A Relationship Between Qwl, Job Satisfaction and Employee Turnover

UNIVERSITI TEKNOLOGI MARA

A RELATIONSHIP BETWEEN QUALITY OF WORKLIFE,JOB
SATISFACTION AND EMPLOYEE TURNOVER IN ARMADA
HOTEL PETALING JAYA

SARIDA BT SALLEH
NUR SHAHIRA BT ISMAIL
NABILA BT MOHD JOHAN

MASTER OF BUSINESS ADMINISTRATION

NOVEMBER 2010

1

ACKNOWLEDGEMENT

First and foremost, we would like to thank Allah SWT for His Grace and Blessings which has enable us to complete the research.
We wish to convey our sincere gratitude to our supervisor, Assoc. Prof Dr
Normala Binti Daud for the advice, direction, commitment and cooperation she has given to us.
Our esteem and bountiful appreciation towards the management of Armada
Hotel,Petaling Jaya for giving us an opportunity to do the research study on the organization. Special thanks to our parents and friends for their continuous moral and financial support, their encouragement and patience gave us strength during the course of this study.
Our gratefulness is owed to all lecturers of the Faculty of Business Administration for their teachings, advice, and information which helped to enhance our knowledge in the
Business Management area.
Last but not least, we would like to thank all lecturers and staffs who have provided undivided attention and cum enable us to complete the MBA Program.

Undersigned
Sarida Salleh
Nur Shahira Ismail
Nabila Mohd. Johan

2

TABLE OF CONTENT

CHAPTER 1 INTRODUCTION
1.0

Background of Study

10

1.1

Problem Statements

14

1.2

Research Objectives

14

1.3

Research Questions

15

1.4

Scope of Study

15

1.5

Significant Of Study

17

CHAPTER 2 LITERATURE REVIEW
2.0

Introduction

16

2.1

Quality of Work Life Elements

16

2.1.1 Communication

17

2.1.2

Skills

19

2.1.3

Knowledge

20

2.1.4

Recognition

21

2.1.5

Working Environment

23

2.1.6

Adequate and Fair Compensation

23

2.1.7

Flexible Scheduling

24

2.1.8

Empowerment

25

Employee Behaviours

27

2.2.1

Job Satisfaction

28

2.2.2

Employee Turnover

29

2.2

2.3

Summary of Variables

31
3

2.4

Theoretical Framework

34

CHAPTER 3 RESEARCH METHODOLOGY
3.0

Introduction

36

3.1

Research Design

36

3.2

Target Population

36

3.3

Sampling

37

3.3.1

Sampling Size

37

3.3.2 Sampling Techniques

37

Data Collection Method

38

3.4.1 Primary Data

38

3.4.2 Questionnaire

38

Variables Measurement

39

3.5.1 Independent Variable

39

3.5.2

40

3.4

3.5

3.6

Dependent Variables

Data Analysis

40

3.6.1

Descriptive Analysis

41

3.6.2

Reliability Test

41

3.6.3 Correlation Analysis

42

CHAPTER 4 ANALYSIS AND INTERPRETATION OF DATA
4.0

Introduction

43

4.1

Total Number of Respondents

43

4.2

Stratified the Respondent by Departments

44

4.3

Respondent Characteristics

45
4

4.3.1 Demographics of Respondents
4.3.2
4.4

45
48

Graph Demographics of Respondent

Descriptive and Reliability Analysis

53

4.4.1

Descriptive Analysis

53

4.4.2

Reliability Test

55

4.4.3 Result of Reliability Test of
Each Variables
4.5

Correlation Analysis
4.5.1

57

Correlation Analysis of QWL Elements
With Employee Turnover

4.6

56

Correlation Analysis of QWL Elements
With Job Satisfaction

4.5.2

55

Summary of Finding

59
61

CHAPTER 5 DISCUSSION AND CONCLUSION
5.0

Introduction

63

5.1

Recapitulation of Study Findings

63

5.2

Discussion of Findings

65

5.2.1

Research Objectives I

65

5.2.2

Research Objectives II

65

5.2.3

Research Objectives III

66

5.3

Study Implications

66

5.4

Problem and Limitations

67

5.5

Summary

67

5.6

Recommendations

68
5

5.6.1

Overall Recommendations

68

5.6.2

Job Satisfaction

69

5.6.2.1 Recognition

69

5.6.2.2 Communication

69

Employee Turnover

69

5.6.3.1 Communication

69

5.6.3.2 Adequate and Fair Compensation

70

5.6.3

5.7

Recommendations of Future Study

70

References
Appendices

6

LIST OF TABLES

Page
Table 2.1

Summary of Variables

31

Table 3.1

Independent Variable

39

Table 3.2

Dependent Variable

40

Table 3.3

Suggested Interpretation for Correlation Coefficient

42

Table 4.1

Total Respondents

43

Table 4.2

Stratified the Respondent by Departments

44

Table 4.3

Demographics of Respondents

46

Table 4.4

Means and Standard Deviation of Variables

53

Table 4.5

Suggested Interpretation for Correlation Coefficient

55

Table 4.6

Cronbach’s Alpha of Variables

56

Table 4.7

Pearson Correlation Analysis between QWL Elements
And Job Satisfaction

Table 4.8

58

Pearson Correlation Analysis between QWL Elements
And Employee Turnover

60

7

LIST OF FIGURES

Page
Figure 2.1

Theoretical Framework

34

Figure 4.1

Gender

47

Figure 4.2

Race

48

Figure 4.3

Status

49

Figure 4.4

Ages

50

Figure 4.5

Education

50

Figure 4.6

Appointment

51

Figure 4.7

Duration

51

Figure 4.8

Department

52

Figure 4.9

Position

52

8

ABSTRACT

Hotel industry in Malaysia has been recognized as a potential prospect in the growth of the service industry. However, the growth is impeded by the high turnover rates of employees in the hotel industry. Many organizations in the hotel industry face difficulties in retaining employees since they are unable to identify the factors which contribute to employee satisfaction and the resultant loyalty. Therefore, this study was conducted in order to identify the relationship between quality of work life (QWL) towards employee behaviors are job satisfaction and employee turnover in Armada Hotel Petaling Jaya. Besides, the study sought to determine the important of QWL elements to employees and to provide recommendations for improvement of QWL in Armada Hotel. A total of 150 questionnaires were distributed but only 80 questionnaires were useful to retrieve for
SPSS analysis. Hence, Pearson Correlation is used to draw the relationship between these
QWL elements with job satisfaction and employee turnover. Based on the results, it is showed that communication, skills, knowledge, recognition, adequate and fair compensation, and empowerment are significant at 0.05 level and 0.01 level for both dependent variables; job satisfaction and employee turnover. In fact, only working environment was not have any significant towards both dependent variables.
Consequently, particular recommendations were suggested for working environment, adequate and fair compensation, flexible scheduling, knowledge and empowerment in order to give high job satisfaction and less employee turnover in Armada Hotel Petaling
Jaya.

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CHAPTER 1
INTRODUCTION

1.0 Background of the Study
The rising number of two-income households is heightening the concern for employees' quality of work life. Given that female participation at work is increasing, it is apparent that males and females independently will need to take care of both work and home.
Therefore, quality of work experience rather than work per se became the focus of attention and workplace wellness is crucial in promoting healthier working environments.
(Che Rose, Beh, Uli and Idris, 2006).
Quality of Work Life (QWL) is a philosophy, a set of principles, which holds that people are the most important resource in the organization as they are trustworthy, responsible and capable of making valuable contribution and they should be treated with dignity and respect. The elements that are relevant to an individual's quality of work life include the job task, the physical work environment, social environment within the organization, administrative system and relationship between life on and off the job (Che Rose, et al,
2006). Organizations enhance quality by treating direct support workers as professionals, providing them with the clinical and other supports they need to do their job well, empowering good employees to be creative and assertive in searching out those experiences which will make life more fulfilling for the people they support, publicly acknowledging the good work of these employees and broadcasting their good ideas, creating career ladders for direct support professionals (Elizabeth, 2001).
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According to Kandasamy and Sreekumar (2009), society has entered a new era in the relationship between organizations and their employees. In this new era, people are the primary source for a company's competitive advantage and organizational prosperity and survival depends on how employees are treated. Furthermore, it is critical that companies treat employees in ways that make them feel committed, if not loyal, members. As such, employees expect their job to provide a certain amount of stability and loyalty from the organization. Nevertheless, employees have certain expectations when they join an organization and when these are not fulfilled job satisfaction is likely to decline and turnover is a likely consequence.
Going by recent figures provided by the Malaysian Association of Hotels Owners
(MAHO) and the Malaysian Association of Hotels (MAH), those involved in the industry may have reasons to be optimistic. MAH vice-president Ivo R. Nekvapil said the average occupancy rate for hotels in Kuala Lumpur for August was 86% – a record high – while resorts across the country registered slightly lower rates. A recent newspaper report said tourist arrivals to the country in the first seven months of the year had increased by 70% compared with the same period last year. An economist said tourist arrivals to Malaysia were forecast to hit over 15 million this year (Danny Yap, 2004).

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1.1 Problem Statement
QWL has the focus centered on the individual, and its concern is to try to offer better labourer conditions to the worker, so that it can develop the tasks with satisfaction and wellbeing. According to Walton (1975), the QWL is getting important as a way to rescue human and environmental values that have been neglected in favor of technological advancement of the productivity and economic growth. The objective of this research is to identify what elements of QWL that will contribute to employee turnover in the organization. Past researchers have stated that the quality of life at work includes broad aspects of the work environment which affects the collaborator in its health and in its performance (Cole, Robson, Lemieux-Charles, McGuire, Sicotte & Champagne, 2005).
The investigation on QWL looks into the development and the application of programs that intend to improve the work environment that can benefit the company in its relationship with the workers and in the quality of its products, making them more competitive. Fernandes (1996) said that it improves the workers’ satisfaction; it improves consonantly the productivity of the company. In the previous research on TUMS hospitals at Canada, it showed that their employees agreed to improve their QWL which are communication, leadership, monitory and non-monitory compensation and support. As such, we want to identify the elements that effects on employees’ quality work life.
In United Kingdom architecture firms, job satisfaction, work-life conflict and turnover intention were found to have a positive and significant relationship. A strong correlation can be seen between mean turnover intentions and mean work-life conflict.
Although it is not possible to determine the direction of this relationship, it does imply that work-life balance is of greater concern to those considering of leaving their job or the profession, than job satisfaction, a finding supported by the literature (Boles, Johnston, &
12

Hair, 1997). Chang (2003) found that the probability of a hotel worker especially in
Malaysia intending to remain at the current hotel increased as overall job satisfaction increased. His analysis indicated that the findings were applicable to those who worked in food service, front office and administrative jobs. The results of his study also indicated that the level of intention to remain at, or be loyal to the current hotel increased as the level of job satisfaction increased, regardless of the worker’s length of tenure at the hotel, in the industry or the work schedule. Thus, this study would like to identify whether there is any association between QWL and job satisfaction among employees.
Long working hours are of concern to those working within other professions in the construction industry and have been associated with stress and burnout (Sutherland &
Davidson, 1993; Lingard, 2003; Haynes & Love, 2004). In addition, previous research has identified long working hours as a primary cause of the interference between work-life and family life (Glowinkowski & Cooper, 1986; White Hill, McGovern, Mills, & Smeaton,
2003). However, the phenomenon of high employee turnover rate in the hotel industry is rather daunting. High employee turnover rate in the hotel industry is well-documented
(Lam, Lo, & Chan, 2002; Woods, 1997) and seems to be an inalienable feature of the hotel industry worldwide (Baum, 1995). Globally, the turnover rate in the hotel industry is estimated to range from 60 percent to 300 percent annually, far higher than the 34.7 percent reported in the manufacturing industry (Foley, 1996). From this, any association between QWL and employee turnover among the employees in the Armada Hotel Petaling
Jaya can be discover.
In Malaysia, the hotel industry has been recognized as a potential prospect in the growth of the service industry. However, the growth is impeded by the high turnover rates of employees in the hotel industry. Many organizations in the hotel industry face
13

difficulties in retaining employees since they are unable to identify the factors which contribute to employee satisfaction and the resultant loyalty (Rahman, Noraida, Rashdi,
Harnizam, Krishnan & Kamaruzaman, 2008). By identifying and exploring the relationship, it is hoped that the implementation of such concepts and strategy will help management to reduce employee turnover, thus increasing employees’ loyalty, especially in the hospitality industry (Rashdi, Razlan, Dahlan & Salleh, 2009).

1.2 Research Objectives
i.

To determine QWL elements which are important to employees in Armada Hotel
Petaling Jaya.

ii.

To determine the relationship between QWL and job satisfaction in Armada Hotel
Petaling Jaya.

iii.

To determine the relationship between QWL and employee turnover in Armada
Hotel Petaling Jaya.

iv.

To provide the recommendations for the improvement of employees’ quality of work life.

1.3 Research Questions
i.

What are the important elements of QWL that contribute to turnover and job satisfaction in Armada Hotel Petaling Jaya?

ii.

Is there any relationship between QWL and job satisfaction among employees in
Armada Hotel Petaling Jaya?

14

iii.

Is there any relationship between QWL and employee turnover among employees in Armada Hotel Petaling Jaya?

iv.

What are the recommendations for improvement of their employees’ quality of work life?

1.4 Scope of study
The scope of the study will involve on gathering the information on the importance of
QWL among employees in Armada Hotel Petaling Jaya. The research will be conducted in
Armada Hotel Petaling Jaya on the employees working there.

1.5 Significant of The Study
The study will be conducted to identify the importance of quality of work life in Armada
Hotel Petaling Jaya. This is important to know the criteria that employees want and need and also to help the company to boost their management effectiveness. This study will significantly provide several benefits to the company, employees and researcher.
Company can make use of this research by providing better services to fulfil the employees’ wishes and ensure that they stay with them. Employees will also benefit by understand what actually should they expect to get from working with the organization.
This will protect their rights as employees. This information will also help researchers to get a clear view of what will be the standard to be provided in term of ensuring the quality of work life.

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CHAPTER 2
LITERATURE REVIEW

2.0

Introduction

This chapter will highlight some of the studies in quality work life. The purpose of literature review is to ensure that no important variable that has in the past been found repeatedly to have an impact on the problem is ignored.
There are various sources of literature that the researcher can take from. It can be from the magazines, Internet, journals, newspapers as well as the library. Normally it is based on a broader view and then narrowed down to the intended topic. Good literature surveys are importance to convince the reader that the researcher is knowledgeable about the problem area and has done the preliminary homework that is necessary to conduct the research.

2.1

Quality of Work Life Elements (QWL)

The rising number of two-income households is heightening the concern for employees' quality of work life. Given that female participation at work is increasing, it is apparent that males and females independently will need to take care of both work and home. Therefore, quality of work experience rather than work per se became the focus of attention and workplace wellness is crucial in promoting healthier working environments
(Che Rose, Beh, Uli & Idris, 2006).
According to Che Rose et. al(2006), Quality of Work Life (QWL) is a philosophy, a set of principles, which holds that people are the most important resource in the organization as
16

they are trustworthy, responsible and capable of making valuable contribution and they should be treated with dignity and respect. The elements that are relevant to an individual's quality of work life include the task, the physical work environment, social environment within the organization, administrative system and relationship between life on and off the job. QWL consists of opportunities for active involvement in group working arrangements or problem solving that are of mutual benefit to employees or employers, based on labormanagement cooperation. People also conceive QWL as a set of methods, such as autonomous work groups, job enrichment, and high-involvement aimed at boosting the satisfaction and productivity of workers. It requires employee commitment to the organization and an environment in which this commitment can flourish. Thus, QWL is a comprehensive construct that includes an individual's job related well-being and the extent to which work experiences are rewarding, fulfilling and devoid of stress and other negative personal consequences.
2.1.1

Communication

A frequently cited behaviour of successful managers is that of regular and open communication (Collingwood & Kirby, 2001, Eckert, 2001, Haapaniemi, 2002,
Schaeffer,2002). Open communication involves discussing with employees information regarding the company and its performance (Caudron, 2002). Managers identify the effective manager as one who respects employees, encouraging them to express opinions and concerns (Wall Street Journal Editors, 2002, Stone & Sachs, 1995). Communication satisfaction has a positive association with job satisfaction and other important work outcomes. Significant research on the relationships between communication satisfaction and other key organizational variables exists, including organizational identification
17

(Smidts, Pruyn, & Van, 2001); membership satisfaction (Taylor, 1997); job satisfaction
(Pettit, Goris & Vaught, 1997, Trombetta & Rogers, 1988, Pincus, 1986); employee productivity (Clampitt & Downs, 1993), service quality (Snipes, 1996), job performance
(Pincus, 1986), organizational commitment (Putti, Aryee & Phua, 1990, Varona, 1996,
Trombetta & Rogers, 1988) and satisfaction with work relationships (Hunt, Tourish &
Hargie 2000, Rubin, 1993). According to Hargie, Tourish & Wilson, 2002, Putti, Aryee &
Phua, 1990, that communication satisfaction in the studies usually correlates with positive organizational outcomes while communication dissatisfaction correlates with negative, dysfunctional outcomes such as reduced employee commitment, greater absenteeism, higher employee turnover, reduced productivity as well as increased occupational stress and burnout (Shanafelt, 2003).
Open communication is vital to the process of goal transmission within an organization
(Caudron, 2002, Collingwood & Kirby, 2001, Eckert, 2001, Haapaniemi, 2002, Schaeffer,
2002). Some managers are uncomfortable with open communication, however, communicating regularly with employees breaks down barriers (Eckert, 2001).
Developing manager trainees’ active listening skills will enhance communication effectiveness. Active listening skills include behaviours such as displaying empathy summarizing an employee’s words and checking for accuracy, nodding, and making eye contact. From the journal, to grow an appropriate work ethic a sound communication strategy and action plan is needed. The communication strategy ought to use both formal and informal communication media. The work ethic ought to be imbedded in the mission and strategy of the organisation and any message communicated in the different media ought to be tested against it to determine its contribution to strengthening the work ethic. Messages
18

should furthermore be constructed in such a way that the employees will know what it is, feel positive about it and know how to behave accordingly (Amanda, 1998) .
Communication, it investigates the ways not only to enhance employees skills on the quality assurance system, but to keep the system updated and organized, ensuring edified and easily available (Dargahi, H. & Seragi, J.,N., 2007). Communication variable was adopted from New Structural Approach Model 2005 (Dargahi & Seragi, 2005) to be implemented in this research.
2.1.2

Skills

Skill variety measures the degree to which a job requires an employee to utilize a variety of skills. Task identity describes the degree to which an employee completes an identifiable product as a result of the tasks performed. Task significance represents the impact that the employee feels the task has on others. Task autonomy refers to the degree to which an employee may make his or her own decisions about the processes used in and the scheduling of his or her work. Feedback measures the degree to which an employee receives information about the effectiveness of his or her performance. Accordingly, all five job characteristics are expected to be positively related to organizational commitment based on Hackman & Oldham’s (1975) theory. For new established hotel, would lead the way by taking the initiative to set up a hotel management school there to train the locals who, in return would, boost its services (News Sabah Times, 2010).
There are more general abilities and skills that are useful to develop which are, social skills or specifically listening skills, interpersonal or marketing skills. Based on past research, social skills for working in teams, projects with very diverse members and learning organizations through win – win solutions, synergy, dealing with group think,
19

recognising and dealing with stereotyping and bullying, conducting work conferences, bringing up unspeakable. Skills are to deal with or implement change as if it were the normal condition including strategic thinking. And also skills and attitudes needed for determining one’s real motives, strengths and goals, designing new pathways, planning and living a healthy and harmonious life like self and time management (Marc, J. S., &
Cary, L. C.). Based on Henning 2004, Customer Oriented Service Employee (COSE) as the extent to which the employee’s behaviour in personal interactions with customers meets those of customer needs. It imply on the research that all four dimensions (technical skills, social skills, motivation and decision making power) are indispensable to a certain extent to enable employees to behave in a customer oriented way. In order for the employees to perform all the other three dimensions, employees should be allowed a certain degree of decision making power, or they are empowered to decide what is best for the customer. Adopted from Organizational Model of Employee Persistence (Peterson
2004) for skills variable that be using for the research.

2.1.3

Knowledge

As the skills, knowledge and expertise held by knowledge workers tend to be highly valued in the market place. Therefore, the knowledge and expertise of such key personnel are continuously enhanced in order to retain the competitive advantage and provide clients with new services (Herriot, 1998). Such skill enhancement brings mutual benefits as the market value of the individual is increased, whilst their employers gain from the skill levels thus achieved (Scarbrough, 1999). Therefore, the interests of the parties engaged in the employment relationship are interrelated and converge to some extent. The rationale behind such a strategy is based upon the assumption that the only sustainable bargain that an employer can offer a knowledge worker in return for their organizational commitment
20

is the opportunity for them to continuously develop their skills. Knowledge workers also gain from such arrangements as their personal value is augmented in external markets due to the recognized value of their enhanced skills. Yet, this can have the effect of making some of the most talented employees more externally marketable (Crouch, Finegold &
Sako, 1999). Knowledge variable was adopted and modified from Organizational Model of Employee Persistence (Peterson 2004).
2.1.4

Recognition

Closer linkage of performance to reward needs on an individual basis is another important initiative. Performance recognition usually includes formal assessment procedures such as ranking and short-term rewards such as dinners or weekend trips. At Hewlett-Packard, it was found to satisfy most male managers but fewer women. Some Hewlett-Packard, women managers stated they wanted more informal indications that they were valued by the company. Companies such as Esso, Australia Post and Hewlett-Packard are attempting to break this barrier by conducting diversity training for supervisors and constantly reinforcing the importance of valuing individual differences through performance assessment and informal feedback. As Krautil (1994) argues, to manage their diverse workforce, they have recognized that they have to shift their management style from treating everyone the same, based on the old rules that worked well for their homogeneous white male workforce to managing people as individuals. Nurses described a strong yearning to receive recognition for their efforts from those higher in the organization.
While they felt appreciated by clients and their families for their work efforts, there was the perception of a corresponding lack of gratitude from their employer. Given their descriptions of heavier workloads and other indicators of a worsening work environment over the past decade, it was lack of recognition was keenly felt. Even small symbolic
21

tokens or gestures of appreciation were desired. Recognition includes giving praise
(compliments), awards (e.g. certificates of achievement, private budgets, increased autonomy) and ceremonies (e.g. public speeches and celebrations) (Yukl, 2002).
Past studies suggest that a leader should be keen to recognize innovative contributions as such behaviour may trigger both idea generation and application behaviour. Based on (the star online, 2007), Holiday Villa Subang, how they appreciate their employees who had contributed to the hotel’s business growth with 10 points will be awarded the top achievers medal on a monthly basis and a custom-made lapel pin embedded with a gemstone as a token of our appreciation. According on Rahman, Noraida, Mohd, harnizam, Gopala &
Kamaruzaman, (2009), recognition and rewards is also one of the elements that have been found to link with employee loyalty in their study. Schneider (1994) alleges that customers report superior service when employees indicate that they work in a positive climate for service. Such climate refers to employee perceptions of the practices, procedures and behaviours that get rewarded, supported and expected with regard to customer service and customers service quality (Schneider, White & Paul, 1998). Employee needs and wants are satisfied when they perceive that rewards from the organization such as pay, promotion, recognition, and personal growth, meaningful work that meet or exceed their expectations
(Hackman & Oldham, 1980; Locke, 1976). According to Dargahi & Seragi 2007, reward and recognition significantly improve one initiative includes the development of a “star performer" program to allow all employees to recognize each other. Any employee that receives a star performer note is visited by TUMS Hospital Senior Management and presented with a “QWL Star” to recognize how important each of them toward the organization. Recognition variable was adopted from New Structural Approach Model
2005 (Dargahi & Seragi, 2007).
22

2.1.5

Working Environment

The most important tasks in psychology may be to examine the individual’s perceptions of the outer world in interaction with their expectations about environments by Magnusson
(1981) and Caplan (1987). From the past research, it is known for some time that variables in the work environment impact employee behaviour (Blumberg & Pringle, 1982;
Kyriakidou & Ozbilgin, 2004; Niles & Harris-Bowlsbey, 2002; Olson & Borman, 1989;
Peters, O’Conner & Fulberg., 1985). Normal daily work occurrences may be unpleasant and interpreted more negatively, thus resulting in negative outcomes such as boredom, poor work performance, and lack of satisfaction. Sub-par employee performance is often the result of psychological problems that are characteristic of a mismatch between an individual and his or her environment (Lubinsky, 2000). Environmental qualities are the essential strategic elements that should be achieved for a healthy building. To make up a general assessment framework that is applicable to all apartment buildings. For example,
(The Star Online, 2010) plenty of activities that involve the management and staff that foster good ties within the various departments and grateful to have a job in the hotel and was looking forward to a team building event. According to Rahman et al 2009, Walker
Information’s 2005 found that employees are more loyal when they felt that their job was secure, which is one of the items included under working condition section in the study.
Working condition seems to have a significant relationship with employee loyalty in the study. In addition, studies of employee’s satisfaction had identified areas that seem to be important for the satisfaction of the employees. The areas include a well managed, supportive and prosperous work environment, ongoing professional development, career growth potential, challenging and exciting work, teamwork, acknowledgement of work

23

well done, work life balance and the work culture (Tarasco & Damato, 2006). Walton model 1975 was adopted for the working environment variable in this research.
2.1.6

Adequate and Fair Compensation

Incomplete application of the principle of equal pay, the concept of equal pay for work of equal value was only able to be implemented on the application of a party to an award following a determination of work value in the various occupations. Occupations and industries dominated by women typically have been ascribed a lower work value than those dominated by men (Walpole, 1994,). Thus occupational location is a more powerful determinant of remuneration than objective measurement of work value (O’Connor,
1994). Next, lower discretionary payments. For example the earnings of Australian workers are composed of an award and an over award component. The latter is set by bargaining or unilaterally by management. Not surprisingly, over award payments, including bonuses and incentive payments remain a major source of the male/female earnings differential. Nevertheless it should be noted that, between 1980 and 1991, there was a marked increase in the proportion of over award payments from 45.9 to 49.8 per cent. Adequate and fair compensation variable was adopted and modified by Walton’s
QWL Model 1975.
2.1.7

Flexible scheduling

The Bureau of Labor Statistics reported that in 2001, overall availability of flexibility stood at just fewer than 31 per cent for all employees (Bureau of Labor Statistics, 2001).
This percentage has been on the rise over the last several years. Flexible scheduling can take on various forms: traditional flex time (a schedule developed based on employeechosen start and finish times), daily flex time (a schedule that allows employees to vary
24

work hours daily), and telework (working from a different location than the office – often at work). Differential working time, not only do women work fewer hours on average than men, there is some evidence that in allocating overtime managers tend to exercise discretions in favour of male employees. In 1993, the ratio of female to male overtime earnings of full time non managerial employees, the major recipients of such payments, was 21.8per cent in 1993 (ABS, 1993).
2.1.8

Empowerment

The notion of employee empowerment has been implicit in management research beginning with the work on employee alienation (Seeman, 1959), job enrichment
(Herzberg, 1966), and employee participation (Kanter, 1977). Strongly advocated by
Herzberg (1966, 1979), job enrichment refers to the basic changes in the job content and design to allow employees a chance to experience greater achievement, recognition, responsibility and personal growth. In 1977, Kanter suggested that employees’ attitudes and behaviours are influenced by the structure of the work environment, and in particular the power and opportunities afforded them. Her structural theory suggested that employee empowerment depends on access to information, organizational support and the resources necessary to perform one’s work. However, it was not until the 1990s that the construct received rigorous conceptualization and measurement.
Employee empowerment theory extends the notions of job enrichment in several ways
(Spreitzer, 1996): first it implies that employees should have some influence over larger organizational matters, then it is viewed from the perspective of the individual, not the job itself; and third, since it is viewed from the perspective of the individual, it is possible for individuals to experience empowerment even if their job characteristics are not technically
‘‘enriched’’. However, research on employee empowerment suggests that the organization
25

can, in fact, have a powerful influence on employees’ feelings of empowerment through the transfer of information, resources and power throughout the organization which enables employees to participate in organizational decision making (Lawler, 1992;
Thomas & Velthouse, 1990). As pointed out by Gutierrez, GlenMaye & Delois, (1995), those organizations that empower workers by creating an employment setting that provides participatory management, the ability to make independent decisions about their work, and communication and support from administrators will be better able to serve their customers. Based on Rahman et. al 2009, the study of employee’s role found that empowerment could lead employees to a higher level of satisfaction and a better quality of work life. Studies on employee empowerment/involvement programs were carried out by
The Center for Effective Organizations at the University of Southern California and reported by Lawler, Mohrman & Ledford, 1992, Lawler, 1995). The study was to determine the degree to which firms are adopting practices that redistribute power, information, knowledge, rewards, and the effects. From the findings it shows that, empowerment may have a positive impact on a number of performance indicators.
However, in the service context, before the management decides to give a certain level of empowerment to their employees, especially to those whom are in constant contact with customers, the management must ensure that the empowerment is in no way abused.
Management discretion in granting empowerment is essential in ensuring that such empowerment brings mutual benefit to both employee and employer.
There was a strong support for the relationship between access to information and empowerment (Spreitzer, 1996). In order to be empowering, organizations must make more information more available (Kanter, 1986). In addition, for employees to feel empowered, they must understand how their own work contributes to the goals of the
26

organization (Gist & Mitchell, 1992). Information can also facilitate feelings of self efficacy or one’s belief in his or her ability to do the job. Empowerment variable was adopted from the Walton model 1975.

2.2

Employee Behaviours

Management courses allow individuals to learn about such managerial behaviours as motivating employees, completing performance appraisals and others. However, putting managerial training to work can go for naught if managers fail to exhibit the proper behaviours once they return to their job. A few studies revealed that where employee input was considered or compared to managers’ beliefs about effective management behaviours
(Amabile, Schatzel, Moneta & Kramer, 2004; Shipper & Davy, 2002).
According to Rebecca & Kelly, 2008, specific managerial behaviours have been identified by employees as effective and those managerial behaviours were found to relate significantly and positively to employee satisfaction variables, such as goal setting and autonomy to satisfaction with quality of supervision received and satisfaction with company or agency as an employer, connection with employees to satisfaction with job assignments. Behavioural items that make up the three scales provide behaviours on which to build training scenarios and promote meaningful rehearsals of useful behaviours. Behavioural modelling, be an effective training method for managers (Pescuric & Byham, 1996), as well as role playing techniques is likely to yield positive transfer to the workplace. Both behaviour modelling and role playing require behavioural displays to familiarize trainees with a manager’s behaviours. Reflecting on the behaviours necessary to produce employee
27

satisfaction is a way to help individuals identify whether or not they possess the qualities necessary to become a good manager (Rebecca & Kelly, 2008).
2.2.1

Job Satisfaction

Job satisfaction has become a major concern in the workplace. Previous studies indicated that job satisfaction affects the wellbeing of employees and exerts a considerable impact on the organization. Interest in job satisfaction is particularly strong because of its consequences for the organization, such as absenteeism and turnover (Cherrington, 1989) and for the employee, such as mental and physical health (O’Donnell & Ainsworth, 1984).
Thus, it can be suggested that a highly satisfied workforce will be beneficial for organizations. Research has shown that employees with improved morale are likely to be more productive as a result of an increased sense of responsibility to the employer and an improved overall job satisfaction (Shinew & Crossley, 1988).
Job satisfaction is generally conceived as an attitudinal variable that reflects the degree to which people like their jobs, and is positively related to employee health and job performance (Spector, 1997). For many physicians, job satisfaction hinges on good relationships with staff and colleagues, control of time off, adequate resources, and clinical autonomy (Williams, Konrad, Linzer, McMurray, Pathman, Gerrity, Schwartz, Scheckler,
Van Kirk, Rhodes & Douglas,2003). Reliable measures of physician job satisfaction help explain physicians’ behavior in clinical, economic, and organizational domains, as well as re-engineering medical workplaces to better meet the needs of doctors and patients
(Konrad, Williams, Linzer, McMurray, Pathman, Gerrity, Schwartz, Scheckler, Van Kirk,
Rhodes, & Douglas, 1999). The consequences of dissatisfaction include increased physician turnover, decreased continuity of care for patients, increased cost of the medical system, and increased patient dissatisfaction (Murray, 2000). Job satisfaction can be
28

defined as an individual's affective reaction to his or her work environment. Job satisfaction has consistently been found to relate inversely to an individual's turnover intention (Abdel- Halim, 1981; Choo, 1986; Rasch & Harrell, 1990). The job satisfaction or turnover literature indicates that individuals who experience relatively low job satisfaction tend to change work positions. Job satisfaction variable was adopted and modified from Organizational Model of Employee Persistence (Peterson, 2004).
2.2.2

Employee Turnover

Turnover can be caused through an employee resigning, retiring or by being dismissed from the organization. Resignation can be by choice or also because of ill health or maternity leave, just as dismissal can be due to redundancy or misconduct. Reasons for turnover can be due to both internal and external factors and will vary between different groups of employees and the individual employees themselves. External factors such as skill shortages, increasing demand, better reward packages for specific workers or the high cost of living in many parts of the country are difficult for any employer to control.
However, internal factors are something that an organization can take action in and control more easily, but they do require managers in the business to first admit to the problems and then do something about them. Turnover data for each store were obtained from company records. Turnover was computed separately for full-time and part-time employees. As is typical in turnover studies, the turnover percentage was computed as the number of employees leaving over the last 12 months, divided by the average number of employees in the store during that period (Ditz, 1971). A number of empirical studies confirm the important role of organizational commitment in influencing turnover intentions (Baroudi, 1985; Bartol, 1983; Steers, 1977) Employees who are highly committed to their organization are less likely to leave than those who are relatively
29

uncommitted. It has also been reported that organizational commitment is more strongly related to turnover intentions than to job satisfaction (Baroudi, 1985; Shore & Martin,
1989).
Employee turnover has long been a topic of interest to academicians and practitioners because of the negative consequences of turnover (Mowday et al., 1982; Cotton & Tuttle,
1986; Hom & Griffeth, 1995; Hayes, O’Brien-Pallas, Duffield, Shamian, Buchan, Hughes,
Laschinger, North, & Stone, 2006; Griffeth, Hom, & Gaertner, 2000. Employee turnover is expensive for organisations since they incur significant costs, both direct (for example, costs of recruitment and selection, training and development), and indirect (for example, employee commitment, service or product quality, productivity and profit) (Griffeth et al.,
2000; Kinicki, McKee-Ryan, Schriesheim, & Carson, 2002; Price, 2001; Mobley, 1982).
Employee Turnover variable was adopted from Organizational Model of Employee
Persistence (Peterson, 2004).

30

2.3

Summary of Variables

Table 2.1 Summary of Variables
Study

Sample

Measure

Variable

An Approach

755 of

New Structural

Communication, The perceived strongest areas among 12 categories

Model for

employees of

Approach

Employees'

TUMS

Model 2005

Improving

Hospital 2005

Recognition

Finding

developed by QWL Strategic Planning Committee that employees agreed to improve on their QWL, were communication, leadership, monitory and non-

Quality of Work

monitory compensation, and support. It investigates

Life (IQWL)

the ways not only to enhance employees skills on the quality assurance system, but to keep the system updated and organized, ensuring edified and easily available. Recognition, it will significantly improve one initiative includes the development of a “star performer" program to allow all employees to recognize each other. Any employee that receives a
31

star performer note is visited by TUMS Hospital
Senior Management and presented with a “QWL
Star “to recognize how important each of them is to the organization.
Evaluation Of

Working

It is possible to guide the company’s decision

Quality Of Work

Environment,

making in search for best labored conditions. A

Life: An

Adequate &

good QWL will exist if the individual turn the

Adaptation From

Fair

attention to his own behavior according to his

The Walton’s

Compensation

health and QL in general, trying to eliminate or

QWL Model

Walton 1975

reduce his negative habits that might harm his well being. The companies need to have a holistic and more humanized vision according regarding the worker, once the individual out and the employee inside the company is the very same person.

32

Managerial

528 managers

Organizational

Skills,

Turnover in US

in three

Model of

Knowledge, Job behaviours that lead to a more integrative work

retail

randomly

Employee

Satisfaction,

climate, retail organizations might reduce costs

organizations

selected retail

Persistence

Employee

associated with turnover. Managers’ perceptions of

Turnover

integration (connectedness or engagement with the

organizations

By identifying and facilitating organizational

organization)

based

experiences

and

on

their

relationships

organizational significantly explained turnover.

33

2.4

Theoretical Framework

A theoretical framework is a conceptual model of how one theorizes or makes logical sense of the relationships among the several factors that have been identified as important to the problem (Sekaran, 2003). This research to determine the relationship between independent variables and dependent variables based on the following figure. Independent variables are communication, skills, knowledge, and recognition, working environment, adequate and fair compensation, flexible scheduling and empowerment. Dependent variables are job satisfaction and employee turnover.

QWL Elements
COMMUNICATION
SKILLS

Employee Behaviours

KNOWLEDGE

•

RECOGNITION

•

JOB SATISFACTION
EMPLOYEE TURNOVER

Dependent Variables

WORKING
ENVIRONMENT
FLEXIBLE SCHEDULING
ADEQUATE AND FAIR
COMPENSATION
Independent Variables

Figure 2.1: Theoretical Framework

34

As expounded earlier in the literature, QWL facets have significant impacts on employees’ job satisfaction and employee turnover. Thus, in the present study, 8 elements of QWL variables (communication, skills, knowledge, and recognition, working environment, flexible scheduling, adequate and fair compensation) were tested the relationships with job satisfaction and employee turnover.
The theoretical framework for the study was based on the several QWL model by Walton
1975, New Structural Model 2005 and Organizational Model of Employee Persistence
2004. According to the model figure 2.1, the independent variables are communication and recognition - based on New Structural Model 2005(Dargahi & Seragi 2007) that was applied at TUMS Hospitals 2005. Working environment, empowerment and adequate and fair compensation were based on Walton 1957.

Skills, knowledge, and another two

dependent variables are job satisfaction and employee turnover which were adopted from
Organizational Model of Employee Persistence (Peterson, 2004).

35

CHAPTER 3
RESEARCH METHODOLOGY

3.0 Introduction
Methodology can be properly referred to the theoretical analysis of the methods appropriate to a field of study or to the body of methods and principles particular to a branch of knowledge. Unit of analysis, sampling frame, population, sampling techniques, sample size, data collection procedures, survey instruments, validity and reliability of the instrument, and plans for data analysis was outlined in this chapter.

3.1Research Design
Research design is a plan for selecting the sources and types of information used to answer the research question. It also involves a serial of rational decision making choices in a way that requisite data can be gathered and analyzed to arrive at a solution. In this research, exploratory study was used to obtain information whereby it is the attempting to explore new areas or organizational research. Besides, an exploratory study was undertaken because when not much is known about the situation at hand or no information is available on how similar problems or research issues have been solved in the past. In essence, exploratory studies was undertaken to better comprehend the nature of the problem since very few studies might have been conducted in that area. Thus, questionnaires were used to get a handle on the situation and understand the phenomenon.

36

3.2 Target Population
Classification the target population involves translating the problem definition into a precise statement of who should and should not be included in the sample. The population under this study consist of employees of the Armada Hotel Petaling Jaya as significant role quality of work life on employees towards the hotel for this research.

3.3 Sampling
Sampling is the process in which the researcher determines who is to be sampled, how large a sample is needed, and how sampling units had selected. The exact terms are the population of this study, the sample size, and the sampling techniques used by the researcher. The process of sampling involves any procedure selecting number of items or elements of the whole population to make conclusions regarding the whole population.
3.3.1

Sampling Size

In this research, 150 respondents were chosen from employees of Armada Hotel
Petaling Jaya and questionnaires were distributed to them. According to Sekaran
(2003), the sample size can be 30 to 500 units, so 150 respondents are considered as acceptable for this exploratory research. However, from 150 distributed questionnaires only 80 of questionnaires were returned and useful for doing analysis.
3.3.2

Sampling Techniques

Stratified random sampling technique has been decided for this study. Stratified random sampling is a type of probability sampling design, which attempts to identify subgroups of elements within population that may be expected to have
37

different parameters on a variable of interest to the researcher. This sampling involves a process of stratification or segregation, followed by random selection of subjects from each stratum. The population is first divide into mutually exclusive groups that are reagent, appropriate, and meaningful in the context of study. Thus, stratified by department also was done to understand the Armada’s respondents.

3.4

Data Collection Method
3.4.1 Primary Data

Primary data is important for research. Data collected firsthand for subsequent analysis to find solutions to the problem researched (Sekaran,2003). For this study, the primary data used is questionnaires.
3.4.2

Questionnaire

A questionnaire is a structured technique for data collection that consists of a series of questions, written or verbal that a respondents answer. Personally administered questionnaires were used in this study and there are 150 sets of questionnaires that were distributed to the respondents in order to get the data and information. A close ended survey questionnaire was used in order to assess job satisfaction and employee turnover in Armada hotel. The questionnaire consists of thirty questions. It was divided into 2 sections; namely quality of work life and demographic data section. A total of 150 questionnaires were distributed and a total of 80 questionnaires were retrieved for analysis.

38

3.5

Variables Measurement

There were eight independent and two dependents involve for this study. These variables measured by using the Likert Scale starts from strongly disagree at 1 until strongly agree at
5. This is to show their preference towards the study. Below are the tables that outline the study of variables.
3.5.1

Independent variable

Table 3.1: Independent Variable
Variables

Sources

Type of Scale

Communication

Rahman, Noraida , Rashidi ,
Harnizam and Gopala
Krishnan.(2009) and New

A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.

Structural Approach Model
Skills

Modified from Walton (1975) and Rahman,et al,(2009)

Knowledge
Modified from Walton (1975)
Recognition

Rahman, Noraida , Rashidi ,
Harnizam and Gopala
Krishnan(2009) and New

A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.
A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.
A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.

Structural Approach Model
Working Environment
Rahman,et al,(2009)
Adequate and Fair
Compensation

Walton (1975) and modified from Rahman,et al,(2009)

Flexible Scheduling
Empowerment

Modified from Walton (1975) and Rahman,et al,(2009)

A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.
A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.
A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.
A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.

39

3.5.2

Dependent variables

Table: 3.2: Dependent Variable
Variables

Sources

Type of Scale

Job Satisfaction

Rahman,et al,(2009) and
Modified from Walton (1975) and Cook, Hepworth and Wall
(1981)
Modified from (Cummann et al, 1979) and Rahman,et al,(2009) and Modified from
Walton (1975)

A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.

Employee Turnover

A five-point Likert Scale ranging from “strongly disagree” to “strongly agree”.

Table 3.1 and table 3.2 represent the scholars for the questionnaires sources that had been completed for this study. The examples questionnaires have been adapted from
Walton (1975), Rahman, Noraida , Rashidi , Harnizam and Gopala Krishnan (2009) and Cummann et al, (1979) and New Structural Approach Model.

3.6

Data Analysis

In this research, SPSS version 12 was used in order to analyze the data. This software program uses for data analysis and interpretation. This program allows the user to test prior and posterior contrast, which cannot be done in other programs. It can measure of location which are central tendency because of tends to describe the centre distribution. The programs can be measure variability in interval, ratio, and range and others. SPSS is designed especially for accurate data and statistical analysis.

40

3.6.1

Descriptive Analysis

In this study mean was chosen for central of tendency while standard deviation for measure of dispersion. Mean for each independent variables were conducted to determine the important of the QWL elements.
3.6.2

Reliability Test

Reliability testing had done with the purpose of checking whether the data obtained from the survey is reliable or not for research. Reliability is a testing for consistency and stability. It is reliability coefficient that reflects how well the items in a set are positively correlated to one another. If the association is high, the scale yields consistent results and therefore considered reliable.
Factor analysis (data reduction) with varimax rotation in SPPS as the method to identify the unsuitable items of QWL elements .The non-performing items were removes from the data (questionnaires). Then, reliability test were conducted to gain the reliability coefficient. Out of 30 only 23 variables were interpretable and meaningful reliability test were conducted to measure the Cronbach’s Alpha and all the (independent and dependent) variables obtained scores ranging from 0.581 to
0.771. However, only skill (α=0.415) (independent variables) was included in correlation analysis due to its important regarding its relationship with job satisfaction and employee turnover.

41

3.6.3 Correlation Analysis
Correlation analysis was conducted in this study in order to establish cause-and effect relationship using the same natural environment. The correlation test had been used as to describe the degree of relationship between two variables and how it is related to one another. The Pearson correlation coefficient is appropriate measurement for interval and ratio scale in order to indicate the direction, strength and significance of the bivariate relationships of all the variables in this study.
A Pearson correlation is a number between -1 and +1 that measures the degree of association between two variables (call them X and Y). A positive value for the correlation implies a positive association which large values of X tend to be associated with large values of Y and small values of X tend to be associated with small values of Y. A negative value for the correlation implies a negative or inverse association. Thus, large values of X tend to be associated with small values of Y and vice versa (Simon, S. 2008).
Table 3.3: Suggested Interpretation for Correlation Coefficient
Correlation Coefficient
Less than 0.20
0.20 – 0.40
0.40 – 0.70
0.70-0.90
0.90 – 1.00

Interpretation very weak correlation(negligible relationship) weak correlation (small relationship) moderate correlation (substantial relationship) strong correlation ( marked relationship) very strong correlation (very dependent relationship) Sources: Guilford (1956)

42

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

4.0

Introduction

This chapter focused on the findings of the data that has been analyzed which will show the results of respondent demographic, descriptive statistical, reliability testing and correlation analysis. These findings were derived from all 80 out of 150 set of questionnaires that were distributed to the respondents. The analysis also described the demographic variables of the respondents. In this study, SPSS version 12 was used in order to analyze the data. The program is useful to measure variability in interval, ratio, and range and others. Thus, SPSS is designed especially for accurate data and statistical analysis.

4.1

Total Number of Respondents

A close ended survey questionnaire was used in order to assess job satisfaction and employee turnover in Armada Hotel, Petaling Jaya. A total of 150 questionnaires were distributed and a total of 80 questionnaires were retrieved for analysis. Table 4.1 shows the percentage of 80 out of 150 respondents in this study.

Table 4.1: Total Respondents
Total
Distributed
Questionnaires
(N of Items)
150

Total
Respondents

Percentage of
Respondents

80

53.33%
43

4.2

Stratified the Respondent by Departments

A stratified sampling technique was chosen as to identify subgroups of elements within
Armada Hotel. Table 4.2 shows the stratification by departments was used in order to understand towards the Armada’s respondents.
Table 4.2: Stratified Sampling by Departments

Departments

Distributed

Received

Percentage (%)

Questionnaires

Questionnaires

Received
Questionnaires

Food & Beverage

34

13

16.3

Customer Service

22

11

13.8

Maintenance

18

11

13.8

Human Resource

15

10

12.5

Accounts/Finance

13

10

12.5

Marketing

20

10

12.5

Administration

14

9

11.3

Housekeeping

7

3

3.8

Others

7

3

3.8

Total

150

80

53.33%

Table 4.2 illustrates stratification of sampling by departments in Armada Hotel. There are 8 specific departments namely food and beverage, customer service, maintenance, human
44

resource, accounts/finance, marketing, administration and housekeeping. The others department represent such as research and development, event planner and trainer. A total of 150 questionnaires were distributed but only 80 questionnaires were returned and useful for analysis. Based on the returned questionnaires, about 53.33% out of 150 distributed questionnaires were analysed.

4.3

Respondent Characteristics
4.3.1 Demographics of Respondents

Table 4.3 illustrates most of respondents are female with 44 persons (55%). Majority of the respondents are Malay for their race profiles. Hence, the highest percentage is
Malay employee (43.75%), followed by Chinese (28.75%), Indian (26.25%) and others employees (1.25%). Status of the respondents shows closely equal whereby single status are 38 persons (47.5%) while married status are 42 persons (52.5%).
Dominantly the respondents present the aged range from 30 years old and below
(36.3%) and between 31- 35 years old (33.8%). Then, many of the present respondents hold certificate or diploma qualification (38.75%), SPM (32.5%) and bachelor degree (28.8%).
The majority of the respondents are full-time worker with 63.75% while the rest are part time worker (17.5%), contract worker (17.5%) and practical student (1.3%) for other title. Mostly the respondents have been working for 4 years and below whilst several of them have been working for less than 10 years. Next, tenure of less than 2 years indicates the highest percentage with 27.5%, followed by employee with working duration between 2 and 4 years (26.25%) and 5 to 7 years (21.25%).
Overall, the respondents come from different departments but food and beverage
45

department shows the highest percentage with 16.25%. The others employee departments presents percentage between 11% and 14% except for housekeeping and other department. Next, many of them are executives or first level manager
(43.75%) and the rest are non supervisory (22.5%), supervisory (18.8%) and technical position (15.0%).
Table 4.3: Demographics of Respondents
Title

Female

44

55

35

43.8

21

26.3

Chinese

23

28.8

1

1.3

Single

38

47.5

Married

42

52.5

30 and below

29

36.3

31 – 35

27

33.8

36 – 40

17

21.3

41 – 45

7

8.8

SPM/STPM

26

32.5

Certificate/Diploma

31

38.8

Bachelor Degree

Education

45

Others

Age

36

Indian

Status

Percentage (%)

Malay

Race

Respondent

Male
Gender

Item

23

28.8
46

Table 4.3: Demographics of Respondents (continue)
Full Time

14

17.5

14

17.5

1

1.3

Less than 2 years

22

27.5

2 – 4 years

21

26.3

5 – 7 years

17

21.3

8 – 10 years

11

13.8

More than 10 years

9

11.3

Administration

9

11.3

Marketing

10

12.5

Human Resource

10

12.5

Accounts/Finance

10

12.5

Maintenance

11

13.8

Housekeeping

3

3.8

Customer Service

11

13.8

Food & Beverage

13

16.3

Others

Departments

Part Time

Others

Duration

63.8

Contract

Appointment

51

3

3.8

47

Table 4.3: Demographics of Respondents (continue)
Non-Supervisory

22.5

Supervisory

15

18.8

Technical Staff

12

15.0

Executives/First Level

Position

18

35

43.8

18

22.5

Manager
Non-Supervisory

4.3.2

Graph demographic of respondents

Gender

Male
Female

45.0%
55.0%

Figure 4.1: Gender

48

Race

Malay
Indian
Chinese

1.25%

Others

28.75%

43.75%

26.25%

Figure 4.2: Race

Status
Single
Married

52.5%

47.5%

Figure 4.3: Status

49

Age
30 and below
31 - 35
36 - 40

8.75%

41 - 45

21.25%

36.25%

33.75%

Figure 4.4: Age

Education

SPM/STPM
Certificate/Diploma
Bachelor Degree

28.75%

32.5%

38.75%

Figure 4.5: Education

50

Appointment

Full Time Staff
1.25%

Part Time Staff
Contract Staff
Others

17.5%

17.5%

63.75%

Figure 4.6: Appointment

Duration

Less Than 2 Years
2 To 4 Years
5 To 7 Years
8 To 10 Years
11.25%

27.5%

More Than 10 Years

13.75%

21.25%
26.25%

Figure: 4.7: Duration

51

Department

Administration
Marketing
Human Resource

3.75%

16.25%

Accounts/Finance
Maintenance

11.25%

Housekeeping

12.5%

Customer Service
Others

13.75%

Food & Beverage

12.5%

3.75%
13.75%

12.5%

Figure4.8: Department

Position
Non-Supervisory Staff
Supervisory Staff
Technical Staff
Executive/First Manager
22.5%

43.75%

18.75%

15.0%

Figure 4.9: Position

52

4.4

Descriptive and Reliability Analysis

Reliability testing was done with the purpose of checking whether the data obtained from the survey are reliable or not for the research. According to Sekaran (2003), the reliability of a measure is an indication of the stability and consistency with which the instrument measure the concept and helps to assess the goodness of a measure. The closer Cronbach’s
Alpha is to 1, the higher the interval consistency reliability. Descriptive statistics involve transformation of raw data into a form that would provide information to describe a set of factors in a situation (Sekaran, 2003). In this study there were provided measures of central tendency and dispersion which such elements of descriptive statistics.
4.4.1

Descriptive Analysis

In order to describe the responses for the major variables under study, descriptive statistics such as mean and standard deviations on all the independent variables were obtained. Table 4.4 shows the overall results of mean and standard deviations of the
QWL elements.
Table 4.4: Means and Standard Deviation of Variables

N

Mean

Std.
Deviation

80

4.25

0.3815

Communication

80

3.96

0.4072

Knowledge

80

3.96

0.4004

Skills

80

3.84

0.5253

Recognition

80

3.80

0.6684

Variables
Working Environment

53

Table 4.4: Means and Standard Deviation of Variables (continue)

N

Mean

Std.
Deviation

Empowerment

80

3.69

0.4596

Flexible Scheduling

80

3.68

0.5283

Adequate and Fair Compensation

80

3.59

0.6369

Variables

From the results in Table 4.4, it can be seen that the mean of all QWL variables fall between 3.59 and 4.25. Working environment indicates the highest mean with 4.25
(M=4.25). Then, followed by knowledge and communication with mean 3.97
(M=3.97) and 3.96 (M=3.96) respectively. Next, are skills with mean 3.84(M=3.84), recognition (M= 3.80), empowerment (M=3.69), flexible scheduling (M=3.68) and adequate and fair compensation (M=3.59). The employee also reported satisfaction with their working environment, knowledge, communication, skills, recognition, empowerment, and flexible scheduling as these mean value rank from 3.5 to maximum rank 5. Standard deviation of recognition shows the highest value with
0.6684 (SD=0.6684). Then, followed by adequate and fair compensation with standard deviation (SD=0.6369), flexible scheduling (SD=0.5283) and skills
(SD=0.5253). The lowest standard deviation is working environment with 0.3815
(SD=0.3815).

54

4.4.2

Reliability Test.

Reliability testing was done with the purpose of checking whether the data obtained from the survey is reliable or not for research. Reliability is testing for consistency and stability. It is reliability coefficient that reflects how well the items in a set are positively correlated to one another. A reliability coefficient testing indicates that all questionnaires were in used in the study are reliable. According to Malhotra (2004), reliability refers to the extent to which a scale produces consistent results if repeated measurements are made. Reliability is assessed by determining the proportion of systematic variation in scale. This is done by determining the association between scores obtained from different administrations of the scale. If the association is high, the scale yields consistent results and is therefore reliable. Below are the results of reliability tests for each variable.
Table 4.5: Suggested Interpretation for Correlation Coefficient
Correlation Coefficient
Interpretation
Less than 0.20 very weak correlation (negligible relationship)
0.20 – 0.40 weak correlation (small relationship)
0.40 – 0.70 moderate correlation (substantial relationship)
0.70-0.90
strong correlation ( marked relationship)
0.90 – 1.00 very strong correlation (very dependent relationship)
Sources: Guilford (1956)
4.4.3

Result of Reliability Test for Each Variable

Reliability testing was conducted to describe the consistency and stability of the data obtained from the survey. Table 4.6 shows the overall results of reliability coefficients of QWL elements that were obtained.

55

Table 4.6: Cronbach’s Alpha of Variable
Variables

Cronbach's Alpha

Adequate and Fair Compensation

0.771

Recognition

0.754

Job Satisfaction

0.748

Employee Turnover

0.681

Knowledge

0.618

Working Environment

0.610

Communication

0.599

Empowerment

0.581

Skills

0.415

Flexible Scheduling

0.243

Table 4.6 shows Cronbach’s Alpha result ranging from 0.243 to 0.771. Adequate and fair compensation shows the highest value of Cronbach’s Alpha (α=0.771) which the value is closer to 1. Recognition is the second highest value of
Cronbatch’s Alpha which is 0.754 (α=0.754) and followed by job satisfaction with
0.748 (α=0.748). All the Cronbatch’s Alpha value shows result above 0.50 (α=0.50) except for flexible scheduling (α=0.243). Thus, flexible scheduling result is excluded for subsequent analysis.

4.5

Correlation Analysis

Correlation analysis was conducted in order to identify the important QWL factors with the variables of interest. The correlation test used as to describe the degree of relationship between two variables and how it is related to one another. In this study, the Pearson
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correlation coefficient was selected as the appropriate measurement for interval and ratio scale in order to indicate the direction, strength and significance of the bivariate relationships of all the variables. Table 4.7 and 4.8 described the relationship between QWL elements pertaining to job satisfaction and employee turnover.

4.5.1 Pearson Correlation Analysis between QWL Elements and Job
Satisfaction
From the Table 4.7, the result shows all the independent variables are significant at
0.01 level (2-tailed) or 0.05 (2-tailed) level except for working environment. Six
QWL factors are significant: communication (r= 0.271, p< 0.05), skills (r = 0.359, p< 0.01), knowledge (r = 0.402, p< 0.01), recognition (r = 0.278, p< 0.05), adequate and fair compensation (r = 0.385p< 0.01) and empowerment (r=0.480, p