College of Management
I-Shou University
Master Thesis
The relationship of Perceived Organizational
Support, Job Satisfaction and Turnover Intention
The moderating role of Organizational Reputation
Case study of Formosa Ha Tinh Steel, Vietnam
Advisor:
Dr. Yu-Chen Lan
Dr. Wanching Chang
Graduate Student: Hoang Le Tuyet Van
(Vivan)
Acknowledgement
I am truly thankful to all of those who have supported and encouraged me during my master program at I-Shou University. Firstly and foremost, I would like to thank Dr. Yu Chen Lan and Dr. Wan-Ching Chang who helped me from the beginning implementation of the proposal and continuing guided and supported me toward the thesis completion throughout two semesters. I have no word to express how much my appreciation for them. Without their guidance and persistent help, I would never achieve the aim of my study.
I am also extremely grateful to my committee members Dr. Grace, Dr. Isabel and Dr. Abby for being a constant source of knowledge, encourage and give me a plenty of valuable suggestions to my research.
Last but not least, I would like to express my extremely sincere gratefulness to my parents, my sisters, brothers and beloved friends who always being my side, support me unconditionally and inspire me to keep going toward.
Abstract
This study investigates perceived organizational support (POS), job satisfaction to turnover intention and examines whether organizational reputation is a moderator for job satisfaction and turnover intention of Vietnamese employees with the case study of Formosa Ha Tinh Steel. This is quantitative research, data is collected from survey 271 employees from Formosa Ha Tinh Steel company, then be analyzed by SPSS 22.0 system. The relationship of POS and job satisfaction to turnover intention are addressed, additionally, explore how important influence of positive feeling of job, organizational reward practices and fairness treatment perceived on keeping employee embed to their job, finally figure out the organization with “bad reputation” can effect to employee intention to quit although they have high job satisfaction.
Keywords: job satisfaction, perceived organizational support, turnover intention,
Table of content
Chapter 1 INTRODUCTION ... 1
1.1 Research Background ... 1
1.2 Problem Statement and Research Objectives ... 2
1.3 Research Significance ... 5
Chapter 2 LITERATURE REVIEW ... 6
2.1 Job satisfaction ... 6
2.1.1 Definition ... 6
2.1.2 Dimension and the role of job satisfaction ... 6
2.2 Perceived organizational support (POS) ... 7
2.2.1 Definition ... 7
2.2.2 Dimension of POS ... 8
2.2.3 The role of POS on job satisfaction ... 8
2.3 Turnover intention ... 9
2.3.1 Definition ... 9
2.3.2 Dimension and the role of turnover intention ... 9
2.4 Job satisfaction and turnover intention ... 10
2.5 POS, job satisfaction and turnover intention ... 10
2.6 Organizational reputation ... 11
2.6.1 Definition ... 11
2.6.2 Dimension and the role of organizational reputation ... 12
2.7 Organizational reputation, job satisfaction and turnover intention ... 12
2.8 Conceptual framework ... 14
Chapter 3 METHODOLOGY ... 15
3.1 Research Design ... 15
3.2 Sample and Data Collection ... 16
3.3 Instrument Development ... 16 3.4 Measurement ... 17 3.4.1 Independent variable ... 17 3.4.2 Mediator variable ... 18 3.4.3 Moderator variable ... 19 3.4.4 Dependent variable ... 20 3.5 Pretest ... 21 3.6 Data Analysis ... 21
Chapter 4 DATA ANALYSIS AND RESULTS ... 22
4.1 Demographic characteristic ... 22
4.2.1 Reliability Analysis ... 23
4.2.2 Scale Descriptive Statistics... 26
4.2.3 Exploring factors analysis ... 28
4.2.4 Analysis Pearson Correlation Coefficient ... 32
4.3 Result of Hypotheses Testing ... 35
4.3.1 Results on direct antecedent of job satisfaction, turnover intention ... 35
4.3.2 Mediating regression analysis of Job Satisfaction ... 36
4.3.3 Moderating regression analysis of Organizational Reputation ... 38
4.4 Comparing the demographic characteristic to POS and turnover intention ... 40
4.4.1 Testing demographic characteristic effect to POS ... 40
4.4.2 Demographic characteristic effect to Turnover intention ... 40
4.5 Research Summary ... 42
Chapter 5 CONCLUSIONS AND RECOMMENDATIONS ... 44
5.1 Conclusions ... 44
5.1.1 POS and Job Satisfaction ... 44
5.1.2 Turnover Intention ... 45
5.2 Practical Contributions ... 46
5.3 Limitation ... 47
5.4 Recommendations for further research ... 47
Appendix 1 ... 53
Timeline of Formosa Ha Tinh Steel, Vietnam ... 53
Appendix 2 ... 55
English Questionnaire ... 55
Appendix 3 ... 59
List of Tables
Table 3.1Perceived Organizational Support Scale ... 18
Table 3.2 Job Satisfaction Scale ... 19
Table 3.3 Organizational Reputation Scale ... 19
Table 3.4 Turnover Intention Scale ... 20
Table 4.1 Descriptive statistics of Age, Kids ... 22
Table 4.2 Frequency statistics of Gender, Marital Status, Education, Working time ... 23
Table 4.3 Cronbach’s Coefficient Alphas ... 23
Table 4.4 POS Item-Total Cronbach’s Coefficient Alpha Statistics ... 24
Table 4.6: KMO and Bartlett's Test of POS ... 29
Table 4.7 POS’ Factor Analysis Result ... 30
Table 4.8 Mean, Standard Deviation and Correlations ... 34
Table 4.9 Regression analysis results of direct antecedent on Job Satisfaction, Turnover Intention ... 35
Table 4.10 Regression analysis results of Job satisfaction mediating ... 37
Table 4.11 Results of Organizational reputation moderating role ... 38
Table 4.12 One-way ANOVA result comparing POS level by working experience ... 40
Table 4.13 One-way ANOVA result comparing Turnover intention level by Kids ... 41
List of Figures
Figure 1.1 Vietnam voluntary turnover trend 2010-2015 ... 1
Figure 2.1 Conceptual framework ... 14
Figure 3.1 Proposed Methodology ... 15
Figure 4.1: Revised research framework ... 31
Chapter 1
INTRODUCTION
Chapter one describes the background of the study problem, introduces Formosa HaTinh Steel Vietnam and outline an important and significance for further research in turnover intention affecting of POS, job satisfaction and organizational reputation with research questions and research objectives.
1.1 Research Background
In recent years, Vietnam has strong economic growth with the workforce has continued to expand then resulting in the rise in competition within job market and the rate of turnover at many companies is increasing. There is an enormous brain drain problem in reality, especially highly skilled employees, they have been leaving state organizations to work for private and foreign companies. Although the levels of Vietnamese employee engagement is higher than Asia Pacific Region, the level of employee intent to stay is lower (Ruge, 2011). In fact, it is not unusual to see Vietnamese applicants who have worked at a multitude of companies over a short span of time (Lacey & Hoang, 2014)
Figure 1.1 clearly described a turnover trend in Vietnam recently. The 2015 voluntary staff turnover rate of well- established multinational companies (MNC) is higher than 2014 and slightly increasing from 2013 due to the gradual economic recovery. Although, the staff turnover rate of Local companies in 2015 is slightly lower than 2014 the average voluntary staff turnover rate of local companies was higher than MNCs 17.0% compared with 13.7% (Talentnet, 2016)
According to senior employment trends survey, conducted by the domestic online network in 2013, the turnover rate among senior-level workers is growing by 54 percent of 3,361 white-collar workers reported they were unsatisfied with their current jobs and want to change. 82.2 percent of respondents have participated one to three online networks in Viet Nam and foreign to seek for job opportunities (Việt Nam News, 2013). Another survey has revealed Vietnamese employee usually concerned about business reputation, stable working environment, and good developing opportunities not only big enterprises to settled down (Anphabe, 2016)
In this case, job satisfaction and the perceived how each company evaluates employee's performance has been confirmed to be important factors to organizational survival and development. An organization has employees who are satisfied and feel valuable within their workplace are likely to be productive workers and embedded with their job. So the effective management of employee job satisfaction and organizational practices are crucial factors to decrease employee turnover intention of organizations. Furthermore, to have an adequate evaluation of the value, the attitude of employees before making decision to quit a job, perspective of external factor related to organizational such as how external people evaluate their organization, a positive or negative external reputation of organization which are trusted and assessed favorably or not by outsider should be considered. The reality seems like different with the idea that all occupations and organizations are equally valuable. People tend to judge someone by the organization where he or she works, rather than the person per them, especially,
in Vietnamese culture people pay a lot of attention in social status and treat each other by judging their occupation. Working for an organization with a favorable reputation maybe can enhance social identification and employee satisfaction then keeps them continue to stay with their job but will the turnover intention of those people whose work for “bad company” and has been unfavorable judged by external society get affected even though they are satisfied with their job? This study will investigate the real case from Formosa Ha Tinh Steel, Vietnam to know the answers.
In an overall view, Vietnam is a rare regional market enjoying a strong rise due to a number of factors which are mostly driven by foreign investments, at least in the country’s large economic sectors like construction, mechanical engineering, processing and steel industries. The booming Vietnamese market for steel products is one of the most interesting markets in Asia, except China. In 2015 apparent steel consumption in Vietnam reached 18.5 million ton, surging by an unprecedented 30%. Construction is the main steel-consuming sector in the country amid its strong increase over recent years. In 2016 the consumption is expected to add around 8% coming to 20 million ton but the figure is still much higher than in other SE Asian countries. The rapidly growing demand for steel and favorable investment climate are opening opportunities for a number of international steel companies, especially from Asia, to invest in their business in Vietnam. (Andrey, 2016)
Formosa Ha Tinh Steel Corporation is a Taiwanese company that formed in June 2008 to establish a large iron and steel making plant at a deepwater port in Ha Tinh, Vietnam and started acting on 2016. That is currently the biggest foreign direct investment (FDI) project in Vietnam which has the capacity to get about 200 thousand tons vessels and the labor needed from related enterprises up to 100 thousand people (Tuoitrenews, 2015). In the as same case with any foreign companies, Formosa Ha Tinh Steel aspires to dominate their industries and market so need to attract and retain a talented employees pool with offer high salary, good working environment, many attractive benefits to help them satisfied and stay long over with their job.
But they have been become “bad company” from a mass fish poisoning in the sea near off the Vietnam coast in April, 2016 with an estimated 100 tonnes of dead fish washed ashore along more than 200 km (125 miles) of Vietnam’s central coastline include four affected provinces Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue (Theguardian, 2016 ). This disaster happens because the waste from Formosa containing toxins such as cyanide and carbolic acids was directly released into the sea during a test run of the plant. Formosa admitted it and has pledged $500 million to clean up the environment and compensate affected people from June 2016 but the consequence they have done with Vietnam citizen, environment, fishing, tourism industries … still can’t heal, it has been a lot of anti-Formosa protests in Hanoi, Ho Chi Minh City, Ha Tinh and now Formosa becomes a “black name” company in Vietnamese people concept (see Appendix 1).
1.2 Problem Statement and Research Objectives
Because of “people” component has become the most important predictor of organizational success and organizations with talent pool will have a competitive advantage (Brown et al., 2003), so improved understanding of the psychological process underlying employee satisfaction, make them elicit commitment, superior performance and prevent them from fostering withdrawal and turnover cognitions from organization become more and more important in management.
Based on these concerning above there are the questions addressed in this research: (1) How does POS affect job satisfaction?
(2) How does job satisfaction affect turnover intention?
(3) What is the relationship between POS, job satisfaction and turnover intention? (4) How does organizational reputation influent job satisfaction and turnover intention? The researcher investigates Formosa Ha Tinh Steel case to achieve some purposes below:
(1) Exploring the role of perceived organizational support to job satisfaction (2) Examining the impact of job satisfaction on turnover intention
(3) Figuring out how perceived organizational support affects turnover intention through employee job satisfaction.
(4) Figuring out the moderate effect of organization reputation on job satisfaction and turnover intention process.
1.3 Research Significance
This study enhances theoretical understand of turnover intention and expands the current knowledge in several ways. Firstly, it brings tentative explanations as for how perceived organizational support and job satisfaction influence to turnover intention by using social exchange theory, that elucidates the manner how employee perceive their organizational support through the mediating effect of job satisfaction to predict the intention to quit a job. Furthermore, working for an ill-reputed organization can lead to discomfort and decrease self-esteem then potentially lead to withdrawing. So secondly, one of the most important external aspects is organizational reputation which is examined in this study by using Formosa Ha Tinh Steel case in Vietnam to assess its influence on intending to make withdrawal decisions of the employees.
Through the research, the researcher wish can build a clear picture for manager understanding how important of organizational support, rewards or job conditions in order to satisfy and embed their employee with the job and understanding organizational reputation is also strongly recommended when it comes to preventing valuable employees from going brain-drain by making them feel proud of being part of the company.
Chapter 2
LITERATURE REVIEW
This part describes a theoretical concept background of the variables of this study include POS, job satisfaction, turnover intention, and organizational reputation. The definition, dimension and importance of job satisfaction, POS, turnover intention and organizational reputation with related research in this field are reviewed. In the end of a chapter, the conceptual framework of this study is presented and hypotheses are developed.
2.1 Job satisfaction
2.1.1 Definition
According to Hoppock (1977) job satisfaction is the combination of mental, psychological and environmental situations that sourced a person honestly say “I am satisfied with my job”. Job satisfaction is the quantified degree of amelioration based on employee satisfaction with company compensation, safety, and control regarding a particular work. It can be view as a combination of positive or negative feelings that workers have towards their work and the extent to which expectations are and match the real awards, also is closely linked to that individual’s behavior in the workplace that job satisfaction was stated by Nestrom (2015). As same as job satisfaction, job dissatisfaction can appear in any given work circumstances, Amstrong (2006) indicated the labeling job satisfaction point to the attitude and feelings people have refers their work. Positive and favorable attitudes towards the job indicate job satisfaction while negative and unfavorable attitudes towards the job indicate job dissatisfaction.
Actually, job satisfaction is a complex and multifaceted concept but in commonly way it can understand that the feeling and beliefs people have about their current job, it includes their attitudes about various aspects such as kind of work, coworkers, supervisors, subordinates or their paying…
2.1.2 Dimension and the role of job satisfaction
From these previous studies can derive some common characteristics about job satisfaction. Firstly, job satisfaction is the emotional reaction to job experiences. Therefore, it can be conceived only from self-observation and cannot be observed in the flesh, but can be felt from employees’ activity and lingual expression. Secondly, job satisfaction can be seen as a gap between expectation and reality regarding job experiences.
According to Herzberg (1987) employees in their working environment are under the influence of a factor that causes job satisfaction (motivator) and also has factors cause job dissatisfaction (hygiene). Hygiene factors include firm policies, supervision, working interpersonal relations, working conditions, salary, enactment, job security. Motivator factors are achievement, recognition, work itself, responsibility, advancement, growth.
In fact, job satisfaction can be looked upon as one of the main components effects to efficiency and effectiveness of business organizations. Low employee efficiency will interpret into low organization productivity; hours lost equates to money lost (Freeman et al., 2010). The logic that a satisfied employee is a happy employee and a happy employee leads to a successful employee.
2.2 Perceived organizational support (POS)
2.2.1 Definition
Perceived organization support (POS) is defined as employees’ global beliefs about the extent to which their employing organization both values their contributions and cares about their well-being (Eisenberger et al., 2011). Shapiro & Conway (2005) stated POS refers to an individual’s perception of organizational treatment regardless of whether any particular kind of treatment or implicitly promised.
2.2.2 Dimension of POS
POS is derived from social exchange theory which states that employees will trade their efforts for the promise of material and personal rewards that the organization may offer in the future (Blau, 1964; George, 2011). There are possibly two theoretically distinct elements of POS. First, the organization realized and values employee contribution as reflected tangible resources include pay, rank, job enrichment, rewards or other forms of compensation and benefits. The perceived support would raise an employee's expectancy that the organization would reward greater effort toward meeting organizational goals (Eisenberger et al., 2001; Wayne et al., 1997). The second portion of the organizational support is the belief that the organization is concerned about employee’s socio-emotional well-being. This aspect reflects perceptions of the employee with regard to organizational policies and practices pertaining to time away from work for personal circumstances or family care.
This study focuses on the first component investigate tangible resource such as fairness treatment, organizational rewards, training, promotions, or favorable job conditions of POS to evaluate how it affects to job satisfaction and turnover intention.
2.2.3 The role of POS on job satisfaction
Social exchange theory (Eisenberger et al., 1997; 2001) helps us to understand how human resource practices or organizational support influence worker job attitudes such as job satisfaction. Using the tenants of social exchange theory, organizational support would signal to employees that the organization is committed to them, which would be reciprocated by employees through positive attitudes and high commitment work behaviors. In particular, it has been posited that human resources practices lead to a higher level of POS on the part of the employee, which positively impacts organizational commitment and job satisfaction (Allen et al., 2003). He found that perceptions of supportive human resource practices or organizational support activities influenced positive POS which led to higher levels of
organizational commitment and job satisfaction and lower levels of withdrawal behaviors such as turnover. This lead to the first hypothesis statement:
H1: Perceived organizational support will positively affect job satisfaction.
2.3 Turnover intention
2.3.1 Definition
The turnover intention has been described as the last in a sequence of withdrawal cognitions, a set of cognitions including thinking of quitting and intention to search for another alternative employment (Mobley et al., 1978; Tett & Meyer, 1993). Those who intend to leave a company often have psychologically detached, less motivated and do not want to contribute effectively to the organization as they are not participating (Eisenberger, 2001; Allen & Meyer, 1991).
2.3.2 Dimension and the role of turnover intention
Turnover process models focused on how people quit, while content model focuses on why stated by Maertz & Campion (2004). Based on process models, employees are not satisfied with their work, think about quit, seeking better jobs, formed the intention to quit and then finally quit. Such employees hold conditional plan to quit, but do not constitute a final decision until they realize that the conditions specified were satisfied. To retain talent, it is important managers to prevent the implementation of this intention so managers need to understand why their staff intention to quit a job. In considering why people leave their job, Maertz & Campion (2004) emphasizes the eight dynamics the force of attachment and withdrawals namely: emotional, contracts, components, replace, compute, regulations and moral behavior.
2.4 Job satisfaction and turnover intention
People who are dissatisfied with their jobs want little to do with them - it means they go out of their way to minimize the extent to which they are involved with the job. This process is known as employee withdrawal, which two major forms are absenteeism and voluntary turnover (Greenberg, 2011)
The most extreme form of employee withdrawal is quitting out of place they work, ending the employee-employer connection that is referred from turnover intention to voluntary turnover. Research showed 8 key-reasons reveal why the employee left their job related to effective- do not enjoy the job or experiences, contractual, constituent, alternative, calculative - believe future with the organization will beunpleasant, normative, behavioral and moral (Maertz & Campion, 2004). When we review carefully that reasons make the employee quit we noticed that some have direct expressions of job dissatisfaction. In other words, low level of job satisfaction is associated with high level of intention to quit. The next hypothesis of the study is proposed to the effect of job satisfaction on turnover intention as below:
H2: Job satisfaction will be negatively related to turnover intention
2.5 POS, job satisfaction and turnover intention
Social exchange theory also addresses the psychological processes underlying the consequences of POS (Rhoades & Eisenberger, 2002). Based on the reciprocity norm, POS is expected to create employees’ feelings of obligation to care about the organization’s welfare and to help it reach its objectives. Furthermore, they proposed that the caring, approval and respect connoted by POS should fulfill employees’ socio-emotional needs, leading them to incorporate organizational membership and role status into their social identity. This reciprocal relationship brings benefits for employees and the organization. Employees can increase their job satisfaction and positive mood, while the organization can achieve increased
performance and reduced turnover (Rhoades & Eisenberger, 2002).
Many researchers have endeavored to conceptualize and gain a better understanding about POS that has been found to have important consequences employee performance, well-being then also can affect to job satisfaction (Shore & Shore, 1995; Rhoades & Eisenberger, 2002; Biswas & Bhatnagar, 2013). Research shows when an employee perceives organizational support, it strengthens his/her cognitive and emotional evaluation of his/her job and organization (Byrne & Hochwarter, 2008). In higher level of POS, employees may exploit more their abilities were no threat to their self-esteem, social standing or occupation. They also can make better sense of job, experience healthier interaction with co-workers, "throw" themselves and embed themselves with their job. Other previous researchers revealed that affective commitment, job satisfaction partially mediated the relationship between perceived support and turnover intention with who perceived being supported, being satisfied with their jobs being committed to the organization, feel highly satisfied and seem like they less be harboring intentions to leave the organization. (Maertz & Campion's, 2004; Firth et al., 2003), so in the light of these empirical studies the next hypothesis is proposed below:
H3: Job satisfaction will mediate the relationship between POS and turnover intention
2.6 Organizational reputation
2.6.1 Definition
“A reputation is the set of meanings by which a company is known and through which people describe, remember and relate to it. It is the net result of the interaction of a person’s beliefs, ideas, feelings and impressions about the company. A company will not have a reputation- people hold reputations of the company” that stated by Dowling (1986). According to Fombrun & Rindova (1998) organization reputation are a collective representation of a firm's past actions and results that describe the organization's ability to deliver both internally with employees and externally with its stakeholders in both its
competitive and institutional environments.
2.6.2 Dimension and the role of organizational reputation
At the enterprise level, good reputation brings more positive benefits and afflicts smaller punishment (Pfarrer et al., 2010). At the individual level, good corporate reputation has been proven to help employees form the organizational identity, devote more effort to their work and experience a higher level of job satisfaction (Martins, 2005)
Berens & van Riel (2004) stated the concept of corporate reputation can be classified into three main concepts. The first emphasizes social expectations and suggested that the company's reputation reflects a summary of assessment or evaluation of actions and achievements. The second is the difference corporate personality traits that people attributed to companies. The last is an approach based on trust which shows the prestige as the foundation for others to trust the organization. According to Richardson & Bolesh (2002) the most admired organization use “a combination of corporate social responsibility, vision and leadership, financial performance, products, and services…to build and maintain their image” In Formosa case, the research follows the mainstream of prestige and reputation of the companies considered as an overall judgment of the stakeholders over time based on social expectation with the main aspect is social responsibility reputation.
2.7 Organizational reputation, job satisfaction and
turnover intention
Current studies use social identity theory to explain reputation effects on employees that refer to one’s perception of belongingness or oneness with a group, where the individual defines himself or herself in terms of the organization in which she or he is a member (Ashforth & Mael, 1989). Outsiders tend to identify employees with what ‘their’ organization stands for based on the organization’s reputation (Carmeli, 2004). Then organizational reputation may partly define organizational outsiders’ view of the organization’s employees
and subsequently, determine organizational insiders’ meta-stereotype. It means how employees think outsiders see them, may be consistent when considering employment concerns given the public focus on and declining trust and respect in companies (McWilliams & Siegel, 2001) that can lead to decreased self-esteem, discomfort, embarrassment, potentially triggering the decision to leave the employer (Cable & Turban, 2003).
In Formosa Ha Tinh Steel case, social responsibility reputation recently is the main factor building up Formosa reputation in Vietnamese people mind and it is not in advantage way… 70 tonnes of dead fish washed ashore along more than 200 km (125 miles) of Vietnam’s central coastline include four provinces Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue (Theguardian, 2016) make a huge consequence for Vietnam citizen, environment, fishing, tourism industries lead creating one ill-reputed Formosa image in this time.
That would be pride being part of an organization with a favorable external reputation because employees can enhance social identification and satisfaction then potentially strengthening the bond between employee-employer relationship (Carmeli, 2004). In contrary, case of Formosa Ha Tinh’ employee, the bad reputation of their company may cause embarrassment, discomfort, decrease self-esteem, affect to their pride and satisfaction before, finally may make them think about plan to leave a job, in other words, organization reputation would be affect to job satisfaction and turnover intention process, then the last hypothesis is stated below:
H4: Organizational reputation will moderate the relationship between job satisfaction and turnover intention.
2.8 Conceptual framework
The conceptual framework of this study can be seen in Figure 2.1 below:
Figure 2.1 Conceptual framework
Overall, there is a list of hypothesizes will be tested in this study
H1: Perceived organizational support will positively affect job satisfaction. H2: Job satisfaction will be negatively related to turnover intention
H3: Job satisfaction will mediate the relationship between POS and turnover intention H4: Organizational reputation will moderate the relationship between job satisfaction
and turnover intention.
POS Turnover Intention Organizational Reputation Job Satisfaction H1 H3 H2 H4
Chapter 3 METHODOLOGY
This chapter discusses the research design and methodology is used to test the hypotheses developed in chapter two. Firstly, presents the study design which includes process and strategy to conduct the research, sampling and survey data collection. Secondly, describes the measures will be used in the study, which consists of dependent, independent, mediating and moderating variables and lastly outline instrument development, a pretest, and data analysis procedure.
3.1 Research Design
This study uses quantitative research associated with deductive approach and survey research strategy to test the hypotheses. After a pretest 5 knowledge respondents, a survey will conduct by Vietnamese questionnaire in two ways to send the self-completed questionnaire and approach a respondent include: deliver by hand to each respondent and via the internet with soft-version then SPSS statistics system will be used to analyze collected data. A figure below shows the steps of this thesis writing procedure:
3.2 Sample and Data Collection
The intended participants in this study are Formosa Ha Tinh Steel employees in from different departments and different hierarchical levels. They are female or male, are official staffs and for more than have been working in this company one year. The researcher uses non-probability samples with convenience-sample sampling method to reach voluntary respondents.
The self-completed questionnaire will be delivered to Formosa employees by 2 ways, firstly using a hard-copy version to directly approach respondents working for this company and meantime live in Ha Tinh province; secondly a soft-copy version will be sent via the internet through email with invitation mailing, social network and friends network also are used to reach target respondents. The sample size of this research minimum is 250 respondents.
3.3 Instrument Development
The original questionnaire is developed in English, the researcher will translate it to Vietnamese. The complete questionnaire includes 3 parts (see Appendix 2). In the first part, a brief introduction of this research is made with the main idea, the purpose of this research will be described. Demographic questions will be included in second part. In the previous study, age, gender, marital status, tenure and number of children have proven influence to Vietnamese employee embedded and turnover (Nguyen, 2010) therefore those factors are served as the controlled variables affect to turnover intention process in this study. The third part is the main section consists of questions about perceived organizational support, job satisfaction, organizational reputation and turnover intention, the measurement scale and questions of these 4 variables are clearly described in the next paragraphs.
3.4 Measurement
The complete questionnaire includes 3 parts: introduction, demographic and main question. A total number of main question part is 32 in below:
Variables No. of items Sources PERCIEVED ORGANIZATIONAL SUPPORT 17
Survey of Perceived Organizational Support (SPOS) with 17 items version developed by Eisenberger, et al. (1986)
JOB
SATISFACTION 6
Six-item ranging taken based on job description index (JDI) by Riordan, et al. (1997).
ORGANIZATIONAL
REPUTATION 6
2 pillars questions include social environment responsibility and emotional appeal developed by Fombrun et al. (2000)
TURNOVER
INTENTION 3 Scale developed by Meyer et al. (1993)
3.4.1 Independent variable
The independent variables in this study is Perceived organization support (POS) is measured by Survey of Perceived Organizational Support (SPOS) with 17 items version – the highest loading items of the originally 36-item developed by Eisenberger, et al., (1986) on 5-point Likert scale from “Strongly disagree” to “Strongly agree”. The POS scale items can be found in Table 3.1
Table 3.1Perceived Organizational Support Scale
1. The organization values my c ontribution to its well -being
2. If the organization could hire someone to replace me at a lower salary it would do so.
3. The organization fails to appreciate any extra effort from me 4. The organization strongly considers my goals and values. 5. The orga nization would ignore any complaint from me
6. The organization disregards my best interests when it makes decisions that affect me
7. Help is available from the organization when I have a problem 8. The organization really cares about my well -being.
9. The organization is willing to extend itself in order to help me perform my job to the best of my ability
10. Even if I did the best job possible, the organization would fail to notice.
11. The organization is willing to help me when I need a special favor 12. The organization cares about my general satisfaction at work.
13. If given the opportunity, the organization would take advantage of me 14. The organization shows very little concern for me.
15. The organization cares about my opinions
16. The organizat ion takes pride in my accomplishments at work 17. The organization tries to make my job as interesting as possible .
3.4.2 Mediator variable
Job satisfaction will be measure by using Six-item ranging on a 5-point Likert scale from “Extremely dissatisfied” to “Extremely satisfied” which items were taken based on
job description index (JDI) by Riordan, et al.,(1997) in the table below:
Table 3.2 Job Satisfaction Scale
1. How satisfied are you with the nature of the work you perform? 2. How satisfied are you with your organization supervisor?
3. How satisfied are you with your relations with your coworkers or peers? 4. How satisfied are you with the pay you receive for your job?
5. How satisfied are you with the opportunities which exist in this organization f or advancement or promotion?
6. Considering everything, how satisfied are you with your current job situation?
3.4.3 Moderator variable
To measure organizational reputation variable the reputation quotient (RQ) developed by Fombrun et al. (2000) will be applied in this research. That is the most popular measurement of organization reputation from stakeholders’ viewpoints which are 6 pillars. In this research - Formosa Ha Tinh Steel case, the question of 2 pillars include social and environmental responsibility and emotional appeal are applied to investigate the effect of organizational reputation to job satisfaction and turnover intention process of their employees. And 5-point Likert scale from “Strongly disagree” to “Strongly agree” will be used as the table below:
Table 3.3 Organizational Reputation Scale Social and environmental responsibility
1. Support good causes
2. Is an environmentally friendly company
Emotional appeal
4. Have a good feeling about th e company 5. Admire and respect the company
6. Trust the company a great deal
3.4.4 Dependent variable
Turnover Intention will be measured by using a briefer version of Meyer et al. (1993) with 3 items on a 5-point Likert scale “Strongly disagree” to “Strongly agree” as the table below:
Table 3.4 Turnover Intention Scale
1. In the past few months, I have seriously thought about looking for a new job
2. Presently, I'm actively searching for other jobs.
3.5 Pretest
Before conducting the main survey, a pre-test is performed to validate the instrument. That is a particularly important step to get feedback from expertise and knowledge people. Because the questionnaire of this research is translated from English to Vietnamese so the pretest questionnaire can help reduce the gap, make sure equivalence contents in each item and make a questionnaire simpler, easier to understand. After reviewing from some professors of I-Shou University to have logically instruction, an arrangement with fulfilling parts in the questionnaire, pretest will be conducted by 10 respondents to confirmed the content validity as well as the length, format, scales of the instrument. Finally, the result will be run by SPSS 22.0 system with correlation coefficient test, Factor analysis and Cronbach's Alpha test to make sure a validate of this study instrument before doing a survey.
3.6 Data Analysis
Once the data is collected, it’s all coded in Microsoft Excel then will be analyzed in Statistical Package for Social Scientists (SPSS) 22.0 system. Statistical analysis carries out quantitative research consist of descriptive statistics; reliable coefficients Cronbach’s Alpha to compute the alpha coefficient of reliability; Factor analysis to investigate the dimensionality of the scale; Pearson correlation coefficient to test whether the hypotheses proposed are supported or not; multiple linear regression tests to check the interrelated relationship among variables and lastly to assess the variance among scores on the subscales of research variables: POS, and turnover intention for different demographic variables a one- way ANOVA will be used.
Chapter 4 DATA ANALYSIS AND RESULTS
This chapter discusses the data analyses and hypotheses result testing proposed in chapter 3. Respondent demographic characteristic of this research will display in the first section. The second assesses scales verification analyses include Reliability, Descriptive Explore Factors Analysis, and Pearson Correlation Coefficient. The result of hypotheses testing will be discussed in section 3 and finally, the last section shows up the result of One-way ANOVA in comparing demographic characteristics to POS and turnover intention.4.1 Demographic characteristic
This study was conducted those who related to research have been working for Formosa Ha Tinh Steel company about demographic information as gender, age, marital status, kids, education and working time.
From 271 respondents were surveyed, there are 166 male participants represent 61.3%, 105 female participants represent for 38.7% and the male ratio much higher than female ratio approximately 22.6%. Their average age is approximately 31 years old with 51.3% respondent is single and 48.7% is in married status. The result shows Formosa Ha Tinh Steel Vietnam is a well-educated organization with around 69.7% employee has bachelor and master or higher degree and another 30.3% having some college and graduate school experience. There are 16.6% respondents working at this company under 1 year, 35.8% have been there more than 1 - 3 years, the highest is 41% who have worked at this company for 3 – 5 years and other work more than 5 – 7 years only account for 6.6%.
Table 4.1 Descriptive statistics of Age, Kids
Maximum Minimum Mean Std. Deviation
Age 54 20 30.64 5.579
Kid 3 0 .70 .929
Table 4.2 Frequency statistics of Gender, Marital Status, Education, Working time
Frequency Valid Percent（%）
Gender Male 166 61.3 Female 105 38.7 Marital status Single 139 51.3 Married 132 48.7 Education Under bachelor 82 30.3 Bachelor 144 53.1 Master or higher 45 16.6 Working time <= 1 years 45 16.6 1.01 – 3 years 97 35.8 3.01 – 5 years 111 41.0 5.01 – 7 years 18 6.6 > 7 years 0 0 Sample based on n=271
4.2 Scale Verification
4.2.1 Reliability Analysis
Scale internal reliability is measured by Cronbach’s Coefficient Alpha. All scales of 4 variables exceed the minimum level of 0.7 to have reliability significantly which proved by Nunnally and Bernstein (1994). Hence the scales used in this study demonstrate high reliabilities, see in Table 4.3 below:
Table 4.3 Cronbach’s Coefficient Alphas
Scale Cronbach's Alpha N of Items
Perceived Organizational Support .940 17 Job Satisfaction .888 6 Organizational Reputation .899 6 Turnover Intention .872 3
The components scale includes four variables Perceived Organizational Support, Job Satisfaction, Organizational Reputation, Turnover Intention. Because the Cronbach’s alpha coefficient is used to delete the trash variable, to check whether any observation variables that would not achieve reliable – total correlation is smaller than .3 then the value of these variables will be eliminated (Hair et al., 1998). In this research, the scales were displayed by 32 observed variables and Cronbach’s Alpha coefficient as a whole is more than .8 (>.6), all of variables Corrected Item-Total Correlation are more than 0.45 except “POS 14” with total correlation is .251 less than .3, it means this item did not significantly load on POS variable. The wording of this statement is “Formosa shows very little concern for me”- Reverse question it might create high confusion for respondents and not suitable with Vietnamese employee because of a strongly straight forward critical way. Therefore this item will be deleted from the next research model (see Table 4.4). The removal also improves the reliability of Perceived organizational scale with Cronbach’s coefficient alpha increased from .940 to .947.
Table 4.4 POS Item-Total Cronbach’s Coefficient Alpha Statistics
Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted POS1 - Formosa values my
contribution to its well-being
63.08 96.568 .719 .936
P0S2 - If Formosa could hire someone to replace me at a lower salary it would do so.
63.17 99.677 .471 .941
POS3 - Formosa fails to appreciate any extra effort from me
63.15 98.534 .621 .938
POS4 - Formosa strongly considers my goals and values.
POS5 - Formosa would ignore any complaint from me
63.29 98.472 .613 .938
POS6 - Formosa disregards my best interests when it makes decisions that affect me
63.36 99.069 .521 .940
POS7 - Help is available from Formosa when I have a problem
63.13 94.893 .819 .934
POS8 - Formosa really cares about my well-being.
63.15 93.978 .855 .933
POS9 - Formosa is willing to extend itself in order to help me perform my job to the best of my ability
63.30 94.424 .809 .934
POS10 - Even if I did the best job possible, Formosa would fail to notice.
63.29 100.443 .462 .941
POS11 - Formosa is willing to help me when I need a special favor
63.21 93.102 .791 .934
POS12 - Formosa cares about my general satisfaction at work.
63.14 96.348 .778 .935
POS13 - If given the
opportunity, Formosa would take advantage of me
63.16 99.240 .631 .938
POS14 - Formosa shows very little concern for me.
63.42 102.645 .251 .947
POS15 - Formosa cares about my opinions
63.13 94.397 .852 .933
POS16 - Formosa takes pride in my accomplishments at work
63.17 94.487 .810 .934
POS17 - Formosa tries to make my job as interesting as possible
4.2.2 Scale Descriptive Statistics
The table below shows the result of 4 scales descriptive statistic includes 31 items (POS14 deleted) with using the 5-point Likert scale from "Strongly disagree" to "Strongly agree" for POS, organizational reputation and turnover intention and "Strongly dissatisfaction" to "Strongly satisfaction" for job satisfaction. Firstly mentioning about POS, the statement "Formosa values my contribution to its well-being" has the highest mean is 4.08 closely to "Strongly agree" which means Formosa employee have highly perceived that the company acknowledges their effort and contribution to achieve goal and success. The statement has lowest mean 3.84 is "POS17 - Formosa tries to make my job as interesting as possible". To check the level of job satisfaction, in this study 6-items scales of Riordan, et al (1997) was used, the research find out Formosa employee has the highest level satisfaction with their co-workers and peers with mean value is 4.26 closely to "strongly satisfaction", then satisfied with their nature job (mean= 4.10), their satisfaction with supervisor account the third place (mean= 4.05), the next is satisfied with the pay their receive (mean = 3.86) and the lowest satisfaction level is the opportunities for promotion or advancement in this company (mean = 3.72). Almost respondent does not agree Formosa is an environmentally friendly company with a mean value is 2.07 closely to "strongly disagree" when they were asked about the feeling about their organizational reputation. Lastly, to know an intention withdrawal behavior of the employee, a briefer version of Meyer et al. (1993) with 3 items was applied in the questionnaire. The result from descriptive statistic shows the respondents tend to be neutral in their decision continuing with their current job. Almost do not agree when they were asked to confirm the statement "I intend to leave my current workplace in the near future" with mean = 2.28 closely to "Strongly disagree" and "In the past few months, I have seriously thought about looking for a new job" - this statement got higher value with mean is 2.51 toward to "Neutral".
Table 4.5 POS, JS, OP, Turnover Intention Descriptive Statistics N Mean Std. Deviati on Perceived Organizational Support
POS1 - Formosa values my contribution to its well-being
271 4.08 .819
P0S2 - If Formosa could hire someone to replace me at a lower salary it would do so.
271 3.99 .888
POS3 - Formosa fails to appreciate any extra effort from me
271 4.01 .784
POS4 - Formosa strongly considers my goals and values.
271 4.03 .832
POS5 - Formosa would ignore any complaint from me 271 3.87 .798 POS6 - Formosa disregards my best interests when it
makes decisions that affect me
271 3.80 .868
POS7 - Help is available from Formosa when I have a problem
271 4.03 .829
POS8 - Formosa really cares about my well-being. 271 4.01 .852 POS9 - Formosa is willing to extend itself in order to
help me perform my job to the best of my ability
271 3.87 .868
POS10 - Even if I did the best job possible, Formosa would fail to notice.
271 3.87 .829
POS11 - Formosa is willing to help me when I need a special favor
271 3.95 .969
POS12 - Formosa cares about my general satisfaction at work.
271 4.03 .777
POS13 - If given the opportunity, Formosa would take advantage of me
271 4.00 .720
POS15 - Formosa cares about my opinions 271 4.03 .829
POS16 - Formosa takes pride in my accomplishments at work
271 4.00 .863
POS17 - Formosa tries to make my job as interesting as possible
271 3.84 .985
Job Satisfaction
JS1 - How satisfied are you with the nature of the work you perform?
JS2 - How satisfied are you with your organization supervisor?
271 4.05 .810
JS3 - How satisfied are you with your relations with your coworkers or peers?
271 4.26 .644
JS4 - How satisfied are you with the pay you receive for your job?
271 3.86 .858
JS5 - How satisfied are you with the opportunities which exist in this organization for advancement or promotion?
271 3.72 .979
J6 - Considering everything, how satisfied are you with your current job situation?
271 3.90 .718
Organizational Reputation
OR1 - My company supports good causes. 271 2.30 .900 OR2 - My company is an environmentally friendly
company
271 2.07 .898
OR3 - My company maintains high standards in the way it treats people
271 2.52 .922
OR4 - I have a good feeling about my company 271 2.47 .833
OR5 - I admire and respect the company 271 2.35 .878
OR6 - I trust the company a great deal 271 2.34 .955
Turnover Intention
TI1 - In the past few months, I have seriously thought about looking for a new job
271 2.51 1.054
TI2 - Presently, I'm actively searching for other jobs. 271 2.37 .930 TI3 - I intend to leave my current workplace in the
near future.
271 2.28 .995
Valid N 271
4.2.3 Exploring factors analysis
In order to analyze the interdependencies among observed variables, reduce data to a smaller set of underlying summary variables or discover the underlying structure of observed variable with the theoretical constructs, exploratory factor analysis (EFA) for the variable is assessed in this section.
In study 1- Global perceived organizational support of Eisenberger et al. (1986) after running factor analysis apply for 36 statements in the full version scale they figure out the
presumptive perceived support factor accounted for 93.9% of the common variance and it reveals the minimal evidence for existence of another factor with the possible second factor for 6.1 %. From this light, to discover whether it has any underlying structure in the short version with 17 items of POS scale use in this research, the exploratory factor analysis is using.
According to Hair et al (1998), Factor loading - transmission coefficient was a norm to ensure the practical significant and with the sample size approximately from 100 to 350, factor loading >= .55 was considered having practical significance. To test whether running EFA for variable suitable or not, KMO coefficient, Bartlett’s test Total, Variance Explained, Eigenvalue Point checking would be made. The coefficient of KMO (Kaiser Meyer Olkin) - measure of how suited data for EFA should be great than .5 (.5=< KMO <=1), Bartlett’s test demonstrate the observed variables are correlated with each other in overall when sig < .05, Total Variance Explained much achieve value from 50% and Eigenvalue Point should be higher than 1 then the factor will have statistical significance.
The result after using Principal Component Analysis method available of SPSS for POS exploring factor analysis in these tables below:
Table 4.6: KMO and Bartlett's Test of POS
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .949 Bartlett's Test of Sphericity Approx. Chi-Square 3458.755 df 120 Sig. .000
Firstly, an overall KMO value is .949 suggest the correlations matrix of POS items are high enough to warrant factoring. The data set is correlated with each other as noted by the highly significant Bartlett's Test of Sphericity with sig = .000 < 0.05.
data variability.
This table below shows 16 items of POS scale have practical significance with all factor loading are >= 5.9. The special thing can be seen from the results that are the appearance of two elements analytical variable from a consolidated scale of POS. This is a clear indication that the POS independent variable in this study has 2-dimesion structure. The first factor includes 11 items which are POS8, POS17, POS15, POS9, POS7, POS16, POS4, POS11, POS12, POS13, POS1 which are mostly referring to evaluative perceived organizational reward and job condition exist in the working environment. Besides it, the second factor contains 5 items include POS3, POS5, POS2, POS6 AND POS10 that items tending to indicate perceived fairness treatment support from an organization which experienced by the employees. In Eisenberger and his coworker research (2002), they have proven that tangible resources such as fairness treatment, organizational rewards, training, promotions, or favorable job conditions that are antecedents of Perceived organizational support hence these findings above have consistent connection with literature and 2-exploring factors of POS will be use to analyze the relationship with other variables in the next part.
Table 4.7 POS’ Factor Analysis Result
Factor
1 2
POS8 - Formosa really cares about my well-being.
.855 .305
POS17 - Formosa tries to make my job as interesting as possible
.838
POS15 - Formosa cares about my opinions .836 .332
POS9 - Formosa is willing to extend itself in order to help me perform my job to the best of my ability
.831
POS7 - Help is available from Formosa when I have a problem
.828
accomplishments at work
POS4 - Formosa strongly considers my goals and values.
.820
POS11 - Formosa is willing to help me when I need a special favor
.771 .329
POS12 - Formosa cares about my general satisfaction at work.
.741 .358
POS13 - If given the opportunity, Formosa would take advantage of me
.699
POS1 - Formosa values my contribution to its well-being
.669 .368
POS3 - Formosa fails to appreciate any extra effort from me
.809
POS5 - Formosa would ignore any complaint from me
.751
POS2 - If Formosa could hire someone to replace me at a lower salary it would do so.
.693
POS6 - Formosa disregards my best interests when it makes decisions that affect me
.681
POS10 - Even if I did the best job possible, Formosa would fail to notice.
.592
Hence, there are 2 hypotheses are adding and the research framework become:
H1a: Perceived fairness treatment support will positively affect job satisfaction.
H1b: Perceived organizational reward and job condition support will positively affect job
satisfaction
Figure 4.1: Revised research framework
H1b b POS Turnover Intention Organizational Reputation Job Satisfaction H1 H3 H2 H4 Perceived organizational reward and job condition
Perceived fairness treatment
4.2.4 Analysis of Pearson Correlation Coefficient
This part describes Pearson correlation coefficient testing to check the level of linear relationship between two quantitative variables. All the variables in this study will be included to running this analysis as control variables (gender, age, status, kids, working time) POS and two-factor perceived fairness treatment support, perceived organizational reward and job condition support which explored in factor analysis above, job satisfaction, organizational reputation and turnover intention.
Table 4.8 demonstrates the correlation relationship between all the variables in this research. The findings are gender positively correlated with POS ( = .129, p < .05), perceived reward and job condition ( = .134, p < .05), job satisfaction ( = .145, p < .05) and negatively correlated with working time ( = -.159, p < .05), organizational reputation ( = -.143, p < .05). Age correlate positively with status ( = .538, p < .01), working time ( = .254, p < .01) and job satisfaction ( = .201, p < .01). Similarly, marital status is positively
correlated with kids ( = .744, p < .01), working time ( = .162, p < .01), POS ( = .239, p < .01), perceived fairness treatment ( = .174, p < .01), perceived reward and job condition ( = .242, p < .01) and job satisfaction ( = .229, p < .01). Number of kid correlate positively with working time ( = .178, p < .01), POS ( = .262 p < .01), perceived fairness ( = .178, p < .01), reward and job condition ( = .254, p < .01), job satisfaction ( = .286, p < .01), while negatively correlative with organizational reputation ( = -.150, p < .05), turnover intention ( = - .192, p < .01). Working time have highly negatively correlate with POS ( = -.202, p < .01), perceived fairness ( = -.157, p < .01), perceived reward and job condition ( = -.219, p < .01), job satisfaction ( = .174, p < .01) although have positively correlate with
organizational reputation ( = .177, p < .01)
Additionally the relationship between these independent and dependent variables of this research also are revealed. POS, perceived fairness treatment, perceived organizational reward
and job condition all have positive relative with job satisfaction ( = .767, = .532, = 0.773, p < .01) whereas negatively correlate with organizational reputation ( = -.323, = -.351, =
-.277, p < .01) and turnover intention ( = -.453, = -.494, = -.389, p < 0.01). Job satisfaction has strongly negatively correlation with organizational reputation ( = -.234, p < .01) and turnover intention ( = -.394, p < .01). And lastly, organizational reputation have positively relative with turnover intention ( = .197, p < .01),
Table 4.8 Mean, Standard Deviation and Correlations Mean SD 1 2 3 4 5 6 7 8 9 10 11 12 1.Gender 1.39 .49 2.Age 30.64 5.58 -.048 3.Status 1.49 .50 .058 .538** 4.Kids .70 .93 .085 .686** .744** 5.Education 1.86 .67 -.019 .088 .022 -.083 6.Working time 2.38 .84 -.159** .254** .162** .178** .019 7.POS 3.95 .61 .129* .105 .239** .262** -.050 -.202** 8.Fairness 3.91 .62 .051 .100 .174** .178** .038 -.157** .792**
9.Reward and Job condition 3.99 .72 .134* .100 .242** .254** -.064 -.219** .965** .623**
10. SAT 3.98 .64 145* .201** .229** .286** -.032 -.174** .767** .532** .773**
11. ORP 2.34 .73 -.143* -.009 -.056 -.150* .000 .177** -.323** -.351** -.277** -.234**
12. Turnover Intention 2.38 .89 -.054 -.101 -.160** -.192** .087 .087 -.453** -.494** -.389** -.394** .197**
**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).
4.3 Result of Hypotheses Testing
4.3.1 Results on direct antecedent of job satisfaction, turnover
intention
Regression analysis is also conducted to test the hypothesis and to define the direction of relations. In this section, regression analysis was used to test the effect of POS include fairness treatment perceived, reward and job condition perceived toward job satisfaction – hypotheses H1, H1a, H1b and job satisfaction toward turnover intention – hypothesis H2 that were proposed in the last parts.
The results obtained from the regression analysis are shown in tables below.
From Table 4.9, the first finding is an R2 value of the model 1 to test hypothesis H1 was
calculated as .588. This value shows the perceived organizational support explained 58.8% variability of job satisfaction with = .767 (p < .001). It can understand as research model show F value equal to 383.933 which is significant due to the value is less than .001. Hence hypothesis H1 “Perceived organizational support will positively affect job satisfaction” is supported.
Table 4.9 Regression analysis results of direct antecedent on Job Satisfaction, Turnover Intention
Testing Dependent variable Independent
variable Beta R-square F
H1 POS Job satisfaction .767*** .588 383.933***
H1a Perceived fairness Job satisfaction .081
.602 202.565***
H1b Perceived reward and job condition
Job satisfaction .723***
H2 Job satisfaction Turnover intention -.394*** .152 49.341*** *p<.05 **p<.01 ***p<.001
To know the effect of POS to job satisfaction is fully supported or only partial support the analysis relationship of 2- factors of POS which are perceived fairness treatment and perceived organizational reward and job condition were explored in the factor also using this phrase. The result was showed in Table 4.9 that perceived fairness support have no affecting job satisfaction ( = .81, p > .05) whereas, perceived organizational reward and job condition support show positive affect job satisfaction ( = .733, p < .001) and can explain 60.2% of the variance in job satisfaction (R2 = 0. 602, F= 202.565). Thus the supplementary hypothesis H1b
is accepted and H1a isn’t accepted so POS is partial effect to job satisfaction. From that finding, the researchers point out company should pay more attention to an important role of organizational reward and job condition in order to enhance job satisfaction.
Job satisfaction shows the significant negative effect to turnover intention from the finding in the same table above. R2 value of the model 2 to test hypothesis H2 was calculated
as .152 so job satisfaction may explain 15.2% variability of turnover intention with = .767, F= 49.341, p < .001, it mean the higher level job satisfaction employee have, the less likely they are to leave. In other words, “Job satisfaction will be negatively related to turnover intention” – the hypothesis H2 is accepted.
In conclusion, hypotheses H1, H1b, H2 are all accepted except H1a.
4.3.2 Mediating regression analysis of Job satisfaction
According to Baron & Kenny (1986), Judd & Kenny (1981) mediation is supported when four conditions are met: (1) The relationship between the independent variable and the dependent variable must be significant. (2) The relationship between the independent variable and the mediator/intervening variables must be significant. (3) The relationship between the mediator variable and the dependent variable must be significant. (4) The relationship between the independent variable and the dependent variable must be weaker (partial mediation) or insignificant (full mediation) in the presence of the mediating variable. In
another hand, many recently researchers and typically Shrout & Bolger (2002) point that step 1 is not necessarily required in process of mediator testing so this study uses the guidelines of Shrout & Bolger (2002) with 3 conditions to test a mediating role of job satisfaction.
Hypothesis H3 has proposed that job satisfaction mediates the relationship between POS and turnover intention. Hence, in this testing, perceived fairness support, and perceived reward, job condition support are independent variables, job satisfaction is mediating variable and turnover intention is a dependent variable. The results are demonstrated in Table 4.10.
Table 4.10 Regression analysis results of Job satisfaction mediating
Job satisfaction Turnover Intention Step1 Step2 Step3
Fairness .081 -.412*** -.398*** Reward .723*** -.131* .001 Job satisfaction -.394*** -.183* F 202.565*** 49.341*** 45.854*** 32.628*** R2 .602 .152 .255 .268 ΔR2 .103 .013 *p<.05. **p<.01. ***p<.001.
Firstly, the research finds out POS partial effect to job satisfaction and only perceived reward and job condition support show the significant relationship with the mediator factor (= .723, p < .001) and perceived fairness support do not show the direct effect to job satisfaction (= .081, p > .05). Secondly, a result of testing Step 2 pointed that the mediator factor job satisfaction has a significant relationship with dependent variable – turnover intention ( = -.394, p < .001). And finally, Step 3 in this table show a significant mediator of job satisfaction on POS and turnover intention relationship with = - .183, p < 0.05, F=32.628, p<0.001 and R2 = 0. 268.
In detail, perceived fairness treatment dimension show a significance in the direct path from POS to turnover intention (= - .412, p < .001) also significant but decreasing effect in the indirect path from it to turnover intention when job satisfaction was controlled ( = -.398, p
