Undergraduate thesis proposal - industrial gas company
-
Upload
allan-tandhyka-gemiarto -
Category
Documents
-
view
218 -
download
0
Transcript of Undergraduate thesis proposal - industrial gas company
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
1/65
1
Petra Christian University
1. INTRODUCTION
1.1.Research BackgroundHR in gas company in general.
05
1015202530
Makanan
Tembakau
Tekstil
Pakaianjadi
Kulitdan
Kayu,
Kertasdan
Penerbitan,
Batubara,
Karetdan
Barang
Logamd
asar
Barang-
Mesindan
Peralatan
Mesin
Radio,
Peralatan
Kendaraan
Alat
Furniture
Daurulang
Produktivitas Tenaga Kerja 2009
(persentase)
Series1
05
10152025
Makanan
Tembakau
Tekstil
Pakaianjadi
Kulitdan
Kayu,
Kertasdan
Penerbitan
Batubara,
Karetdan
Barang
Logamd
asar
Barang-
Mesindan
Peralatan
Mesin
Radio,
Peralatan
Kendaraan
Alat
Furniture
Daurulang
Jumlah Perusahaan Menurut Sub Sektor
2009 (persentase)
Series1
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
2/65
2
Petra Christian University
HR is the asset of companies
1.1.1. Description of Internship
While the writers are doing the research, the writers are doing internships
in one of the biggest industrial gas company in Indonesia. The company is the
first industrial gas company in Indonesia. The core business of the company is to
supply industrial gases such as Oxygen, Nitrogen, and many other gases and
related services to almost any industry such as metal works, metallurgy, chemical
processes and petrochemical industry, electronic and electrical industry, medical
and pharmaceutical industry, food and beverage industry, drinking water
treatment, waste water treatment, agribusiness, etc.
Furthermore, the writers are having internship period of January 16 th, 2012
until May 16th, 2012, which means that the internship is conducted for about four
months. The writers were put in different departments of the company, which is
0
10
20
Mak
Tem
Tekstil
Paka
Kulit
Kayu
Kert
Pene
Batu
Kare
Bara
Loga
Bara
Mesi
Pera
Mesi
Radi
Pera
Kend
Alat
Furn
Daur
Jumlah Tenaga Kerja Industri Besar Dan
Sedang Menurut Sub Sektor 2009
(persentase)
Series1
0
5
10
15
20
Makanan
T
embakau
Tekstil
Pakaianjadi
Kulitdan
Kay
u,barang
K
ertasdan
Pe
nerbitan,
B
atubara,
Karetdan
Barang
Log
amd
asar
Barang-
M
esindan
Peralatan
Me
sinlistrik
Radio,
Peralatan
K
endaraan
Alat
Furniture
D
aurulang
Nilai Tambah Menurut Subsektor 2009
(persentase)
Series1
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
3/65
3
Petra Christian University
one of the writers is put in Export-Import Department. Meanwhile, the other
writer is put in Human Resource Management.
Next, the writer who is put in Export-Import department learns a lot during
the internship period. With the help of the supervisors and other co-workers, the
writer could learn about the export-import documents, the procedure of importing
or exporting products to or from Indonesia, creating documents that are needed to
conduct the export-import business, and creating a good database of hardcopy and
softcopy for the documentation of the export-import activities of the company.
Moreover, the writer who is put in Human Resource department also
learns a lot during the internship period.
Finally, the writers feel really blessed and grateful that the writers could
have internship opportunity in one of the biggest industrial gas company in
Indonesia. The writers could learn a lot through the help of employees of the
company and in finishing the Final Research Report.
1.1.2. Justification for the Research
Analyzing the relationship between job satisfaction and organizational
commitment is particularly crucial nowadays, as people often do not work at the
same company or job throughout their lifetime. It is also sometimes hard to find
suitable people for certain positions. So, once an ideal candidate is chosen,
companies are more likely willing to make a great effort to retain those employees.
If two employees exhibit different levels of job satisfaction and that job
satisfaction can be proven to lead to organizational commitment, the employer
will likely hire the employee with the higher level of job satisfaction. This isbecause the employer can expect the more satisfied individual to stay with the
company.
Next, the main interest ofthe writers research is to investigate whether an
employees job satisfaction will affect his or her level of commitment in the
company. It is important to study the relationship between job satisfaction and
organizational commitment in the company, because it will help the writers to
understand how employees work and their organizational behaviours in the
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
4/65
4
Petra Christian University
company. Also, this is of particular interest for the company, because the costs of
hiring and training new employees are high. Therefore, the company should try to
keep a constant workforce, which also helps to reduce the risks of deterioration in
services offered to its customers. Generally, it is expected that employees are
more likely to stay with the company and be highly committed when they can see
a strong linkage between the companys performance and their work.
Furthermore, according to Aamodt (2010), when employees experience
low job satisfaction and organizational commitment, it can be costly since the
company has to spend money for advertisement of the vacant position, and
training and development cost. Absenteeism may also be a very costly issue
because it can result in reduced productivity when lowly committed employees do
not see any link between the tasks they do and the companys profitability.
Moreover, at times, employees may not leave the company even when
they are dissatisfied or do not feel committed to the company. This condition
makes studying the two variables serve an even greater importance. When
workers are dissatisfied, this may create counterproductive behavior and lack of
organizational citizenship behaviors, which can lead to a lower level of
organizational commitment. In turn, this may result in severe consequences such
as labour strikes. Another reason why the writers are interested in studying
whether job satisfaction would lead to organizational commitment is because this
may increase productivity. With an improvement in productivity, the company
will operate better and have higher growth, which is an important goal for the
company. Thus, it is critical to investigate the employees level of satisfaction and
their organizational commitment.
Finally, if the research shows that job satisfaction and organizationalcommitment are related, it would be beneficial for the company, since it would
only need to increase one variable (job satisfaction) to achieve the positive effect
of the other (organizational commitment). For example, the company could
reward workers with job advancement opportunities or change a facet of the job in
a desirable way, which will increase job satisfaction and ultimately lead to a
higher level of organizational commitment.
Turnover 13%
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
5/65
5
Petra Christian University
1.1.3. Statement of Research Problem
Does pay become the significant facet of job satisfaction that influences
the affective commitment of the employees of the company?
Does promotion become the significant facet of job satisfaction that
influences the affective commitment of the employees of the company?
Does supervision become the significant facet of job satisfaction that
influences the affective commitment of the employees of the company?
Does fringe benefit become the significant facet of job satisfaction that
influences the affective commitment of the employees of the company?
Does contingent reward become the significant facet of job satisfaction
that influences the affective commitment of the employees of the
company?
Does operating procedure become the significant facet of job
satisfaction that influences the affective commitment of the employees
of the company?
Does co-worker become the significant facet of job satisfaction that
influences the affective commitment of the employees of the company?
Does nature of work become the significant facet of job satisfaction that
influences the affective commitment of the employees of the company?
Does communication become the significant facet of job satisfaction
that influences the affective commitment of the employees of the
company?
1.2. Research Objectives
To know whether pay becomes the significant facet of job satisfaction
that influences the affective commitment of the employees of the
company or not.
To know whether promotion becomes the significant facet of job
satisfaction that influences the affective commitment of the employees
of the company or not.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
6/65
6
Petra Christian University
To know whether supervision becomes the significant facet of job
satisfaction that influences the affective commitment of the employees
of the company or not.
To know whether fringe benefits becomes the significant facet of job
satisfaction that influences the affective commitment of the employees
of the company or not.
To know whether contingent reward becomes the significant facet of
job satisfaction that influences the affective commitment of the
employees of the company or not.
To know whether operating procedure becomes the significant facet of
job satisfaction that influences the affective commitment of the
employees of the company or not.
To know whether co-worker becomes the significant facet of job
satisfaction that influences the affective commitment of the employees
of the company or not.
To know whether nature of work becomes the significant facet of job
satisfaction that influences the affective commitment of the employees
of the company or not.
To know whether communication becomes the significant facet of job
satisfaction that influences the affective commitment of the employees
of the company or not.
1.3. Research Benefit
1.3.1. For the Company
1. To be able to determine the level of the job satisfaction and the
affective commitment of the employees.
2. To be able to determine the significant attributes of nine facets of job
satisfaction that could boost the affective commitment.
3. To be able to gain information for use in better human resource
management in the future.
1.3.2. For the University
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
7/65
7
Petra Christian University
1. Completing the information related with the effect of job satisfaction
towards the organizational commitment.
2. Developing further networking with the company and the department.
3. Providing feedback for prior similar research and serving as a stepping
stone for further research in the future.
1.3.3. For the Student
1. Applying the knowledge and theories that the writer got from
academicals and theoretical to the real business world.
2. Gaining real-time research experience to develop research skill.
3. Contributing to the company as appreciation for the opportunity given
to the writer.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
8/65
8
Petra Christian University
2. THEORETICAL BACKGROUND
2.1. Concepts and Definitions
2.1.1. Human Resource Management
2.1.2. Organizational Behavior
According to Newstrom & Davis (1997, p5), organizational
behavior is the study and application of knowledge about how
people as individuals and as groups act within organizations.
Also, Newstrom & Davis states that organizational behavior is an
applied science, which consists of the information about effective
practices in one organization is being extended to many others.
Newstrom & Davis also states that organizational behavior as a
science share four goals. The first objective is to describe,
systematically, how people behave under a variety of conditions.
Achieving this goal allows employees to communicate about human
behavior at work using a common language. A second goal is to
understand why people behave as they do. Next, the third goal is
predicting, which means to predict the employee behavior in the
future. Then, the fourth goal is to control and manage the employees
activity at work.
According to Robbins & Judge (2011, p ), organizational behavior
isa field study that investigates the impact that individuals, groups,
and structure have on behavior within organizations, for the purposeof applying such knowledge toward improving an organizations
effectiveness. Also, Robbins and Judge try to elaborate more on
the organizational behavior as a field study, which means that it is a
distinct area of expertise with a common body of knowledge, and it
studies three determinants of behavior in organizations, which are
individuals, groups, and structure. Therefore, organizational
behavior applies the knowledge gained about individuals, groups,
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
9/65
9
Petra Christian University
and the effect of structure on behavior in order to make
organizations work more effectively.
Furthermore, Robbins and Judge sum up their definition of
organizational behavior as the study of what people do in an
organization and how their behavior affects the organizations
performance. Therefore, organizational behavior concerns
specifically with employment-related situations, such as jobs, work,
absenteeism, employment turnover, productivity, human
performance, and management.
2.1.3. Job Satisfaction
According to Robbins & Judge (2011, p ), Job satisfaction is a
positive feeling about a job resulting from an evaluation of its
characteristics.
Two Factor Theory
Herzberg, Mausner, and Synderman (1959) proposed the
motivator-hygiene theory, or as it more commonly known, two
factor-theory. Two factortheory assumes that everyone has two
types of needs, which are hygiene needs and motivator needs.
Hygiene needs include factors extrinsic to the work itself, such as
the work environment, supervision, and pay. Motivator needs
include intrinsic factors, such as achievement, recognition, and
work activities.
According to Herzberg, when hygiene needs are not fulfilled, the
worker is dissatisfied. When hygiene needs are fulfilled, the workeris not dissatisfied. The fulfillment of the hygiene needs are fulfilled,
the worker is not dissatisfied. The fulfillment of the hygiene needs
does not produce a state of satisfaction, but rather a state of
neutrality. For example, if your garbage is not collected, you will
undoubtedly become dissatisfied. However, the fact that your
garbage is collected will not make you happy. Our attitude toward
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
10/65
10
Petra Christian University
garbage collection is probably best described as a neutral state that
is disrupted only by the absence of garbage collection.
When motivator needs are fulfilled, the worker is satisfied; when
they are not fulfilled, the worker is not satisfied. However, the state
of being not satisfied is not equivalent to being dissatisfied
(similar to hygiene needs). For example, when workers obtain a
sense of achievement and responsibility from their jobs, they are
satisfied. However, if they do not obtain achievement and
responsibility at work, they do not feel satisfied, which is different
from being dissatisfied. Two-factor theory even implies that a
worker can be simultaneously satisfied and dissatisfied because
satisfaction and dissatisfaction are separate states.
However, according to Dipboye, Smith and Howell (1994), two-
factor theory is primarily a descriptive theory. That is, it attempts
only to describe the conditions under which workers are influenced
to feel satisfied or dissatisfied.
Comparison Theory
Comparison theory is such one class of cognitive, process-oriented
theory of job satisfaction (Dipboye, Smith and Howell, 1994,
p.149). Comparison theory asks workers to consider how much of
some characteristic they have in their present job and how much of
this characteristic they would like to have in their present jobs. The
characteristic on question is typically framed in terms of different
type of comparisons, such as need, value, or special comparisons.
For example, you might be asked to consider how muchopportunity for social interaction you have in your present job and
how much you would prefer to have.
Lawler (1973) incorporated the concept of attained versus desire-
needs in his model of facet of satisfaction. It is a facet satisfaction
model because satisfaction with various components or facets of
the job, such as supervision, pay, or the work itself, is considered.
Lawlers model specifies that workers compare what their jobs
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
11/65
11
Petra Christian University
should provide in terms of job facets, such as promotions and pay,
to what they currently receive from their jobs. However, simple
need comparison theory is extended by also weighing the influence
of certain worker characteristic (such as skill, training, and age)
and job characteristics (such as degree of responsibility and
difficulty).
An example, will clarify the relationship implied by Lawlers
model. In determining him/her level of job satisfaction, a worker
might consider that he/she brings an MBA and ten years of
business experience to a responsible managerial job. A coworker,
him/her referent other, has only a bachelors degree and eight years
of experience. The coworkers job is also a managerial position,
but with less responsibility and a slightly higher salary.
Consequently, the worker, after weighing the various inputs,
outcomes, and amounts received, feels dissatisfied with him/her
pay.
However, this theory is difficult to apply, especially in finding
out the part of referent to others.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
12/65
12
Petra Christian University
Figure Lawlers (1973) model of facet of satisfaction
Source: Lawler, E.E. (1973).Motivation in Work Organizations. Monterey, CA:
Brooks/Cole.
According to Spector, (1997, p ), job satisfaction is an
attitudinal variable that reflects how people feel about their jobs
overall as well as about various aspects of them. In simple terms,
job satisfaction is the extent to which people like their jobs; job
dissatisfaction is the extent to which they dislike them.
According to Spector, there have been two approaches to the study
of job satisfaction, which are the global approach and the facet
approach. The global approach treats job satisfaction as a single,
overall feeling toward the job. Meanwhile, the alternative approach
is to focus on job facets, or different aspect of the job, such as
rewards (pay or fringe benefits), other people on the job
(supervisors or co-workers), job conditions, and the nature of the
work itself.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
13/65
13
Petra Christian University
Furthermore, Spector sees the facet approach permits a more
complete picture of job satisfaction. He thinks that an individual
typically has different levels of satisfaction with the various facets.
For example, an employee might be very dissatisfied with pay and
fringe benefits, but at the same time be very satisfied with the
nature of work and supervisors.
For the purposes of the research conducted, nine facets of job satisfaction
were identified , namely: pay, promotion, supervision, benefits, contingent
rewards, operating procedures, co-workers, nature of the work and
communication (Spector 1997).
Table
Facet Description
Pay Satisfaction with pay and pay raises
Promotion Satisfaction with promotion opportunities
Supervision Satisfaction with persons immediate supervision
Fringe Benefits Satisfaction with monetary and non-monetary benefits
Contingent Rewards Satisfaction with appreciation, recognition, and rewards for good work
Operating Procedures Satisfaction with operating policies and procedures
Co-workers Satisfaction with co-workers
Nature of Work Satisfaction with type of work done
Communication Satisfaction with communication within the organization
Source: Spector, P. (1997).Job Satisfaction: Application, Assessment, Causes and
Consequences. California: Sage.
Pay
Pay is associated with global satisfaction and even more closely with the
facet of pay satisfaction. Although money is important to individuals, research has
shown that individuals who earn more are not necessarily more satisfied in their
jobs (Spector 2008).
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
14/65
14
Petra Christian University
Promotion
Job satisfaction is likely to be experienced by individuals who perceive
promotional opportunities to be fair (Robbins 1993; Spector 1997). Promotions
provide opportunities for personal growth, more responsibilities and increased
social status (Robbins 1993).
Supervision
An immediate supervisors behaviour is also a determinant of job
satisfaction (Spector 1997). Employee satisfaction increases when the immediate
supervisor is understanding, friendly, offers praise for good performance, listens
to employees opinions and shows personal interest in them (Robbins 1993).
Fringe Benefits
Spector (1997) divides fringe benefits into monetary and non-monetary
benefits. Increasing intrinsic and extrinsic fringe benefits that attract an
employees attention may subsequently increase their performance and induce
higher levels of organisational commitment
Contingent Rewards
According to Spector (1997), examples of contingent rewards are
appreciation, recognition and rewards for good work. Employee dissatisfaction
may result if an employee perceives that their efforts are not recognised or that
their rewards are not equitable, tied to their performance or tailored to their needs
(Robbins 1993). Contingent rewards support the reinforcement theory of
motivation, in terms of which performance-relevant behaviours will increase infrequency if rewarded (Spector 2008).
Operating Procedures
Specific job characteristics lead to positive psychological states such as
experiencing the meaningfulness of work, feelings of responsibility and
knowledge about the products of work, which in turn lead to satisfaction with the
job (Judge, Bono & Locke 2000; Spector 1997). Autonomy gives rise to feelings
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
15/65
15
Petra Christian University
of responsibility. Knowledge about the products of work is gained through job
feedback. When these characteristics are combined, the scope and complexity of a
job is defined. High scope results in high levels of job satisfaction, while low
scope leads to boredom and dissatisfaction. Aspects of the job and the
organisational environment relate to job satisfaction, and as a result some
situations produce positive job satisfaction, while others produce job
dissatisfaction (Spector 2008).
Co-workers
Perceptions of fairness are important determinants of peoples behaviour
and reactions to work (Spector 2008). According to Martins and Coetzee (2007),
employee motivation and organisational culture are affected by how an
employees needs and objectives are integrated with the needs and objectives of
the organisation, worklife balance practices and physical work environment.
Work fulfils an individuals social factor need. Therefore, having friendly and
supportive co-workers leads to increased job satisfaction (Robbins 1993).
According to Ghazzawi (2008), an employees coworkers, the groups they belong
to, and the culture to which an individual is exposed all have the potential to
influence job satisfaction.
Nature of Work
The nature of the workmay be influenced by the supervisors behaviour.
The nature of work satisfaction is defined as the employees satisfaction with the
type of work they do (Spector 1997). Employees prefer work that is mentally
challenging in that it provides them with opportunities to use their skills andabilities and offers a variety of tasks, freedom and feedback on how well they are
doing (Robbins 1993).
Communication
The formation of specific goals, feedback on progress towards these goals,
and reinforcement of desired behaviour all stimulate motivation and require
communication. The fewer distortions, ambiguities and incongruities that occur in
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
16/65
16
Petra Christian University
communication within organisations, the more satisfied employees will feel with
regard to their work (Robbins 1993).
2.1.4. Organizational Commitment
According to Dipboye, Smith and Howell (1994, p),
organizational commitment is defined as a workers identification
with and involvement in a particular organization. Although, like
job satisfaction, organizational commitment refers to ones affect
toward his or her employing organization, organizational
commitment is thought to be more global and enduring than job
satisfaction. Specifically, organizational commitment refers to
employee attitude about the whole organization and therefore is
probably less influenced by daily events (e.g., a disagreement with
the supervisor).
The concept of organisational commitment has attracted considerable
interest in an attempt to understand and clarify the intensity and stability of an
employees dedication to the organisation (Lumley 2010). In the context of the
present study, organisational commitment is regarded as an attitude, as it relates to
individuals mindsets about the organisation (Meyer & Allen 1991).
Mathieu and Zajac (1990) believe that developing a better perception of
the progression associated with organisational commitment has an effect on
employees, organisations and the world in general. The level of employees
organisational commitment will possibly ensure that they are better suited toreceiving both extrinsic rewards (which include remuneration and benefits) and
psychological rewards (which include job satisfaction and associations with
fellow employees) related to associations. Organisational commitment is
generally assumed to reduce adandonment behaviours, which include tardiness
and turnover. In addition, employees who are committed to their organisation may
be more willing to participate in extra-role activities, such as being creative or
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
17/65
17
Petra Christian University
innovative, which frequently guarantee an organisations competitiveness in the
market (Katz & Kahn 1978).
Organisational commitment is viewed as a psychological connection that
individuals have with their organisation, characterised by strong identification
with the organisation and a desire to contribute to the accomplishment of
organisational goals (Meyer & Allen 1997). Meyer and Allens (1991) three -
component model of organisational commitment is therefore of relevance to this
research. Meyer and Allen (1991) conceive of organisational commitment as
reflecting three core themes, namely affective, continuance and normative
commitment. Also, according to Meyer and Allen (1991) affective, continuance,
and normative commitment are distinguishablecomponents of commitment.
Commitment can be seen as an affective point of reference towards the
organisation (affective commitment), acknowledgement of the consequences of
leaving the organisation (continuance commitment), and an ethical responsibility
to stay with the organisations (normative commitment) (Meyer & Allen 1991).
Affective Commitment
Affective commitment is the extent to which an employee wants to remain
with the organization, cares about the organization, and is willing to exert effort
on its behalf. It is the individuals psychological or emotional connection to,
identification with and participation in the organisation (Meyer & Allen 1997).
Employees who are affectively committed to the organisation will probably carry
on working for it because they want to (Meyer & Allen 1991). Individuals whoare dedicated at an emotional level usually remain with the organisation because
they see their individual employment relationship as being in harmony with the
goals andvalues of the organisation for which they are currently working.
For example, an employee of the Red Cross might like her coworkers and
her boss, share the altruistic goals of the organization, and realize that her efforts
will result in better organizational performance.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
18/65
18
Petra Christian University
Continuance Commitment
Continuance commitment is the extent to which an employee believes
he/she must remain with the organization due to the time, expense, and effort that
he/she has already put into it or the difficulty she would have in finding another
job (Meyer & Allen 1997). Continuance commitment is also regarded as an
awareness of the costs associated with leaving the organisation (Meyer & Allen
1997). Because of the individuals awareness or consideration of expenses and
threats linked to leaving the organisation, continuance commitment is considered
to be calculative (Meyer & Allen 1997). Individuals with continuance
commitment remain with a specific organisation because of the money they as
employees earn as a result of the time spent in the organisation, and not because
they want to. This differs from affective commitment, where individuals remain
with an organisation because they want to and because they are familiar with the
organisation and its principles.
For example, a chamber of commerce director who spent ten years making
business contacts, getting funding for a new building, and earning the trust of the
local city council. Though he/she could take a new job with a chamber in a
different city, she would need to spend another ten years with that chamber just to
make the gains she has already made. As another example, an employee might
hate her job and want to leave, but realizes that no other organization would hire
her or give her the salary she desires.
Normative Commitment
Normative commitment is the extent to which an employee feels obligated
to the organization and, as a result of this obligation, must remain with theorganization (Meyer & Allen 1997). Normative commitment also can be
explained as a sense of responsibility to continue employment with a specific
organisation because he/she believes that he/she owes the organisation (Meyer &
Allen 1997). The internalised idea of responsibility and commitment allows
employees continued membership that is appreciated by a specific organisation
(Meyer & Allen 1991).
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
19/65
19
Petra Christian University
A good example of normative commitment would be an employee who
was given him/her first job by an organization, was mentored by him/her manager,
and was trained at great cost to the organization. The employee may feel that she
is ethically obligated to remain with the organization because of its extensive
investment in him/her.
Moreover, Meyer et al. (1993) discuss the nature and origins of the three
components of commitment. Figure . shows the major influences on each
commitment. Also, different factors are involved in each component. Affective
commitment arises from job conditions and met expectations, that is, whether the
job provided the rewards the employee expected. Meanwhile, continuance
commitment is produced by the benefits accrued from working for the
organization and by the lack of available alternative jobs. Finally, normative
commitment comes from the employees performance values and from the
obligations the person feels toward the employer. These obligations derive from
favors that the organization has done, such as paying the persons school expenses.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
20/65
20
Petra Christian University
Figure
Source: Meyer, J.P., Allen, N.J. (1993). Commitment to organizations and
occupations: Extension and test of a three-component-conceptualization.
Journal of Applied Psychology, 78, 538-551.
2.2. Relationship Between Concepts
Strong positive relationships have been observed between organisational
commitment and desirable work outcomes such as performance, adaptability and
job satisfaction (Angle & Perry 1981; Hunt, Chonko & Wood 1985; Mowday,
Porter & Dubin 1974). Research results indicate that satisfied employees tend to
be committed to an organisation, and employees who are satisfied and committed
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
21/65
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
22/65
22
Petra Christian University
Employees prefer to stay in their company and work hard for a return. If
employees feel that the company treats them fairly or well, the workers will feel
that they are responsible to keep working hard for their companies. Also, in order
to maintain their current satisfied jobs, employees will perform well and work
effectively, which is beneficial for the company. Therefore, in order to increase
the employees level of commitment, the manager can try to increase their
employees level of job satisfaction.
https://kucampus.kaplan.edu/documentstore/docs09/pdf/picj/vol3/issue1/Job_
Satisfaction_and_Organizational_Commitment_Among_Probation_and_Parole_O
fficers_Vol3_1.pdf
Title: Job Satisfaction and Organizational Commitment Among
Probation and Parole Officers: A Case Study
Author: Seble Getahun, Barbara Sims, and Don Hummer
Numerous studies have focused on job satisfaction and organizational
commitment of police officers and correctional personnel, but few have examined
these concepts within community corrections agencies. This study draws on prior
research into job satisfaction of criminal system actors and looks at the
explanatory power of these concepts for probation and parole officers from one
county in a northeastern state. Results indicate that employees are most satisfied
when their occupational tasks are meaningful experiences into which they have
input and are collaborative efforts with supervisors. Background characteristics of
officers had no influence on job satisfaction, indicating that organizational cultureand management style are the more important factors in explaining employee
satisfaction and, possibly, retention.
http://ccsenet.org/journal/index.php/ijbm/article/viewFile/5204/4901..
Title: Job Satisfaction and Organizational Commitment of University
Teachers in Public Sector of Pakistan
http://ccsenet.org/journal/index.php/ijbm/article/viewFile/5204/4901http://ccsenet.org/journal/index.php/ijbm/article/viewFile/5204/4901http://ccsenet.org/journal/index.php/ijbm/article/viewFile/5204/4901 -
7/29/2019 Undergraduate thesis proposal - industrial gas company
23/65
23
Petra Christian University
Author: Prof. Dr. Muhammad Ehsan Malik, Dr. Samina Nawab, Basharat Naeem,
Rizwan Qaiser Danish
Study Objectives: The purpose of this investigation was to determine the impact of
teachers satisfaction with job dimensions on perceived organizational
commitment in public sector universities of Pakistan. In addition, the study aimed
at exploring to what extent these teachers are committed to their universities and
satisfied with different dimensions to their job.
Research Design/Methodology: A survey-based descriptive research design was
used. The study was carried on teaching faculty working in two public sector
universities of Pakistan. About 650 survey questionnaires were distributed in
October, 2009 by employing diverse modes of communication such as email, in
person and post. Multiple follow ups yielded 331 statistically usable
questionnaires. Stepwise regression analysis and one sample t-tests were used to
confirming the research hypotheses.
Results: The findings of the study indicated that the satisfaction with work-itself,
quality of supervision and pay satisfaction had significant positive influence on
organizational commitment of faculty members. They had high degree of
organizational commitment and satisfaction with work-itself, supervision, salary,
coworkers and opportunities for promotion.
Research limitations/implications: The focus of the study was teachers working at
public sectors universities in Pakistan only. Self-reported measures were used to
measure job satisfaction and organizational commitment. Since respondents were
from two public sector universities only so the findings cannot be generalized to
faculty members of public sector universities in Pakistan.
Practical implications: Considering the importance of university teachersorganizational commitment and their effects on effectiveness of the universities,
policy makers and academic administrators should take necessary measures for
the optimal provision of intrinsic and extrinsic job rewards to make their core
workforce highly satisfied and committed.
Originality/value: The relevant literature shows that university teachers
commitment and job satisfaction is under-researched area particularly in the
public sector institutions of higher learning in Pakistan. So, the current
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
24/65
24
Petra Christian University
investigation has contributed to improve the understanding on significant issue.
Besides, the study findings are discussed in perspective of practical implications
in public sector universities.
The study intended not only to ascertain the influence of job facets satisfaction on
organizational commitment of public sector university faculty in Pakistan but to
determine their degree of commitment and satisfaction also.
Based on the findings, it is concluded that nature of work, salary satisfaction and
quality supervision are significant predictors of organizational commitment of the
Pakistani public sector university faculty. It was also found out that they were
highly satisfied with their supervisor, coworkers, compensation, work-itself and
opportunities of advancement in their universities. Common sense confirms that
higher education is not immune to the problem of teachers low level of job
satisfaction and organizational commitment which could result into unfavorable
economic and non economic outcomes such as high exit turnover, reduced
teaching effectiveness and intellectual development of the students. So policy
makers and academic administrators should take necessary measures for the
optimal provision of intrinsic and extrinsic job rewards to make their core
workforce highly satisfied and committed to reap the benefits of improved
motivation, performance and organizational citizenship behaviors.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
25/65
25
Petra Christian University
2.4. Framework of the Report
Figure Framework of the report
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
26/65
26
Petra Christian University
2.5. Hypothesis
The writers are assuming several possible results depending on the condition.
Those are:
Hypothesis 1
H0: It is presumed that the employees of the company are not having high
affective commitment.
H1: It is presumed that the employees of the company are having high
affective commitment.
Hypothesis 2
H0: It is presumed that the employees of the company are not having high
continuance commitment.
H1: It is presumed that the employees of the company are having high
continuance commitment.
Hypothesis 3
H0: It is presumed that the employees of the company are not having high
normative commitment.
H1: It is presumed that the employees of the company are having highnormative commitment.
Hypothesis 4
H0: It is presumed that the employees of the company are not having high
organizational commitment.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
27/65
27
Petra Christian University
H1: It is presumed that the employees of the company are having high
organizational commitment.
Hypothesis 5
H0: It is presumed that there is no significant relationship between the
variables of nine facets of job satisfaction with the affective commitment
of the employees of the company.
H1: It is presumed that there is significant relationship between the
variables of nine facets of job satisfaction with the affective commitment
of the employees of the company.
Hypothesis 6
H0: It is presumed that there is no significant relationship between the
variables of nine facets of job satisfaction with the continuance
commitment of the employees of the company.
H1: It is presumed that there is significant relationship between the
variables of nine facets of job satisfaction with the continuance
commitment of the employees of the company.
Hypothesis 7
H0: It is presumed that there is no significant relationship between the
variables of nine facets of job satisfaction with the normative
commitment of the employees of the company.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
28/65
28
Petra Christian University
H1: It is presumed that there is significant relationship between the
variables of nine facets of job satisfaction with the normative
commitment of the employees of the company.
Hypothesis 8
H0: It is presumed that there is no significant relationship between the
variables of nine facets of job satisfaction with the organizational
commitment of the employees of the company.
H1: It is presumed that there is significant relationship between the
variables of nine facets of job satisfaction with the organizational
commitment of the employees of the company.
Hypothesis 9
H0: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/
Operating Procedures/ Co-workers/ Nature of Work/ Communication are
not the most significant factor that influences the affective commitment
of the employees of the company.
H1: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/
Operating Procedures/ Co-workers/ Nature of Work/ Communication are
the most significant factor that influences the affective commitment of theemployees of the company.
Hypothesis 10
H0: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/
Operating Procedures/ Co-workers/ Nature of Work/ Communication are
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
29/65
29
Petra Christian University
not the most significant factor that influences the continuance
commitment of the employees of the company.
H1: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/
Operating Procedures/ Co-workers/ Nature of Work/ Communication are
the most significant factor that influences the continuance commitment of
the employees of the company.
Hypothesis 11
H0: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/
Operating Procedures/ Co-workers/ Nature of Work/ Communication are
not the most significant factor that influences the normative commitment
of the employees of the company.
H1: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/
Operating Procedures/ Co-workers/ Nature of Work/ Communication are
the most significant factor that influences the normative commitment of
the employees of the company.
Hypothesis 12
H0: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/
Operating Procedures/ Co-workers/ Nature of Work/ Communication arenot the most significant factor that influences the organizational
commitment of the employees of the company.
H1: Pay/ Promotion/ Supervision/ Fringe Benefits/ Contingent Rewards/
Operating Procedures/ Co-workers/ Nature of Work/ Communication are
the most significant factor that influences the organizational commitment
of the employees of the company.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
30/65
30
Petra Christian University
3. RESEARCH METHOD
3.1. Type of Research Method
In this step we need to design the research in a way that the requisite data can
be gathered and analyzed to arrive at a solution and to answer the previous
problem statements.
Different with Cooper and Schindler who categorize research method into
three types, which are exploratory, descriptive and causal research methods,
Sekaran and Boogie (2010) defines that there are four purposes of the research,
namely exploratory, descriptive, hypothesis testing, and case study, depends on
the stage to which knowledge about the research topic has advanced.
The first purpose of the research is exploratory study, which is undertaken
when not much is known about the situation at hand, or no information is
available on how similar problems or research issues have been solved in the past.
In essence, exploratory studies are undertaken to better comprehend the nature of
the problem, since very few studies might have been conducted in that area. Some
qualitative studies where data are collected through observation, interviews, or
focus groups are exploratory in nature. However, exploratory studies are also
necessary when some facts are known, but more information is needed for
developing a viable theoretical framework. In sum, exploratory studies are
important for obtaining a good grasp of the phenomenon of interest and advancing
knowledge through subsequent theory building and hypothesis testing.
The second purpose of a research is descriptive study, which is undertaken in
order to ascertain and be able to describe the characteristics of the variables of
interest in a situation. In addition, descriptive studies are undertaken inorganizations to learn about and describe the characteristics of a group of
employees, as for example, the age, education level, job status, and length of
service. The goal of the descriptive study is to offer a profile or to describe
relevant aspects of the phenomena of interest to the researcher from an individual,
organizational, industryoriented, or other perspective.
The third purpose of a research is actually hypotheses testing, which is a
study that usually explains the nature of certain relationships, or establishes the
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
31/65
31
Petra Christian University
differences among groups or the independence of two or more factors in a
situation. Hypotheses testing is undertaken to explain the variance in the
dependent variable or to predict organizational outcomes.
Last but not least is the case study research that involves in-depth, contextual
analyses of matters relating to similar situations in other organization. Case
studies, as a problem solving technique, are not frequently resorted to in
organizations because findings the same type of problem in another comparable
setting is difficult due to the reluctance of the companies to reveal their problems.
Case studies that are qualitative in nature are, however, useful in applying
solutions to current problems based on past problem-solving experiences. Also,
case studies are useful in understanding certain phenomena, and generating further
theories for empirical testing.
Based on those explanations, in this research, the writer conducts
exploratory study as well as causal study to answer the statement of research
problems and corresponding research objectives. Through exploratory study,
the writer will be able to understand what factors are influencing the
effectiveness of employee training and development through the components.
It is expected that exploratory study helps the writer, the company, and the
industry to better understand this research topic because there is no specific
research topic in the consulting industry.
Furthermore, in this research, the writer also uses descriptive study to
have information on the respondents profile and their opinion about
training and development. The writer conducts frequencies and cross-
tabulations analysis as parts of descriptive study.
3.2. Description of Variables
The variable used in this research can be classified into two, dependent and
independent, approached by Sekaran and Boogie (2009). Dependent variable is
the variable of primary interest to the researcher, which is the employee
performance. On the other side, independent variable is the variable that
influences the dependent variable in either a positive or negative way. The
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
32/65
32
Petra Christian University
components of training and development are the independent variables, while the
results or the outcomes are the dependent variables.
3.2.1. Dependent Variable
Dependent variable is the variable of primary interest to the researcher. The
researchers goal is to understand and describe the dependent variable, or to
explain its variability, or predict it. In other words, it is the main variable that
lends itself for investigation as a viable factor (Sekaran and Bougie, 2009, p. 70).
Furthermore, the dependent variable that the writers would like to use in this
research is the organizational commitment by Allen & Meyer (1993).
3.2.1.1. Dimension 1: Affective Commitment
Element 1: Job conditions
Element 2: Met expectations
3.2.1.2. Dimension 2: Continuance Commitment
Element 3: Benefits accrued
Element 4: Jobs available
3.2.1.3. Dimension 3: Normative Commitment
Element 5: Personal values
Element 6: Felt obligations
3.2.2. Independent Variable
Independent variable is one that influences the dependent variable in either
a positive or negative way. That is, when the independent variable is present, the
dependent variable is also present, and with each unit of increase in the
independent variable, there is an increase or decrease in the dependent variable
(Sekaran and Bougie, 2009, p.70).
Also, according to Sekaran and Bougie, to establish that a change in the
independent variable causes a change in the dependent variable, all four of the
following condition should be met:
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
33/65
33
Petra Christian University
1. The independent and the dependent should covary: in other words, a
change in the dependent variable should be associated with a change
in the independent variable.
2. The independent variable (the pressunmed causal factor) should
precede the dependent variable. In other words, there must be a time
sequence in which the two occur: the cause must eccour before the
effect.
3. No other factor should be a possible cause of the change in the
dependent variable. Hence, the researcher should control for the
effect of other variables.
4. A logical explanation (a theory) is needed about why the
independent variable affects the dependent variable.
Furthermore, the independent variables that the writers would like to use in
this research are the nine facets of job satisfaction by Spector (1997).
3.2.2.1. Dimension 1: Pay
Element 1: Satisfaction with pay and pay raises
3.2.2.2. Dimension 2: Promotion
Element 2: Satisfaction with promotion opportunities
3.2.2.3. Dimension 3: Supervision
Element 3: Satisfaction with persons immediate supervision
3.2.2.4. Dimension 4: Fringe Benefits
Element 4: Satisfaction with monetary and non-monetary benefits
3.2.2.5. Dimension 5: Contingent Rewards
Element 5: Satisfaction with appreciation, recognition, and rewards for good
work
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
34/65
34
Petra Christian University
3.2.2.6. Dimension 6: Operating Procedures
Element 6: Satisfaction with operating policies and procedures
3.2.2.7. Dimension 7: Co-workers
Element 7: Satisfaction with co-workers
3.2.2.8. Dimension 8:Nature of Work
Element 8: Satisfaction with type of work done
3.2.2.9. Dimension 9: Communication
Element 9: Satisfaction with communication within the organization
3.3. Description of Data
The description of data will cover three main things, which are type of data,
source of data, and sampling method.
3.3.1. Type of Data
Based on the scales developed, there are four possible data types, which
are using nominal, ordinal, interval, and ratio scales data. (Sekaran and Bougie,
2009)
Nominal Scale
A nominal scale is one that allows the researcher to assign subjects to certain
categories or groups (such as male & female for example). Nominal scales
categorize individuals or objects into mutually exclusive and collectively
exhaustive groups. The information that can be generated from nominalscaling is limited to calculate the percentage (or frequency).
Ordinal Scale
An ordinal scale rank orders the categories in some meaningful way (not only
categorizes the variables to denote differences among the various categories).
In an ordinal scale, the categories are to be ordered according to some
preferences.
Interval Scale
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
35/65
35
Petra Christian University
An interval scale allows the researcher to perform certain arithmetical
operations on the data collected from the respondents. Also, interval scale
allows to measure the distance between any two points on the scale .This
helps researcher to compute the means & the standard deviations of the
responses on the variables.
Ratio Scale
The ratio scale overcomes the deficiency of the arbitrary origin point of the
interval scale, in that it has an absolute (in contrast to an arbitrary) zero point
which is a meaningful measurement point. The ratio scale not only measures
the magnitude of the differences between points in the scale but also taps the
proportions in the differences. It is considered as the most powerful of the
four scales because it has a unique zero origin and subsumes all properties of
the other three scales to calculate the ratio of the weights of two individuals.
Table 3.1. Differentiators between Four Types of Scale
No Scale Difference Order Distance Unique
Origin
Example Tests of significance
1 Nominal Yes No No No Gender
(Male/Female)
X
2 Ordinal Yes Yes No No Doneness of meat
(well, medium well,
medium rare, rare)
Rank-order
correlations
3 Interval Yes Yes Yes No Temperature in
degrees
t-test, F-test
4 Ratio Yes Yes Yes Yes Weighing balance t-test, F-test
Source: Adapted from Sekaran and Bougie (2009, p. 146)In addition to the types of scales mentioned above, Sekaran and Bougie
(2009, p. 149) mentions ten rating scales that are often used in organizational
research, which are:
Dichotomous scale
Category scale
Semantic differential scale
Numerical scale
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
36/65
36
Petra Christian University
Itemized rating scale
Likert scale
Fixed or constant sum rating scale
Stapel scale
Graphic rating scale
Consensus scale
Out of the four possible data types (nominal, ordinal, interval, and
ratio), the writer collects numerical variables from respondents using three
types of the data, which are nominal, ordinal, and interval data categories.
Nominal data covers the questions on respondents profile, such as
gender, age through multiple choice single-response questions in all four
kinds of questionnaires being distributed. Those questions are using
dichotomous scale and category scale.
Ordinal data covers the questions asking for the surveyed item by
using Likert Scales. In this rating method, there are 5 representative
numbers, which are 1 represents Strongly Disagree (SDA), 2 represents
Disagree (DA), 3 represents Neutral (N), 4 represents Agree (A), and 5
represents Strongly Agree (SA).
Interval data covers the questions on employee development
evaluation questionnaire, related to CheckPoint 360. Unlike the Likert scale,
the scale in CheckPoint 360 will be summed for each dimension, thus it is an
interval data. In this system, 0 represents Not Applicable (not averaged into
scores), 1 represents Never demonstrates this skill, 2 represents Seldom
demonstrates this skill, 3 represents Sometimes demonstrates this skill, 4
represents Usually demonstrates this skill, and 5 represents Always
demonstrates this skill.
Furthermore, within this research, the ratio data will include the data of age
of the respondents. Meanwhile, nominal data will include the respondents profile
asked in the questionnaire, comprises of gender, occupation, level of income and
amount of gallons of water purchase per month. On the other hand, ordinal data
shows an indication of order in its characteristics. Furthermore, the ordinal data
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
37/65
37
Petra Christian University
will be shown in the questionnaire through Likert Scale. The Likert scale is
designed to examine how strongly subjects agree or disagree with statements on a
five-point scale with the following anchors: strongly disagree, disagree, neither
agree nor disagree, agree, and strongly disagree (Sekaran and Bougie, 2009, p.
152).
Strongly
Disagree Disagree Neither Agree Nor Disagree Agree
Strongly
Agree
1 2 3 4 5
Table 3.1 Likert Scale
3.3.2. Source of Data
The data used to complete the research can be classified into primary and
secondary data. Based on Sekaran and Bougie (2009, p.180), primary data is the
information obtained first-hand by the researcher on the variables of interest for
the specific purpose of the study, while secondary data is the information gathered
from sources that already exist or someone other than the researcher.
In this research, the primary data is obtained from the questionnaires
developed by the researchers and were distributed to the targeted respondents that
will be explained deeper in sampling section. There are 4 (four) types of
questionnaires developed by the researchers (attached in Appendix). First,
the researchers distributed the questionnaire to measure the evaluation of
four training components from the previous training that has been attended
by the respondents, in this case are the employees, right after they joined the
training program. Secondly, the researchers distributed the questionnaire to
measure the evaluation of employee performance after attending a specific
training program, filled by the employees as their self-assessment and also by
the supervisor to get more objective information. Third, the researchers also
distributed the questionnaire to measure the evaluation of six development
program components from the on-going development process that has been
implemented to the respondents, in this case are the employees. Fourthly, the
researchers then distributed the questionnaire to measure the evaluation of
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
38/65
38
Petra Christian University
employee performance after being developed through an employee
development program, filled by the employees as their self-assessment and
also by the people around them to get more objective information, such as
supervisor and peers, in accordance with Checkpoint 360o Feedback theory
mentioned in chapter 2.
Nevertheless, the data used in the research background, justification for the
research, and summary of relevant research are classified into secondary data,
because those were generated from the available data from existing sources, such
as text books, published journals, and websites.
3.3.3. Sampling Method
According to Sekaran and Bougie (2009), sampling process is the process
of selecting a sufficient number of the right elements from the population, so that
a study of the sample and an understanding of its properties or characteristics
make it possible for the writer to generalize such properties or characteristics to
the population elements.
In learning how representative data can be collected, according to Sekaran
and Bougie, a few terms, as described further, have first to be understood. First is
population. The population refers to the entire group of people, events, or things
of interest that the researcher wishes to investigate. It is the group of people,
events, or things of interest for which the researcher wants to make inferences
(based on sample statistics).
The second term is element. An element is a single member of the
population.
The third term is the sample. Sample is a subset of the population. Itcomprises some members selected from it. In other words, some, but not all,
elements of the population form the sample. According to Hair et al (2006),
minimum sample size is counted as five observations for each estimated
parameter.
The fourth term is sampling unit. The sampling unit is the element or set
of elements that is available for selection in some stage of the sampling process.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
39/65
39
Petra Christian University
The fifth term is subject. A subject is a single member of the sample, just
as an element is a single member of the population.
Moreover, there are two major types of sampling designs (Sekaran and
Bougie, 2009), they are probability and nonprobability sampling. When elements
in the population have a known chance of being chosen as subjects in the sample,
the writers resort to a probability sampling design. Probability sampling can be
either unrestricted (simple random sampling) or restricted (complex probability
sampling) in nature. Meanwhile, in nonprobability sampling, the elements do not
have a known or predetermined chance of being selected as subjects.
The first probability sampling type is the unrestricted or simple random
sampling. In the unrestricted probability sampling design, more commonly known
as simple random sampling, every element in the population has a known and
equal chance of being selected as a subject. Say, there are 1000 elements in the
population with a sample of 100. Suppose we were to drop pieces of paper in a
box, each containing the name of one of the elements, and draw 100 of those from
the box with eyes closed. We know that the first piece drawn will have a 1/1000
chance of being drawn, the next one a 1/999 chance of being drawn, and so on. In
other words, we know that the probability of any one of them being chosen is 1 in
the number of the population, and we also know that each single element in the
box has the same or equal probability of being chosen. When we thus draw the
elements from the population, it is most likely that the distribution patterns of the
characteristics we are interested in investigating in the population are also
likewise distributed in the subjects we draw for our sample. This sampling design,known as simple random sampling, has the least bias and offers the most
generalizability. However, this sampling process could become cumbersome and
expensive; in addition an entirely updated listing of the population may not
always be available. For these and other reasons, other probability sampling
designs are often chosen instead.
The second probability sampling type is the restricted or complex
probability sampling. As an alternative to the simple random sampling design,
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
40/65
40
Petra Christian University
several complex probability sampling (restricted probability) designs can be used.
These probability sampling procedures offer a viable, and sometimes more
efficient, alternative to the unrestricted design we just discussed. Efficiency is
improved in that more information can be obtained for a given sample size using
some of the complex probability sampling procedures than the simple random
sampling design. The five most common complex probability sampling designs
systematic sampling, stratified random sampling, cluster sampling, area sampling,
and double sampling.
For conclusion, in this paper, the writers have decided that the population
is
3.4. Analytical Method
This research will mainly utilize the Ordinal Logistic Regression, which is a
general term for several specific computational techniques. In assisting with the
statistical calculation of Ordinal Logistic Regression, this research will use PASW
Statistics 18 program.
3.4.1. Validity
According to Sekaran and Bougie (2009, p.157), it is important to make
sure that the instrument that is being developed to measure a particular concept is
indeed accurately measuring the variable, as well as the concept that we set out to
measure. Therefore to measure the goodness of the data, the reliability and
validity of the measures are then established.
Validity test is a test on how well an instrument that is developedmeasures the particular concept it is intended to measure, which is concerned with
whether the right concept is being measured. Validity test is tested by using
Cronbachs Alpha after the item deleted bigger than the original Cronbachs
Alpha if item deleted. Therefore, if the Cronbachs Alpha after the item deleted
bigger than the original Cronbachs Alpha, it means that the data is not valid.
3.4.2. Reliability
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
41/65
41
Petra Christian University
On the other hand, Sekaran and Bougie (2009) states that reliability test
is a test of how consistently a measuring instruent measures whatever concept it is
measuring, which concerns about stability and consistency of measurement.
Cronbachs Alpha is the reliability coefficient that indicates how well the items in
a set are positively correlated to one another. The closer the Cronbachs Alpha is
to 1, the higher the internal consistency reliability. In general, Cronbachs Alpha
less than 0.60 are considered to be poor, those in the 0.70 range are considered
acceptable, and those over 0.80 are good. Therefore, the Cronbachs Alpha must
be higher than 0.60 which means the questionnaire is reliable.
Table 3.. Cronbachs Alpha Meaning
Cronbachs Alpha Meaning
0.8 Good
Source: Adapted from Sekaran and Bougie (2009)
3.4.3. Descriptive Statistics Model
The writer will use descriptive statistics model to find a picture of the
center, spread, and shape of distributions as it is explained by Cooper and
Schindler (2009). Basically, it is a simple model that the writer does not have
to find the relationship between others. It is only showing the explicit
meaning.
Meanwhile, Bougie and Sekaran states that descriptive study statistics
is undertaken in order to ascertain and be able to describe the characteristics
of the variables of interest in a situation (Bougie and Sekaran, 2009). The
goal of a descriptive study is to offer to the researcher a profile or to describe
relevant aspects of the phenomenon of interest from an individual,
organizational, industry-oriented, or other perspective.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
42/65
42
Petra Christian University
Especially in the research, the writer uses the model to analyze the
respondent profile and customer loyalty level. Most of the time, the writer
will only use graph and descriptive statistics to explain the questions.
According to Jonathan Sarwono (2005), descriptive is used to know the
minimum, maximum, mean, standard deviation and the sum value. Then, the
writer will test the first hypothesis using mean value of customer loyalty. So,
if the customer loyalty level mostly lays above 2.5, it means that the customer
loyalty of Pureit through Andalan is high.
3.4.4. Normality
Normality test is one of the regression assumptions that requires the error
around the line of regression is normally distributed at each value of X. The test is
used to test whether in the regression model, the residuals is normally distributed.
In the t-test and F-test, it is a basic assumption that residual value is normally
distributed. There are two options to check the normality of the distribution which
are using the normal probability plot and histogram.
Normal probability plot compares the observed values with those expected
from a normal distribution. If the distribution is normal, the points on this plot
should fall close to the diagonal line (Cooper and Schindler, 2008, p.479). The
other option is to use histogram which is commonly used to represent data
graphically. If the data is normally distributed, then the histogram will be
described as bell-shaped.
3.4.5. Homoscedasticity
According to Hoffman (2010), homoscedasticity test is used to know
whether the regression model has consistence (same) variance of the residuals in
one observation to another or not. This consistence of variance is called as
homoscedasticity while if the variance is not consistent, it will be called as
heteroscedasticity. Good regression model is the one who has homoscedasticity.
To do homoscedasticity test, the writer can see from the scatterplot that is
provided in SPSS analysis. If the data is randomly well spread below zero (0) and
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
43/65
43
Petra Christian University
above zero (0) in Y-Axis, it shows that regression has no heteroscedasticity
situation.
3.4.6. Autocorrelation
Autocorrelation test is used to test the independence of errors which is
one of the basic assumptions of regression model. In order to do the test, Durbin-
Watson test is used, which measures the correlation between each residual and the
residual for the time period immediately preceding the one of interest.
To use the Durbin-Watson test, first compute the d value and then
compare it to the values from a special table of d values available in many
regression textbooks and on the internet. Some statistical programs provide values
from these tables as part of their output. The values in the table include an upper
limit and a lower limit based on the number of coefficients (explanatory variables
+ 1 or {k + 1} and the sample size (n). The following rules-of-thumb apply to the
use of the d values from a linear regression model:
Table 3.4. Durbin-Watson Value Meaning
D value Meaning
dmodel < dlower positive autocorrelation is present
dmodel > dupper no positive autocorrelation
dupper < dmodel < dlower the test is inconclusive
Source: Linear Regression Analysis : Applications and Assumptions (John
Hoffmann, 2010)
In other words, there is a positive autocorrelation when Durbin-Watson
value is equal to zero, while there is less likely that the model is affected by
autocorrelation if Durbin-Watson value is closer to 2.
3.4.7. Multicollinearity
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
44/65
44
Petra Christian University
One important problem in the application of multiple regression analysis
involves the possible collinearity of the exploratory variables. This condition
refers to situations in which one or more of the explanatory variables are highly
correlated with each other. In such situations, collinear variables do not provide
new information, and it becomes difficult to separate the effect of such variables
on the dependent variable.
One of the methods of assessing multicollinearity is the Variance
Inflationary Factors (VIF) for each explanatory variable which is computed by the
following formula:
If a set of explanatory variables is uncorrelated, each VIFj is equal to 1.
If the set is highly intercorrelated, then the VIFj might even exceed 10. Hoffmann
(2010) suggested that if VIFj is greater than 10, there is too much correlation
between variable Xj and the other explanatory variables and it indicates
multicollinearity happens. A multiple regression model that has one or more large
VIF values should be used with extreme caution. The model may be used to
predict values of dependent variable only in the case where the values of the
independent variables to be used in the prediction are consistent with the values
observed in the data set.
3.4.8. Multiple RegressionAnalysis
According to Sekaran and Bougie (2009), multiple regression analysis is
used when more than one independent variable to explain variance in the
dependent variable. As the descriptive tool, multiple regression is often used inthree situations. First of all, it is used to develop a self-weighting estimating
equation by which to predict values for a criterion variable (DV) from the values
for several predictor variables (IVs). Second, it is used to control the confounding
variables to better evaluate the contribution of other variables. Last of all, it is
used to test and explain causal theory. However, as the inference tool, multiple
regression is used to test hypotheses and estimate population values.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
45/65
45
Petra Christian University
In this research, since the researchers want to know the influence of
components to the outcome, multiple regression analysis will be used. So, the
equation for the multiple regression for the effect of job satisfaction to the
employee commitment framework will be:
Y1= 0+ 1X1+ 2X2+ 3X3+ 4X4+ 5X5 + 6X6 + 7X7 + 8X8 + 9X9 +
Where:
Y1 = Employee Organizational Commitment
0 = Y intercept (the value of Y when all X equals to zero)
1- 5 = Regression coefficient associated with each Xi
X1 = Pay
X2 = Promotion
X3 = Supervision
X4 = Fringe Benefits
X5 = Contingent Rewards
X6 = Operating Procedures
X7 = Co-workers
X8 = Nature of Work
X9 = Communication
= Random error in Y for observation i
Furthermore, the writers would like to use 95% of confidence level.
There is a reason behind the usage of 95 % of confidence level. It is because
one of the relevant researches, which is the research by Siew, Taiwo, Salim,Downe (2011), is actually using 99% of confidence. However, in this research,
the writer would like to use rather pessimistic approach rather than the
research of Siew, Taiwo, Salim, Downe (2011) in examining the impacts of
reliability, responsiveness, assurance, empathy, and tangible aspects on
customer loyalty. Therefore, the writers use 95% confidence level for this
research.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
46/65
46
Petra Christian University
Moreover, the outcome of the multiple regression analysis can be shown in
ANOVA table, which includes:
3.4.8.1. The Coefficients of Multiple Determination (Adjusted R Square)
The test is used to know the goodness of fit of the regression model.
Usually in the past, many researchers used R square value to analyze how far the
dependent variable can be explained by the independent variables. However, the R
square value has disadvantage of bias to total number of independent variable
inserted to the model (Ghozali, 2006, p. 83). For every addition of one
independent variable, the R square must be increased, no matter that independent
variable significantly affects the dependent variable or not. Therefore, nowadays,
many researchers switch to use adjusted R square, because unlike R square,
adjusted R square can be increased or decreased if one independent variable is
inserted into the model. Finally, the higher value means that the higher
independent variables capability to explain the dependent variable. Cooper and
Schindler mentioned that the closer it is resulted to 100 %, the better it is (Cooper
and Schindler, 2008, p. 548).
3.4.8.2. F-Test
F-test, or also called as Fisher Test, is used to know whether the
regression model is appropriate to be used for research. If the significant value is
less than 0.05, then it shows that the regression model is appropriate to be used in
explaining the dependent variable or employee outcome in this research. In other
words, the independent variables are affecting simultaneously the dependent
variable if the significance-F value is less than 0.05.
Table 3.5. F-Test Result
F-Test Result Meaning
F-value < 5% The set of independent variables has significant
relationship with the dependent variable.
Therefore, the H0 is rejected.
F-value > 5% The set of independent variable does not have
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
47/65
47
Petra Christian University
significant relationship with the dependent
variable. Therefore, the H0 is accepted.
Source: Draper and Smith (1998, p. 38)
Therefore, if the significant value of total variable is below 0.05, the
researchers will reject the H0, which mentions that training elements has negative
influence toward employee training outcomes and development elements has
negative influence toward employee development outcomes.
3.4.8.3. T-Test
T-test determines the relationship between each independent variable
with the dependent variable, using the predetermined confidence level. P-value of
an independent variable, produced by t-test has two meanings, explained by table
3.6.
Table 3.6. T-Test Result
T-Test Result Meaning
P-value < 5% There is significant relationship between that
particular independent variable with the dependent
variable. Therefore, the H0 is rejected.
P-value > 5% There is no significant relationship between that
particular independent variable with the dependent
variable. Therefore, the H0 is not rejected.
Source: Draper and Smith (1998, p. 37)
4. ANALYSIS AND RESULTS
4.1. Description of Analysis Procedure
4.1.1. Validity and Reliability of the Data
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
48/65
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
49/65
49
Petra Christian University
5. SUMMARY AND RECOMMENDATION
5.1. Summary and Conclusions
5.2. Recommendations
5.3. Limitations of the Research
5.4. Suggestion for Further Research
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
50/65
50
Petra Christian University
BIBLIOGRAPHY
Aamodt, Michael G. (2010).Industrial / Organizational Psychology: An Applied
Approach 6th ed. Wadsworth Cengage Learning
Angle, H.L. & Perry, J.L. (1981). An empirical assessment of organisational
commitment and organisational effectiveness,Administrative Science
Quarterly, 26: 114.
Cooper, D.R. & Schindler, P.S. (2008).Business Research Method 10th ed. New
York: McGraw-Hill/Irwin
Dipboye R.L., Smith C.S. & Howell W.C. (1994). Understanding Industrial And
Organizational Psychology: An Integrated Approach. Harcourt Brace
College Publishers
Draper, N.R., & Smith, H. (1998).Applied Regression Analysis ( 3rd ed.). UK:
John Wiley & Sons Ltd
Ghazzawi, I. (2008). Job satisfaction antecedents and consequences: A new
conceptual framework and research agenda,Business Review, 11(2): 110.
Ghozali, I. (2006).Aplikasi Analisis Multivariative dengan program SPSS 4th ed,
Semarang: Badan Penerbit Universitas Diponegoro
Ghozali, I. (2009).Aplikasi analisis multivariative dengan program SPSS 4th
edition. Semarang, Indonesia: Badan Penerbit Universitas Diponegoro
Semarang
Hair, J.F., et al. (2006).Multivariative data analysis 6th ed. Upper Saddle River,
NJ: Prentice-Hall
Herzberg, F., Mausner B., Synderman, B. (1959). The motivation to work. New
York: John Wiley & Sons.Hoffmann, John P.Linear Regression Analysis: Applications and Assumptions,
Second Edition (2010).
Hunt, S.D., Chonko, L.B. & Wood, V.R. (1985). Organisational commitment and
marketing,Journal of Marketing, 49: 112126.
Judge, T., Bono, J. & Locke, A. (2000). Personality and job satisfaction: The
mediating role ofjob characteristics,Journal of Applied Psychology, 85(2):
237249.
-
7/29/2019 Undergraduate thesis proposal - industrial gas company
51/65
51
Petra Christian University
Katz, D. & Kahn, R. 1978. The Social Psychology of Organizations (2nd edition).
New York: Wiley.
Kotze, K. & Roodt, G. (2005). Factors that affect the retention of managerial and
specialist staff: An exploratory study of an employee commitment model,
South African Journalof Human Resource Management, 3(2): 4855.
Lawler, E. E. (1973).Motivation in work organization. Monterey, CA:
Brooks/Cole.
Levine, D.M., Stephan, D. Krehbiel, T.C., and Berenson, M.L. (2005). Statistics
for managers using Microsoft Excel 4th ed. Upper Saddle River: Pearson
Education
Lumley, E. (2010).Exploring the relationship between career anchors, job
satisfaction and organisational commitment. Department of Industrial and
Organisational Psychology, University of South Africa, Pretoria.
Maholtra, N. K. (2010).Marketing Research: An Applied Orientation 6th ed.New
Jersey: Pearson Prentice Hall
Martins, N. & Coetzee, M. (2007). Organisational culture, employee satisfaction,
perceived leader emotional compentency and personality type: An
exploratory study in a South African engineering company, South African
Journal of Human Resource Management, 5(2): 2032.
Mathieu, J. & Zajac, D. 1990. A review and meta-analysis of the antecedents,
correlates and consequences of organizational commitment,Psychological
Bulletin, 108(2): 171194.
Meyer, J. & Allen, N. (1991). A three component conceptualization of
organisationalcommitment,Human Resource Management Review, 1: 61 -
89.Meyer, J.P., Allen, N.J. (1993). Commitment to organizations and occupat