Job Satisfaction and Organizational Citizenship Behavior of Contractors and Employees
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(2) consequences. Temporary employment arrangements have been criticized as leading to economic hardship and poverty (Callaghan & Hartman, 1991), social and communicative isolation (Sias, Kramer, & Jenkins, 1997), alienation from work and coworkers, and lowered self-esteem (Rogers, 1995). In addition to the problems experienced by the contractors, the companies that use contractors may experience problems as well. The problem for the company occurs in the form of hidden costs. The improper use of contractors can be associated with decreases in motivation and productivity at both the individual and group levels, and can affect all employees and the organization as a whole (Messmer, 1994a; Messmer, 1994b). Research has shown that less than one percent of all organizations that use temporary help employ the service to the maximum benefit. Lungberg (1994) sums up the problem with the following statement. Despite the apparent economic benefits of using contractors, managements’ use of and ways of responding to them may ultimately reduce both organizational efficiency and effectiveness because of problem abandonment and avoidance of organizational improvement. It appears that managers may either be paying less attention to their contractors or perhaps undervaluing their concerns for just treatment (p.134).. Statement of the Problem As the temporary staffing industry continues to grow, and more and more people find themselves in temporary work arrangements, understanding the implications of these arrangements will become more imperative (Rogers, 1995). Despite the advantages of temporary employment, there are problems for contractors and for the companies that use them. These problems are likely to cause contractors to score lower than employees on measures. of. job. satisfaction,. organizational. commitment,. and. perceived. organizational justice. Further, as social exchange theory (Blau, 1964) dictates, employees with lower job satisfaction, organizational commitment, and perceived organizational justice are likely to retaliate by withholding contextual performance in the form of organizational citizenship behaviors. A comparison of contractors and employees on organizational citizenship behavior (OCB) may show management that temporary employment is not such a cost-effective idea as originally thought. Further, if research could show the job 2.
(3) satisfaction are related to OCB among contractors, management may consider improving the working conditions for contractors. Thus, both management and contractors could benefit from such an investigation. This is precisely what the present research aspired to accomplish. There is a lack of research which compares contractors and employees on job satisfaction and OCB in private sectors. Research based information concerning job satisfaction and OCB will be of value to organizational managers and decision-makers of any organization that uses contractors. What is needed, then, is a comprehensive research to compare contractors and employees on job satisfaction and OCB. The present study is a step towards addressing that need.. Purpose of the Study The purpose of the present study is to address the problems experienced by both contractors and the organizations that use temporary services. This is done by comparing contractors and employees on job satisfaction and OCB. Additionally, the relationship between job satisfaction and OCB for both contractors and employees was measured.. Rationale This section presents the theoretical framework for the comparison of contractors and employees on job satisfaction and OCB. The Theory of Work Adjustment and Social Exchange Theory are briefly reviewed as they relate to the present study.. Theory of work adjustment The theoretical foundation for a comparison of contractor and employees on job satisfaction is based primarily on the Theory of Work Adjustment by Dawis, England, and Lofquist (1964). The authors of this theory proposed that job attitudes are a function of the correspondence between the individual’s vocational needs and the reinforcement in the work environment. Three concepts of the job attitudes proposed by the authors are job satisfaction, organizational commitment and perceived 3.
(4) organizational justice. The researcher picked one well-known term, job satisfaction, of the three concepts for the use of the investigation. In addition, the other several researchers (Price & Mueller, 1986) reviewed that job attitudes are based on a logical and rational evaluation of the job conditions. Contractors and employees are expected to differ in their job satisfaction because the job conditions are, in fact, unequal for these two groups. Although some contractors can qualify for benefits from their agency, contractors in general are paid less, receive fewer benefits, and are not given as many opportunities for promotion, as employees are (Belous, 1989). Additionally, Belous emphasizes that contractors may not have as many opportunities to meet and interact with co-workers and may receive less quality leadership. He also argues that contractors are often brought in to a company to perform work that no one else wanted to perform. All of these factors suggest that contractors may score lower on job satisfaction measure.. Social exchange theory The theoretical foundation for a comparison of contractor and employees on OCB is based on Social Exchange Theory. Social Exchange Theory states that human interaction can be conceptualized as business transactions in which people exchange resources in hopes that they will earn profits (Blau, 1964). When employees feel they are being treated fairly, by getting a raise for example, social exchange theory dictates that the employee reciprocates, and Organ (1988) suggested that OCB is one likely avenue for employee reciprocation. Contractors and employees are expected to differ on OCB as a response to their varying job satisfaction which is ultimately influenced by varying job conditions, as discussed above.. Hypotheses Hypothesis One and Two involve comparison of contractors to employees. Contractors were hypothesized to score lower on job satisfaction and score lower on OCB to employees. Hypothesis Three concerns relationship between job satisfaction and OCB. Hypotheses Three was tested separately for each group of workers 4.
(5) (contractors and employees). Hypothesis one Contractors will score significantly lower on job satisfaction than employees as measured by the Job Satisfaction Survey (Spector, 1985).. Hypothesis two Contractors will score significantly lower on OCB as measured by the OCB Scale (Smith, Organ, & Near, 1983).. Hypothesis three There will be a significant positive relationship between job satisfaction and OCB, among both contractors and employees.. Importance of the Study The present study is important to the research domains of temporary employment, job satisfaction and OCB. By comparing contractors and employees on the two variables in this study, the psychological and business communities may gain a better understanding of temporary employment. This could help professionals to identify strategies that may enhance the working lives of many contractors. Additionally, by examining the relationships among the variables for both contractors and employees, the psychological and business communities may gain a better understanding of OCB. This could lead professionals to identify strategies for improving organizational behaviors in both contractors and employees, ultimately improving organizational effectiveness and productivity.. 5.
(6) Delimitation of the Study The present study addresses job satisfaction and OCB of both contractors and employees. Participants include adult contractors and employees in two Germen based semiconductor companies. Contractors in this research are those workers who are labors of a temporary help-staffing agency and are contracted to perform work at the company under investigation. Employees are those workers who are employees of the company and who perform work at the location of the company under investigation.. Definition of Terms This section discusses how the key terms are operationally defined for the purpose of the present research. Terms are arranged alphabetically rather than by construct. Job satisfaction: It is an attitudinal variable and is how people feel about their jobs and different aspects of their jobs. In this research, job satisfaction was measured with nine facets of Job Satisfaction Survey (JSS) (Spector, 1985),which are pay, promotion, supervision, fringe benefits, contingent rewards, operating conditions, coworkers, nature of work and communication. Organizational citizenship behavior: Discretionary employee behaviors that are not part of employees’ formal (role) requirements, but nevertheless promote the effective functioning of the organization as measured by the OCB Scale (Smith et al., 1983). Employee: An employee for whom there is no pre-determined ending date to the employment relationship and who normally is scheduled to work. This term does not, however, suggest that the employment relationship will never end. Employees who are designated as employees normally will be scheduled on an on-going basis (Nolen & Axel, 1996). Contractor: Contractors can be used for a wide variety of purposes. Contracts for service may be made through commercial temporary service companies or with individuals or organizations. Outsourcing is often accomplished through contracts stipulating the length and outcome of the employment. Contractors are not employees and have restrictions on the scope of their services and how they may be directed in 6.
(7) their work. (Michael, 1997) Altruism: Behavior that is directly and intentionally aimed at helping a specific person in face-to-face situations. The eliciting stimulus, in other words, is someone needing aid, as in the fashion of social psychological studies of altruism (e.g., orienting new people, assisting someone with a heavy workload) (Smith et al., 1983). General compliance: A more impersonal form of conscientiousness that does not provide immediate aid to any specific person, but rather is indirectly helpful to others involved in the system (e.g., punctuality, not wasting time) (Smith et al., 1983).. 7.
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(9) CHAPTER II. LITERATURE REVIEW The review of literature in the present study begins by discussing the recent growth of the temporary staffing industry in Taiwan, United States and internationally. Research comparing the contractor and employee workforce is presented. This discussion includes definitions, characteristics, and estimated percentages in the overall workforce. In the last of this section, the benefits and problems associated with temporary employment are explained and the general rationale for the present research is developed. The literature review proceeds to a discussion of contractor and employee difference on job satisfaction. Discussion begins by reviewing definitions, theories, and past research efforts. This section ends by reviewing research efforts comparing contractors and employees on job satisfaction. The discussion provides additional support for the rationale of the present study by specifically addressing problems experienced by contractors. Next, research concerning differences of contractors and employees on OCB are presented. The section begins with an introduction of OCB and ends by reviewing research efforts comparing contractors and employees on OCB. This section ends by addressing the problems experienced by contractors. The literature review ends by discussing the relationship between job satisfaction and OCB. This discussion provides explanation of how the problems experienced by contractors might be related to the organizational behavior problems. Here the need for the present study is established.. The Temporary Staffing Industry Recently, there has been a huge increase in the proportion of contractors in the overall workforce of Taiwan. According to Council of Labor Affairs Executive Yuan Taiwan (2006), employment by temporary help supply services accounted for 41.2% in public sectors and 7.3% in private sectors.. 9.
(10) International temporary employment There has been a huge increase in the advancement of temporary employment in the United States. Lewis and Molloy (1991) report that American business are spending in excess of 16 billion annually to purchase the service of temporary help. Manpower Inc. (a temporary employment agency with 560,000 employees) now claims the title as the private American company with the largest number of employees, over GM with 350,000 employees and over IBM with 330,000 employees (Briges, 1994). The dramatic growth in the use of contractors is not just a trend in the United States, but is an international phenomenon (Belous, 1989). Belous reported that “employers in Australia, Denmark, the Netherlands, New Zealand, Norway, Sweden, and the united kingdom use a greater relative number of contractors than do U. S. employers. France, Germany and Japan use less relative numbers, but have experienced a larger percent growth in temporary employment in recent years” (p. 59). Temporary employment is rising even in Japan, where in the past, lifelong employment with a single firm was considered the norm. Currently, temporary employment makes up 33% of Japan’s work force, and this number is steadily rising (Chauffins, 1998).. Defining characteristics of temporary employment Social scientists have recently begun investigating temporary employment (Rogers, 1995). In fact, there have been very few empirical research studies that have investigated differences between contractors and employees (Robert et al., 2003). However, the temporary staffing business has begun to grow, and more research is expected in the near future. The research that does exist usually groups contractors as being part of the contingent workforce (Nollen & Axel, 1996). In the broadest conception, the contingent workforce encompasses all people whose jobs do not fit under the umbrella of permanent employment (Nollen & Axel, 1996). They describe the contingent workforce as: People who have little or no attachment to the company at which they work. 10.
(11) Whether they work, when they work, and how much they work depends on the company’s need for them. They have neither an explicit nor implicit contract for continuing employment. Contingent employees typically have little or no job security, irregular work times, lack access to benefits, and most importantly a lack of attachment to the company at which they work (p.94). In contrast, Nollen & Axel (1996) define an employee as: An employee for whom there is no pre-determined ending date to the employment relationship and who normally is scheduled to work. This term does not, however, suggest that the employment relationship is permanent. Employees who are designated as employees normally are scheduled on an on-going basis (p. 94).. Benefits of temporary employment One possible reason for the increase in usage of contractors is the expected cost savings of using contractors. In fact, the business press suggests, and it is often management’s opinion, that temporary labor costs less than do permanent labor. Belous (1989) points out that savings may occur for a variety of reasons. First, contractors are almost always paid less than employees are. Second, the temporary employment agency usually supplies benefits rather than the client organization, and because contractors often fail to meet time requirements, many do not receive benefits at all. Third, the size of the temporary workforce is much more easily adjusted to match fluctuations in the workload. In other words, contractor can be laid off during times of economic uncertainty. An example of this is provided by Lungberg (1994) who states that “firms may also prefer contractors in times of business volatility because they can easily be hired and laid off, thus giving more operational flexibility”(p.128). Temporary staffing arrangements have positive benefits for contractors as well. Sias et al. (1997) stated the following: According to Polivka and Nardone (1989), people perform temporary work instead of seeking permanent employment for three main reasons: (a) some temp because they enjoy the flexibility of the work that allows them to pick and choose their hours, vacation times, and so forth; (b) some temp to explore career 11.
(12) options in a particular industry or business; and (c) others take temporary positions in particular organizations with the hope that they will be hired on a permanent basis (p. 737).. Problems of temporary employment Parker (1994) demonstrates how temporary-help firms’ public relations efforts portray temporary work as an exchange beneficial to both the employer and the contractor. However, this pleasant scenario may not always be a reality. In fact, despite the seemingly obvious advantages to temporary staffing, there are some problems associated with using contractors. As will be explained, both management and the contractors may suffer if the employment relationship is not structured properly.. 1. Problem of contractors There is an increasing body of literature that shows that contractors experience a variety of work related problems leading to economic, social, and interpersonal consequences. These discussions brought many economic and legal labor issues to the forefront. Temporary employment arrangements have been criticized as leading to economic hardship and poverty (Callaghman & Hartman, 1991), social and communicative isolation (Sias et al., 1997), alienation from work and coworkers, and lowered self-esteem (Rogers, 1995). Callagham and Hartman (1991) summarize their research efforts on temporary employment by stating the following: Low wages and a lack of benefits results in economic hardship and poverty for temporary workers more often than for other workers. Involuntary temporary workers have a poverty rate of 16.5 percent which is a slightly higher than unemployed people who are out of work and seeking a job (15.3 percent), and much higher than for full-time workers (2.7 percent) (p.15). In addition to the material consequences of temporary jobs, contractors experience social and interpersonal consequences of their work as well. Sias et al. (1997) showed that contractors are more communicatively isolated from 12.
(13) organizational members than other employees, and more than newcomers to the organization. Internationally, this situation may be even worse. Chauffins (1998) points out that contractors in Japan are paid fifty percent less than employees performing the same jobs and are given no fringe benefits or job guarantees. He further explains that temporary employment in Japan is a viscous cycle, because many firms will never hire an individual who has worked as a contractor because their lack of loyalty to a single company is considered unacceptable behavior. Thus, as he points out, contractors in Japan are doomed to a life of short term jobs without meaning or value and are forever exploiting market demands and the society in which they live.. 2. Organizational behavior problems The problem for management occurs in the form of hidden costs. The improper use of contractors can be associated with decreases in motivation and productivity at both the individual and group level, and can affect all employees and the organization as a whole (Messmer, 1994a; 1994b). Organizations stand to loose substantial amounts of their temporary labor investments in lost productivity. Recent research has shown that less than one percent of all temporary help users employ the service to the maximum benefit. For example, Lungberg (1994) states the following: Despite the apparent economic benefits of using contractors, management’s use of and ways of responding to them may ultimately reduce both organizational efficiency and effectiveness because of problem abandonment and avoidance of organizational improvement. It appears that managers may either be paying less attention to their contractors or perhaps undervaluing their concerns for just treatment (p.134).. Rationale for the present research The present research aspires to inspect the problems associated with using contractors by showing how the problems experienced by contractors are directly related to organizational behavior problems of contractors. Specifically, the problems experienced by contractors can be assessed by comparing contractors and employees on job satisfaction. Further. Organizational behavior problems of contractors can be 13.
(14) assessed by comparing OCB of both contractors and employees. Later, it is argued that the relationship between job satisfaction and OCB is the foundation for the connection between the problems experienced by contractors and their organizational behavior problems. With this rationale, this literature review proceeds to discussions of the job satisfaction and OCB among contractors. and. employees.. Job Satisfaction There had been few studies that have compared the job satisfaction of contractors and employees (Nollen & Axel, 1996). However, in the past five years, the topic has received increased attention in the empirical and popular literature. Before discussing specific studies, it is useful to provide a brief explanation of job satisfaction theory.. Job satisfaction theory The meaning of the term “Job Satisfaction” as it is used in the present study is based on the work of Spector (1985) and his development of the Job Satisfaction Survey (JSS). This instrument measures the employees’ cognitive appraisal of the conditions of the job, including pay, promotion, supervision, fringe benefits, contingent rewards, operating conditions, coworkers, nature of work and communication. The conceptual framework for the JSS is entitled the Theory of Work Adjustment (Dawis et al., 1964). This theory proposes that job satisfaction is a function of the correspondence between the individual’s vocational needs and the reinforcement in the work environment. In their theory, satisfaction is based on a logical and rational evaluation of the job conditions (Price & Mueller, 1986).. Job satisfaction and contractors Contractors and employees are expected to differ in their job satisfaction because the job conditions are, in fact, unequal for these two groups. Belous (1989) identifies several reasons why the job satisfaction of contractors might be lower than that of employees. First, contractors are generally paid less than employees and are not given 14.
(15) as many opportunities for promotion. In fact, the temporary nature of their position implies that they may soon be out of a job. Additionally, he emphasizes that contractors may not have as many opportunities to meet and interact with co-workers and that leadership is likely to be a problem because contractors may not have the opportunity to develop quality mentoring relationships. He also argues that contractors are often brought in to a company to perform work that no one else wanted to perform. All of these factors lead to the hypothesis that contractors may have lower job satisfaction. This hypothesis is supported by some research. For example, Lee-Ross and Johns (1995) compared seasonal hotel workers (contractors) to those who worked year round (full-time). These authors stated, “Workers who aspired to year round employment seem to have different patterns of values (job satisfaction) and motivation from those who actively sought seasonal work” (p. 33). However, reviewing the professional literature shows that research does not always support this hypothesis. There is a surprising amount of evidence that non-traditional forms of employment provide higher job satisfaction (Nollen & Axel, 1996). The rationale for this argument is that non-traditional employment sometimes allows more flexibility and variety of work experience. For example, in a study comparing part-time and full-time workers, Michael (1997) found that part-time workers were more satisfied. In another study, Negrey (1993) concluded that satisfaction of temporary employment depends upon a number of factors including the continuity of placements, the nature of the work schedule, the level of pay, and the marital status and living arrangement of the employee. This author goes on to state that some individuals are able to turn insecure employment to their advantage, maximizing flexibility and autonomy, while others find temporary employment a frustrating substitutes for full-time employment. Further evidence was provided by Gallup, Sauder, Nelson and Cerveny (1997) who found that temporary workers were more satisfied than permanent government workers were. When asked to explain the reasons for such differences, management hypothesized the following: 1. Temporary staff may perceive positive responses to be helpful in obtaining permanent employment. In other words, social desirability causes them to 15.
(16) respond favorably. 2. Temporary workers do not have to live with bad management. “It’s only temporary.” 3. Although it is uncommon, temporary staff in high demand skill sets may enjoy higher take-home pay. 4. Temporary staff can gain valuable experience in their temporary jobs and then move on to permanent positions. 5. Permanent staff was government employees who may have forgotten about competition for their jobs. They are less committed to their work and resist accountability for it (p. 719). Until recently researchers were puzzled about why some studies showed contractors to have lower job satisfaction and others showed them to have higher job satisfaction. A break-though in the understanding came when researchers Krausz, Brandwein, and Fox (1995) compared temporary to permanent employees on work satisfaction. Multivariate analysis revealed significant differences with respect to work satisfaction. However, perhaps the most significant finding of this research came when the researchers divided contractors into two groups based on choice of work status. Specifically, those contractors prefer a temporary work arrangement (voluntary contractors) had higher job satisfaction than those contractors who would prefer a permanent work arrangement (involuntary contractors). Voluntary contractors were even higher on job satisfaction than employees. Thus, an important distinction arises between contractors who prefer temporary employment and contractors who prefer a permanent work arrangement.. Organizational Citizenship Behavior In 1977, Organ for the first time introduced the term “organizational citizenship behavior” (OCB), which he suggested was a component of job performance. As typically defined, organizational citizenship behaviors are behaviors of a discretionary nature that are not part of employees’ formal role requirements, but nevertheless contribute to the effective functioning of an organization (Organ, 1988). Since then, OCB has attracted a number of researchers’ attention, and the areas studied have been 16.
(17) its definition (Smith et al., 1983), classification (Morrison, 1994), construct validity (Becker and Vance, 1993), and determinants (Moorman, 1993; Organ and Konovsky, 1989). Recently, much attention has been paid to the structural stability of various correlational patterns observed among sets of variables that included organizational citizenship behavior.. Organizational citizenship behavior theory According to Organ (1988), OCB represents “individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and in the aggregate promotes the efficient and effective functioning of the organization.” Organ (1988) further states that these behaviors “lubricate the social machinery of the organization,” “provide the flexibility needed to work through many unforeseen contingencies,” and help employees in an organization “cope with the otherwise awesome condition of interdependence on each other” (Smith et al, 1983). The practical importance of OCB is that behaviors improve efficiency and effectiveness in both public and private organizations. There are two distinct types of OCB: One is called Altruism, which emerges as “a class of helping behaviors aimed directly at specific persons.” (Smith et al, 1983) The other is named Generalized Compliance (Conscientiousness), which is defined as “a more impersonal sort of conscientiousness, more of a “good soldier” or “good citizen” syndrome of doing things that are “right or proper” but for the sake of the system rather than for specific persons” (Smith et al, 1983). These two factors were also indentified in a sample of workers in Taiwan (Farh, Podsakoff & Organ, 1990). OCB holds great “promise for organizational behavior research” (Schnakee, 1991) and should be explored in other cultures.. Organizational citizenship behavior and contractors Albrecht (1998) reports that client organizations of temporary staffing agencies specifically desire temporary workers who are willing to go “that extra mile” (p. 44) for the company. As discuss above, employee performs OCB to reciprocate a history of positive 17.
(18) treatment by the organization. Thus, since contractors are hired on a short-team, more contractually defined basis, the factors influencing OCB may be weaker. Contractors may see little reason to seek or expect a long-term, mutually committed relationship with an organization, and thus might only define their relationship with the client organization as one of economic exchange. Thus, we might conclude that contractors may provide the benefit of flexibility but at the cost of lower OCB. Indeed, studies by Van Dyne and Ang (1998), and Kidder (1998) have all reported results suggesting that contingent employees perform fewer OCB than regular employees. These studies conclude that contingent employees are more likely to define their relationship with the organization as economic exchange rather than social exchange, and as a result, feel less motivation for OCB. However, their results also suggest that the relationship between contingent worker and OCB may be complex. Kidder (1998) reports a study of the extra-role behavior of both temporary and full-time nurses. While she found that temporary nurses performed fewer OCB, she also reported some degree of variance in their OCB. Kidder concluded that if a contractor perceives she has a more relational contract (consistent with a social exchange relationship), she will be more likely to perform OCB, regardless of the fact that she’s technically called a contractor (p. 7). Van Dyne and Ang (1998) also report variance in OCB performance of contingent employees. They tested OCB of both regular and contingent employees in two Singaporean service organizations. They found that in general contingent employees performed fewer OCB. However, they also found that, under certain conditions, contingent employees performed OCB at levels even above the regular employees. They conclude that their findings: Have important theoretical implications because they debunk the sweeping assumption that all contingent workers are uncommitted and view their work relationship negatively…When organizations treat contingent workers with respect and do not view then as peripheral, some contingent workers will have high commitment to the organization, positive views of their psychological contracts, and will engage in organizational citizenship--just like regular employees (p. 700-701). These results suggest that being a contractor or contingent employee does not necessarily limit OCB. What may be more important is to study the conditions and 18.
(19) circumstances facing contractors and examine how those conditions might engender higher OCB.. Job Satisfaction and Organizational Citizenship Behavior Previous empirical studies (Bateman and Organ, 1983; Moorman, 1993; Organ and Konovsky, 1989; Smith et al., 1983) and the conceptual rationale proposed by Organ (1988) provided support for a hypothesized positive relationship between job satisfaction and OCB.. Job satisfaction as an antecedent of OCB There is substantial support for the relationship between job satisfaction and OCB. For example, in a survey of university employees, Bateman and Organ (1983) found a significant relationship between general measures of job satisfaction and supervisory ratings of citizenship behavior. Using path analysis, Smith et al. (1983) found that job satisfaction, measured as a chronic mood state, showed a direct predictive path to altruism but not to generalized compliance. In addition, Puffer (1987) surveyed employees of furniture stores and found a significant relationship between prosocial behavior and satisfaction with material rewards that paralleled the relationship between altruism and job satisfaction found by Smith et al. (1983). More recently, Williams and Anderson (1991) provided support for the job satisfaction-OCB relationship. They found the cognitive component of job satisfaction to significantly predict what they labeled OCBI (i.e., altruism) and OCBO (i.e., generalized compliance). In a study yielding similar results, Moorman (1993) investigated whether the relationship between job satisfaction and citizenship could depend on the nature of the job-satisfaction measures used. He found that support for the relative importance of cognitive job satisfaction (based on the rationale evaluation of work conditions, opportunities, and outcomes) over affective job satisfaction (based on an overall positive emotional appraisal of the job) in the prediction of OCB. In addition, in a survey of U.S. and British manufacturing employees, Organ and Lingl (1995) found that overall job satisfaction yielded a significant increment in explained variance beyond that accounted for by personality factors in the OCB 19.
(20) dimension of altruism, but not in the compliance dimension of OCB.. Summary As the temporary staffing industry continues to grow, and more and more people find themselves in temporary work arrangements, an understanding of these arrangements will become more imperative (Rogers, 1995). Despite the advantages of temporary employment, there are problems for contractors and the organizations that employ contractors. These problems are likely to show up as contractors scoring lower on job satisfaction and OCB. Further as social exchange theory dictates, employees with lower scores on job satisfaction are more likely to retaliate by withholding OCB. A comparison of contractors on OCB may show management that temporary employment is not such a cost-effective idea as originally thought. Further, if research could show that low scores on job satisfaction are the cause for poor OCB performance among contractors, management may consider improving the working conditions for contractors. Thus, organizations that use contractors and the contractors themselves could be benefit from such an investigation. This is precisely what the present research aspires to accomplish. Research based information concerning job satisfaction and OCB will be of value to organizational managers and decision-makers of any organization that use temporary and full-time employees. What is needed, then, is a comprehensive research program to compare temporary and full-time employees on job satisfaction and OCB. The present study is a step towards addressing that need.. 20.
(21) CHAPTER III. RESEARCH METHOD This chapter describes the research methods. Included are discussions of the Structure, variables, participants, instrumentation, procedures, null hypotheses, data analyses, assumptions, and limitations of the study.. Structure The present study used an exploratory field study approach. The first part of the design was a comparison in nature, comparing contractors and employees on job satisfaction and OCB. The second part of the study was based on a correlational design relating the job satisfaction to OCB in both contractors and employees.. Variables The independent variable was the employment status of workers, either contractor or employees. The intermediate variable was the job satisfaction and the final outcome variable was OCB.. Participants The participant selection principal was to choose multiple companies where English is the official language and their headquarters are located at foreign countries. In addition, there should be at least one fifth contractors in the participative company. Two German based semiconductor company match well with the participant selection. The two organizations were a perfect match for the study because the organizations maintained a large a number of contractors and employees and they are well known semiconductor companies over the world. A total of 300 participants (60 contractors and 240 employees) were invited to participate. The research participants all worked in two large germen semiconductor companies in Taiwan branches. Criteria for inclusion were that the participants be able to read and understand English, be willing to participate in this study, and have been 21.
(22) at their current job more than one month.. Instrumentation Three instruments were used in the present study. One measured the job satisfaction, another one measured OCB, and the other one was a demographic questionnaire. A copy of the complete survey is shown in the administered format in appendix A. Approximately 10 to 25 minutes per respondent was needed to complete the entire survey.. Job satisfaction measure Job satisfaction was measured with the 36-item form of the Job Satisfaction Survey (Spector, 1985). A 5-point Likert-type response format was used, ranging from strongly agree to strongly disagree. The instrument yields nine sub-scales: pay, promotion, supervision, fringe benefits, contingent rewards, operating conditions, coworkers, nature of work and communication. Validity evidence for JSS is provided by studies that compared different scales with one another on the same employee. For example, five of the JSS subscale (pay, promotion, supervision, coworkers, and nature of work) correlate well with corresponding subscales of the JDI (Smith, Kendall & Hulin, 1969), which is probably the most carefully validated scale of job satisfaction, these correlations ranged from .61 for coworkers to .80 for supervision. The JSS has also been shown to correlate with a number of scales and variables that have been shown in the literature to correlate with other job satisfaction scales. These include job characteristics as assessed with the JDS (Hackman & Oldham, 1975), age, organization level, absence, organizational commitment, leadership practices, intention to quit the job, and turnover (Spector, 1985). Reliability evidence for JSS is the internal consistencies, or coefficient alphas, from a sample of 3,067 individuals who completed the JSS. The coefficient alphas ranged from .60 for coworker subscale, to .91 for the total scale (Spector, 1985).. 22.
(23) Organizational citizenship behavior measure The 16-item OCB scale of Smith et al. (1983) was used to assess OCB. This measure consists of two dimensions measuring the two categories of OCB, altruism and general compliance, respectively. A 5-point Likert-type response format was used, ranging from strongly agree to strongly disagree. Coefficient alpha reliability estimates were .88 and .85, respectively, for the two subscales.. Demographic questionnaire Demographic variable included age, gender, education, length of employment, employment status (contractor or employee), and motivation for temporary employment and preference for temporary employment. Motivation for temporary employment was assessed by the four-statement question developed by Polivka & Nardone (1989). Preference for working arrangement was assessing by a four-statement question. Contractors were asked which statement best describes their working arrangement preference.. Procedures HR officials at the germen-based semiconductor company were invited to participate in the study. A meeting was arranged during which full disclosure of the details of the study were presented to HR officials. With the assistance of company’s HR officials, all eligible workers were selected from personnel databases. All workers who have been working at their current job more than one month were included in the selection. Selected employees were contacted collectively by sending a “news flash” (an announcement) and invited to participate in the study. Participants were asked to fill out the questionnaires attached in the email and send them back directly at various intervals during the day. A reminder was also enclosed in the mail that the participation of this study was voluntary. Confidentially of the employee responses was assured and was maintained throughout the study. The instrument took approximately 10-25 minutes to complete. 23.
(24) After collecting the questionnaires, the responses were transferred into an SPSS data file where summary scores were calculated and the data analyzed. The result of this study will be presented to the HR officials in a monthly HR review meeting. Additionally, workers in this company will receive a summary of the overall results when the research ends.. Null Hypotheses This research was testing the hypotheses, which are now expressed below in the null form. Null hypothesis one Contractors will score the same or higher on job satisfaction than employees as measured by the Job Satisfaction Survey (Spector, 1985). Null hypothesis two Contractors will score the same or higher on OCB than employees as measured by the OCB Scale (Smith et al., 1983).. Null hypothesis three There will be either a significant negative relationship or no relationship between job satisfaction and OCB, among both contractors and employees.. Data Analyses Once the surveys had been collected, data analysis began by transferring the data into a SPSS data file. The data were checked carefully for accuracy during the data entry process. The SPSS files for all data transformation and analysis were saved for future reference. The instructions for scoring each instrument were carefully followed. Specifically, the responses were numerically coded (or reverse coded if appropriate) so that higher 24.
(25) scores are associated with higher values on the variables measured. Next, summary variables were calculated for each scale and sub-scale in each instrument. The scales and sub-scales were calculated by summing the relevant items and then dividing by the number of items in the scale or sub-scale. Descriptive statistics were calculated and data was summarized in tables. The independent student t-test was used to evaluate Hypotheses One and Two. Pearson’s correlation coefficients were calculated to examine Hypothesis Three.. Assumptions An assumption in this study was that employees understood the questions and the instructions. Another assumption was that respondents answered candidly without pressures to respond in socially desirable ways.. Limitations Like any research endeavor, this research did have some inherent flaws and limitations. Although these were kept a minimum, there were unavoidable limitations as discussed below. Social desirability could have impacted how both contractors and employees responded to the questions. Gallup et al. (1997) hypothesized that contractors may be more influenced by social desirability pressures than employees. This research did not use random sampling. The availability and participation of participants ultimately was determined by the organization and the individual employees. Therefore, non-random sampling could have affected the outcomes of this study. The present research focused only on contractors and employees in two Germen-based semiconductor companies in Taiwan branches. Ultimately, the present study may only generalize to the company sampled. Job satisfaction measure has been shown to differ across organization and in different jobs. This brings up the possibility that an organization or job effect that could be a threat to the internal validity of the present study. This variable in this study may differ across individual jobs. 25.
(26) Lastly, the present research consisted entirely of self-report measures. This brings up one main concern. Self-rated performance measures are often criticized as being easily “faked” by employees who wish to look good. However, because employees will be informed about the purposes of the present research, “faking” is expected to be minimal and is not expected to be occurred differentially across the groups of contractors and employees.. 26.
(27) CHAPTER IV. FINDINGS AND DISCUSSION Results of the data analysis are presented in this chapter. The chapter includes a discussion of sample characteristics and the results of the hypothesis testing, sub-scale analyses, confounding variables analyses, supplemental analyses, summary of the research findings and discussions of the result.. Sample Characteristics The participants in this study were employees of a German based semiconductor company in Taiwan. Participants included employees in all positions. The participation was voluntary and confidential. A total of 300 participants (60 contractors and 240 employees) were invited to participate. A total of 270 participants (54 contractors and 216 employees) actually participated in the study (90% response rate). Among the returned questionnaires, one contractor survey was discarded because all the questions were responded in the same answer (neural). The number of questionnaires that were suitable to use was 269 (53 temporary and 216 permanent). The reliability evidence, Cronbach’s Alpha, for this research is showed at Table 4.1.. 27.
(28) Table 4.1. Cronbach’s Alphas for Each Subscale and Total of JSS and OCB Scale Measure/ Sub-Scale. α. Job Satisfaction. .95. Pay. .89. Promotion. .90. Supervision. .90. Benefits. .89. Contingent Rewards. .91. Operating Procedure. .90. Co-workers. .89. Nature of Work. .90. Communication. .90. OCB. .79. Altruism. .90. General Compliance. .88. A cross-tabulation for gender and employment status is presented in Table 4.2 Overall, the majority of employees were male (74.1 %). There was a significant association between gender and employment status χ2 (1, N = 269) = 55.77, p < .01. As can be seen in Table 4.2, there are much more female employees in contractors than in employees. Table 4.2. Cross-Tabulation for Gender and Employment Status Contractors. Employees. Total. Gender. N. %. N. %. N. %. Males. 10. 18.9. 160. 74.1. 170. 63.2. Females. 43. 84.1. 56. 25.9. 99. 36.8. Total. 53. 100. 216. 100. 269. 100. Two Independent T-tests were calculated to test for significant differences in gender groups’ means on each of the variables in this study. The descriptive statistics are displayed in Table 4.3 and Table 4.4, and the results are displayed in Table 4.5 and Table 4.6. As can be seen in these tables, males scored significantly higher on job 28.
(29) satisfaction and OCB. Table 4.3. Descriptive Statistics of Job Satisfaction by Gender Gender Males Females Total. N. M. SD. SE. 170. 3.24. .68. .88. 99. 3.01. .87. .86. 269. 3.16. .54. .88. Table 4.4.Descriptive Statistics of OCB by Gender Gender Males Females Total. N. M. SD. SE. 170. 3.74. .53. .69. 99. 3.41. .07. .70. 269. 3.62. .04. .71. Table 4.5. Independent-Sample T test : Gender on Job Satisfaction Levene’s Test Equal Variance assumed. t-test. F. p. t. df. p. .12. .73. 2.00. 267. .04. Table 4.6. Independent-Sample T test : Gender on OCB Levene’s Test Equal Variance not assumed. t-test. F. p. t. df. p. .12. .73. 3.70. 210.95. .00. A cross-tabulation for age group and employment status is presented in Table 4.7. There was a significant association between age group and employment status χ2 (1, N = 269) = 20.55, p<.01. As can be seen in Table 4.7, contractors tended to be younger than employees.. 29.
(30) Table 4.7. Cross-Tabulation for Age Groups and Employment Status Contractors. Employees. Total. Age Group. N. %. N. %. N. %. 24 to 29 yrs. 16. 30. 39. 18. 55. 20. 30 to 35 yrs. 34. 64. 95. 44. 129. 48. 36 to 41 yrs. 3. 6. 55. 25. 58. 22. 42 and older. 0. 0. 27. 13. 27. 10. 53. 100. 216. 100. 269. 100. Total. Two Oneway ANOVAs were calculated to test for significant difference in age groups’ means on each of the variables in this study. The descriptive statistics are displayed in Table 4.8 and Table 4.9 and the results are displayed in Table 4.10 and Table 4.11. Table 4.8. Descriptive Statistics of Age Groups on Job Satisfaction Age Group. N. M. SD. SE. 24 to 29 yrs. 55. 3.09. .87. .12. 30 to 35 yrs. 129. 3.19. .84. .07. 36 to 41 yrs. 58. 3.16. .95. .13. 42 yrs and older. 27. 3.10. .97. .19. Total. 269. 3.16. .88. .05. Table 4.9. Descriptive Statistics of Age Groups on OCB Age Group. N. M. SD. SE. 24 to 29 yrs. 55. 3.55. .70. .09. 30 to 35 yrs. 129. 3.57. .72. .06. 36 to 41 yrs. 58. 3.74. .69. .09. 42 yrs and older. 27. 3.72. .69. .13. Total. 269. 3.62. .71. .04. 30.
(31) Table 4.10. Oneway ANOVA: Age Group on Job Satisfaction SS. df. MS. F. p. .43. 3. .14. .18. .91. Within Groups. 207.52. 265. .78. Total. 207.95. 268. Between Groups. Table 4.11.Oneway ANOVA: Age Group on OCB SS. df. MS. F. p. 1.67. 3. .56. 1.12. .34. Within Groups. 132.12. 265. .50. Total. 133.79. 268. Between Groups. As can be seen in the tables, there was no significant difference across age groups on the variables. Education levels of the participants are shown in Table 4.12. Of the employees who responded, 48 (17.8 %) had a college degree or certificate, 126 had a bachelor’s degree, 90 (33.5 %) had a master’s degree and only five had a doctor’s degree. There was an association between educational level and employment status χ2 (3, N = 269) = 19.55, p < .01. Table 4.12. Cross-Tabulation for Education and Employment Status Contractors Education. Employees. Total. N. %. N. %. N. %. College degree or Certificate. 14. 26.4. 34. 15.7. 48. 17.8. Bachelor’s degree. 34. 64.2. 92. 42.6. 126. 46.8. Master’s degree. 5. 9.4. 85. 39.4. 90. 33.5. Doctor’s degree. 0. 0. 5. 2.3. 5. 1.9. 53. 100.0. 216. 100.0. 269. 100.0. Total. Two Oneway ANOVAs were calculated to test for differences of group means by education. This descriptive statistics in Table 4.13 and Table 4.14 and the results are displayed in Table 4.15 and Table 4.16. As can be seen in the tables, there was no significant difference across educational groups on job satisfaction and OCB. 31.
(32) Table 4.13. Descriptive Statistics of Education Groups on Job Satisfaction Education Group. N. M. SD. SE. 48. 3.23. .79. .11. 126. 3.13. .87. .77. Master’s degree. 90. 3.15. .94. .10. Doctor’s degree. 5. 3.10. 1.13. .50. College degree or Certificate Bachelor’s degree. Table 4.14. Descriptive Statistics of Education Groups on OCB Education Group. N. M. SD. SE. 48. 3.56. .71. .10. 126. 3.55. .71. .06. Master’s degree. 90. 3.74. .70. .07. Doctor’s degree. 5. 3.79. .75. .34. College degree or Certificate Bachelor’s degree. Table 4.15. Oneway ANOVA: Education Groups on Job Satisfaction SS. df. MS. F. p. 0.33. 3. .11. .14. .94. Within Groups. 207.62. 265. .78. Total. 207.95. 268. Between Groups. Table 4.16. Oneway ANOVA: Education Groups on OCB SS. df. MS. F. p. 2.07. 3. .69. 1.39. .25. Within Groups. 131.72. 265. .50. Total. 133.79. 268. Between Groups. The employment lengths of the participants are found in Table 4.17. Of the employees who responded, 31 (11.5 %) had been with their organization for less than six months and 41 (15.2 %) had been with their organization for more than six months to one year, 91 (33.8 %) had been with their organization more than one year to three years, 73 (27.1 %) had been with their organization for more than three years to five years. There are 33 (12.3 %) employees had been with their organization for more than five years. There was an association between employment length and 32.
(33) employment status χ2 (4, N = 269) = 43.18, p < .01. In general, the contractors had been in their current positions for a shorter period of time than the employees. Table 4.17. Cross-tabulation for Employment Length and Employment Status Contractors. Employees. Total. Employment Length. N. %. N. %. N. %. Less than 6 months. 5. 9.4. 26. 12.0. 31. 11.5. More than 6 months to 1 year. 11. 20.8. 30. 13.9. 41. 15.2. More than 1 year to 3 years. 35. 66.0. 56. 25.9. 91. 33.8. More than 3 years to 5 years. 2. 3.8. 71. 32.9. 73. 27.1. NA. NA. 33. 15.3. 33. 12.3. 53. 100.0. 216. 100.0. 269. 100.0. More than 5 years Total. Two Oneway ANOVAs were calculated to test for differences by employment length on each of the variables in this study. The descriptive statistics are displayed in Table 4.18 and Table 4.19 and the results are displayed in Table 4.20 and Table 4.21. There was no significant difference by employment length on OCB. Table 4.18. Descriptive Statistics of Employment Length on Job Satisfaction Employment Length. N. M. SD. SE. Less than 6 months. 31. 3.35. .81. .15. More than 6 months to 1 year. 41. 3.24. .83. .13. More than 1 year to 3 years. 91. 3.08. .83. .09. More than 3 years to 5 years. 73. 3.14. .95. .11. More than 5 years. 33. 3.12. 1.01. .18. 269. 3.16. .88. .05. Total. 33.
(34) Table 4.19. Descriptive Statistics of Employment Length on OCB Employment Length. N. M. SD. SE. Less than 6 months. 31. 3.77. .68. .12. More than 6 months to 1 year. 41. 3.50. .70. .11. More than 1 year to 3 years. 91. 3.46. .71. .07. More than 3 years to 5 years. 73. 3.75. .68. .08. More than 5 years. 33. 3.76. .70. .12. 269. 3.63. .71. .04. Total. Table 4.20. Oneway ANOVA: Employment Length on Job Satisfaction SS. df. MS. F. p. 2.10. 4. .52. .67. .61. Within Groups. 205.86. 264. .78. Total. 207.95. 268. Between Groups. Table 4.21 Oneway ANOVA: Employment Length on OCB SS. df. MS. F. p. 5.48. 4. 1,37. 2.82. .03. Within Groups. 128.30. 264. .49. Total. 133.79. 268. Between Groups. Table 4.22 summarizes the relationships between the demographic variables and employment status by displaying the chi-square values and significance. Table 4.23 summarizes the relationships between the demographic variables and job satisfaction and OCB by displaying the results of the ONEWAY ANOVA F-tests and significance.. 34.
(35) Table 4.22 Pearson Chi-Square Tests of Association: Demographics and Employment Status. χ2. df. N. p. Gender. 55.77. 1. 269. <.01. Age. 20.55. 1. 269. <.01. Education. 19.55. 3. 269. <.01. Employment Length. 43.18. 4. 269. <.01. Demographics. Table 4.23. Summary of Oneway ANOVAs: Demographics on JS and OCB Demographics. Variables. Age. Job Satisfaction OCB. Education. F. p. .02. .89. 3.33. .07. .14. .94. 1.39. .25. .67. .61. 2.82. .03. Job Satisfaction OCB. Employment. Job Satisfaction. Length. OCB. An important result that can be seen in Table 4.14 and 4.15 is that gender, age, education, and employment length confound employment status in the planned hypotheses. More specifically gender, age, education, and employment length are related to employment status. Gender has an effect on job satisfaction and OCB. Employment length has an effect on OCB. Multiple regression was performed in order to deal with these confounds. First, all hypotheses were analyzed as planned, and then all hypotheses are re-analyzed while controlling for gender, age, education and employment length.. Testing of the Hypotheses In this section, the findings are described. To test Hypothesis One and Two, the independent sample t tests were computed to determine if contractors and employees differed on their mean job satisfaction and OCB. In each analysis, Levene’s Test for Equality Variances was used to determine whether equal population variances could be assumed. 35.
(36) Null hypothesis one Contractors will score the same or higher on job satisfaction than employees as measured by the Job Satisfaction Survey (Spector, 1985) An independent sample t test was used to test this hypothesis. Table 4.24 displays the results of the analysis and Table 4.25 displays the independent sample t-test result for Hypothesis One. Levene’s Test for Equality of Variances shows that equal population variances could not be assumed, F = 10.05, p < .01. Contractors scored lower on job satisfaction than employees. (Means = 2.78 and 3.25, respectively). The analysis rejected Null Hypothesis One (T (108.25) =4.31, p< .001). Table 4.24. Descriptive Statistics of Job Satisfaction by Employment Status Employment Status. N. M. SD. SE. Contractors. 53. 2.78. .65. .09. Employees. 216. 3.25. .91. .62. Total. 269. 3.16. .54. .88. Table 4.25. Independent Sample T-test: Employment Status on Job Satisfaction. Equal variances not assumed Levene’s Test. Mean. St. Err.. t. df. p. Diff.. Diff.. 4.31. 108.25. <.01. .47. .11. F = 10.05. <.01. Null hypothesis two Contractors will score the same or higher on OCB than employees as measured by the OCB Scale (Smith et al., 1983). An Independent sample t test was used to test this hypothesis. Table 4.26 displays the result of the analysis and Table 4.27 displays the independent sample t-test result for Hypothesis Two. Levene’s Test for Equality of Variances shows that equal population variances could not be assumed F = 114.53, p < .001. Contractors scored lower on OCB than employees (Means = 2.93 and 3.79, respectively). The analysis rejected Null Hypothesis Two (T (207.16) = 14.34, p<.001). 36.
(37) Table 4.26. Descriptive Statistics of OCB by Employment Status Employment Status. N. M. SD. SE. Contractors. 53. 2.93. 2.78. .04. Employees. 216. 3.79. .68. .05. Total. 269. 3.62. .71. .04. Table 4.27. Independent Sample T-test: Employment Status on OCB. Equal variances not assumed Levene’s Test. Mean. St. Err.. t. df. p. Diff.. Diff.. 14.34. 207.16. <.01. .86. .06. F = 114.53. <.01. Null hypothesis three There will be either a significant negative relationship or no relationship between job satisfaction and OCB among both contractors and employees. To test Hypothesis Three, the Pearson’s product moment correlation was computed to determine if there was a statistically significant relationship between job satisfaction and OCB for both contractors and employees. Table 4.28 summarizes the result of this hypothesis for contractors. Table 4.29 summarizes the result of this hypothesis for employees. Table 4.28. Pearson’s Product Moment Correlation Coefficients between Job Satisfaction and OCB for Contractors Job Satisfaction. OCB. 1. .70**. .70**. 1. Job Satisfaction OCB ** p <.01. 37.
(38) Table 4.29. Pearson’s Product Moment Correlation Coefficients between Job Satisfaction and OCB for Employees Job Satisfaction. OCB. 1. .88**. .88**. 1. Job Satisfaction OCB ** p <.01. Null Hypothesis Three was rejected because there were significantly positive relationships between job satisfaction and OCB among employees (r (N=216) = .88, p<.01) and contractors (r (N=53) = -.70, p<.01). Table 4.30 summarizes the results for the Null Hypotheses. Null Hypothesis One, Two and three were not supported. Table 4.30. Summary of Null Hypotheses Hypothesis Number. Results. One. Not supported. Two. Not supported. Three. Not supported. Sub-scale Analyses In this section, the hypotheses above were re-analyzed for each sub-scale. Table 4.31 and 4.32 display the descriptive statistics and t test results for Hypotheses One and Two using subscales. The results of Hypotheses One and Two did not change. Two very interesting finding emerged from these subscale analyses. Firstly, standard deviation for each subscale is more than one and that is large scale for 5-Likert scale. The reason might be that the distributions for subscale measures are usually wider than overall measure. Secondly, Contractors did not score significantly lower than employees did on all subscales of JSS. Of all subscales of JSS, contractors scored slightly but not statistically lower on operating procedure, coworkers and communication than employees did. However, this finding did not affect the overall results. The Sub-Scale analysis rejected these null hypotheses.. 38.
(39) Table 4.31. Descriptive Statistics of Sub-scales of Job Satisfaction and OCB by Employment Status Employment Sub-scale. Status. Pay Promotion Supervision Benefits Contingent Rewards Operating Procedure Co-workers Nature of Work Communication Altruism General Compliance. N. M. SD. SE. Contractor. 53. 2.67. 1.27. .17. Employee. 216. 3.32. 1.21. .08. Contractor. 53. 2.55. 1.14. .16. Employee. 216. 3.30. 1.23. .08. Contractor. 53. 2.67. 1.22. .17. Employee. 216. 3.29. 1.24. .08. Contractor. 53. 2.64. 1.20. .17. Employee. 216. 3.36. 1.19. .08. Contractor. 53. 2.62. 1.17. .16. Employee. 216. 3.29. 1.27. .09. Contractor. 53. 2.63. 1.18. .16. Employee. 216. 2.70. 1.25. .09. Contractor. 53. 3.30. 1.19. .16. Employee. 216. 3.34. 1.23. .08. Contractor. 53. 2.58. 1.14. .16. Employee. 216. 3.30. 1.24. .08. Contractor. 53. 3.37. 1.23. .17. Employee. 216. 3.32. 1.22. .08. Contractor. 53. 2.55. 1.25. .17. Employee. 216. 3.81. 0.97. .07. Contractor. 53. 3.22. 1.27. .17. Employee. 216. 3.77. 0.86. .06. 39.
(40) Table 4.32. Independent Sample t test: Employment Status on Sub-Scales of Job Satisfaction and OCB Sub-Scale. Mean. St. Err.. t. df. p. Diff.. Diff. Pay. 3.46. 267. <.01. .65. .19. Promotion. 4.01. 267. <.01. .75. .19. Supervision. 3.28. 267. <.01. .62. .19. Benefits. 3.94. 267. <.01. .72. .18. Contingent Rewards. 3.53. 267. <.01. .68. .19. Operating Procedure. 0.37. 267. .71. .07. .19. Co-workers. 0.21. 267. .83. .04. .19. Nature of Work. 3.83. 267. <.01. .72. .19. Communication. -.26. 267. .80. -.05. .19. Altruism*. 6.85. 67.91. <.01. 1.26. .18. General Compliance*. 3.01. 64.29. <.01. .55. .18. *Equal Variances not assumed In the Sub-scale analysis, Hypothesis Three was tested by computing the Pearson product-moment correlations between each job satisfaction sub-scale and OCB for both contractors and employees. The sub-scale analysis result for Hypothesis Three is displayed in Table 4.33 for contractors and Table 4.34 for employees.. 40.
(41) Table 4.33. Pearson Product-Moment Correlation Coefficients between Sub-Scale of Job Satisfaction and OCB for Contractors Sub-Scale. OCB. Pay. .69**. Promotion. .64**. Supervision. .76**. Benefits. .64**. Contingent Rewards. .62**. Operating Procedure. .67**. Co-workers. .60**. Nature of Work. .66**. Communication. .65**. ** p<.01 Table 4.34. Pearson Product-Moment Correlation Coefficients between Sub-scale of Job Satisfaction and OCB for Employees Sub-Scale. OCB. Pay. .84**. Promotion. .83**. Supervision. .84**. Benefits. .84**. Contingent Rewards. .84**. Operating Procedure. .85**. Co-workers. .83**. Nature of Work. .85**. Communication. .83**. ** p<.01 For Hypothesis Three, The Sub-Scale analysis still revealed significantly positive relationships between job satisfaction and OCB among employees and contractors. As all of the results did not change, the not supported finding for Null Hypothesis Three still holds true when Sub-Scale Analysis of job satisfaction were used.. 41.
(42) Analysis of Confounding Variables In this section, the hypotheses above are re-analyzed while attempting to statistically control for the confounding variables gender, age, education and employment length. To test Hypotheses One and Two, multiple regression was performed. To test Hypothesis Three, partial correlation coefficient was calculated. The researcher conducted multiple regression to test the explanatory levels of each confounding variables discussed above on job satisfaction and OCB. The results of multiple regression for gender, age, education, employment length and employment status on job satisfaction and OCB are showed in Table 4.35 and Table 4.36. The results indicated that the confounding variables have no significant impact on job satisfaction and OCB, thus the results of Hypothesis One and Two still hold true. Table 4.35. Multiple Regression for Gender, Age, Education, Employment Length and Employment Status on Job Satisfaction Mod. β. t. p. -.00. -.02. .99. .13. 1.05. .30. Education. -.02. -.18. .86. Employment Length. -.20. -1.66. .10. Employment Status. -.23. -3.28. <.01. Gender Age. Table 4.36. Multiple Regression for Gender, Age, Education, Employment Length and Employment Status on OCB Mod. β. t. p. .01. .18. .86. -.02. -.22. .83. .07. .66. .51. Employment Length. -.08. -.71. .48. Employment Status. -.50. -7.98. <.01. Gender Age Education. 42.
(43) The result of Hypothesis Three did not change when gender, age, education and length of employment were controlled for in the covariate analysis. As can be seen in Table 4.37, partial correlation coefficients remained significant and were the same as the results of hypothesis testing above. Table 4.40 summarizes the results of all hypotheses after all analyses. Table 4.37. Partial Correlations of Job Satisfaction and OCB for Contractors and Employees Model. t. p. Partial Correlation. Contractors’ JSS Mean. 7.97. <.01. .70. Employees’ JSS Mean. 26.75. <.01. .88. Supplemental Analysis As part of the demographics questionnaire, contractors were asked what their reasons were for being a contractor. By far the most common response (24 out of 53, or 45%) was “I hope to eventually obtain a permanent position at this company.” The next most common (42%) was “I want to know what this kind of job/industry is like” followed by (13%) “I enjoy the flexibility of temporary work.” Also, contractors were asked about their preference for working arrangements. Forty-six out of 53, or 87% of contractors responded that they preferred a permanent working arrangement over temporary employment. Interestingly, as showed in Table 4.38 and Table 4.39, the contractors who hoped to obtain permanent positions scored slightly higher on job satisfaction and OCB than did contractors who preferred temporary working arrangements. Table 4.38. Descriptive Statistics of Job Satisfaction on the Preference of Contractor Preference. N. M. SD. SE. Temporary. 7. 2.68. .75. .28. Permanent. 46. 2.80. .64. .09. \. 43.
(44) Table 4.39. Descriptive Statistics of OCB on the Preference of Contractor Preference. N. M. SD. SE. Temporary. 7. 2.92. .35. .13. Permanent. 46. 2.93. .27. .04. Table 4.40. Summary of Hypotheses Hypothesis No.. Scales. Result. One. Job Satisfaction. Supported. Pay. Supported. Promotion. Supported. Supervision. Supported. Benefits. Supported. Contingent Rewards. Supported. Operating Procedure. Not Supported. Co-workers. Not Supported. Nature of Work. Supported. Communication. Not Supported. OCB. Supported. Altruism. Supported. General compliance. Supported. Job Satisfaction. Supported. Pay. Supported. Promotion. Supported. Supervision. Supported. Benefits. Supported. Contingent Rewards. Supported. Operating Procedure. Not Supported. Co-workers. Supported. Nature of Work. Supported. Communication. Supported. Two. Three. 44.
(45) Summary of Research Findings The purpose of the present study is to address the problems experienced by both contractors and the organizations that use temporary services. This is done by comparing contractors and employees on job satisfaction and OCB. Additionally, the relationship between job satisfaction and OCB was measured for both contractors and employees. Contrary to the hypothesis, contractors did not score significantly lower on operating procedure, coworkers and communication subscales of JSS than employees did. Consistent with the hypotheses, the present study has shown that contractors scored significantly lower than employees did on both overall measures of job satisfaction and OCB. Also, consistent with the hypotheses, the present study found that there are significant positive relationships between job satisfaction and OCB among both employees and contractors. Multiple regression was performed to examine the explain level of gender, age, education and length of employment on two variables in this research. These analyses did not change any of the overall results discussed above. In the supplemental analyses, contractors who hoped to obtain permanent positions scored higher than other contractors on job satisfaction and OCB scales.. Discussions of the Results In this section, the results are discussed to explain the possible reasons behind the results and also assert to possible conclusions that can be drawn from the study.. Job satisfaction and employment status As discussed above, there is a significant difference across employment status on job satisfaction and OCB. This result is easy to explain given that the fact that contractors at this organization did the same work but for less pay and without compensatory benefits. For the contrary results of the Sub-Scale Analysis, as German companies always 45.
(46) have clear guidelines for each of the projects operated in the companies alone with a flat hierarchical ladder in foreign companies, maybe the reason why the operating procedure and communication subscales of JSS were not scored significantly lower by contractors than employees did. In addition, people who would have jobs in this company are mostly equipped with good academic backgrounds and/or several years of great technical experience, being working with the qualified coworkers in this company maybe the reason why contractors did not scored significantly lower on coworkers subscale of JSS. Attempting to repeat the findings of Krausz et al (1995) the supplemental analyses divided contractors into two groups based on choice of work status. Surprisingly, those contractors who prefer a permanent work arrangement (involuntary contractors) had a slightly higher job satisfaction than did those contractors who would prefer a temporary work arrangement (voluntary contractors). Thus, the Krausz et al. (1995) preference hypothesis was not supported by the current research and the questions of why some contractors are more satisfied, why some are less satisfied, and why some are equally satisfied as employees remain to be answered. One plausible explanation, as Moorman (1993) alludes to, is that difference lies not in the labors, but rather in the measures used. For example, the instrument used in the current study, the JSS by Spector (1985) measures cognitive job satisfaction and is based on a logical and rational evaluation of job conditions. Other common job satisfaction instruments, such as the Job Descriptive Index (Smith, 1969) and the Brayfield-Rothe Job Satisfaction Scale (Brayfield & Rothe, 1951) measure affective job satisfaction that is based on overall positive emotional appraisals of the job. The theory that employees could have higher cognitive satisfactions, yet low affective satisfactions remains to be tested.. OCB and employment status The present study directly compares OCB of contractor and employee. The finding that contractors and employees did have difference levels of OCB should be alert news to organizations that rely on contractors. As Borman and Motowidlo (1997) point out, OCB is important because it contributes to organizational effectiveness in a 46.
(47) way that shapes the organizational, social, and psychological context in which all employees must work. This is important because it may mean that through OCB, contractors can have impacts on the effectiveness of all employees and the organization as a whole. The results of the present study would suggest that if contractors did have such impacts, it would probably be a negative one. The results of the present study were consistent with Folger’s (1993) suggestion of a proactive basis for OCB. He argued that individual sometimes exhibit OCB in expectation that the organization will reciprocate with fair treatment in the future. The supplemental analysis showed that contractors who hoped to obtain permanent positions exhibited slightly higher OCB than did other contractors. However, the present study analysis was also consistent with social exchange theory (Thibaut & Kelly, 1959) which states that human interaction can be conceptualized as business transactions in which people exchange resources in hopes that they will earn profits (Blau, 1964). When employees feel they are being treated fairly, by getting a raise for example, social exchange theory dictate that the employee reciprocates, and Organ (1988) suggested that OCB is one likely avenue for employee reciprocation. Organ (1988) points out that contractors may withhold OCB as one possible mean of getting even for unfair treatment.. Job satisfaction and OCB The high relationships between job satisfaction and OCB for both contractors and employees were of no surprise at all. The result of this study confirmed the years of research gathered by Organ and Ryan (1995) showing that job satisfaction is related to OCB. What is new, is the present research study provides the evidence that such a relationship exists among contractors. The implication of this finding is very important for all organizations that use contractors. Specifically, if contractors’ job satisfactions are high, OCB is likely to be high as well. However, it contractor’s job satisfactions are low; OCB is likely to be low as well. Therefore, management would be wise to be aware of the design of subscales of job satisfaction for all employed laborers, particularly those of contractors. Again, employee’s job satisfactions are important to organizations primarily 47.
(48) because of their consequences. One such consequence of value to organization is OCB. Managing behaviors requires that an organization understands the factors that contribute to behaviors including job satisfaction.. 48.
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