji and Schreven (n.d), it is the government’s mandate to achieve Bhutan’s national vision of Gross National Happiness; that is to ensure the well being and happiness of the people at individual, community, organizational, sectoral and national level. Therefore, motivating civil servants and providing them job satisfaction adds more happiness in their lives which indeed is going in align with the goals of Gross National Happiness as happiness or well being of the civil servants is an indicator for achieving happiness of the public at an individual level and thus GNH in general. Therefore, this research as mentioned afore will identify the factors which will affect the job satisfaction of the public sector employees. Moreover, it is expected that this small study of a particular ministry will help the policy makers and implementers in Bhutan to improve the factors with which the employees of other ministries, sectors, and agencies are not content. It will also look into the factors which can motivate employees and provide them ample satisfaction with their job so that the employees become more dedicated to their job and ultimately boost their commitment in rendering faster and efficient services to the general public in the country. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 6 Factors Affecting Job Satisfaction CHAPTER 2 LITERATURE REVIEW This chapter will provide an overview of literatures and studies that are related to the research and the problem. Job satisfaction According to Vroom (1967), job satisfaction is the reaction of the workers against the role they play in their work. Similarly, Blum and Naylor (1968) define job satisfaction as a “general attitude of the workers constituted by their approach towards the wages, working conditions, control, promotions, social relations, recognition and similar variables apart from others”. Job satisfaction is the total of the feelings and emotional connection between the employee and the job. Job satisfaction is very important for a person’s motivation and productivity. Job satisfaction can help improve attendance at work, reduce number of turnouts and even reduce the number of accidents (Boyenes, 2002).Giannikis & Mihail (2011) in their study have identified that positive experience in terms of friendly colleagues, good remuneration, compassionate supervisors and attractive jobs create high levels of satisfaction. On the other hand, Ting (2002) noted that there are empirical studies that show that pay, promotion, relationship with colleagues and supervisors and task do not significantly impact job satisfaction of public sector employees. A study conducted by Luthans et. al (2007) found out that psychological plays an important role in determining job satisfaction of employees, despite monetary incentives and suitable working conditions. Motivating employees to perform their maximum potential in their job has become one of the biggest challenges for the modern Human Resource Management of any organization. It is seen that when employees is motivated, he or she will be generally satisfied with the job and because an employee is satisfied and happy, the person will be able to give his best efforts and contribution in the job assigned to him. However, looking at the scenario of the public servants turnover from the civil service in Bhutan, there seems to be some problem. According to RCSC statistics 2012, every year 200 plus civil servants in Bhutan are leaving public sector and the biggest figure stood in year 2002 and 2011 where 1288 and 1219 public servants left the government organizations respectively (Dorji, 2013). Hom and Griffeeth (as cited in Rehman, Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 7 Factors Affecting Job Satisfaction 2012) found out that employees decide to leave their organization when they become dissatisfied with their jobs. Similarly, Meyer & Herschovitch (as cited in Rehman, 2012) argues that when employees were dissatisfied with their jobs, their desire to stay in the organization starts to erode. Hence, job satisfaction is so important for an employee that is its absence will lead to lethargy and reduced organizational commitment. One of the most important factors that lead one to work hard in align with their goals is the drive. This drive is known as motivation which is an enthusiasm and determination that leads one to persevere to reach greater heights, in both personal and professional life. So, this drive may come either from an internal or external source. Giannikis and Mihail (2011) in their study have identified that “positive experience in terms of friendly colleagues. Good remuneration, compassionate supervisors and attractive jobs create high levels of job satisfaction”. Likewise, according to Ting (2002), there are empirical studies that show that pay, promotion, relationship with other colleagues and supervisors and task significantly impact job satisfaction of public employees. Although Abraham Maslow (1943), build a model that indicates that factors that motivate an individual keep changing as one climbs the ladder of age and maturity, many studies have deciphered ample motivational factors reliant upon individual’s needs and desires. Akintoye (as cited in Singh & Tiwari, 2011) asserts that money remains the most significant motivational strategy where as Wright and Pandey (2005) described in their work that emotional attachment and loyalty is one of the most important factors of employee satisfaction that binds the organization and the employees. Hence, Lin et al (n.d) states that motivating employees is considered as one key factor that can create the power in making workers feel satisfied with their jobs. Similarly, the research conducted by Chen (2005) on Taiwan’s public sector showed that the organizations should give good pay, favorable working conditions, good communication, safe working place, ewual and effective reward system, work recognition and transparent promotion (as cited in Candan, 2013) in order to satisfy the employees. However, a research by Bakan and Buyukbese (2004) indicated that academicians in Turkry are satisfied with the quality of their job, the management and their co-workers but not satisfied with pay and wage dimension (as cited in Candan, 2004). However, in Vroom’s (1964) expectancy theory, he suggested that each employee possessed his individual needs and with the right motivation satisfying his needs, he Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 8 Factors Affecting Job Satisfaction was able to alter his behavior and work attitude towards the job or task assigned to him based on his expectancy of a certain outcome. Therefore, motivating factors for individuals will differ from each other depending upon one’s expectations. Similarly, Salanova & Kirmanem (2010) in their research concludes that the level of job satisfaction is affected by intrinsic and extrinsic motivating factors, the quality of supervision, social relationships with the work group and the degree to which individuals succeed or fail in their work. Khan (2006) claims that motivation lead people to their job satisfaction and it is not only self satisfaction and identity pleasure, but also blends of psychological and environmental effect of the people for their happiness with their work. On the other hand, Ritter and Anker (2002) found out that job security was one of the other important extrinsic factor that has a direct relationship to job satisfaction whereas Lin et al (n.d) in their study in Singapore has found out motivating factors such as competition and challenges connected their tasks had shown a trend of high job satisfaction. Likewise, a study by Quasim et al. (2012) in a multinational company is Pakistan, concluded that working environment was the highest factor contributing to higher job satisfaction. However, a survey by Kathawala, Moore and Elmuri in 1990 found out that salary was the main factor influencing the motivation and job satisfaction of employees of the automobile industry (as cited in Parvin & Kabir, 2011). Research by Javed et al. (2012) on the effect of HR practices like training and development, rewards and recognition on job satisfaction of public employees in Pakistan revealed that these variables are positively related to job satisfaction, that is job satisfaction increases when satisfaction with these variables increase. Similarly, Candan (2013) found out that the public employees of Karaman governorship in Turkey is affected by factors such as job security, working conditions, co-workers, supervisors and pay, career advancement and promotion and work recognition. Psychological capital and job satisfaction Psychological capital is identified as personal traits contributing to individual productivity by the psychologists (Gohel, 2007: 35). Luthans et. al (2007) denote psychological capital as “the study and implication of positively oriented human resource strengths and psychological capacities that can be measured, developed and effectively managed for performance improvement in today’s Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 9 Factors Affecting Job Satisfaction workplace”. Psychological capital consists of four elements, namely: self-efficacy, hope, resilience and optimism. Self-efficacy: is one’s belief to perform the task successfully and fulfill motivational, cognitive and operational resources (Stajkovic & Luthans, 1998: 66). Hope: is a belief to determine significant purposes and a process an individual overcomes obstacles (Cetin & Basim, 2011: 82). Resiliency: is an ability to settle and deal with the circumstances when facing negative situations, risk or important changes (Luthans, 2007). Optimism: Means positive expectations about the future (Peterson et. al, 2011). Some research exhibit positive relation between psychological capital and job satisfaction. The study carried out by Youssef and Luthans (2007) found out that there was a “positive relationship between psychological capital and job satisfaction in manufacturing, public and private sector”. However, Uslu (2010) concluded that “positive organizational behavior had negative effect on job satisfaction at a low level in his study which he performed by means of an email on 929 active employees”. The study performed by Luthans et. al (2007) in the “middle east of United Nation on college students and employees working in technology companies inferred that there was a positive relationship between psychological and job satisfaction”. Likewise, Cetin and Basim (2011) found out in their research carried out in 8 branch offices of private bank located in Izmir that there was a positive relationship between psychological resiliency and job satisfaction. Theoretical framework Hertzberg’s Two Factor Theory This theory determines what people want from their jobs. Hertzberg determined people’s satisfaction based on satisfaction and dissatisfaction. The characteristics related to job satisfaction included advancement, recognition, hope, resiliency and optimism. Hertzberg termed these as motivators. The characteristics related to dissatisfaction were referred to as hygiene (Robbins, 2001). The two factors are job content and job context. These factors are also often referred to as motivators and hygiene theory. According to Hertzberg, individuals are not content Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 10 Factors Affecting Job Satisfaction with the satisfaction of lower order needs at work; for example, those need associated with minimum salary levels or safe and pleasant working conditions. Rather, individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement and the nature of work itself. This appears parallel to Maslow’s theory of need hierarchy. However, Herzberg added a new dimension to this theory by proposing a two-factor model of motivation, based on the notion that the presence of one set of job characteristics or incentives leads to worker satisfaction at work, while another and separate set of job characteristics leads to dissatisfaction at work place. Thus, satisfaction and dissatisfaction are not a continuum with one increasing as the other diminishes, but are independent phenomena. This theory suggests that to improve job attitudes and productivity, administrators must recognize and attend to both sets of characteristics and not assume that an increase in satisfaction leads to decrease in dissatisfaction. Motivators are inclusive of challenging work environment, responsibility, opportunity to do something meaningful, involvement in decision making, sense of importance to an organization, whereas hygiene factors are: job security, salary, fringe benefits, work conditions, good pay, paid insurance, paid vacations and etc. according to Herzberg, hygiene factors are what causes dissatisfaction among employees in workplace. In order to remove dissatisfaction in workplace, these factors must be eliminated. According to Two-Factor theory there are four possible combinations: High Hygiene+High Motivation: the ideal situation where employees are highly motivated and have few complaints. High Hygiene+Low Motivation: employees have few complaints but are not highly motivated. The job is viewed as a paycheck. Low Hygiene+High Motivation: employees are motivated but have lots of complaints. A situation where the job is exciting and challenging but salaries and work conditions are not up to par. Low Hygiene+Low Motivation: this is the worst situation where employees are not motivated and have many complaints. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 11 Factors Affecting Job Satisfaction Definition of variables and Conceptual Framework The conceptual framework The conceptual framework is constructed on the variables taken from related studies and researches by Roos (2005), Mafini & Dlodlo (2014), Salanova & Kirmanen (2010) and Luthans et al (2007) for the psychological capital. These studies have identified that independent variables such as pay, promotion, advancement, relationship with the supervisor and colleagues and other monetary and non-monetary incentives have an influence on the dependent variable (job satisfaction). Luthans et al (2007) denoted that psychological capital is an important factor in job satisfaction. Definition of variables Psychological factors (independent variable) Self-efficacy: is one’s belief to perform the task successfully and fulfill motivational, cognitive and operational resources (Stajkovic & Luthans, 1998: 66). Hope: is a belief to determine significant purposes and a process an individual overcomes obstacles (Cetin & Basim, 2011: 82). Resiliency: is an ability to settle and deal with the circumstances when facing negative situations, risk or important changes (Luthans, 2007). Optimism: Means positive expectations about the future (Peterson et. al, 2011). Dependent variable Job satisfaction is the dependent variable in this study, which depends on the factors that cause its increase or decrease. Job satisfaction a comprehensive definition given by Locke (1996) is a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences. Spector (1997) refers to job satisfaction in terms of how people feel about their jobs and different aspects of their jobs. Independent variables (job satisfaction) Monetary incentives: monetary incentives here are inclusive of salary, wages, pay and remunerations and other financial or monetary incentives. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 12 Factors Affecting Job Satisfaction Kind of supervisor: Supervisor’s ability to provide emotional and technical support. Supervisor who is approachable to the employees. Non-monetary incentives: It includes: relation with the co-workers, communication, career advancement opportunities, participation in decision making, provision of required materials and resources, trainings and workshops, equal treatment, work recognition, benefits and job security and promotion. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 13 Factors Affecting Job Satisfaction CHAPTER 3 Study Design and Methodology There are two main themes which could be followed in a research (qualitative and quantitative). For greater data analysis, this study uses quantitative research approach, which is commonly used method for collection of direct statistics and information. This approach is useful in collecting the derived information and utilizing the information for further analysis, it helps to state the research problem in very specific and set forms (Frankfor-Nachmias & Nachmias, 1992). It helps in achieving high levels of reliability due to controlled observations, surveys and helps minimize subjectivity (Balsley, 1970). Luthans et. al (2007) used the same study design for their study on psychological capital and job satisfaction. Data collection Methods and Instruments Job satisfaction is designated as the dependent variable while the psychological capital and other factors affecting job satisfaction is designed as independent variable. Data collection was done through distributing structured survey questionnaires (both online and manual distribution). To measure psychological capital the study used the “24 items Psychological Capital Questionnaire developed by Luthans et. al (2007). The items were classified in terms of the four dimensions: self-efficacy, resilience, hope and optimism. Participants responded on a five point likert scale (strongly agree-strongly disagree). Other additional questions have been used for the same. Survey questionnaires were distributed randomly online or manually to maintain confidentiality. Job satisfaction was also measured using short form of ‘Minnesota Satisfaction Questionnaire’ (Nunnally, 1978), using the Likert scale on a point of five. Collecting data through structured questionnaires also helped in getting the opinions of the respondents regarding the influence of the motivating factors on their job satisfaction. Study Population and Sample The target population is the employees working in the public sector. The sample consisted of the employees from the ministry of Foreign Affairs. For this study, stratified random sampling was used. The research was carried out on the executives (Ex), professional Management, Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 14 Factors Affecting Job Satisfaction supervisory and support, operational level (O) and GS and ES level. The samples were selected using the Population Probability Sampling method (used by Luthans et. al, 2007). By PPS method: n1=X1/N*n (X1-existing population, n1=X1/N*n-Sample proportion). Around 60 employees have been targeted. Position category Existing strength Sample proportion (X1) (n1=X1/N*n) Ex/Es 5 4 Professional and Management 25 14 Supervisory and Support 35 32 Operational 25 14 Ethical considerations In this study, issues related to ethical conduct of the research such as informed consent, confidentiality, privacy and anonymity was strongly upheld. According to Saunders et. al (2009), ethics is the norms or standards of behavior that guide moral choices about our behavior. Participants and respondents have been given adequate information on the purpose and objectives of the study in order for them to make informed decisions as to whether to partake or not. Moreover, all information concerning the identity and personality of respondents has been treated with utmost confidentiality. All the information gathered has been used for the sole purpose of this research study. Prior permission from the top level supervisor has been sought to distribute the questionnaire and conduct the study. Data analysis methods The data gathered was analyzed using excel and SPSS whereby statistical tools such as cross tabulation, frequencies and correlation has been run to interpret the data and examine the relationship between the observed variables and job satisfaction. The final output is presented clearly using figures such as graphs, pie charts and tables. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 15 Factors Affecting Job Satisfaction Mechanisms to assure quality Reliability: Cronbach’s alpha has been used as a measure of reliability coefficient that indicates how well items in a set are positively correlated to one another. It measures the inter-correlations among test items, with a measure of 1 being higher in terms of internal consistency and reliability and 0.7 to 0.9 being acceptable (Revelle & McDonald, 2006). Validity: The questionnaire has been distributed to other experts and non-experts to seek their opinion about the adequacy and representativeness of the instrument to ensure it covers all the variables being tested as a way of eliminating content validity. Safe storage: Back up options such as Icloud, Drives, Drop box has been used to store the data. Control of bias: Research ethics has been strictly adhered to in order to control bias. Study period This study has been conducted within a time period of three months (October-December). The whole process of data collection, analysis and submission of report has been completed within a time period of three months. Resources required Small amount of budget have been required for printing, mailing and manually dropping the survey questionnaires. An estimated amount of Nu. 5000 have been spent for the study. The study required lots of academic articles and publications for reference. The library and IT facilities have been utilized. Participants in the study Participants comprised of the employees of the Ministry of Foreign Affairs. No survey enumerators were employed as the questionnaires will mainly be distributed online. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 16 Factors Affecting Job Satisfaction Dataset features (Demographics of the respondents) This section provides the overall picture of the respondents’ demographic details. Respondents by Sex Figure 1. Respondents by sex As clearly indicated in figure 1, out of 60 respondents, 31 of them were male equating to 51.7 percent and 29 of them were female, equating to 48.3 percent. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 17 Factors Affecting Job Satisfaction Respondents by Age group Respondents by Age group 18-24 24-30 31-39 40-49 49-60 5% 15% Series1, 24-30, 16, 27% 17% 36% The above figure indicates the age group of the respondents. As shown in figure 2, the number of respondents varied for different age groups. Majority of the respondent’s age group was between 31-39 (36 percent) followed by 40-49 (27 percent). The age group of 18-24 is the lowest only accounting up to five percent (5%). Respondents by Position level Position level Ex_ES_level P&M Level 12% SS level O-Level 8% 27% 53% figure 3. Position level. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 18 Factors Affecting Job Satisfaction As shown in figure 3, most of the respondents fall into the categories of professional and Management level (P&M) and Supervisory and Support level, accounting up to 53 and 27 percent respectively. The lowest is in the Ex/Es category, which accounts up to 8 percent only. Out of 60 respondents, 12 percent were from O level and 8 percent from the Executive or specialist level. Respondents by education level Educational Level Certificate Diploma 27% Degree Masters/PhD 23% 18% 32% Figure 4. Respondents by Educational level Related to the educational qualification of the respondents, majority of them are degree holders, which account up to 32 percent and falls under the position category of Professional and Management. Eighteen percent of the respondents are Diploma holders and falls under the position category of Supervisory and Support level. Twenty (23) percent of the respondents are certificate holders and falls under the position category of Operational level. 27 percent of the respondents are Masters or Doctorates and fall under the category of both Professional and management and Executive or specialist (Senior and Chief category and Executive and specialists). Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 19 Factors Affecting Job Satisfaction Chapter 4 Results and discussion This chapter provides an overall view of findings, analysis and discussions. Overall job satisfaction The figure depicts the overall job satisfaction level of the respondents rated on a scale of strongly agree to strongly disagree. Strongly disagree indicates that the respondents are very satisfied and strongly disagree indicate that the respondents are very dissatisfied. Overall job satisfaction very satisfied Satisfied 25% 75% Figure 5. overall job satisfaction The respondents were asked to rate their overall job satisfaction based on the factors contributing to job satisfaction. Based on their responses, 75 percent of the respondents agreed that they are satisfied with their jobs. 25 percent of the employees have agreed that they are very satisfied with their jobs. They have agreed that they are happy and satisfied with their jobs. None of the respondents have indicated that they strongly agree or disagree over their satisfaction level. However, there are certain variable or factors of job satisfaction over which the respondents disagree that it would lead to job satisfaction. For example, many employees feel that the salary level is too low and monetary incentives are too less to keep the employees motivated. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 20 Factors Affecting Job Satisfaction Self-efficay and job satisfaction Self-efficacy is one variable of psychological capital. The study aimed to explore if there is a relationship between self-efficacy and job satisfaction by asking the respondents if self-efficacy played a role in job satisfaction. Self-efficacy included themes such as the determination to work under pressure, finding a solution to a problem, contacting people outside the company, the ability to carry out a new task and adapting to the changing systems in the organizations. Most respondents indicated that self-efficacy play an important role in job satisfaction. self-efficacy Strongly Agree Agree Partially Agree Disagree strongly Disagree 0 Series1 strongly Disagree 1 10 Disagree 2 20 Partially Agree 8 30 Agree 34 40 Strongly Agree 15 Figure 6. self-efficacy and job satisfaction. As shown in figure 6, most of the respondents agree that self-efficacy plays an important role in job satisfaction. They felt that belief in oneself and taking up challenging tasks and accomplishing new goals takes job satisfaction to a newer and greater heights. 34 respondents agreed that self-efficacy plays a role in job satisfaction, which accounts up to 56.7 percent. 15 respondents, which accounts up to 25 percent strongly agrees that self-efficacy and job satisfaction has a strong positive correlation. 1 respondent which accounts up to only 1.7 percent strongly disagreed that self-efficacy does not have a hand in job satisfaction and 8 respondents partially agrees that self-efficacy has a role in job satisfaction. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 21 Factors Affecting Job Satisfaction Optimism and job satisfaction Optimism is another variable of psychological capital. Respondents were also asked to rate if optimism plays a role in job satisfaction. Most of the respondents partially agree that optimism has a role in employees’ job satisfaction. Optimism consisted of finding solutions to a problem and being optimistic about success in workplace environment. Optimism Agree Partially Agree Disagree strongly Disagree 0 Series1 strongly Disagree 2 5 10 Disagree 9 15 20 Partially Agree 28 25 30 Agree 21 Figure 7. Optimism and job Satisfaction. As shown in figure 7, most of the respondents (28) accounting up to 46.7 percent partially agree that optimism plays a role in job satisfaction. Most of the respondents feel that being optimistic about the workplace environment and future success in the organization plays a partial role in job satisfaction of the employees. Two respondents strongly disagreed that optimism play a role in job satisfaction. Twenty respondents accounting up to 35 percent agree that optimism play a role in job satisfaction. Hope and job satisfaction Hope is another variable of psychological capital. Here, the employees find hope in their work strategy and the organization. The employees are hopeful that their contribution will lead to success in the workplace and the organization. Energetic, dedicated and expectations are the variables of hope. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 22 Factors Affecting Job Satisfaction Hope Strongly Agree Agree Partially Agree 9 0 Partially Agree Series1 9 10 9 20 Agree 31 30 40 Strongly Agree 20 Figure 8. Hope and job satisfaction. As depicted in figure 8, 31 respondents agree that hope plays a role in job satisfaction, which accounts up to 51.7 percent and 20 respondents (33.3) percent strongly agree that hope plays crucial role in job satisfaction. Nine respondents partially agree that hope plays a partial role in job satisfaction. None of them have strongly disagreed over the role of hope in job satisfaction. Resilience and job satisfaction Resilience is the fourth indicator of psychological capital. Resilience refers to managing difficulties, taking up stressful things and hanging unto success. Managing difficulties and taking up burdening works are a new paradigm in job satisfaction. After a difficult job has been done, the employee feels relieved and achieves greater contentment (Luthans et. al, 2007). Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 23 Factors Affecting Job Satisfaction Resilience Strongly Agree Agree Partially Agree Disagree strongly Disagree 0 Series1 strongly Disagree 14 5 Disagree 5 10 15 Partially Agree 22 20 Agree 17 25 Strongly Agree 2 Figure 9. Resilience and job satisfaction. As indicated by figure 9, 22 respondents (36.7%) partially agrees for a partial role of resilience in employee job satisfaction, where 17 respondents (28.3%) agree that resilience has a role in job satisfaction. 2 respondents (5%) strongly agreed that resilience plays an important role in job satisfaction, whereas 14 respondents (23.3%) strongly disagrees the role of resilience in job satisfaction. 5 respondents disagree the role of resilience in job satisfaction. Monetary incentives and job satisfaction A monetary incentive is another motivational factor in job satisfaction. Monetary incentives refer to salary, wages, pay, monetary benefits, bonuses and allowances. Monetary incentives play a significant role in job satisfaction. Studies by Burton (2012) revealed that monetary incentives are external motivating factors which plays crucial role in keeping the employees satisfied and happy. Salary and wage level determine the satisfaction level of employees in the organization. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 24 Factors Affecting Job Satisfaction Monetary incentives Strongly Agree Agree Partially Agree Disagree strongly Disagree 0 Series1 strongly Disagree 4 10 Disagree 9 20 Partially Agree 13 30 Agree 33 40 Strongly Agree 1 Figure 10. monetary incentives and job satisfaction. As shown in figure 10, 33 respondents (55%) agree that monetary incentives play significant role in job satisfaction, whereas 13 respondents (21.7%) partially agree that it has a partial role in employee job satisfaction. 1 respondent (1.7%) has argued that monetary incentives has a strong role in job satisfaction. 4 respondents (6.7%) have denied the role of monetary incentives in job satisfaction while 9 respondents (15,5%) disagreed the role of monetary incentives in job satisfaction. Supervision and job satisfaction A good supervision is an important asset to the organization. It is also vital for an employee to like his or her supervisors. One cannot work under an inconsiderate, unsupportive and bossy supervisor every day. Supervisors should be competent, decisive and knowledgeable. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 25 Factors Affecting Job Satisfaction Supervision Strongly Agree Agree Partially Agree Disagree strongly Disagree 0 Series1 strongly Disagree 20 5 Disagree 15 10 Partially Agree 10 15 Agree 10 20 Strongly Agree 5 Figure 11. Supervision and job satisfaction. As shown in figure 11, 20 respondents strongly disagreed that they are happy with the supervision. However, most respondents responded by indicating that ‘a good supervision is an important asset in the organization’. Ten of them (16.7%) partially agree that they are happy with their supervisors and supervision play a role in job satisfaction. Ten of them agree that supervision has a role in job satisfaction and they are happy with their supervisors. Five respondents (8.3%) strongly agree that they are happy with the supervision and supervisors play an important role in job satisfaction. Non-monetary incentives Non-monetary incentives include: rewards, recognition, appraisals, trainings, workshops, equal opportunities, fair treatment and equity amongst employees. It also consists of greater decision making power, greater autonomy, job delegation, greater synergy and social relations. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 26 Factors Affecting Job Satisfaction Non-monetary incentives Agree partailly agree 13% 87% Figure 12. Non-monetary incentives and job satisfaction As indicated by figure 12, 52 respondents (92%) agree that non-monetary incentives play crucial role in job satisfaction, whereas 8 respondents (115.7) percent partially agree that non-monetary incentives play crucial role in job satisfaction. None have indicated their strong denial or strong acceptance over the role of non-monetary incentives in job satisfaction. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 27 Factors Affecting Job Satisfaction Pearson’s correlation Pearson’s correlation was performed to understand the relation between observed variables and job satisfaction. This is indicated by Table 1. The correlation between seven variables (love, selfefficacy, hope, resilience, optimism, supervision, monetary incentives and non-monetary incentives) and job satisfaction has been determined. Pearson’s correlation is designated by the letter ‘r’ and sometimes called pearson’s ‘r’. pearson’s correlation reflects the degree of linear relationship between two variables. It ranges from +1 to -1. A correlation of +1 indicates that there is a perfect positive linear relationship between variables (Pearson’s correlation, n.d). From this analysis, the study found out that factor such as efficacy, hope, optimism, resilience, monetary incentives and supervision does not have a positive linear relationship with job satisfaction. Optimism (p<..001,r=.347), self-efficacy (P<.001, r=.417), hope (P<.001, r025), resilience (p<.001,r=-017) does not have linear or strong positive correlation with job satisfaction. Monetary incentives (p<.001, r.568), supervision (p<.001, r.254) has a weak positive correlation with job satisfaction. Non-monetary incentives (p<.oo1, r.440) indicates linear relationship with job satisfaction. Therefore, it can be concluded that job satisfaction is affected by non-monetary incentives or non-monetary incentives play crucial role in job satisfaction. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 28 Factors Affecting Job Satisfaction Discussion The study aimed at determining the factors affecting job satisfaction of the public sector employees found out through Pearson’s correlation that except for non-monetary incentives, other motivational and psychological factors did not have a linear positive relationship with job satisfaction. Statistical tools such as descriptive, cross tabulation and Pearson’s correlation were used to analyze the data. Pearson’s correlation identified the significance of each job satisfaction variables on the overall satisfaction which concluded that there is a significant positive correlation between the overall all job satisfaction and monetary incentives. As denoted by Herzberg’s two facto theories, non-monetary incentive is one among many motivational factors (two factor theory). According to Robbins (2001) “non-monetary incentives such as working environment, challenging tasks, reward and recognition, advancement, opportunity to participate in decision making and social relations play crucial role in job satisfaction”. In the same light, most respondents indicated that social relations, a good synergy amongst departments, chances for promotion, importance to the organization and relation with co-workers are important factors in job satisfaction. A good synergy, transparent communication and information play vital role in employee job satisfaction (Yee et al, 2010). Therefore, the indication of significant positive correlation between –non-monetary incentives and job satisfaction depicts that when the satisfaction with non-monetary incentive increases, the overall job satisfaction also increases (directly Proportional relationship). Findings indicated that 75 percent of the employees were satisfied with their job. Majority of the employees were satisfied and it could be accredited to other factors which are not included and pre-identified in the study such as feeling of importance to the organization, company policies and other benefits. Similarly, being least satisfied for some groups may be because of other factors not included in the study. On the other hand, at an individual level, many employees are not happy with factors such as work recognition, career advancement opportunities, chances for timely promotion and transparent communication within the organization. Vroom (1964) noted that “for an employee to be satisfied and motivated, advancement opportunities, timely information and communication, opportunities to make decisions are an important aspect”. Reem Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 29 Factors Affecting Job Satisfaction Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 30 Factors Affecting Job Satisfaction (20120) also noted that “employee motivation depends upon crucial factors such as social relations, a good company policy and a good supervisor” Monetary incentives play a significant role in job satisfaction. Studies by Burton (2012) revealed that monetary incentives are external motivating factors which plays crucial role in keeping the employees satisfied and happy. Salary and wage level determine the satisfaction level of employees in the organization. Most respondents (55%) agreed that monetary incentives play a significant role in job satisfaction. However, they also indicated dissatisfaction with their salary level. Most have strongly agreed that the salary level is too low and they are not happy with the way employees are paid in the organization. Salary, wages, allowances, remittances, bonuses are part of the motivation (Thompson, 2012). Respondents also indicated that the organization does not provide them any bonuses or allowances and that they are highly dissatisfied with the way the organization pays the employees. When the salary level is low, the satisfaction level is probably low (Roos, 2005). A good supervision is an important asset to the organization. Most respondents have agreed that “a good supervision is an important asset to the organization”. However, most of the respondents (65%) strongly disagreed that they are happy with the supervision in the organization. Salanova and Kirmanen (2010) states that “supervisors competencies, core skills, decisiveness and supervision strategies strongly determine an employee’s satisfaction level in the organization”. A good supervisor is the one who can make important decisions and contribute to the success of employees and the organization (Candan, 2013). A moderate supervisor is half satisfaction in the organization (Roos, 2005). Respondents also indicated that the supervisor needs to be competent, skilled, knowledgeable and decisive. These core competencies in the supervisor will lead to a good supervision which in turn will positively affect employee satisfaction. Self-efficacy included themes such as the determination to work under pressure, finding a solution to a problem, contacting people outside the company, the ability to carry out a new task and adapting to the changing systems in the organizations. Most respondents indicated that selfefficacy play an important role in job satisfaction. Most respondents (56.7%) agreed that selfefficacy has a role in determining job satisfaction. Luthans et al (2007) denoted that “an employee feels satisfied after accomplishing a challenging task”. The ability to accomplish new and challenging task is important for the organization and individual employees. Velnamphy Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 31 Factors Affecting Job Satisfaction (2008) argues that “if the organization transforms into s new system, it is important for the employees to adapt to the changes and if employees have higher self-efficacy, the more successful will be the change and adaptation”. Optimism consisted of finding solutions to a problem and being optimistic about success in workplace environment. Most respondents (46.7%) partially agreed that optimism plays an important role in job satisfaction. Being optimistic about finding a solution to a problem in the workplace is one satisfactory measure (Javed et al, 2012). If the employee is struck with a problem, however, the employee feels that there is a solution to a problem, then the employee is being optimistic which will give more hopes and achieve greater success and derive maximum satisfaction in the workplace. The employee would find pleasure in confronting the problem which would provide maximum satisfaction. Resilience refers to managing difficulties, taking up stressful things and hanging unto success. Managing difficulties and taking up burdening works are a new paradigm in job satisfaction. After a difficult job has been done, the employee feels relieved and achieves greater contentment (Luthans et. al, 2007). Majority of the respondents (36.7%) partially agreed that resilience plays a role in job satisfaction. As denoted by Luthans et al (2007) if the employee takes up a challenging job and completes it successfully, the employee will likely experience greater joy and satisfaction in the workplace. Hope is another satisfaction variable in the workplace. Most respondents (36%) agreed that Hope plays a role in job satisfaction. The employees are hopeful that their contribution will lead to success in the workplace and the organization. Energetic, dedicated and expectations are the variables of hope. If the employee is hopeful that he/she will achieve success in the organization in the future, then the employee is more likely to remain in the organization and remain satisfied (Lin, W. et al, n.d). Therefore, the findings from the study indicate that the factors which were found to be affecting the job satisfaction of employees in other countries as per time series studies have also influence on the job satisfaction of the public sector employees in Bhutan. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 32 Factors Affecting Job Satisfaction Chapter 5 Conclusion and Recommendations This section contains the conclusion and some practical recommendations. The chapter also highlights the limitations of the study. Conclusion Employee job satisfaction is the ultimate cause of organization’s performance and productivity. Therefore, Human resource is one of the most important resources in an organization and for that policy makers and organizations should be aware of the satisfaction level of their employees and identify the factors which impact their attitude towards their job in order to increase productivity. Hence, knowing the significance of employee motivation and job satisfaction, the case study of Ministry of Foreign Affairs has found out that overall majority employees are satisfied with their job. It was also found out that the organizational factors such as pay, timely promotion, career advancement opportunities, nice working environment, hard work recognition and reward, communication within the organization, good supervision had an impact on job satisfaction. The study also concluded that the psychological factors such as love, self-efficacy, hope and resilience play a significant role in employee job satisfaction. In particular, Pearson’s correlation indicated that non-monetary assets such as career advancement, social relations, a good synergy have a linear positive correlation with job satisfaction. Therefore, this study has contributed towards understanding the factors and their role in job satisfaction. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 33 Factors Affecting Job Satisfaction Recommendations Work recognition and timely promotions are given. The ministry and the supervisors should practice job appraisal seriously on quarterly or monthly basis and provide due work recognition according to their evaluated performance. As most employees are dissatisfied with their income level, it is also important to revise their incomes. This would in a way help employees to work with more commitment and devotion. Mark Twain once said: “I can live for two months on a good compliment”, therefore, professional recognition is a powerful tool in building morale and motivation. A pat on the back, a personal note from the supervisor does wonders. Non-Monetary incentives should be given more priority as most respondents indicated that nonmonetary incentives played a major role in job satisfaction. Non-monetary incentives such as career advancement opportunities, trainings, workshops, social relations and a good synergy should be accorded priority. People expect to learn and upgrade their knowledge, so trainings, workshops and seminars are an important factor. Conducting regular organizational development review, promoting performance based culture and instituting rigorous and transparent performance appraisal system will help the concerned authority to give recognition to those who are really hard working. Incorporation of psychological capital such as love, self-efficacy, resilience and hope is also an important step in job satisfaction of the employees. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 34 Factors Affecting Job Satisfaction Limitations The conclusions drawn are based on a case study of a government Ministry. Therefore, the findings of the study cannot be representative of all the civil servants in the country. As the respondents were never proportionate be it gender, age group, position category and qualification, this had an impact on the findings. Although the findings of this study were similar to the previous time series studies done abroad, there were few differences which would be because of smaller population size used for the study and cultural differences which can have influence on the general perception of the participants or the respondents. Moreover, this study outlines the various factors that affect employee job satisfaction, the extent and variation of their impact is not known and since this was a case study done in a Ministry, the results may be viewed accordingly and cautiously. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 35 Factors Affecting Job Satisfaction References Arthur, C.J. (1995). The need for a positive meaning of Psychological Capital. European Journal of Social Sciences, 21 (3), 373-380. A cozy but a bloated club (2014). The Bhutanese. 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Group and Organization Management, 37 (3), 275-307 Velnamphy, T. (2008). Job Attitude and Employees performance of Public Sector Organizations in Jaffna District, Sri Lanka. GITAM Journal of Management, vol. 6 (2), 66-73 .Vroom, V. H. (1967). Work and Motivation. Wiley: New York. Wright, E.B. & pandey, K. S. (2005). Exploring the Nomological Map of Public Service Motivation Concept. University of North Carolina at Charlotte: Department of Political Science. Yee et al (2010). An empirical study of employee loyalty, service quality and firm performance. International Journal of Production Economics, 124 (1), 109-120. Youssef, L & Luthans, M. (2007). Positive organizational behavior: Measurement and Relationship. Journal of Management, vol. 2 (3). Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 40 Factors Affecting Job Satisfaction Abstract Job satisfaction is in the limelight everywhere. Organizational factor is one determinant of job satisfaction. Various indicators of organizational factor such as Monetary, non-monetary and supervision contribute to these disparities. Common knowledge informs that employees in the corporate sector are more satisfied than the employees in the private or public sector. Studies have been ignorant of psychological capital and its importance in job satisfaction which shall be deciphered in this paper. Primary data has been collected through distributing survey questionnaires to the employees of Ministry of Foreign Affairs to draw knowledge and build statistical facts. Herzberg’s Two-factor theory have been recorded in the paper to aid comprehend broader disciplinary conversation about the topic. A method of Pearson’s correlation and various statistical analyses using SPSS has been employed and registered to explore the affects of organizational and psychological factors on job satisfaction. Non-monetary incentives showed a positive correlation with job satisfaction. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 41 Factors Affecting Job Satisfaction Acknowledgement At the completion of the study, I feel overwhelmed with the adventures and the knowledge I gained through out. There are lots of people behind the success of this study. At the forefront, I take the pleasure to gratify my research supervisor Mr. Dhana Pati Mishra for his consistent support and guidance through the course. I am also greatly indebted for his critical assessment of my research project. More importantly, I would like to thank all the respondents (employees of Ministry of Foreign Affairs) for sacrificing their valuable time to fill up the survey questionnaires. I am hugely indebted to them. My special thanks to Ms. Palmo Thinley for assigning the supervisor and also would like to place on record the help rendered by Ms. Karma Tshomo (Program assistant) in getting things done (study materials). I also owe deep gratitude to Mr. Tashi (PGDPA Trainee) for helping me with the SPSS. Sincere thanks also go to the librarians and friends for their continued support. My sincere thanks also go to the Almighty for its continuous blessings and my family for their generous financial and moral support during the study. Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 42 Factors Affecting Job Satisfaction Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 43 Factors Affecting Job Satisfaction Submitted By: Trainee ID:20162776, PGDPA, 2016. Page 44
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