The following chapter discusses the background of the study, statement of the problem, purpose, significance and delimitations of the study. Moreover, it also includes the definition of terms.
Background of the Study
During the past two decades the globalization process has been inevitable and dynamic.
The world has become a place that is moved by constant changes. Consequently, all the economies and organizations have to reinvent themselves constantly in order to compete to gain an important position at this nowadays competitive world. Therefore, currently on the worldwide economy nothing stays as the same for a long period of time.
Due to the globalization process many countries in the world begin to remove and reduce the borders between them with one important objective in mind: develop their country’s economies. In order to compete with the rest of the world Latin America started promoting and emitting laws with the aim to attract foreign investors all this as part of the whole globalization process (Honduran Manufacturers Association, 2007). As a result, of all the different benefits for the national and foreign investors a space was opened and this gave the impulse to create the Maquila Industry. Maquiladora or maquila is a factory that imports all the materials and machinery using the benefits of a duty-free and tariff-free basis and then assembly or manufactures the products using low-priced labor hand and then re-exports the assembled product; generally back to the originating country (Maquiladora, 2011).
Honduras is a country located in Central America and in here the Maquila Industry raised up when the government approved diverse laws which give to all the companies’ in the entire national territory several benefits that include tax exemptions (Central Bank of Honduras, 2001).
The Maquila Industry in Honduras has been an important tool or element in the battle to lower the unemployment rate of the Honduran population (Central Bank of Honduras, 2005). This industry generates more than 106, 695 jobs, also it has to be highlighted that the manufacturing industry represents a 17.3% of the total economic activity of Honduras (Central Bank of
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Honduras, 2009). As a result, in overall more than a half million of people are benefited without counting on the indirect jobs that the Maquila industry has generated (Honduran Manufacturers Association, 2007).
Moreover, the globalization process has also established other type of changes for example new and different work demands, a new level of workload and diverse job complications for the employees in the organizations (Safaria, Othman & Abdul, 2011). Along with those changes, the concept of work stress is mentioned more often on the organizations. On the different literature review there are different studies that discuss how to manage the stress situations on the workplace (eg, Ornelas & Klainer, 2003;Ongori & Agolla 2008).
There is a previous research on the stress on women that work in the basic level of the production department at the Maquila Industry. The results show that they are exposed to high work rates and in addition, they have to handle the pressure of reaching high production targets (Ledesma, Pulido & Villegas, 2009). Moreover, another previous study by Martinez and Chang (2011) the findings show that there are role conflict issues that middle managers at the production department on the Maquila Industry in Honduras face. This study makes reference to the elevated amount of pressure that this managers face because everybody has high expectations on their functions and due to their managerial positions. Hence, they have to satisfy the expectations from the whole staff of the production department.
On the other hand, organizational commitment is a concept which also has become an important issue for the organizations. According to Allen and Meyer (1996) organizational commitment is “a psychological link between the employee and his or her organization that makes it less likely that the employee will voluntarily leave the organization” (p.252). Moreover, Martinez and Chang (2011) in their qualitative study findings mentioned that some of the middle level managers who work in the production department of this industry in Honduras use the commitment they have toward their organizations as a strategy to handle the situations with a lot of work demands and stress. In fact, many studies have analyzed the relationship between work stress and organizational commitment (Bersamin, 2006; Khatibi, Asadi & Hamidi, 2009;
Michael, Court & Petal, 2009; Schmidt, 2007; Vakola & Nikolaou, 2005; Ziauddin, Khan, Jam
& Hijazi, 2010). Different studies had some points in common but there were a few differences on the findings about the relationship of these two variables among some of these studies.
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Firstly in the relationship between overall stress and affective commitment, the research of Michael, Court and Petal (2009) and Khatibi, Asadi and Hamidi (2009) pointed out a negative correlation between the two variables. In contrast, Ziauddin, Khan, Jam and Hijazi (2010) found a significant and positive relationship between stress and affective commitment.
Secondly, regarding overall stress and continuance commitment there are some differences as well. Initially Michael, Court and Petal (2009) and Ziauddin, Khan, Jam and Hijazi (2010) presented a positive and significant relationship between stress and continuance commitment. On the other hand Khatibi, Asadi and Hamidi (2009) showed a negative and no significant correlation between stress and continuance commitment.
Thirdly, Ziauddin, Khan, Jam and Hijazi (2010) indicate a positive and no significant relationship between stress and normative commitment. On the contrary, Michael, Court and Petal (2009) and Khatibi, Asadi and Hamidi (2009) who presented a negative correlation among stress and normative commitment.
Finally, Ziauddin, Khan, Jam and Hijazi (2010) found a positive relationship between stress and organizational commitment but in contrast, Khatibi, Asadi and Hamidi (2009) indicated a negative relationship between stress and organizational commitment.
The results of the existing literature showed uncertain relationship between stress and organizational commitment. Therefore, this study considered to include another possible factor
as the moderator of the relationship between stress and organizational commitment.
In this study, personality is selected as the moderator.
The literature review has mentioned how the positive personality traits of the employees exercise a positive influence on organizational commitment (Chang & Lee, 2006). In addition, another research based on the Big five factor model showed that the personality traits conscientiousness was a strong predictor for work commitment and as well, with less strength act as predictors: agreeableness and extroversion, but their results point out that openness to experience was not significantly influent on work commitment (Naquin & Holton, 2002).
Moreover, it has been stated that the personality of each person is decisive to define the effective or ineffective manner that the individual has to face the stress of his/her daily activities at the organization (Srivastava, 2009). Furthermore, one of the Big five dimensions is the emotional stability which has been define as being confident, relax , stable, ability to handle
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stress (Mount & Barrick, 1998; Sawyerr, Srinivas & Wang, 2009; Ulu & Tezer, 2010).
Therefore, there seems a connection between the personality and the way the individuals handle the work stress situation on the work place.
In general, despite of the background that the different literature reviews has given for the three variables: work stress, organizational commitment and personality, there is still a gap to fill in the existing literature. There are three important facts that have to be highlighted. Firstly, the little research on the employees of the production department that work on the Maquila Industry in Honduras has indicated that work stress is an issue among these employees and also, that the employee’s performance is affected by it (Martinez & Chang, 2011).Moreover, regarding employee commitment as given some evidence about the relationship with work stress.
Therefore, there is previous proof of the influence of these variables on the employees. However, it is necessary to have a study that focus on the relationship of these variables in order to make a more profound analyzes. Secondly, based on the literature review have been show slightly differences between the findings on the relationship between work stress and organizational commitment. Finally, the literature review has indicated a connection between personality and work stress and also, personality with organizational commitment. However, there has not being analyzed the moderating effect of personality on the relationship between work stress and organizational commitment.
Hence, in order to fill such a gap the purpose of this research is to examine the relationships between work stress and organizational commitment and the moderating effect of personality more in deep on the employees of the Maquila Industry that work at the production department. This aims to provide more information about the relationship between the three variables. In addition, it will study the Maquila industry which even though of its importance for the Honduran economy, still the research on it is really limited.
Statement of the Problem
The 17.3% of the economic activity of Honduras corresponds to the Maquila Industry and as part of this contribution generates 106,695 jobs for the Honduran population. (Central Bank of Honduras, 2009). Moreover, about half million of people are benefited without counting the generation of indirect jobs (Honduran Manufacturers Association, 2007). Hence, there is a big amount of the Honduran population that is influenced by the Maquila Industry.
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Even though, the data expressed on the literature review shows the importance of the industry there is only limited research on the employees of this industry. Furthermore, the study by Ledesma, Pulido and Villegas (2009) showed that the female workers at the basic level (84%) of the production departments have high stress level. These findings match with results of the study done by Martinez and Chang (2011) where the middle level managers of the production department experiment stress in their workplace. However, they made reference that these managers use the commitment that they have toward their organization as a strategy to handle those situation under a lot of stress. Hence, the existing literature review has indicated some signs of the existence and importance of these variables still there is not enough literature review to analyze in depth this issue. Consequently, there is a need of more research on this industry in order to contribute to the field showing the real situation of the Maquila Industry.
Moreover, as it was mentioned previously on the study background and based on the literature review it can be shown the importance of the Maquila industry and also, it evidences that there are important issues as work stress and organizational commitment that should be study more in deep. Hence, there is a need of more studies on the Maquila Industry due to its importance for the Honduras economy. In addition, there is also a need of carrying out more examination in the relationship between work stress and organizational commitment because the literature has presented a few slightly differences on previous research findings. Thus, this study can contribute to do more analysis and compare with the previous findings. Furthermore, personality has shown a connection with organizational commitment and also, the literature review mentions its connection with work stress. However, despite of the evidence of some connection, still has not been analyzed the mediating effect that personality has on the relationship between work stress and organizational commitment. In addition, it has to be mentioned that there is no previous study on how the personality of the employees in the Maquila Industry moderates their work stress situations and organizational commitment relationship. Thus, based on everything mentioned above it is necessary to conduct more research on this important industry using these three key variables: work stress, organizational commitment and personality.
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Purpose of the Study
The previous little research on the Maquila Industry has made evident the presence of work stress and importance of the work commitment to handle the work stress situations (Ledesma, Pulido & Villegas, 2009; Martinez & Chang, 2011). Due to that evidence the purpose of this study is to contribute to the research of the employees of this important Industry in Honduras. Therefore, in order to help the organizations to improve the aim is to study the work stress, organizational commitment and personality of the employees that work in the production department at the Maquila Industry in Honduras.
Based on all the mentioned before the purpose of this study is to:
Analyze the relationship between work stress and organizational commitment.
Analyze the moderator effect of personality on the relationship between work stress and organizational commitment.
Significance of the Study
The Maquila Industry has done an important contribution on the improvement of the unemployment rate of the Honduran population and moreover has a significant participation 17.5% on the total economic activity of Honduras (Central Bank of Honduras, 2005; Central Bank of Honduras, 2009). Regardless of the influence and importance that this industry has on the Honduran economy, still the research using as an object of analysis the employees that work on the production department of this important industry is really limited. However, the little research has given evidence of the presence of work stress and organizational commitment but there is no study that have had analyze the importance of the personality of the employees how this one influences their level of work stress and their commitment toward the organization.
Hence, this study has the objective to contribute and give more information about the relationship between work stress and organizational commitment and how these ones are influenced by the personality of each individual.
This will help to the organizations of the Maquila Industry to know more in deep the real situation of the employees at the production department and this can lead them to make the
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necessary changes. These changes are expected to make a positive impact on the efficiency of the production area.
Delimitations of the Study
This research focuses on three main variables: work stress, organizational commitment and personality. Firstly, work stress is covered analyzing three factors: role conflict, role ambiguity and role overload (Griffin & Moorthead, 2010). On the other hand organizational commitment is also based on three main aspects: affective commitment, continuance commitment and normative commitment (Allen & Meyer, 1996). Moreover, the personality is based on the Big Five Factor model: conscientiousness, agreeableness, emotional stability, extraversion and openness to new experience (John & Srivastava, 1999).
The aim of the study is analyze the three main variables with the selected dimensions on each of them in the employees that work at the production department of the Maquila Industry at Honduras specifically on the textile and car-harness electronic sectors.
Definition of Terms
Maquila: is a factory that imports all the materials and machinery using the benefits of a duty-free and tariff-free basis and then assembly or manufactures the products using low-priced labor hand and then re-exports the assembled product; generally back to the originating country (Maquiladora, 2011).
Work Stress: stress is an individual’s reaction to a stimulus that causes excessive psychological or physical demands on that individual. For this research the work stress is operational analyzed through the type of roles: role conflict, role ambiguity and role overload (Griffin & Moorthead, 2010).
Organizational Commitment: is the extent to which the employees feel identify and committed to an organization and its goals ( Zain & Gill, 1999). This feeling of identification to the organization is operational focused on three types of commitment: affective, continuance and normative commitment (Allen & Meyer, 1996).
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Personality: personality can be defined as the group of characteristics of an individual that illustrate and explain the consistent patterns of feeling, cognition and behaving (John, Robins & Pervin, 2008). This study analyzes the personality using the Big Five Personality Traits (John & Srivastava, 1999).
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