The Relationship of Training and Development, Compensation, Job Stress, Job Satisfaction and Organizational Commitment: An Example of a Commercial Bank in Honduras

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(1)The Relationship of Training and Development, Compensation, Job Stress, Job Satisfaction and Organizational Commitment: An Example of a Commercial Bank in Honduras. By Nancy Paola Rodríguez Zavala. A Thesis Submitted to the Graduate Faculty in Partial Fulfillment of the Requirements for the Degree of. MASTER OF BUSINESS ADMINISTRATION. Major: International Human Resource Development. Advisor: Wei-Wen Chang, Ph. D.. National Taiwan Normal University Taipei, Taiwan July, 2016.

(2) ACKNOWLEDGEMENT I would like to thank my thesis advisor, Dr. Wei-Wen Chang, for all the guidance and support in conducting this thesis. Without your guidance I would have not been able to finish my thesis. I am also very grateful to Dr. Lai and Dr. Yeh, for accepting to be my committee members. Thank you a lot for all your suggestions. I really appreciate the time you spend to check and read my thesis. Moreover, I would like to thank to all our professors and IHRD staff for their support. I want to specially thank ICDF for giving me the opportunity to study here in Taiwan. I am also very grateful to Banco Atlántida for giving me the opportunity and the support in completing this research.. To my friends and classmates thank you for your support and. encouragement. I would specially like to mention my partner Ruby, for all the support. We always tried to help each other‘s during this difficult process. Thank you so much! Finally, I would like to thank my family, for all their support and continued encouragement..

(3) ABSTRACT Organizational commitment and job satisfaction are important predictors of organizational performance and help organizations reach competitive advantage. In order for organizations to survive during times of economic recession they have to make extra efforts to keep the employees satisfied and committed towards the organization. There are many factors affecting employees‘ job satisfaction and commitment, this study focuses on the factors of job stress, training and development and compensation. The data for this study was collected from 250 employees of Banco Atlántida, Honduras most important bank. SPSS statistics software was used to analyze the data. The results obtained indicate that training and development and compensation have a positive and significant effect on job satisfaction; job stress however has a negative but significant effect on job satisfaction. The results also indicate that job satisfaction has a positive and significant effect on organizational commitment. Lastly, job satisfaction showed to have a mediator effect between independent variables, training and development, compensation, job stress and the dependent variable organizational commitment. This study contributes and gives more information to the banking industry in Honduras, especially to Banco Atlántida, about the real situation of the employees. Keywords: job satisfaction, training and development, compensation, job stress, organizational commitment.. I.

(4) TABLE OF CONTENTS ABSTRACT …………………………………………………………………….….I TABLE OF CONTENTS ……………………………………………………….....II LIST OF TABLES …………………………………………………………….....IV LIST OF FIGURES ……………………………………………………………....V CHAPTER I INTRODUCTION ...............................................................................1 Research Background ................................................................................................................. 1 Research Purposes and Questions .............................................................................................. 3 Significance of the Study ........................................................................................................... 4 Definitions of Terms .................................................................................................................. 4 Research Limitations .................................................................................................................. 6. CHAPTER II LITERATURE REVIEW ..................................................................7 Organizational Commitment ...................................................................................................... 7 Job Stress .................................................................................................................................. 10 Training and Development ....................................................................................................... 13 Job Satisfaction......................................................................................................................... 15 Compensation ........................................................................................................................... 19 Relationship between the Variables ......................................................................................... 21. CHAPTER III RESEARCH METHODS ...............................................................27 Research Framework ................................................................................................................ 27 Research Hypotheses ................................................................................................................ 27 Research Design ....................................................................................................................... 28 Instrument ................................................................................................................................. 28 Data Collection ......................................................................................................................... 32 Data Analysis ........................................................................................................................... 33 Research Procedure .................................................................................................................. 34. CHAPTER IV RESULTS AND DISCUSSIONS ...................................................36 Descriptive Statistics ................................................................................................................ 36 Reliability Analysis .................................................................................................................. 47 II.

(5) Correlation Analysis ................................................................................................................. 47 Hypotheses Test ....................................................................................................................... 48 Discussion of the Results ......................................................................................................... 55. CHAPTER V CONCLUSIONS AND IMPLICATIONS ......................................57 Conclusions .............................................................................................................................. 57 Implications .............................................................................................................................. 58 Research Limitations ................................................................................................................ 61 Suggestions for Future Research .............................................................................................. 61. REFERENCES ........................................................................................................63 APENDIX A: QUESTIONNAIRE ..........................................................................73. III.

(6) LIST OF TABLES Table 2.1. Definitions of Organizational Commitment ................................................................ 8 Table 2.2. Definitions of Job Stress ............................................................................................ 11 Table 2.3. Definitions of Training and Development ................................................................. 14 Table 2.4. Dimensions of Job Satisfaction.................................................................................. 16 Table 4.1. Demographic Characteristics of the Sample .............................................................. 36 Table 4.2. Descriptive Statistics for Organizational Commitment ............................................. 38 Table 4.3. Descriptive Statistics for Job Stress ........................................................................... 40 Table 4.4. Descriptive Statistics for Training and Development ................................................ 41 Table 4.5. Descriptive Statistics for Compensation .................................................................... 43 Table 4.6. Descriptive Statistics for Job Satisfaction ................................................................. 44 Table 4.7. Independent T-test ..................................................................................................... 45 Table 4.8. One way ANOVA ...................................................................................................... 46 Table 4.9. Cronbach Alpha Values ............................................................................................. 47 Table 4.10. Correlation Analysis ................................................................................................. 48 Table 4.11. Linear Regression Analysis of Training and Development and Job Satisfaction..... 49 Table 4.12. Linear Regression Analysis of Compensation and Job Satisfaction......................... 49 Table 4.13. Linear Regression Analysis of Job Stress and Job Satisfaction................................ 50 Table 4.14. Linear Regression Analysis of Job Satisfaction and Organizational Commitment .. 51 Table 4.15. Regression Analysis for Job Satisfaction as Mediator between Training and Development and Organizational Commitment ........................................................ 52 Table 4.16. Regression Analysis for Job Satisfactionas a Mediator between Compensation and Organizational Commitment ..................................................................................... 53 Table 4.17. Regression Analysis for Job Satisfaction as a Mediator between Job Stress and Organizational Commitment ..................................................................................... 54 Table 4.18. Summary of the Results ............................................................................................. 55. IV.

(7) LIST OF FIGURES Figure 2.1.. Hackman Olham‘s job satisfaction characteristics model ....................................... 18. Figure 2.2.. The high performance cycle .................................................................................... 24. Figure 3.1.. Research framework ................................................................................................ 27. Figure 3.2.. Research procedure ................................................................................................. 35. V.

(8) CHAPTER I INTRODUCTION This chapter consists of the background of the study, research purpose, research questions and significance of the study. This chapter also lists the limitations of the study as well as the definition of key terms, for a better understanding of the entire study.. Research Background Since the global economic crisis in 2008, Honduras as well as other developing countries experienced an economic slowdown.. Economic recession plus other social problems have. brought instability to the country. Under these circumstances it has been difficult for some organizations to adapt to the changes that come along with the crisis. The country‘s public debt increased in the third quarter of 2014, owing to effects of global economic crisis and the political crisis in the country (ECLAC, 2014). Human resource development plays an important role when facing the challenges of a recession. Organizations have to make an extra effort to keep the employees motivated and satisfied with their job in order to reach the organizational mission and goals. Job satisfaction and organizational commitment are considered to be key job attitudes that predict desirable work behaviors in the workplace. There are many factors affecting the level or job satisfaction and organizational commitment among employees, it is very important for HR professionals to be aware of these factors. This study focuses on training and development, compensation, job stress and the effect these have on job satisfaction and organizational commitment. Several studies have shown a positive correlation between organizational commitment and job satisfaction, and also a positive correlation between organizational commitment and organizational performance. One of the roles of human resource professionals is that of training and development. According to Arthur, Bennett, Edens and Bell (2003), many factors influence the continued need for individual and organizational development, such as, maintaining a competitive advantage in the marketplace, to adapt to change, to improve employee skills and knowledge, to increase productivity and to communicate the goals of the organization to the new employees. Training also helps to improve the employee‘s overall satisfaction and commitment towards the organization. Nowadays organizations are investing a lot on training and development; this is. 1.

(9) because the importance of the human resource cannot be underestimated in an organization. According to Gammie (1996) organizations that have properly selected their employees and provided effective training for them will have a competitive advantage over those whose poor selection and training methods have allowed the accumulation of ineffective employees. Therefore, due to the fact that organizations success depends much of the ability to select, train and retain the best employees, this study will examine the effect training and development has on employees‘ job satisfaction and commitment. Other than training and development, compensation and job stress are also important factors that cannot be ignored by organizations and that also affect the satisfaction level of employees. The way employees perceive their compensation affects the way how they behave in the workplace. The major reason most people work is because they need salary or wages to survive and to satisfy their lower and higher level needs (Dulebohn & Werling, 2007). Intrinsic factors are also important on how employees choose and remain in certain organizations. Therefore, compensation plays an important role on attracting and retaining employees. One of the main problems in Honduras is the increase on the percentage of inflation, which may have an impact on the way employees feel about their compensation. Due to factors like this, it is a challenge for organizations in a developing economy like Honduras to maintain the level of satisfaction when the business environment it‘s not favorable. One of the objectives of this study is to examine how compensation affects organizational commitment. According to the ―Preliminary Overview of the Economies of Latin America and the Caribbean‖ of 2014 published by the Commision Economica de latinoamerica y el Caribe (ECLAC): In October, year-on-year inflation stood at 6.3%, having quickened since October 2013 (4.6%). Price rises are largely a temporary effect arising from the increase in the value added tax (VAT) rate from 12% to 15% as part of the fiscal reform approved in 2013. The category that most affected inflation was food and non-alcoholic beverages, whose contribution to the inflation rate in October stood at 2.4 percentage points. The inflation rate is expected to be 6.5% in December 2014 (p.2). Lastly, job stress, which is increasingly an important issue for employees, organizations and the societies. This importance is due to the effect it has on employees‘ well-being and their 2.

(10) performance. The overall stress is caused by factors outside the organization as well as internal factors. Climate, economy and family are some of the external factors, and some internal factors such as, Leadership, company polices, working conditions, workload and long working hours (Bhatti, Shar, Shaikh, & Nazar, 2010). Due to the recession organizations nowadays have to deal with a lot of changes, changes that creates increase stress among employees. Employees are being affected in a physically and emotional way. They experience more anxiety and pressure from the working environment. As Honduras economy is not stable and due to high percentage of inflation people find it very difficult to meet their financial needs which results into stress. Honduras is a country located in Central America, with a population of approximately 8 million people, considered one of the poorest Spanish speaking countries in Latin America. The data from this study will be collected from employees of Banco Atlántida, The largest and most important commercial bank in Honduras. The population for this study will cover employees from this bank specially does in the branches located in the Atlantic area. This study will follow a quantitative approach, using survey questionnaires as an instrument for data collection. Banco Atlántida is a Honduran private Bank founded in the year of 1913, in the city of La Ceiba, Atlántida. With many years of existence, Banco Atlántida has been recognized as the leading bank in Honduras, occupying the number one position in the national banking system. This bank provides international quality products through the most extensive service network in the country (www.bancatlan.hn).. Research Purposes and Questions Training and development, job stress and compensation are well known antecedents of Job satisfaction and organizational commitment. However, little research has been conducted on the relationship of these variables as it applies to the financial sector in Honduras. This study aims to study the relationship of the variables mentioned before. Thus the purpose of this study is firstly, to examine the effect of training and development, compensation and job stress on job satisfaction. Secondly, to investigate the mediator effect of job satisfaction between training and development, compensation, job stress and organizational commitment.. 3.

(11) According to the study purposes the following research questions were formulated: 1. How compensation, training and development and job stress affect employee satisfaction? 2. What is the mediator effect that job satisfaction has between compensation, Training and Development, job stress and organizational commitment?. Significance of the Study Financial Institutions are very important and have a great influence on the Honduran economy. Despite the fact that the Honduran economy experiences a slowdown the financial industry is one of the most dynamic sectors nowadays (ECLAC, 2014). As organizations try to fight the crisis and gain a competitive advantage over their competitors is it very important for managers and HR professionals to know the impact of training and development, compensation and job stress on job satisfaction and organizational commitment. Little research has been made in the financial industry in Honduras; hence the objective of this research is to give more information, to know more in deep about the real situation of the employees in the banking industry. According to the results, suggestions will be made which can lead them to make the necessary changes to improve employees‘ job satisfaction and organizational commitment.. Definitions of Terms Job Satisfaction ―Job Satisfaction is defined as a pleasurable or positive emotional state stemming from a person‘s appraisal of his or her work, including day-to-day activities, responsibilities, and relationships with colleagues‖ (Bouckenooghe, Raja & Butt, 2013, p. 109). This mediating variable will be measure by adapting Hackamn‘s 15-item scale, Job Diagnostic Survey (JDS).. Organizational Commitment ―Organizational commitment can be defined generally as a psychological link between the employee and his or her organization that makes it less likely that the employee will voluntarily leave the organization‖ (Allen & Meyer, 1996, p. 252). Organizational commitment is also defined as the degree of identification and involvement individuals have towards a particular 4.

(12) organization, and the strong desire to remain with the organization (Mowday, Steers & Porter, 1979). Organizational commitment will be measure by using a 23- item scale developed by Allen and Meyer (1990). This measure includes the three components of organizational commitment affective, continuance, and normative commitment.. Training and Development Refers to the planned effort by an organization to facilitate learning in order for the employees to acquired job-related competences, skills, attitudes and behavior that help employees to perform daily activities and prepares them for future jobs or positions (Noe, 2013). A scale of 18 items will be used to measure training and development. This scale is adapted from Bartlett (2001).. Job Stress It is the excessive pressure employees feel by the amount of job they are asked to do in a designated period of time, also pressure from the degree of difficulty of the work they are asked to do, which challenge their ability and knowledge (Acas, 2014). A scale of 16-items developed by Lin and Rashid (2010) will be used to measure this variable. This scale includes three dimensions, these are, role ambiguity, role conflict and role overload.. Compensation It is defined as the total financial or non-financial rewards that an employee receives as an exchange for their work performed (Milkovich & Newman, 2005; Yahya & Tan, 2015). According to them the rewards are usually given based on the value of job, level of responsibility, efforts, and performance. A scale of 17 items developed by Heneman and Schwab (1985) will be used to measure compensation; this scale includes four dimensions- Pay Level, benefits, raises, and administration.. Commercial Bank Commercial Banks are financial institutions that provide services to people and businesses. Some of the main services provided by commercial banks are: acceptance of deposits, lending. 5.

(13) money, offering investment products like saving accounts and certificates of deposit. Other services include the acceptance of payments (rent, insurance), money transfer facility, acceptance of tax proceeds and tax returns, and many more (www.wikipedia.org).. Research Limitations First, this study focuses on the investigation of the relationship of training and development, compensation, job Stress, job satisfaction and organizational commitment in a commercial bank in Honduras. Other factors that affect commitment in the bank industry or other industries are not under the scope of this study. Secondly, this study focuses on a specific financial institution in Honduras. It will cover only those employees of the Branches of Banco Atlàntida located in the Atlantic area. Since it only focuses in this specific institution, the results may not be generalized to other financial institutions. Due to the fact that the researcher relied on the HR manager to distribute and collect the questionnaires, the researcher will not have complete control over the random selection of participants. Thus, this will be a limitation for this study.. 6.

(14) CHAPTER II LITERATURE REVIEW This chapter presents a review of the available literature relevant to the topic and the research questions. First the chapter discusses about the definitions of each the variables, second it discusses the different theories related to the variables. Lastly, it discusses the relationship that exists between them.. Organizational Commitment The concept of organizational commitment has been of great interest for researchers interested in organizational behavior (Jaros, 1997) .This interest is due to the prediction that employees with high organizational commitment are more likely to have a better performance, and to remain loyal to the organization, thus improving the overall performance of the organization. Also a lot of studies have demonstrated the connection that exists between organizational commitment, job satisfaction, turnover intention and actual turnover.. Definitions of Organizational Commitment There are several definitions for organizational commitment (Morrow, 1983). Robbins and Judge (2015, p. 102) define organizational commitment as ―The degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization‖. O‘reilly and Chatman (1986) simply defined commitment as the ―individual‘s psychological attachment to the organization‖ (p. 492). Another widely use definition is that of Mowday, Steers, and Porter (1979) they defined organizational commitment as the degree of identification and involvement an individual has with his organization. This definition has three related factors, first, a strong belief and acceptance of the organization‘s goals and values, second the willingness of employees to make an extra effort on benefit of the organization, lastly, the strong desire to remain in the organization. This last definition does not see organizational commitment as mere loyalty and identification but also as the actions and effort individuals make in benefit of the organization. Meyer and Allen (1997) also mentioned that a committed employee is the one who will stay with the organization through bad and good times, attends. 7.

(15) work regularly, works through the whole day or even extra time, protects the assets of the organization, and who shares the mission and goals of the organization.. Table 2.1. 1 Definitions of Organizational Commitment Authors (s) O‘reilly & Chatman,. Definitions Individual‘s psychological attachment to an organization.. 1986 (p.492) Robbins &Judge, 2015. ―The degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization.‖. Mowday, Steers, &. Degree of identification and involvement an individual has with his. Porter ,1979. organization.. The most widely used conceptual model for measuring organizational commitment is the one developed by Meyer and Allen (1991). According to them organizational commitment can occur in three different forms, these are, affective commitment, normative commitment, and continuance commitment. Employees with affective commitment experience an emotional attachment toward the organization, they remain in the organization because they want to, employees with normative commitment experience a feeling of obligation, they remain in the organization because they feel is the right thing to do, employees with continuance commitment remain in the organization because they need to, the cost of leaving the organization is not favorable to them (Allen & Meyer, 1997). The important common fact is that these three components should have an effect on employee´s intention and decision to remain in the organization. Roe, Solinger, and Van Olffen (2009) claimed that these three dimensions are the most applicable across a wide range of cultural contexts. This dimensional concept of organizational behavior is strongly supported by Dunham, Grube and Castañeda (1994) in their study of nine different samples, involving a total of 2734 employees. Also the data reported in the earlier study by Allen and Meyer (1996) strongly suggest the continued use of these three. 8.

(16) measures. This study will use Meyer and Allen conceptual model to measure organizational commitment. According to Morrow (1993) this model plays a very important role within the study of work attitudes and behaviors. According to Meyer and Allen (1991) these three dimensions should develop from different causes, and different attitudinal and behavioral consequences should also result from it. Affective commitment. This type of commitment can arise from positive experiences with the organization, when the employees feel that the organization supports and values them (Michael, Court & Petal, 2009). Other antecedents for this commitment are related to the five dimensions of job satisfaction, which are, the perceived task autonomy, task identity, task significance, and feedback from agents. It‘s also expected that age, and organizational tenure will also have a positive relation to affective commitment. Normative commitment. This kind of commitment comes from internal pressures that result from norms and beliefs that the organization encourage for employees to have. The organizations transmit these norms and beliefs by means of organizational culture and continued training; these norms are about transmitting a sense of loyalty to act in a manner that‘s fits the goals of the organization (Dunham et al, 1994; Michael, Court & Petal, 2009; Weisner, 2003). Continuance commitment. According Dunham, Grube and Castañeda (1994) this construct has two sub dimensions, these are, personal sacrifices and lack of alternatives. The employees have no chooses but to stay in the current organization, as a result employees sacrifices themselves to remain in the organization. Lack of alternatives refers, to the lack of job positions in the market, also age since older employees may prefer to stay seeing that is more difficult to find a job at their age, accumulated benefits since the employees may be afraid of losing the accumulated benefits they have with the present organization. These three components are significantly and negatively related with turnover intentions. According to various studies (Jaros 1997; Meyer, Allen, & Smith, 1993; Somers, 1995; Whitener & Walz, 1993) employee‘s affective commitment is the stronger predictor of turnover intentions. This implies that by fostering affective commitment organizations can reduce turnover behavior. Thus, organizations have to put a great deal of effort to develop strategies in order to enhance and maintain affective commitment.. 9.

(17) According to Meyer, Stanley, Herscovitch and Topolnytsky (2002) out of the three components, affective commitment also has the strongest correlation with desirable work behaviors such as organizational citizenship, job performance and increased attendance. Therefore, those employees with strong affective commitment would be more willing to get involve in extra roles and make extra effort beyond what is required by the job (Katz, 1964). These employees will show higher organizational citizenship behavior (Organ, 1988), better job performance, and lower absenteeism than those with low affective commitment. In the other side, continuance commitment is unrelated or negatively related to desired work behaviors. Thus, continuance commitment is the least desired by organizations (Wahn, 1993). Organizational commitment is related to the way individuals respond to dissatisfaction. There are three responses related to satisfaction which are: Loyalty, voice and neglect Individuals with strong affective and normative commitment are more willing to voice their opinion, and to follow things as they are, they show more obedience, flexibility and conformity (Farrell, 1983; Hirschman, 1970; Meyer, 1993). In the other side, employees with high continuance commitment are positively related to some unethical behaviors.. Job Stress. Definitions of Job Stress Job stress can affect employees in different ways, managers and human resource professionals must be aware of the negative effects, which may affect employees‘ health and their job satisfaction and commitment. Stress may result of pressures from the external environment and the work environment, organizations cannot usually protect employees from the external forces, but instead they can protect them from excess pressure that arises from the workplace. Stress is the result of a range of different events and circumstances, but when employees feel that they have support from supervisors and colleagues and when they have control over their work, stress becomes less noticeable (Leka, Griffiths & Cox, 2003). Work-related stress is defined as the response individuals could experience from the demands and pressures of their job that are not matched to their knowledge and abilities and which challenge their ability to perform (Leka, Griffiths, Cox & 2003). According to the. 10.

(18) Occupational Safety and Health Service (2003) stress is one the many causes of fatigue in the workplace. Work stress is when employees are being physically and psychologically disturbed due to some work related factors (Lu, 1997). Similarly, work stress refers to the symptoms of stress present in employees, as a result of work related factors (Cook & Ashcroft, 2015). Stress also refers as when individuals feel they are not being able to cope with the demands of the work environment; which causes concern to the person, and has a negative emotional response (Occupational Safety & Health Service, 2003). Table 2.2. 2 Definitions of Job Stress Authors (s). Definitions. Work Health. Work-related Stress is defined as the response individuals could. organization, 2004. experience from the demands and pressures of their job that are not matched to their knowledge and abilities and which challenge their ability to perform.. Lu, 1997. Work stress is when employees are being physically and psychologically disturbed due to some work related factors.. Cook and Ashcroft,. work stress refers to the symptoms of stress present in employees, as. 2015. a result of work related factors.. Occupational Safety and Stress refers as when individuals feel they are not being able to cope Health Service,1998. with the demands of the work environment; which causes concern to the person, and has a negative emotional response.. The most cited factors of work stress are role conflict, role ambiguity and work overload (Fisher & Gitelson, 1983). These factors have a negative effect on employees, both physiological and physically. Role conflict is defined as the ―pressure to perform in two or more incompatible ways‖ (Bhatti, Shar, Shaikh & Nazar, 2010, p.4). Role conflict has been linked numerous times to job stress. Role conflict occurs when the person is asked to do two or more roles that include activities that are different among each other (Rahim, 1992). 11.

(19) Role ambiguity refers to ―the lack of clear and specific information regarding work role requirements‖ (Bhatti , Shar, Shaikh & Nazar, 2010, p. 4). It has also been related repeatedly with work stress and low job satisfaction (Cordes & Dougherty, 1993; Hamner & Tosi, 1974; House & Rizzo, 1972; Ivancevich & Donnelly, 1974). Work overload refers to the degree of difficulty or quantity of obligations or requirements an individual has to perform in a limited period of time. There are many factors that can cause job stress, such as negative work relationships with coworkers or clients, long hours of work or shift work, pressure of the role or issues with the tasks, working conditions and economic pressures. A stressful workforce will result in low attendance, high turnover, customer dissatisfaction, low profits and low productivity (Cook & Ashcroft, 2015). However, it has been also found in many studies that experiencing a moderate level of stress can actually improve performance. Thus, low or high levels of stress can result in low performance and negative mental health (Raeissi & Tavakoli, 2002; Rice, 1998). Therefore, moderate levels of stress are necessary for achieving desirable and effective performance (Hamidi & Eivazi, 2010). Medical studies suggest that there is a significant relationship between stress and some negative responses, such as heart disease, gastroenteritis, sleep disorders, low job performance, and absenteeism (McVicar, 2003; Mitoma et al., 2008; Muecke, 2005; Poissonnet & Veron, 2000). It has also been found that those individuals who are not satisfied with their salaries experience an increase job stress (Hamidi & Eivazi, 2010; Vafaei, 2000; Zahedi, Palahang, & Ghafari, 2000). According to a study by Michael, Court and Petal (2009), Job stress especially the factor of role conflict is related to organizational commitment. From the same study the results show that there is a negative relation between job stress, and affective commitment. Therefore, when individuals experience a high level of stress they will feel less attached to the organization. However, there was no relation between job stress, normative and continuance commitment, this could be due to the fact that normative committed employees feel stress is part of their job and obligations, while continuance committed employees feel that they have no choose but to stay in the organization.. 12.

(20) Training and Development. Definitions of Training and Development Training and Development refers to a systematic process that aims to maintain and improve employees‘ current and future performance by enhancing their ability to perform, by shaping their attitudes or improving their skills and knowledge with the objective to reach individual and organizational effectiveness (Belhaj, 2000; Buckley & Caple, 1990; Ensour & Kharagsheh, 2015). Training is also defined as the activities that help individuals to acquire specific skills and knowledge with the objective to improve their performance, whereas development relates to the future development of employees‘ throughout their carrier (Armstrong, 2006; Fairfield & James, 1987; Hackett, 1997; Ensour & Kharagsheh, 2015). Swanson (1995) stated that the foundation for training or for any human resource development effort is to improve performance. Hence, training can be seen as a human resource practice than can shape attitudes and behaviors, including, job satisfaction, job involvement and organizational commitment. Sadler-Smith (2006) referred to training as one of the fields of learning. He referred to training as a formal and systematic process of obtaining skills, organizational polices and attitudes with the objective to improve performance in another environment. Different from the other definitions this one mentions ―another environment‖ this refers that due to the changing environment, organizations need to be flexible in order to adapt to the changes, thus training is need it to provide employees with new skills, knowledge and attitudes (Buckley & Caple, 2004). According to Maurer and Lippstreu (2008) one of the key functions of human resource that helps in shaping employee‘s behavior is that of support from the organization for personal development, it results as employees being involved and committed towards the organization. When organizations offer opportunities for employee development employees experience a higher level of personal satisfaction (García-Bernal et al., 2005). According to Gazioglu and Tansel (2006) those employees who received job training were more satisfied than those who did not have training opportunities. In addition of the above findings another study conducted in America and Canada pointed out that receiving training to improve skills and abilities was a key component of what potential candidates expected from their jobs (Community Banker, 2001). According to the findings is clear that organizations have to provide adequate employee. 13.

(21) development initiatives to attain a high level of employee satisfaction and to avoid turnover. Employees appreciate the fact that the organization freely provides training.. Table 2.3.. 3. Definitions of Training and Development Authors (s). Definitions. Belhaj, 2000; Buckley & Development refers to a systematic process that aims to maintain Caple, 1990; Ensour &. and improve employees‘ current and future performance by. Kharagsheh, 2015. enhancing their ability to perform, by shaping their attitudes or improving their skills and knowledge with the objective to reach individual and organizational effectiveness.. Armstrong, 2006;. Training is also defined as the activities that help individuals to. Fairfield& James, 1987;. acquire specific skills and knowledge with the objective to. Hackett, 1997; Ensour & improve their performance, whereas development relates to the Kharagsheh, 2015). future development of employees‘ throughout their carrier.. Sadler-Smith, 2006. The systematic process of obtaining skills, organizational polices and attitudes with the objective to improve performance in another environment.. In this study Training and Development will be measured by four dimensions which are: Training motivation, perceived support of training from colleagues, perceived support from management, and the training benefits. All these variables have been found in previous studies to influence participation in training (Bartlett, 2001; Noe & Wilk, 1993; Tharenou and Conroy, 1994; Tharenou, 1997). Training motivation. ―Training motivation is the level of motivation toward participation in training and development activities‖ (Bartlett, 2001, p. 340). It is frequently cited as one of the most important attitudes that affect participation in training and training outcomes (Fleishman and Mumford, 1989). Thus, motivated employees are more likely to apply the skills they acquired in training back to their work (Cannon-Bowers, Salas, Taneenbaum, & Mathieu, 1993). 14.

(22) Perceived support of training from peers. It refers to the motivation and assistance trainees get from their co-workers (Blanchard, 2010). Thus, the opinion and reaction other members have towards training will have an influence over other team members, thus affecting motivation towards the training. If a team is motivated towards training the team will transmit this motivation to the other team members, thus team members will be motivated to actively participate in the training and acquired all the necessary skills and content from the training and apply them in the daily work routine. Perceived support of training from managers. If managers believe and are motivated towards training, they will transmit and communicate this to the employees; as a result employees will show better reactions towards training. According to Noe and Wilk (1993) the perceived support for training from co-workers, colleagues, and managers has been shown to influence the decision to participate in training and development activities. Tharenouu (1997) also finds that social support and career development are important indicators for training participation. Training benefits. The perceived benefits of training have also been shown to influence the decision to participate in training (Bartlett, 2001). According to him those employees who think positively on training benefits are more likely to show stronger feeling of commitment towards the organization that provided the training. According to Nordhaug (1989) there are three kinds of benefits that employees get from participation in training, these are: personal, career, and job related benefits.. Job Satisfaction. Definitions of Job Satisfaction Job satisfaction is the general attitude an employee has towards their job. Job satisfaction is one of the most important and significant variables in organizational behavior and in organizations. Job satisfaction is of great importance due to the fact that most of individuals spend a large part of their life at work (Curtis, 2007). It is very important for human resource professionals to understand the factors that affect job satisfaction in order to improve the wellbeing of employees. According to Wang and Feng (2003) the higher the job satisfaction, the higher the positive attitude and behaviors employees will have toward their job. Also individuals 15.

(23) with high job satisfaction are more likely to be committed to the organization (Wang & Feng, 2003). The most widely used definition of Job satisfaction is that of Locke (1976) who described job satisfaction as ―A pleasurable or positive emotional state resulting from the appraisa1 of one's job or job experiences‖ (P.1304). Previous studies have demonstrated the mediator effect job satisfaction and affective commitment has between dispositional traits and turnover intentions. To measure this variable the Job Diagnostic survey (JDS) was adopted, this scale provides measures of six core dimensions, these are: skill variety, task identity, task significance, autonomy, and feedback from the job itself and from agents. This scale measures the employees‘ reactions to their work (Hackman & Oldham, 1974). According to the theory of Turner and Lawrence (1965) jobs that provide different job characteristics and attributes such as variety, identity, and feedback result on positive job outcomes such as: high job motivation, high job commitment, increased attendance, and high job satisfaction. Managers and human resource professionals should design tasks that are identifiable and meaningful to employees in order to increase the sense of ownership of their work and to encourage employees to view their work in a more meaningful and important way. (Choge, Chepkiyeng & Chelimo, 2014). In the Following table 2.4 are the respective definitions of the six dimensions: Table 2.4.. 4. Dimensions of Job Satisfaction Dimension of Job. Definitions. Satisfaction Skill Variety. Refers to the extent to which a particular job requires a variety of different tasks, and a range of different abilities and skills are needed to perform them.. Skill Identity. Refers to the extent to which a job requires completion from beginning to end of an identifiable piece of work, and when this work has a visible outcome.. Skill Significance. Refers to the degree, to which a job has a significant impact on the lives or work of others, it can be inside the organization or in the external environment. 16. (Continued).

(24) Table 2.4. (continued) Task Autonomy. Refers to the extent to which a job provides a considerable freedom and independence to the employees to schedule and select the procedures to be used when performing the job.. Feedback of the Job. Refers to the degree to which employees obtain immediate and clear. Itself. information about the effectiveness of their job performed.. Feedback from. The degree to which an employee receives clear feedback about her or. Agents. his performance from supervisors or coworkers.. Note. Adapted from: Hackman and Oldham (1974).. Job satisfaction results from the consequences that correspond to what the employee wants or values. The extent to which an employee feels satisfied or dissatisfied will be related to the degree of fulfillment of the value and significance of the value to the employee (Locke & Latham, 1990). The development of the JDS scale was originated by the previous theory developed by Turner and Lawrence (1965), and Hackman and Lawler (1971). This theory suggests that positive work outcomes (high motivation, high job performance, high job satisfaction, and low absenteeism and turnover) are the result from the five core job dimensions (skills variety, task identity, task significance, autonomy and feedback). This theory is illustrated below:. 17.

(25) Core Job Dimensions. Skills Variety Task Identity Task significance. Autonomy. Critical Physiological states. Experience Meaningfulness of the job. Experience Responsibility for Outcomes of the job. Personal and work outcomes. High Internal Job Motivation. High Quality Job Performance. High Satisfaction with the Work Feedback. Knowledge of the Actual results Of the work activities. Low Absenteeism and Turnover. Employee growth need and development. Figure 2.1. Job satisfaction characteristics model. Adapted from Development of the job diagnostic survey by Hackman & Oldman, G. R. 1970, p.78. Copyright © 1980 by AddisonWesley Publishing Co., Ltd. Figure 0-1. Many studies agree with job satisfaction having major effects on job performance (Iaffaldano & Muchinsky, 1985), absenteeism (Steers & Rhodes, 1978), and turnover (Mobley, Griffeth, Hand & Meglino, 1979). Additionally, studies have shown that job satisfaction has significant moderating relationships with many important work outcomes, such as, extra- role performance (Organ & Konovsky, 1989), turnover, and emotional health (Spector, 1997). According to Smith (1969) the most accepted and common features of job satisfaction are satisfaction with pay, promotion, opportunities, co-workers, supervision, and the job itself. Job satisfaction level will depend very much on these features. Job satisfaction depends on the balance between work-roles inputs and work- roles outputs. Work-roles input includes variables such as, experience, working time, working in an exhausting job, working in a physically 18.

(26) demanding job, working in a dangerous place. Work-roles outputs refer to variables such as, job compensation, job security, promotion, meaningful and independent job, with the opportunity to help others, good relationship with managers and co-workers.. Compensation Compensation has a great influence in employee‘s attitudes, behaviors, organizational commitment, and motivation (Dulebohn & Werling 2007). Compensation can occur in many forms, and if properly managed it will have a great impact in employee‘s satisfaction and retention of desirable employees. Effective compensation plans are often introduced to better align individuals‘ performance with the goals and mission of the organization. According to Barnard (1938) the alignment of individuals interests with the interests of the organizations result as a basis of organizational effectiveness. This will result in an increase level of employee satisfaction. According to some motivation theories, individuals are motivated by the number of rewards they get, these rewards can be intrinsic or extrinsic rewards. Financial rewards are not the only drivers to motivation and job performance, other important intrinsic factors that can modify employees‘ attitudes and behaviors are the work environment, company polices, feedback from supervisors, job significance, job autonomy and promotion. The objective for this study is to find out which compensation factors have a major impact in the satisfaction and the commitment level of the selected population. Pay satisfaction has been shown to be related to some negative work outcome such as absenteeism and turnover (Heneman & Schwab, 1985; Williams, 2006). Pay is one of the most critical outcomes of organizational commitment for employees (Gupta & Shaw, 1998). Pay plays an essential role in most of the work lives of individuals. For most of the Honduran population money is of great importance simply because they need the money to support large family or to support their own lives, people are more economic dependent and have more financial needs. Thus, pay should have a great influence in their satisfaction and commitment level. The highest the financial need the more important pay is for the employee. Thus, compensation should have a great impact on the attitudes and behaviors of employees. According to the findings of Doran (1991) there is a weak relationship between job satisfaction and turnover intentions when the financial need of employees is high, however Brett, Cron & Slocum Jr. (1995) found that there is 19.

(27) a weaker relationship between organizational commitment and performance when the employees have high financial needs. When employees have higher financial needs they experience more commitment toward the organization, and lower intentions to leave the organization. (Brett, Cron & Slocum Jr, 1995) this is because they have less choice in their relationship with their present organization, but also this pressure of not having many options may instead weaken the commitment level of individuals. According to Pfeffer and Langton (1993) and Wasserman (2006) employees who are committed to the organization are more willing to work for below-market wages or even less than those non-committed employees. Even though they are willing to work below market organizations have to make sure to be fair and compensate individuals for their efforts. Some studies suggest that when a person makes a job choice based on external factors such as family or financial pressures, the employee may be less satisfied and committed that when the decision is made free from these factors (Lepper & Greene, 1975; O‘Reilly & Caldwell, 1980; Wortman, 1975). Also, when a person chooses jobs based on extrinsic factors such as salary the person will have lower satisfaction and commitment that those who chose their job based on intrinsic factors. Thus, decisions based on intrinsic factors are associated with increased satisfaction and affective commitment (Salancik, 1977; O‘Reilly & Caldwell, 1980; Staw, 1977). According to Hoyt and Gerdloff (1999), compensation offers security, autonomy, recognition and self-worth to the employees. These feelings lead employees to having a high level of commitment. According to some studies salary is related to career commitment (Mathieu & Zajac, 1990) and when the organization rewards career, either intrinsically or extrinsically an employee may feel committed to the organization (Yahya & Tan, 2015). In a study conducted in the higher education in the United Kingdom about pay satisfaction it was found that a major reason for pay dissatisfaction was due to complains about the processes for determining salary increases and government policies towards pay levels in universities (Oshagbemi, 2000).. 20.

(28) Relationship between the Variables Training and Development and Job Satisfaction According to Gazioglu and Tansel (2006), those employees who received job training were more satisfied than those who did not have training opportunities. In a study of Bartlett (2001) is shown that those satisfied employees who feel they have more access to training are more likely to show higher levels of affective commitment. On the other side those employees with low satisfaction who feel they have low access to training have low feelings of affective commitment. The findings in his study also demonstrate that there is a significant relationship between organizational commitment and access to training, hours spent in training, motivation to learn, support from co-workers and managers, and perceived benefit of trainings. Out of these, access to training had the stronger relationship with organizational commitment. In the same study job satisfaction and job involvement were the moderators in the relationship between access to training and affective commitment. This relation demonstrates the importance of job satisfaction as an antecedent to organizational commitment (Brief, 1998). Accordingly, in this study the following hypothesis was proposed and tested: H1 Training and Development is positively related to employees‘ job satisfaction.. Compensation and Job Satisfaction There is a general agreement of pay being a highly important factor in determining the level of job satisfaction (Lawyer 1971; Quinn, 1974). According to Oshagbemi (2000) pay affects employees‘ overall level of Job satisfaction and other work related behaviors. However, Hezberg (1966) in his two- factor theory classified pay and benefits as hygiene factors in the workplace, in these theory hygiene factors, are related to dissatisfaction but not to satisfaction. Therefore, organizations must eliminate these hygiene factors to remove dissatisfaction. Organizations can remove these factors by paying reasonable wages, by guaranteeing job security, and by creating a positive culture in the workplace (Herzberg, 1966). Once these factors are eliminated, the organization can move on and create conditions for job satisfaction. On the other side, discrepancy theorist of Locke (1969) and Porter (1961) propose that employees are satisfied with their pay when their current pay is greater than the desired pay, 21.

(29) while pay dissatisfaction results when the current pay is less than the desired pay. Based on the literature and the purpose of this study the following hypothesis was proposed and tested: H2 Compensation is positively related to employee job satisfaction.. Job Stress and Job Satisfaction It has been shown numerous times that role conflict is a factor in job dissatisfaction and turnover (Kahn, Wolfe, Quinn, Snoeck & Rosenthal, 1964; Rizzo, House & Lirtzman, 1970; Hamner & Tosi, 1974; Fang & Baba, 1993; Cordes & Dougherty, 1993). Role ambiguity has also been related repeatedly with work stress and low job satisfaction. (House & Rizzo, 1972; Hamner & Tosi, 1974; Ivancevich & Donnelly, 1974; Cordes & Dougherty, 1993). Stress has a great influence in some variables, such as health, job satisfaction, absenteeism, and efficiency (Hamidi & Eivazi, 2010). Similarly, to this literature the following hypothesis was found to be positively significant. H3 Job Stress is negatively related to employee job satisfaction.. Job Satisfaction and Organizational Commitment Previous studies have shown that a correlation exits between organizational commitment and Job satisfaction, however, recent studies have confirmed that discriminant validity exists for the two constructs, reaching the conclusion that these constructs refers two different concepts (Bartlett, 2001; Keller, 1997; Mathieu & Farr, 1991). There is a strong connection between job satisfaction and organizational commitment, although there are some differences in data about the direction of this relationship (Bartlett, 2001).. Previous studies have presented job. satisfaction as an antecedent for organizational commitment (Williams & Hazer, 1986); while others have supported the idea of job satisfaction being an outcome of organizational commitment (Vandenberg & Lance, 1992).. According to the findings of Sarwar and Abugre. (2013) and Wang and Feng (2003), those employees who experience high job satisfaction are more likely to show positive attitudes towards their job, and also are more likely to show commitment to the organization. According to the results of Meyer, Stanley, Herscovitch, and Topolnytsky (2002) metaanalysis of 155 studies, strong correlations exist between each of the scales of the three forms of 22.

(30) commitment and job satisfaction and job involvement. All these three were also negatively correlated with turnover. According to Organ (1988) satisfied employees are more likely to remain on the organization, and to involve in citizenship behaviors, such as helping co-workers and customers, and to engage in extra roles. These citizenship behaviors are all part of organizational commitment. On the other side those employees with low levels of satisfaction are more likely to leave the organization, show absenteeism, have complains, and to participate in unethical behaviors. In addition other studies also support satisfaction to be consistently and strongly related to organizational commitment (Lee & Mowday, 1987; Williams & Hazer, 1986). Locke and Latham (1990) found a mean correlation of .64 between satisfaction and organizational commitment in two different studies. This means that satisfied employees are more likely to stay with the organization through good and bad times. The High performance cycle by Locke and Latham (1990) show the mediator effect job satisfaction has on organizational commitment (see figure 2.2 below). This cycle suggest that high performance, results on rewards, satisfaction and commitment to the organizations and its goals.. 23.

(31) Moderating Factors Goal Commitment Feedback Ability Task Complexity Specific High Goals High Expectancy, Self-Efficacy. Mediating Mechanisms Effort Persistence Direction Task Strategies (plans). High Performance. Contingent & Non-Contingent Rewards. Satisfaction (and anticipated satisfaction). Commitment to the Organization and its Goals. Figure 2.2 The high performance cycle. Figure 2.2. The high performance cycle. Adapted from ―Work Motivation and Satisfaction: Light at the End of the Tunnel,‖ by Locke and Latham, 1990, Psychological Science, 1, p.224. Copyright © 1990 by the American Psychological Society. According to many studies, commitment and job satisfaction are positively and significantly related, however in these studies commitment is seen as the mediator variable not as the dependent variable. These results instead indicated that those individuals committed to the organization are more satisfied with their jobs and have a better performance. (Mowday, 1974; Clark & Larking, 1992; Yousef, 2000; Vandenberg & Lance, 1992; Igbaria & Guimaraes, 1993). According to the findings of Price and Mueller (1981) and Crawford and Lok (2001), Job satisfaction is only partially a mediator of the antecedents of organizational commitment. Thus most of the antecedents of organizational commitment are directly related on commitment, rather than indirectly affected via their effects on job satisfaction. In the other side the results by Williams and Hazer (1986) showed that the antecedent variables of organizational commitment were totally mediated by the effects of job satisfaction. In a more recent study by Leite, Rodrigues and Alburquerque (2014) was also found the job satisfaction is an antecedent rather than an outcome to organizational commitment, which 24.

(32) mediates the relationship between commitment and other variables such as task variety, job stress and personal characteristics. Accordingly, in this study the following hypothesis was proposed and tested: H4 Job satisfaction is positively related to organizational commitment. Job Satisfaction as a Mediator among Training & Development, Compensation, Job Stress and Organizational Commitment In the study by Leite, Rodrigues and Alburquerque (2014) Job Satisfaction is seemed as a mediator between Job Stress and organizational commitment. In another study by Yousef (2002) Job satisfaction is also seemed as the mediator between the three sources of job stress (role conflicts, and role ambiguity) and organizational commitment. According to his study job stress will lead to low job satisfactions and low organizational commitment. The results of his study showed that job satisfaction mediates the effect of role conflict and role ambiguity on affective, continuance and normative commitment, this suggest that employees with higher levels of role conflict and role ambiguity will be less satisfied with their job and will more likely leave the organization, and those who stay in the organizations because of lack of opportunities in the market, will remain until job opportunities are available. The study by Elangovan (2001) also shows the casual relationship among job stress, job satisfaction, organizational commitment and turnover. Job satisfaction was the mediator between stress and organizational commitment. This implies that higher levels of job stress will result in lower job satisfaction. In his study job satisfaction had a strong effect in organizational commitment, and organizational commitment had a direct effect on turnover (Elangovan, 2001). There is no much research about job satisfaction being a mediator between training and development, compensation and organizational commitment. However, many researchers coincide with the fact that training and development and compensation have an effect on job satisfaction, and also many studies agree of job satisfaction being an antecedent of organizational commitment. Job satisfaction is also seen as a mediator between organizational commitment and some other antecedents of commitment. Therefore there is high probability of the mediator effect of job satisfaction over organizational commitment. Based on the literature the following hypotheses were proposed and tested: 25.

(33) H5 Job satisfaction mediates the relationship between training & development, and organizational commitment. H6 Job satisfaction mediates the relationship between compensation and organizational commitment. H7 Job satisfaction mediates the relationship between job stress and organizational commitment.. 26.

(34) CHAPTER III RESEARCH METHODS This chapter outlines the research methodology. It illustrates the research framework, estates the research hypotheses, describes the research procedures, and research design. Furthermore, it will explain the statistical analysis methods used to evaluate data.. Research Framework The research framework of this study is based on the research purpose and research questions explained in chapter 1. There are three factors that might affect the satisfaction level of individuals, which are compensation, training and development and Job stress. Job Satisfaction might also have an effect on organizational commitment.. Training and Development. H1 H5, H6, H7. Compensation. H2. Job Satisfaction. H4. Organizational Commitment. H3 Job Stress. Figure 3.1. Research framework Figure 0-1. Research Hypotheses Based on the research questions and purpose of the study, the following hypotheses were formulated: H1 Training and Development is positively related to employee job satisfaction. H2 Compensation is positively related to employee job satisfaction. H3 Job Stress is negatively related to employee job satisfaction. H4 Job satisfaction is positively related to organizational commitment. 27.

(35) H5 Job satisfaction mediates the relationship between training & development, and organizational commitment. H6 Job satisfaction mediates the relationship between compensation and organizational commitment. H7 Job satisfaction mediates the relationship between job stress and organizational commitment.. Research Design This study followed a quantitative approach to measure the relationship between the independent variables, the mediator and the dependent variable. The data was collected using a survey questionnaire. This method was selected because the researcher intended to collect data in form of numbers, which were then analyzed using statistical methods to test and verify the relationship between the variables. As the literature explains, a quantitative study tries to verify or falsify a relationship or hypothesis, and it focuses on outcomes or effects between variables (Neuman, 2014). Thus, the quantitative approach was deemed to be more effective for the purpose of this research. Due to that the nature of this study was to understand the effects training and development, compensation, job stress has on job satisfaction and organizational commitment. Survey questionnaires were used because they allow the researcher to gather information on the backgrounds, beliefs, or attitudes of a large number of people (Neuman, 2014).. Instrument The Research instrument used was a self-reported survey questionnaire. The participants choose the best answer according to their feelings and attitudes. This instrument had a total of 94 items, and was divided into six sections, which are: I. Organizational Commitment II. Job Satisfaction III. Training and Development IV. Compensation V. Job Stress VI. Personal and demographic data. 28.

(36) The different scales used in this study were taken from the work of previous researchers, which have been proved to have a good reliability and validity. From section I to V this survey questionnaire used a 5-point likert scale questionnaire, where respondents were able to evaluate each item from ―strongly agree to strongly disagree‖ or ―strongly satisfied to strongly dissatisfied‖. For the items in part VI, participants were asked to select from the different available options.. Organizational Commitment This dependent variable was measured using Allen & Meyer‘s (1990) scale to measure organizational commitment. This questionnaire comprises the three components of commitment which are affective commitment, normative commitment and continuous commitment (Jaros, 1997). This section contains a total of 23- items. This survey used a 5-point likert scale ranging from 1 (strongly disagree) to 5 (strongly agree) a sample item is ―I would be very happy to spend the rest of my career in this organization‖. The internal reliability of the three components of commitment has been estimated using coefficient alpha, the median reliabilities are: .85 for affective commitment, .79 for continuous commitment, and .73 for normative commitment (Allen & Meyer, 1996).. Training and Development This independent variable was measured using an 18-items scale (Bartlett, 2001). This survey comprises four dimensions to reflect the role and influences of Human Resource Development practices. It uses a 5-poin likert scale ranging from 1 (strongly agree) to 5 (strongly disagree) an illustrative item is ―My manager makes sure I get the training needed to remain in the organization and be effective in my job‖. The 4 dimensions are: 1. Training motivation (Tharenou & Conroy, 1994) 4-items (α=.87) 2. Perceived support of training from colleagues (Noe and Wilk, 1993) 3- items (α= .83) 3. Management training support (Noe & Schmitt, 1989) 6-items. (α=.96) 4. Training benefits (Noe & Wilk, 1993) 5-items. (α=.82). 29.

(37) Employee Job Satisfaction Employee Job Satisfaction was used as a mediator variable in this study. Job Satisfaction was measured using the 15-item shortened version of the Job Diagnostic Survey (JDS) (Hackman & Oldham, 1976). This survey comprises 6 dimensions: skills variety, task identity, task significance, autonomy and feedback from the job itself and from the agents. It uses a 5-point liker scale ranging from 1 (very satisfied) to 5 (very dissatisfied) a sample item is ―I am satisfied with my job as it provides me with the opportunity to improve my skills‖. The internal reliability for the five dimensions are: 0.71 for skill variety, 0.59 for task identity, 0.66 for tasks significance and task autonomy, and 0.71, 0.78, 0.59 for feedback from the job itself, from agents and dealing with others (Hackman & Oldham, 1975).. Job Stress Job Stress was used as an independent variable. Job Stress was measure using a 16-items scale. This section comprises three variables, which are role ambiguity (Kerr, McHugh & McCrory, 2009). Role conflict and role overload (Lin & Rashid, 2010). A 5-point Likert scale is used for this section ranging from 1 (strongly agree) to 5 (strongly disagree) an illustrative item is ―I know how to go about getting my job done‖. The alpha reliability coefficient for role ambiguity is of .80 (Kerr, McHugh & McCrory, 2009). The reliability for role conflict is of .88, and for role overload is .92 (Lin & Rashid, 2010).. Compensation This independent variable used a pay satisfaction questionnaire (PSQ) developed by Heneman and Schwab (1985), this scale consists of 17-items based on the four independent dimensions, which are: pay level, benefits, raises, and administration (Heneman & Schwab, 1985). A 5-point Likert scale is used for this section ranging from 1 (very satisfied) to 5 (very dissatisfied). The coefficient alpha reliability of the three dimensions of compensation are: 0.95 for pay level, 0.95 for pay benefits, 0.81 for pay raises and 0.88 for administration. (Heneman & Schwab, 1985).. 30.

(38) Personal and Demographic Data This is the last section included in the survey questionnaire; it provides a descriptive analysis of the survey participants. This section contains information such as the participant‘s age, gender, marital status, education, and tenure.. Instrument Validity The questionnaire had to be translated into Spanish; therefore the researcher carried out two peer reviews, expert review and back translation of the scales, to make sure the scales were accurate and consistent.. Peer Review The persons in charge of doing peer review had knowledge on the human resource field. Moreover they were native Spanish speakers with a high level of English. This was being done in order to get feedback regarding the content and the translation of the scales. According to their suggestions the necessary changes were made.. Expert Review The different scales were also reviewed by two experts; the experts were professionals who work in the bank industry. They read the questionnaire and evaluated whether the questions were effectively related to the topic. They had a high level of education and experience on the Human Resource field. According to their observation about the content and the translations the necessary changes were made.. Back Translation Back translation was done to ensure the accuracy of the translation. Two bilinguals were in charge of the translation, one translated the original questionnaire to the target language, the second translated back from the target to the original (Brislin, 1970). In this study, the English questionnaires were translated into Spanish by a bilingual person. Secondly, the Spanish questionnaires were translated back to the original language by another person. After having the two English versions of the questionnaires the researcher compared how similar the 31.

(39) questionnaires were, if the questionnaires are very similar it will mean that the Spanish version is equivalent to the English version. The two translators are current Human Resource Development master students. One of them is native in both languages. The other is a native Spanish speaker, and all her education has been thru bilingual institutions, she obtained her bachelor‘s degree in the United States, she also has a high TOEFL score. After the revised questionnaire was ready, the researcher conducted a pilot study. The questionnaires were applied to 40 employees that work in a different financial institution in Honduras. The researcher tested the reliability and validity of the scales to show that the questionnaire was appropriate to use for the formal study.. Pilot Study A pilot study helps the researcher to detect any problems or deficiencies in the design of a research instrument before proceeding to the formal study (McBurney & White, 2010). Based on the results of the pilot study, the researcher proceeds to make the necessary changes, increasing the credibility and reliability of the research instrument. For this study the pilot test was collected from full time employees of one of the most important banks in Honduras (Banco Credomatic). Out of 40 questionnaires delivered, 38 were successfully collected. Cronbach Alpha was used in order to test the internal consistency of the questionnaire. The objective was to obtain a Cronbach‘s Alpha of at least .70 which is acceptable for the research. The questionnaire was also reduced from 96 items to 94, based on the reliability results and the feedback of the HR experts. Item OCN24 (I do not think that wanting to be a ‗company man‘ or ‗company woman‘ is sensible anymore). This item from the organizational commitment scale was eliminated due to the lack of understanding of this question by experts and participants; also it had low reliability score. Item COMP15 (Pay of other jobs in the company) this item was also eliminated based on the feedback of experts; it was considered to be redundant or similar to the other item (Differences in pay among jobs in the company).. Data Collection The target populations for this study were employees from Banco Atlántida, a commercial bank in Honduras, Central America. Since this is the leading bank in Honduras the researcher considered appropriate to use it for this investigation. Therefore, the researcher used purposive 32.