The factors affecting the loyalty of officials towards department of labour invalids and social affairs

THE FACTORS AFFECTING THE LOYALTY OF OFFICIALS TOWARDS DEPARTMENT OF LABOUR - INVALIDS AND SOCIAL AFFAIRS A Dissertation Presented to the Faculty of Graduate School Bulacan State Unive

THE FACTORS AFFECTING THE LOYALTY OF OFFICIALS TOWARDS DEPARTMENT OF LABOUR - INVALIDS AND

SOCIAL AFFAIRS

A Dissertation Presented to the Faculty of Graduate School

Bulacan State University City of Malolos

In Partial Fulfilment of the Requirements for the Degree

Doctor in Business Administration

by

NGUYEN THANH BINH December 2015

APPROVAL SHEET

In partial fulfillment of the requirements for the degree of Doctor of Business Administration This dissertation entitled THE FACTORS AFFECTING THE LOYALTY OF OFFICIALS TOWARDS DEPARTMENT OF LABOUR - INVALIDS AND SOCIAL AFFAIRS had been prepared and submitted by NGUYEN THANH BINH

and recommended for oral examination

VICTORIA P VALENZUELA, D.P.A

Dean, Graduate School

ACKNOWLEDGEMENT

Firstly, I would like to give my special thanks to Dr PHAM HUNG CUONG for his

guidance, stimulating suggestions and encouragement during the course of my research and writing of this dissertation

Secondly, I would like to express my gratitude to all those who gave me the opportunity to complete this dissertation I would like to thank the managers of the Department of labor - invalids and social affairs for giving me permission to commence this dissertation, to do the necessary research work and to use its data

Thirdly, I would like to thank to the directors of the other social affairs who supported and gave valuable information for the study Without their cooperation, this study could not reach a good end

Fourthly, I would like to say honest thanks for the moral support of coworkers and encouragement Moreover, I would like to owe everlasting gratefulness to my friends who gave patient support for my endeavors over the period of this study

Finally, I would like to thank the gratefulness to my family who gave patient support for my endeavors over the period of this study

NGUYEN THANH BINH

ABSTRACT

The research results showed that there were 210 officials interviewed and answered about 41 questions The researcher had analyzed KMO test, the result of KMO analysis used for multiple regression analysis

The regression analysis result showed that there were six factors, which included of factors following: Component 1 (X1) was right and obligation, Component 2 (X2) was salary

& reward, Component 3 was family factor, Component 4 (X4) was colleagues, Component 5 (X5) was promotion condition and Component 6 (X6) was welfare regulation All of components affected officials‟ loyalty with 5 % significance level In addition, the research result processed from SPSS 20.0 software The parameters of the model estimated by Least - Squares Method tested for the model assumption with 5% significance level At the same time, the result was also a scientific evidence and important for researchers, and policy makers who apply them for developing officials‟ loyalty

TABLE OF CONTENTS

Page

Title i

Approval Sheet ii

Acknowledge ment iii

Abstract iv

Table of Contents v

List of Tables viii

List of Figures x

CHAPTER I THE PROBLEM AND ITS BACKGROUND Introduction 1

Statement of the Problem 3

Significance of the Study 5

Scope and Delimitation of the Study 6

II THEORETICAL FRAMEWORK Relevant Theories 7

Review of Related Literature 12

Review of Related Study 19

Conceptual Framework 31

Hypothesis of the Study 34

Definition of Terms……… 35

III METHODS OF RESEARCH AND TECHNIQUES OF

THE STUDY

Methods and Techniques of the Study 40

Population and Sample of the Study 42

Research Instrument 42

Data Gathering Procedure ……… .44

Data Processing and Statistical Treatment 45

IV PRESENTATION, ANALYSIS AND

INTERPRETATION OF DATA Sub-Problem No 1: 53

Sub-Problem No 2: 61

Sub-Problem No 3: 72

Sub-Problem No 4: 85

V SUMMARY, CONCLUSIONS AND RECOMMENDATIONS Summary 91

Summary of Findings 91

Conclusions 92

Recommendations 93

BIBLIOGRAPHY Books 103

Periodicals 106

Appendix A – Questionnaire 108 Appendix B – Questions for the Interview 112

CURRICULUM VITAE

LIST OF TABLES

1 Descriptive Statistics for gender 54

2 Descriptive Statistics for Position 55

3 Descriptive Statistics for the highest education levels 55

4 Descriptive Statistics for the experiences 56

5 Descriptive Statistics for income for per month 56

6 The measuring scale of factors affecting official‟s loyalty 57

7 Descriptive statistic results of variables of official‟s loyalty 59

8 Measuring scale of variables of official‟s loyalty 61

9 KMO and Bartlett's Test for factors of the official loyalty 67

10 Structure Matrix for factors of the official loyalty 68

11 Exploratory Factor Analysis the dependent variable of official loyalty 69

12 Testing scale with Cronbach's Alpha for factors affecting the official loyalty 70

13 Regression Model Summary analysis about the official loyalty 73

14 Testing correlation between right and obligation and official loyalty 77

15 Testing correlation between salary & reward and official loyalty .78

16 Testing correlation between family factor and official loyalty 79

17 Testing correlation between colleagues and official loyalty 80

18 Testing correlation between promotion condition and official loyalty 81

19 Testing correlation between welfare regulation and official loyalty 82

LIST OF FIGURES

1 Paradigm of the Study for the official loyalty 31

2 Research model for the official loyalty 33

3 Research processing for the official loyalty 46

4 The results of gender analysis 53

5 The results of highest education levels analysis 54

6 The Result of the Regression for the official loyalty 74

7 The Result of the Regression Standardized Residual 75

8 Normal P-P Plot of Regression Standardized Residual 75

On our part mentioned aspect of customer loyalty was loyalty that employees then how? Companies often hope their loyal employees always work with all the passion, at least occasionally in some of the work of the company and the management The good news is loyalty to the company based on product and proud of the quality of work

Loyalty asserted corporate level by companies only succeed when there is employee loyalty The combination of loyalty and pride will help employees with strong motivation to complete the outstanding tasks They even have the motivation to exceed set targets, achieving promotion company The management practices in line with rules and ethics can win the loyalty, the more interested of shareholders and customers Loyalty of the individual

is not simply a matter of individuals but that each link in the chain work conscientious dedication to achieve company goals set includes the provision of products and services best service to customers

Nowadays, companies depend on their employees more than at any other time in the past This is particularly true in hi-tech, biotech, finance, and other market segments where employee contribution does not directly depend on the nominal time spent at work Employee dedication and employee care of corporate interests are part of employee loyalty

Loyalty cannot be expected without reciprocity To expect a high level of loyalty from its employees, a company expected to show a similar, or even higher, level of loyalty to them Most of the time, however, this is not happening in the U.S corporate environment Despite being dependent on employee loyalty, U.S corporations show little or practically no loyalty to their employees It is typical for a company to lay off employees without warning, taking them by surprise Most employees in corporate America realize that they can let to go

at any time and that management would do their best to hide layoff plans Even the expectation of losing one‟s job so suddenly, and in quite an intimidating manner, may be enough to destroy employee loyalty This is just one example of how corporate America is shooting itself in the foot There are many other examples of corporations showing very little loyalty toward their employees

Employee loyalty is a key challenge in most of the organization today to encourage the best and most desirable employees to remain in the organization for maximum period of time employees today are different Once employees feel dissatisfied with the current employer or the job, they switch over to the next job It is the responsibility of the employer

to know how to attract, satisfied and retains its best employees However, many organizations are facing problems to retain their employees due to certain factors The official loyalty is the key aim in the business management It estimated that the relationship between the official satisfaction and loyalty are very important for the loyalty of officials

towards Department of Labor - invalids and social affairs With the practical requirements of

a working career in mind, the researcher had chosen: the factors affecting the loyalty of officials towards Department of Labor - invalids and social affairs such as a topic for

doctoral dissertation in Business Administration the objectives of the study presented in turn

Statement of the Problem

General problem: What are the factors affecting the loyalty of officials to their

organizations?

Specific problems:

1 How the official loyalty towards Department of Labor - invalids and social affairs

be described in term of?

1.5 Income and 1.6 Level of political discourse

2 How may the officials towards Department of Labor - invalids and social affairs relate to the following factors of official loyalty be described?

Significance of the Study

The significance of the study is this document is an effort to enhance the efficiency and effectiveness of Department of Labor - invalids and social affairs The importance of this research cannot be overstated in that it should be able to help design a suitable policy and system to enhance the effectiveness and efficiency of Department of Labor - invalids and social affairs

In addition, the significance of the study is to aim at seeking out the level of affecting

on official loyalty of Department of Labor - invalids and social affairs (1) Academy significance: The research uses as reference literature for management…The research contributes into the official loyalty literature (2) Practical significance: The research is to use

to improve the effectiveness following Work nature; Salary & rewarding; Welfare regulation; Working environment; Colleague; Promotion; Superior; Family factor; and Family factor The research is to apply for other companies in Vietnam

Moreover, the study results can also provide the human resources management an understanding on factors that could influence the official loyalty in the organizations in which ultimately attempting to enhance their performance and make the organizations a profitable entity The research results also help managers of Department of Labor - invalids and social affairs to design management policy system of human resource to enhance the effectiveness and efficiency in the future In addition, this research helps everyone understands the official loyalty This research results to improve the Department of Labor - invalids and social affairs of human resource quality, have good policies and support many other human resource quality policies in the future

Scope and Delimitation of the Study

Research object is civil servants who are working at the Department of Labor - invalids and social affairs

Scope of Research is the limitation of time, the subject only makes a research on the issues based on the objects who are civil servants working at all specialized units directly under the Department of Labor - invalids and social affairs

This study conducted at the Department of Labor - invalids and social affairs The researched subjects are current official of the Department of Labor - invalids and social affairs The period of the research was from July 2013 through December 2015

Besides, the process for the research consisted of two steps First, a preliminary study and second was the formal research The preliminary study used qualitative methods through in-depth interviews with 30 experts, 30 leaders of the Department of Labor - invalids and social affairs to examine the content and meaning of the sentences used in the scale The formal research used quantitative methods through surveying 210 officials of the Department

of Labor - invalids and social affairs After data collected, the reliable scale tested with Cranach‟s Alpha Index, and Exploratory Factor Analysis (EFA), which draws from the official scale Formal research used quantitative methods through surveying about 210 persons There were more than total population of 380 officials at the Department of Labor - invalids and social affairs I had surveyed 210 officials Thus, total of sample is 210 persons relating to this research

CHAPTER II

THEORETICAL FRAMEWORK

Relevant Theories

Definition of “Civil servant”

A civil servant is a Vietnam‟s citizen who is recruited, appointed into a state branch with the title in Communist Party of Vietnam, political and social organizations from central level to provincial and district levels A civil servant works in the units under People‟s Army but not officer, professional soldier, defense worker; who works in the units under the public social affairs forces but not officer, professional sergeant A civil servant works in the leadership and management of public service units of Communist Party of Vietnam, State, political-social organizations (hereinafter referred to public career units) whose salary is ensured by the public career unit‟s salary fund as per legal regulations

Officials and civil servants using agency: is an agency, organization or unit that has the right to manage, distribute, arrange and test the implementation of duties, power of officials and civil servants

Officials and civil servants managing agency: is an agency, organization or unit which has the right to recruit, appoint, rank, increase salary, solve the issues of severance, retirement, regimes, policies and rewards, as well as disciplining for officials and civil servants `Working position: is a work associated with the title, position, structure and branch

to identify the staffing and arrangement for civil servants in agencies, organizations and units Any discussion of loyalty should begin with the definition of its subject matter One may expect the loyalty theories to be the perfect place to look for a generally agreed upon definition The inquisitive reader finds, however, that the field of loyalty is characterized by

an abundance of different theoretical frameworks and models that make it difficult, if not impossible, to identify similarities and differences (Campbell, Dunnette, Lawler, & Weick, 1970; Chiesa, 1994; Madsen 1961)

Loyalty: There are different ways of approach on the employees‟ loyalty Loyalty can

be a component factor of organization‟s commitment; also can be an independent concept

Allen & Mayer (1990) focused on three psychological statuses when associated with the organization and mention the loyalty Employees can be loyal to their organizations, then they will stay with the organization although other agencies can pay them more; they can be loyal to the organization because they do not have opportunity to find out better jobs or because the moral standards they are pursuing Meanwhile, Cook & Wall (1980) pays attention to the behavior aspects of employees

In Vietnam, the appearance of a series of foreign investors, multi-national corporations and banks lacking qualified human resources after Vietnam has joined WTO has made the labor market hotter Employees will suggest the requirements that bring their loyalty Some of them consider income as the most important factor that creates their loyalty

Many of them wish to have the opportunities to study, develop themselves; for example Jaerid Rossi (extracted from Penelope Trunk (2007) said: “Like the function of time, loyalty

is the idea of promise, an employee only feels work attractive when he/she can often learn”

In contrast, “Companies do not want a blind loyalty; the best loyalty is when both company and employees gain mutual benefits”

According to The Loyalty Research Center (2004), “Employees‟ loyalty is obtained when employees commit to associate with organization‟s success and believe that working for the organization is the best choice”

Loyalty is a modern theory and the theory based on the Western, but because it is based on the management of Japanese enterprises, its features has oriental philosophy that stresses on self-esteem or something "my "personal” The Japanese appreciate that rather than cash in many cases They have been applying this method to put in your administration Besides Asians often strive towards harmony, the theory of Z we see the harmony of the three elements is labor productivity, reliability and the subtleties in the relationship between people That is the point of making a difference as well as the success of Theory Z But both theory as well as X, Y and Theory Z also has the drawback that is generating large inertia among employees

Now, new idea about loyalty has not been widely popular in Vietnam and there are still many difficulties in measurement Therefore, this research uses the nowadays and his colleagues‟ definition of the loyalty, together with development and usage of employee‟s loyalty scale which was developed by Man Power (2002)

Kleinginna and Kleinginna (1981) listed 98 definitions of loyalty from which they synthesized their own physiological definition with emphasis "on process-restrictive, vector,

and phenomenological aspects" (p 272) The fact that some theorists fail to define loyalty at all contributes to the problem (e.g., Adams, 1963, 1965; Herzberg, Mausner, & Snyderman,

1967, 1993; Keller, 1999; Locke & Latham, 1990; Maslow, 1954, 1970; McGregor, 1960) The large number of different operational definitions can lead to different conclusion about the phenomenon of interest (Kazdin, 1998) Most workers in the field of loyalty define loyalty in their own terms As a result, individual research efforts overlap only little Although viewing a particular phenomenon from many different perspectives may not be a drawback by itself, in the case of loyalty research the point made that much of the research effort has not resulted in an increased understanding of motivated behavior

Pinder (1998) Pinder viewed the motivation to work A set of energetic forces that originate both within as well as beyond an individual's being, to initiate work-related behavior, and to determine its form, direction, intensity, and duration Other motivational theorists also operationalize motivation as the direction, effort, and persistence of behavior, including Clark (1998), Ford (1992), Locke and Latham (1990), Madsen (1961), and Steers and Porter (1991) Motivation divided into two types: intrinsic (internal) motivation and extrinsic (external) motivation

Intrinsic motivation Intrinsic motivation refers to motivation that driven by an

interest or enjoyment in the task itself, and exists within the individual rather than relying on external pressures or a desire for reward Intrinsic motivation studied since the early 1970s.The phenomenon of intrinsic motivation first acknowledged within experimental studies of animal behavior In these studies, it was evident that the organisms would engage

in playful and curiosity driven behaviors in the absence of reward Intrinsic motivation is a natural motivational tendency and is a critical element in cognitive, social, and physical

development Students who intrinsically motivated are more likely to engage in the task willingly as well as work to improve their skills, which increase their capabilities Students are likely to be intrinsically motivated if they: attribute their educational results to factors under their own control, also known as autonomy believe they have the skills to be effective agents in reaching their desired goals, also known as self-efficacy beliefs are interested in mastering a topic, not just in achieving good grades

Extrinsic motivation Extrinsic motivation refers to the performance of an activity in

order to attain an outcome, whether or not that activity is also intrinsically motivated Extrinsic motivation comes from outside of the individual Common extrinsic motivations are rewards (for example money or grades) for showing the desired behavior, and the threat

of punishment following misbehavior Competition is in an extrinsic motivator because it encourages the performer to win and to beat others, not simply to enjoy the intrinsic rewards

of the activity A cheering crowd and the desire to win a trophy are also extrinsic incentives

Comparison of intrinsic and extrinsic motivation Social psychological research

has indicated that extrinsic rewards can lead to over justification and a subsequent reduction

in intrinsic motivation In one study demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations than children who were assigned to an unexpected reward condition However, another study showed that third graders who were rewarded with a book showed more reading behavior in the future, implying that some rewards do not undermine intrinsic motivation While the provision of extrinsic rewards might reduce the desirability of an activity, the use of extrinsic constraints, such as the threat of punishment, against performing an activity has actually been found to

increase one's intrinsic interest in that activity In one study, when children were given mild threats against playing with an attractive toy, it found that the threat actually served to increase the child's interest in the toy, which was previously undesirable to the child in the absence of threat

Review of Related Literature

Alfaris (2011) reviewed that the impact of loyalty policies on organizational loyalty

This study aimed to clarify the concepts of loyalty policies and organizational loyalty theoretically, and clarified the relationship between the two concepts The study conducted

on a non-probabilistic sample for four institutions consisting of (324) employees of different levels The results showed that employees divided in the degree of organizational loyalty, as well as that there was a positive relationship between organizational loyalty and practical experience and there was not a relationship between the loyalty policies used and the personal factors of the official The results also showed that there was a strong and positive relationship between loyalty and organizational loyalty

Qathami (2009) reviewed that the relationship between psychological empowerment

and organizational loyalty aimed to identify the level of official understanding of the psychological empowerment and organizational loyalty, and the study of the relationship between them The total sample size was (210) employees at the hospital, as the researcher used the descriptive analytical method for carrying out the study The results of the study showed that the level of psychological empowerment The organizational loyalty realized by the employees, as well as that there was a direct correlation with statistical significance

between psychological empowerment and its dimensions (sufficiency, meaning, independence and effect) and organizational loyalty of the employees in the hospital

Ketbi (2006) reviewed that the measurement of organizational loyalty of the

employees working in the field of policing Through a field study on the employees in the public administration of Sharjah Police, as treatment of the issue was addressed a by identifying the concept of organizational loyalty, its components, and its dimensions, and to identify the factors affecting the job loyalty of the employees, measuring the degree of job loyalty among employees The study concluded that the most influential factors on organizational loyalty are the factors attributable to the work environment and that there was

a moral link between subjective factors, personal variables and functional variables, and that there was a moral link among the factors attributable to the work environment, personal variables and functional variables

Ajami (1998) reviewed that the organizational loyalty and job satisfaction aimed to

find out the relationship between organizational loyalty and job satisfaction among the employees in the State of Kuwait, and some of the organizational elements such as supervision, communication, promotion, and work environment This study also discussed the relationship between the work environment and the external environment elements, such

as the sense of the availability of other job opportunities The study concluded that organizational loyalty was the reason for career satisfaction rather than just a result of it The study also showed that organizational loyalty was the result of democratic supervision, good communication, cohesion of the working group, availability of alternative employment opportunities, and the desire to continue to work

Niehoff et al, (2001) reviewed that the researchers was to identify the relationship

between the practice of administrative empowerment and job enrichment, and organizational loyalty to employees who were not included in the process of reducing the size of the business Total sample size was 203 male and female employees working in research facility affiliated to the central government of the United States of America The results of the study showed that empowerment has no direct impact on organizational loyalty but it did affect it indirectly through job enrichment

Silvestro R., (2002) reviewed that employee loyalty meant the ability to stay with the organization in long term It based on the premise that employee loyalty could be measure by the amount of time one work for the company or organization However, as the economic is changing: downsizing, cooperate restructuring had made the definition of employee loyalty change Employee loyalty to organization cannot be measured by the time they are work for the company alone, it need to include the amount of commitment official makes when they are on the job in organization (Phaneuf, 2013)

Chen, Zhen Xiong, Tsui, Anne S and Farh, Jiing-Lih Larry (2002) reviewed that the relationship between loyalty to supervisor and employee's in-role and extra-role performance

in comparison with that of organizational commitment in the People's Republic of China Two studies were conducted In the first study, a five-dimension loyalty to supervisor scale was developed and validated In the second study, the relationships between loyalty to supervisor, organizational commitment and employee performance examined Results indicated that loyalty to supervisor was more strongly associated with both in-role and extra-role performance than organizational commitment The findings discussed in terms of their implications for future research and management practices in cross-cultural settings

Miguel Pina e Cunha (2002) reviewed that his case study of an integrated information technology services firm, examines how the interplay between culture, structure, and leadership is managed in order to build control and employee loyalty He focuses on the salient features of the case, namely that a high-profile culture combines with a low-profile leadership and with minimal structuring to create a vibrant and loyalty-generating organizational environment He proposes that these processes are effective because they reinforce one another Cunha, Miguel Pina et al (2002) in their case study of an integrated information technology services firm, studied how the interplay between culture, structure and leadership managed to build employee loyalty He proposed that these processes are effective because they reinforce one another

B.A.K Rider (1998) found that trust, loyalty and related norms may have a crucial economic role to play, it does not follow that regulation should be used to foster their development Since it is sensible business practice to act in a cooperative manner, laws of this character will often be redundant and could in fact serve to reduce reliance on trust and loyalty

Brian P Niehoff, Robert H Moorman, Gerald Blakely, Jack Fuller (2001) provided a useful outline of the work in the area of “Maintaining survivors‟ loyalty in a downsizing environment is a difficult problem for management practitioners” Theorists have suggested that empowerment and job enrichment are mechanisms that allow survivors to cope with the stress of downsizing Their study examined the relationships between managerial empowerment behaviors, perceptions of job enrichment, and loyalty behaviors with employees who have survived downsizing in an organization Results showed that

empowerment does not have a direct effect on loyalty but affects loyalty indirectly through job enrichment The results discussed in terms of their implications for theory and practice

Reichheld (2003) reviewed that loyalty is the willingness of an employee to invest in

or sacrifices for the organization to strengthen a relationship (Reichheld F., 2003) Thus, loyalty characterized by the intention to engage with the organization in long term, which plays a positive role in retention of members in the organization While job satisfaction mainly focuses on the attitude of employee toward his current job, employee loyalty explores

a wider framework, which is employee attitude toward the organization (Chen, 2006)

Chang et al (2010) reviewed that employee job satisfaction is an antecedent to employee loyalty Some other studies such as Jun et al (2006) and Arsić et al (2002) also consistently report a strong relationship between organizational loyalty of employees and employee job satisfaction Empirical evidence also suggests a positive relationship between employee job satisfaction and loyalty of employees (Fletcher and Williams, 1996) Employees who feel satisfied with their jobs will most likely be more loyal to organizational than dissatisfied employees (Kim et al., 2005) Once the employee job satisfaction increased, the degree of organizational loyalty of employee also raise higher On the other side, once the employee job satisfaction decreased, it will leads to the decrease of employee loyalty, employee morale and the increase of job turnover Low job satisfaction could also cause

employees to recede from their jobs, seek new jobs, or change their current jobs and careers

Loyalty looked at as a cycle where thoughts influence behaviors and behaviors thus drive performance Performance impact thoughts and the cycle become cyclical Each facet is composed of many multi-faceted dimensions where attitudes, beliefs, intentions, effort, and withdrawal all affect the amount of loyalty one has

Maslow's hierarchy of needs Abraham Maslow viewed motivation as based off a

hierarchy of needs, of which a person cannot move to the next level of needs without satisfying the previous level Maslow‟s hierarchy starts at the lowest level of needs, basic physiological needs Basic physiological needs include air, water, and food Employers who pay at least a minimal living wage meet these basic employee needs

The next level of needs referred to as safety and security needs This level includes needs such as having a place to live and knowing one is safe Employers can meet these needs by ensuring employees are safe from physical, verbal or emotional hazards and have a sense of job security The third level of needs is social affiliation and belonging This is the need to be social, have friends, and feel liked one belongs and loved Implementing employee participation programs can help fulfill the need to belong Rewards such as acknowledging

an employee‟s contributions can also satisfy these social and love needs The fourth level on the hierarchy is esteem needs This level is described as feeling good about one‟ s self and knowing that their life is meaningful, valuable, and has a purpose Employers should use the job design technique to create jobs that are important to and cherished by the employee The last level Maslow described called self-actualization This level refers to people reaching their potential states of well-being An employer who ensures that an employee is in the right job and has all other needs met will help the employee realize this highest need

Herzberg's two-factor theory Frederick Herzberg developed the two-factor theory

of motivation based on satisfiers and dissatisfies Satisfiers are motivators associated with job satisfaction while dissatisfies are motivators associated with hygiene or maintenance Satisfiers include achievement, responsibility, advancement, and recognition

Satisfiers are all intrinsic motivators that directly related to rewards attainable from work performance and even the nature of the work itself

Dissatisfies are extrinsic motivators based on the work environment, and include a company‟s policies and administration such as supervision, peers, working conditions, and salary Herzberg believed providing for hygiene and maintenance needs could prevent dissatisfaction but not contribute to satisfaction

Herzberg also believed that satisfiers hold the greatest potential for increased work performance Work-life programs are a form of satisfier that recognizes the employee‟s life outside of work that, in turn, helps motivate the employee

Vroom's expectancy theory The theory based on three concepts: valence,

expectancy, and force Valence is the attractiveness of potential rewards, outcomes, or incentives Expectancy is a person‟s belief that they will or will not be able to reach the desired outcome Force is a person‟s loyalty to perform In general, people will work hard when they think that it is likely to lead to desired organizational rewards

Locke's goal theory Edwin A Locke‟s goal theory describes setting specific goals

to elicit higher performance and setting difficult goals to increase effort He also believed that, through employee participation in goal setting the employees would be more likely to accept the goals and have a greater job satisfaction The goal theory‟s underlying assumption

is that employees who participate in goal setting will set difficult goals for themselves and yield superior performance The theory is logical because employees are going to set difficult goals but the goals will be attainable with increased effort Sometimes organizations set goals that their employees were rare to meet If the goals are always unattainable, there is no loyalty to try accomplishing them

Review of Related Study

1 Imrab Shaheen (2013) Factors Affecting the Motivation of Academic Staff (A

case study of University College Kotli, UAJ & K) International Journal of

Business and Management Invention

The purpose of this study was to examine the impact of the factors affecting the motivation of the faculty members of university college Kotli Two factors namely, incentives/rewards and administrative policies were taken as independent variables while motivation was taken as dependent variable

This is a quantitative research study and data were collected through questionnaire containing dichotomous scale Data were analyzed by Percentages, tables and figures The findings of this study revealed that, incentives/reward enhances the motivation whereas administrative policies decrease the motivation of academic staff

Most of the university academicians are not satisfied with the administrative policies

of their university which is responsible for their low level of motivation and most of them are not motivated and satisfied with their present salary Most of the academicians felt that they are getting support from university administration in finding career development opportunities but a good number of academicians were not satisfied with the accountability

system and placement policies of the university

2 Urbancová Hana (2009) Staff Turnover as a Possible Threat to Knowledge Loss International Journal of Business and Commerce

The article focuses on labor turnover as a potential threat to knowledge loss Labor turnover results in an organizations inability to ensure knowledge continuity In this study,

induction used to identify factors within organizations that determine employees‟ exit from organizations The verifiability of these factors tested by means of correlation and regression

Subsequently, the presented causes of employee turnover specified as potential threat

to knowledge loss In the current knowledge economy, employees in an organization considered the key competitive advantage and the most important asset If an employee leaves an organization, they take the knowledge they have acquired with them The loss of knowledge is a potential threat to an organizations existence, especially if an employee with valuable knowledge leaves to join a competitor Therefore, this paper deals with knowledge continuity as a probable means of eliminating this threat Dependencies between selected qualitative variables tested to determine their impact on organizations The study concludes

by indicating that, today„s knowledge-based organizations must be aware of the main causes and consequences of employee fluctuation so as to maintain their competitiveness in times of

economic crisis

3 Maznah Wan Omar (2010) Employee Motivation and its Impact on Employee

Loyalty World Applied Sciences Journal

When change and restructuring in an organization becomes inevitable, employee loyalty and their motivation becomes one of the major challenges currently facing most companies in the present world of business On top of the ongoing focus on recruiting new talent, a further challenge lies in ensuring existing official are focused, engaged and thus retained Good organizations understand that loyal employee will result in a better business performance, so many are placing greater emphasis on measuring employee loyalty and how

to motivate them in order to keep their official happy The methodology uses in this research

is through the distribution of a set of questionnaire to one hundred and eighty five

respondents Results from this study will be practically significant to practitioners and academicians in providing them with information on the most effective ways on how to manage their employees

4 M Nurul Kabir (2011) Factors affecting employee job satisfaction of

pharmaceutical sector Australian Journal of Business and Management Research

The Pharmaceutical sector plays a vital role in underpinning the economic development of a country This study attempts to evaluate job satisfaction of employees in different pharmaceutical companies It focuses on the relative importance of job satisfaction factors and their impacts on the overall job satisfaction of employees It also investigates the impacts of pharmaceutical type, work experience, age, and sex differences on the attitudes toward job Satisfaction The result shows that salary, efficiency in work, fringe supervision, and co-worker relation are the most important factors contributing to job satisfaction The overall job satisfaction of the employees in pharmaceutical sector is at the positive level

The nature of business operation, the work culture and the level of job satisfaction have undergone sea change for the pharmaceutical companies As a business proposition initiated huge investment whereas majority of their stocks is going down bringing a high level of apprehension related to job security among its employees This research paper highlights some of these problems and presents a picture of level of job satisfaction among employees of pharmaceutical companies It also identifies unique issues of job satisfaction in the companies Pharmaceuticals Companies are selected for the research because they are currently undergoing continued expansion In order to gain competitive advantage and adapt

to the dramatic changing environment, it is important for them to achieve management efficiency by increasing employee satisfaction in the organization Hence, this research was

mainly undertaken to investigate on the significance of factors such as working conditions, pay and promotion, job security, fairness, relationship with co-workers and supervisors in affecting the job satisfaction This paper presents a comprehensive diagnosis of job satisfaction indices of pharmaceutical business, the factors causing the dissatisfaction & suggestions to improve them

5 Boondarig Ronra (2005) Factors Affecting Employee Turnover job Satisfaction: A

Case Study of Amari Hotels and Resorts International Conference on Technology and

Business Management

The tourism industry is an important part of the progression, stability and economy of Thailand Tourism has played the major role in bringing the foreign currency to the Thai Economic system Tourism accounts for 6% of Thailand's gross domestic product or GDP (BBC News, 2004) As the tourism, industry creates lots of benefits to the country each year empowered by the Thai government to establish various supporting policies to develop Thailand Tourism, continuously The objective of this paper is to explore the factors affecting employee turnover, employee job satisfaction and the impact of satisfaction on employee turnover at Amari Hotel Resorts, Thailand The survey instrument in the form of questionnaire was conducted on 356 samples from the population of 11 Amari Hotels and Resorts The result of the preliminary findings indicated that “working Environment”,

“growth and possibility of growth” and “work itself” were the three factors that have significant relationship with the overall satisfaction Moreover, the result indicated that the employees who have intension to quit were less satisfaction than employees who have never think of leaving The overall finding results can be used for the hotels to set the guidelines to improve the employees‟ job satisfaction and reduce the turnover rate

6 Anna B Parkin (2009) Loyalty among construction workers in Turkey Journal of

Management and Social Sciences

The role of management is to apply organizational resources to achieve organizational objectives The nature of commercial enterprise necessitates the desire for increased productivity and efficiency, and workforce loyalty acknowledged as an influencing factor in these areas

Theory suggests that loyalty factors follow a hierarchical format where higher level needs become dominant when lower level needs fulfilled, and improvements in loyalty are facilitated more effectively through the higher level needs This study looks at factors affecting the loyalty of workers on Turkish construction sites 370 construction workers were asked in a questionnaire to give examples of positive and negative factors that affect their loyalty at work It found that money earned is the foremost motivating and de-motivating factor in the eyes of the construction workers As a result, it suggested that workers on Turkish construction sites managed in a way that limits their opportunities to fulfill higher-level needs, and in order to increase worker loyalty, and therefore productivity, the management of such workers should move away from control through external means and towards control through internal and cultural forces

7 Rapeepun Piriyakul (2012) Influencing factors to job satisfaction and

organizational commitment in manufacturing organization, affect to turnover intention: A context of Thai fashion industry International Conference on Business and Management,

Phuket - Thailand

As we always know, the survival of businesses critically depends on the ability of the managements in creating and maintaining the competitiveness of their organizations To

build up the business competitiveness, many firms in the past decades paid most of their attentions to improve their productivities Production management, such as the use of new technology and innovation for production, therefore became the first priority among the other business functions (Panuwatwanich et al., 2008) However, when the time goes by the business competition has become more aggressive A certain firm cannot win over the others

by relying solely on its high productivity The other functions of the business, which used to receive less attention from the management, then now also become the critical parts of the firm‟s success which the management cannot overlook

High employee turnover rate is a crucial problem in many organizations This research study focuses on determining the internal and external collaboration link through job satisfaction and organizational commitment to influence on turnover intention among unskilled employee in Bangkok area for fashion industry The study employed self-administered questionnaires to collect data from 330 unskilled employees with based on Structural Equation Modeling (SEM) The findings indicate that: (i) Job satisfaction was affected by task value, co-worker, job enrichment and leader-member exchange (ii) Pay satisfaction, leader-member exchange job satisfaction have significantly influenced on organizational commitment (iii) Intention to leave was affected by job satisfaction and organizational commitment Finally, employee‟s acceptance and alignment with organizational goals would increase greater organizational commitment and reduce employees‟ intention to leave the organization

8 Hooi Lai Wan (2007) Employee Loyalty at the Workplace: The Impact of Japanese

Style of Human Resource Management International Journal of Applied HRM

In this era of globalization and liberalization, employees are becoming the competitive advantage for business A business may manage with mediocre employees but competent employees can propel an average business to greater heights Likewise, bad employees can cause flourishing business empires to collapse In a tight labor market, keeping good employees and developing employee loyalty becomes increasingly important and a continuing challenge With the tight labor market, employers therefore need a strategy

to retain their key experts and crucial skilled workers As prospective employers continuously bid for top performers, management strategies must therefore give due consideration and sufficient resource allocation to keep employees motivated and satisfied The idea is that the satisfied employee is less likely to pursue greener pastures Thus, implementing desirable human resource management policies will have a positive effect on employee loyalty Japan obviously relies extensively on its human capital to fulfill its national economic objectives The "Look East Policy" was developed to emulate Japanese style of management, especially human resource management Japanese human resource management places great emphasis on the internal labor market to fill promotion opportunities, long-term development programs and job security, among others All these are contributory factors for employee loyalty For Malaysia to sustain economic growth, appropriate human resource management policies that promote employee loyalty are essential Continuous and systematic approach to training and development, recruitment policies that reduce job-hopping and ensure long-term employment, internal promotion practices with a little recognition given to seniority and the implementation of the

productivity-linked wage system would create a more committed employee towards the company As most of these elements are representative of Japanese style of human resource management which enhance employee loyalty and encourages long-term employment, the hypothesis for this study is employee loyalty would be higher in companies where elements

of Japanese style of human resource management are present

The main purpose of this study is to define and model the approach of developing employee loyalty through human resource management policies by identifying human resource management policies that augments employee loyalty and analyzing if Japanese style of human resource management does have a role in enhancing employee loyalty For this research, the extent of Japanese style of human resource management introduced and adopted by the small and medium size manufacturing companies in Malaysia first analyzed

to segment the participating companies into three groups, depending on the extent of Japanese style of human resource management introduced in their management practices

9 Norizan Ismail (2013) Organizational commitment and job satisfaction among

staff of higher learning education institutions in Kelantan International Journal of Academic

Research in Business and Social Sciences

Job satisfaction has been an important topic over the years (Akfopure, 2006) The relationship between man and work has always attracted the attention of philosophers A major part of man‟s life is spent at work Work is social reality and social expectation to which men seem to confirm It not only provides status to the individual but also binds him to the society An employee who is satisfied with his job would perform his duties well and be committed to his job, and subsequently to his organization Thus, it is of utmost importance

for employees to know the factors that can affect their employees‟ job satisfaction level since

it would affect the performance of the organization as well

The purpose of this study is to examine the relationship between components of organizational commitment and job satisfaction among employee at Higher Learning Education Institutions in Kelantan Therefore, this study could make important contribution

to extant research in management and organizational behavior In the beginning of this study, the purpose, research question, and the need for the study is given Then, literature is discussed about organizational commitment and job satisfaction that focusing on the relationship between them The study generated a 96.3 percent response rate from 300 respondents The result showed that affective, continuance and normative commitment that was not found to have significant positive relationship with job satisfaction The collected data were analyzed using SPSS software package along with Pearson and Spearman correlation coefficients to prove all three hypotheses

10 Rajeswari Devadass (2011) Employee motivation in Organizations: An

integrative literature review International Conference on Sociality and Economics

Development, IACSIT Press, Singapore

Scholars and practitioners care about cultivating, increasing, and maintaining work motivation Motivation research has a long history of considering employee motives and needs (Alderfer, 1969; Maslow, 1954; McClelland, 1961) Interest in these areas peaked in the 1970s and early 1980s, and the last fifteen years has seen little empirical or theoretical research The majority of work on motives and needs in the 1990s falls into three areas: an examination of the job attributes that motivate individuals, research that examines need for achievement, and research on the Protestant work ethic Employee performance frequently

described as a joint function of ability and motivation, and one of the primary tasks facing a manager is motivating employees to perform to the best of their ability (Moorhead & Griffin, 1998) Pinder (1998) describes work motivation as the set of internal and external forces that initiate work related behavior, and determine its form, direction, intensity, and duration Work motivation is a middle range concept that deals only with events and phenomena related to people in a work context The definition recognizes the influence of both environmental forces (e.g., organizational reward systems, the nature of the work performed) and forces inherent in the person (e.g., individual needs and motives) on work-related behavior An essential feature of the definition is that it views work loyalty as an invisible, internal, hypothetical construct (Pinder, 1998) We cannot actually see work motivation nor can we measure it directly The paper contributes theoretically by providing a rich description of many different factors that contribute to work motivation

The purpose of this paper is to present findings of an integrative literature review related to official motivation practices in organizations Method: A broad search of computerized databases focusing on articles published in English during 1999 – 2010 was completed Extensive screening sought to determine current literature themes and empirical research evidence completed in official focused specifically on loyalty in organization Results: 40 articles are included in this integrative literature review The literature focuses on how job characteristics, employee characteristic, management practices and broader environmental factors influence official motivation Research that links employee‟s motivation both based on qualitative and quantitative studies

Conclusion: This literature reveals widespread support of motivation concepts in

organizations Theoretical and editorial literature confirms loyalty concepts are central to

employees Job characteristics, management practices, employee characteristics and broader

environmental factors are the key variables influence official motivation in organization

11 Saba Saleem (2013) Determinants of job satisfaction among employees of

banking industry at Bahawalpur Journal of Emerging Issues in Economics, Finance and

Banking (JEIEFB)

The main objective of this study is to identify the factors affecting the job satisfaction

of employees of banking industry at Bahawalpur and to analyze the impact of recruitment & selection procedures, organizational policy & strategy, nature of work, job stress, personality and communication on job satisfaction of employees of banking industry For data collection purpose, a questionnaire on 4-point likert scale was developed and personally distributed among employees of banks but received only 186 which indicate 79% response of the respondents Linear regression and correlation applied for analyzing the data and results found that recruitment & selection procedures, organizational policy & strategy, nature of work, job stress, personality and communication are significantly related to job satisfaction The results further indicate that job stress, communication and personality have a significant but weak impact on job satisfaction whereas recruitment & selection procedures, organizational policy & strategy and nature of work have a significant and strong impact on employee job satisfaction

12 Ali ShaemiBarzoki (2012) An Analysis of Factors Affecting the Employees

Motivation based on Herzberg’s Hygiene Factors Theory (The study: Golpayegan City Saipa Corporation Industrial Complex’s Staff ) Australian Journal of Basic and Applied Sciences

Nowadays no one can deny the importance of human resources as the most valuable asset of any organization and its role on the organizations' efficiency The purpose of the

current study is to analyze the factors affecting the employees' motivation based on Herzberg‟s hygiene factors theory A descriptive survey design selected for this study The aim of this study is practical application and the instrument used in this method is a questionnaire designed by the researcher that distributed among a sample size of 147 out of

640 staff working in Golpayegan City Saipa Corporation Industrial Complex Using Cronbach's alpha coefficient, the reliability calculated to be 0.93 The validity specified by calculating content validity and internal validity Sample size was also determined by stratified random sampling and calculated by Cronbach's formula The data calculated in descriptive and inferential statistics by SPSS 18 and AMOS 18 Results show that among hygiene factors, salary and wages seem to be in the highest level and has the greatest effects

on staff's motivation In their opinion, comparing to other hygiene factors, personal life has the least effect on staff's motivation The other results obtained from this study show that marital status, educational level, organizational position and the workplace have been effective on their perception of hygiene factors that motivate them The regression analysis also showed that there is a significant correlation between hygiene factors in an error level of 1% and 5%

In general, employee loyalty can be best described in terms of a process, where certain attitudes give rise to certain behaviors (intended or actual) There have been major changes in the business world and the workforce in the last couple of decades

These studies reflect the loyalty of employees affected by many factors Such factors include Policies salaries, bonuses, allowances, colleague relationships, work environment, career development opportunities, interesting work These factors contribute to increased loyalty employees in the organization