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COMPENSATION MANAGEMENT AND ITS RELATION ON JOB SATISFACTION:
A STUDY ON EMPLOYEE AT CIMB CALL CENTER IN KUALA LUMPUR
By
REZA IVANNA BINTI ABDULLAH
Thesis Submitted to
Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia,
in Partial Fulfillment of the Requirement for the Master of Human Resource Management
i PERMISSION TO USE
In presenting this dissertation/project paper in partial fulfillment of the requirements for a Post Graduate degree from the University Utara Malaysia (UUM), I agree that the Library of this university may make it freely available for inspection. I further agree that permission for copying this dissertation/project paper in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor(s) or in their absence, by the Dean of Othman Yeop Abdullah Graduate School of Business where I did my dissertation/project paper. It is understood that any copying or publication or use of this dissertation/project paper parts of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the UUM in any scholarly use, which may be made of any material in my dissertation/project paper.
Request for permission to copy or to make other use of materials in this dissertation/project paper in whole or in part should be addressed to:
Dean of Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia
06010 UUM Sintok Kedah Darul Aman
ii ABSTRACT
Compensation management is a process that provides monetary value to employees and this process includes base salary, performance bonuses, health insurance and retirement plans. This study aims to know the compensation management on employee job satisfaction at the CIMB call center in Kuala Lumpur. Besides that, the researcher would like to determine the factors by which have an essential impact on their job satisfaction, such as compensation policy design, compensation packages and management and communication. The objectives of this study are to determine the level of job satisfaction among employee at CIMB call center in Kuala Lumpur and the relation with several factors in compensation management. The discussion covered the topics of compensation policy design, compensation package, and management and communication and relation towards job satisfaction. About 160 call center employees involved in this study. This finding of research discovered that all independent variables have significant relationships and affect job satisfaction.
Keywords: job satisfaction, compensation policy design, compensation package, management and communication
iii ABSTRAK
Pengurusan pampasan adalah proses yang memberikan nilai kewangan kepada pekerja. Ini termasuk gaji asas, bonus prestasi, insurans kesihatan dan rancangan persaraan. Tujuan kajian ini adalah untuk mengetahui pengurusan pampasan mengenai kepuasan kerja pekerja di pusat khidmat pelanggan CIMB di Kuala Lumpur. Di samping itu, penyelidik juga ingin menentukan faktor- faktor yang memberikan kesan penting terhadap kepuasan kerja mereka seperti reka bentuk dasar pampasan, pakej pampasan dan pengurusan dan komunikasi. Objektif kajian ini adalah untuk menentukan tahap kepuasan kerja di kalangan pekerja di pusat khidmat pelanggan CIMB di Kuala Lumpur dan hubungan dengan beberapa faktor dalam pengurusan pampasan. Perbincangan merangkumi penentuan hubungan antara topik reka bentuk pampasan, pakej pampasan dan pengurusan dan komunikasi terhadap kepuasan kerja Kira-kira 160 pekerja pusat panggilan yang terlibat dalam kajian ini. Hasil dari kajian ini mendapati bahawa semua pembolehubah bebas mempunyai hubungan yang signifikan dan pengaruh terhadap kepuasan pekerja.
Kata kunci: kepuasan kerja, reka bentuk dasar pampasan, pakej pampasan, pengurusan dan komunikasi
iv ACKNOWLEDGMENT
Above all to Almighty God, for the spiritual enlightenment, the wisdom and constant flow of ideas, which help a great deal: for lighting up the lamp of hope, encouragement, courage and patience to the success of this undertaking to the finish. For all these graces, my prayers of thanks.
Writing this thesis has been both difficult and fun to do. There have been many late nights and early mornings, and after all the work I can finally conclude that the dissertation is finished. With boundless love and appreciation, I would like to extend my heartfelt gratitude and appreciation to the people who helped me bring this study into reality. I would like to extend my profound gratitude to the following:
My advisor, Dr. Bidayatul Akmal whose expertise, consistent guidance, ample time spent and consistent advice that helped me bring this study into success. Thanks to my second supervisor, Dr. Zurina for helping me to vet through the write-up.
My completion of this project could not have been accomplished without the support of my friends and buddies especially to Fiqqa for sharing the experience. My fellow colleagues for the understanding and cooperation – whois directly and indirectly contributed to the success of this study.
To all my close friends and family for helping me survive all the stress and not letting me give up.
I also dedicated this dissertation to Mama and Abah for continuous support throughout the process.
I will always appreciate all you have done for me – especially for taking care of my kids whenever I had to be away for classes and discussions. The countless times you helped me throughout my journey as a part-time student. Your encouragement when the times got rough is much appreciated.
It was a great comfort and relief to know that you were willing to provide everything you can give even though I know I might pester you a lot.
Most of all, I am fully grateful to my other half – Mohd Firdaus Khamshah. You are the pillar of strength in my life. Thank you so much for your understanding, wisdom, patience and encouragement and for always pushing me farther than I thought I could go. I will not be this stronger without you by my side.
Finally, my deepest thanks and a special shout out goes to my kids; my everything.. – Aleesya &
Zafran, for enduring semester after semester and many, many, many “Don’t disturb! Mummy busy...” moment. Mummy loves you both so much and thanks for being the joy of my life!
v TABLE OF CONTENT
Page
PERMISSION TO USE i
ABSTRACT ii
“ABSTRAK” iii
ACKNOWLEDGMENT iv
TABLE OF CONTENT v
LIST OF TABLES viii
LIST OF FIGURES ix
LIST OF APPENDICES x
LIST OF ABBREVIATIONS xi
Chapter 1 INTRODUCTION 1
1.1 Background of Study 1
1.2 Problem Statement 3
1.3 Research Questions 6
1.4 Research Objectives 7
1.5 Scope of Study 8
1.6 Significance of the Study 9
1.7 Organization of the Thesis 9
Chapter 2 LITERATURE REVIEW 11
2.1 Introduction 11
2.2 Job Satisfaction 11
2.3 Compensation Policy Design 13
2.4 The Relationship Between Compensation Policy Design
and Job Satisfaction 14
2.5 Compensation Package 16
2.5.1 Direct Compensation 16
2.5.2 Indirect Compensation 17
2.6 The Relationship Between Compensation Package and
Job Satisfaction 20
2.7 Management and Communication 23
2.8 The Relationship between Management and Communication 25 and Job Satisfaction
2.9 Theories Related to the Research 27
2.10 Summary 30
vi
Chapter 3 METHODOLOGY 32
3.1 Introduction 31
3.2 Research Framework 31
3.3 Hypotheses 32
3.4 Research Design 33
3.4.1 Type of Study 34
3.4.2 Data Analysis 34
3.4.3 Statistical Base 34
3.4.4 Source of Data 35
3.4.4.1 The Primary Data 35
3.4.4.2 The Secondary Data 36
3.4.5 Population Frame 36
3.4.6 Sampling Method 37
3.5 Operational Definition 38
3.6 Measurement 38
3.6.1 Questionnaire Structure 38
3.6.2 Questionnaire Design 38
3.6.3 Pilot Test 40
3.7 Data Collection and Administration 40
3.8 Data Analysis Techniques 41
3.8.1 Descriptive Analysis 41
3.8.2 Reliability Test 41
3.8.3 Mean Analysis 42
3.8.4 Inferential Analysis 43
3.8.4.1 Pearson Correlation Analysis 43
3.8.4.2. Multiple Regression 44
3.9 Summary 44
Chapter 4 RESULTS AND DISCUSSION 45
4.1 Introduction 45
4.2 Testing the Research Instruments 45
4.2.1 Reliability Test 45
4.2.2 Validity Test 47
4.3 Testing the Research Data 47
4.3.1 Normality Test 47
4.4 Descriptive Analysis 48
4.4.1 Demographic Variables 49
4.4.2 Mean’s Test 52
4.5 Inferential Analysis (Hypothesis Testing) 53
4.5.1 Pearson Correlation 54
4.5.2 Multiple Regression 58
4.6 Summary 60
vii
Chapter 5 CONCLUSION AND RECOMMENDATIONS 62
5.1 Introduction 62
5.2 Overview of the Study 62
5.3 Discussion of Key Findings 63
5.3.1 Job Satisfaction Level 63
5.3.2 Compensation Policy Design and Job Satisfaction 64 5.3.3 Compensation Packages and Job Satisfaction 65 5.3.4 Management and Communication and Job Satisfaction 67 n5.3.5 Significant Effect on Job Satisfaction 68
5.4 Implication of Study 69
5.4.1 Managerial Implication 69
5.4.1.1 Employer 70
5.4.1.2 HR Management 70
5.4.2 Higher Learning 71
5.5 Limitation 72
5.6 Conclusion 73
5.7 Future Research Recommendations 74
5.7.1 Give a Proper Education about Compensation to the
Employee 75
5.7.2 The Presence of Software for Compensation Management 76 5.7.3 Social Events and Other Non-Financial Compensation 76 5.7.4 Attention Towards Specific Compensation Packages 77
REFERENCES 76
APPENDICES 82
viii LIST OF TABLES
Table 1 Employee Job Satisfaction and Engagement – Pay Element 21 Table 2 Employee Job Satisfaction and Engagement – Benefits 23
Table 3 CIMB Branches in Kuala Lumpur 37
Table 4 Structure of Variables in the Questionnaires 39
Table 5 Reliability Result of Pilot Study 40
Table 6 Reliability that Adapted from Mahlangu and Kruger 42
Table 7 Mean Score that Adapted from Izham et al. 42
Table 8 The Coefficient Range that Adapted from Mahlangu and Kruger 43 Table 9 Cronbach Alpha Value for Pilot and Main Study 46 Table 10 Result of Skewness and Kurtosis for Every Variable 48
Table 11 Summary of All Demographical Factors 50
Table 12 Mean, Media, Mode and Cut-Off Points for Level of Job Satisfaction 52
Table 13 Range for Every Level of Job Satisfaction 53
Table 14 Result of Pearson Correlation Analysis 55
Table 15 Correlation between Compensation Role and Job Satisfaction 56 Table 16 Correlation between Compensation Policy Design and Job Satisfaction 56 Table 17 Correlation between Compensation Packages and Job Satisfaction 57 Table 18 Correlation between Management and Communication and Job
Satisfaction 57
Table 19 Multiple Regression Analysis 59
Table 20 Summary of the Hypotheses Results 61
ix LIST OF FIGURES
Figure 1 New Hire by Age Group of CIMB Malaysia in the Period 2016-2017. 2 Figure 2 Employee Turnover Rate of CIMB Malaysia by Age Group and Gender 4
Figure 3 Herzberg’s Motivator Hygiene Theory 28
Figure 4 Research Framework on the Effect of Compensation Management on
Employee Job Satisfaction 32
x LIST OF APPENDICES
Appendix A Questionnaire 82
Appendix B Demographic Analysis 88
Appendix C Description Analysis 91
Appendix D Reliability Test 94
Appendix E Mean Test 101
Appendix F Pearson Correlation Analysis 103
Appendix G Regression Analysis 104
xi LIST OF ABBREVIATIONS
SHRM Society Human Resource Management CPD Compensation Policy Design
ACP Awareness of Compensation Packages CP Compensation Packages
CM Communication and Management
SPSS Statistical Package for the Social Sciences Software IVs Independent Variables
DV Dependent Variables
HR Human Resource
CIMB Commerce International Merchant Bankers Berhad EPF Employees Provident Fund
SOCSO Social Security Organization JS Job Satisfaction
SPM Sijil Pelajaran Malaysia
1 CHAPTER 1
INTRODUCTION
1.1 Background of Study
In the banking sector, call center employees play a vital role in serving their customers. The quality of service that they offer depends entirely on their employees’ capability to handle every possible problem. They are the front-liner and the representative of the bank. To achieve quality services, the employees first needed to have high job satisfaction. According to Nazir (2013), the fact confirmed that high of job fulfillment has encouraging behavior works. Therefore, employees with a high level of job satisfaction will demonstrate positive attitudes in their work.
In recent years, the majority of the employee is coming from Gen Y and X generation. Their needs are different compared to the earlier generations. Research done by the Society of Human Resource Management reported that there is a slight difference in job satisfaction’s contributions and engagements between these generations (Gurchiek, 2016). It is because Gen Y and Gen X employees believed that compensation is the main factor for job satisfaction (Miller, 2016). Gen Y employees are actively planning their career development because they are more knowledgeable about their career and interest (Deloitte, 2011). Figure 1.1 shows the new hires by age group in CIMB.
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82 APPENDIX A- QUESTIONNAIRE
COMPENSATION MANAGEMENT AND ITS RELATION ON JOB SATISFACTION: A STUDY ON EMPLOYEE AT CIMB CALL CENTRE IN KUALA LUMPUR
I am Reza Ivanna Abdullah student from Northern University of Malaysia (UUM) Master’s in Science Human Resource Management are conducting a survey on the effect of Compensation Management and Its Relation on Job Satisfaction among Call Centre Department At CIMB, Kuala Lumpur. This questionnaire was adopting by Larbi (2014) and be adapted in this questionnaire. I believe that your participation in this study will contribute to the findings of our research. It will take you about 10 minutes to complete the survey. We are really interested in your feedback and participation of the topic. Please complete the questionnaire and return back to us. We really hope that you will complete the questionnaire at your earliest convenience. All responses are confidential and will be used only for this study. Any report of the data will be aggregated and will not identify the respondent. If you have any question about this study, we will most happy to clarify. We thank you for your cooperation and wish you all the best.
Reza Ivanna Abdullah
Othman Yeop Abdullah Graduate School of Business University Utara Malaysia, Kuala Lumpur
Lecturer:
Dr Bidayatul Akmal
83 Part A: Personal Profile
Please kindly answer all question and tick (/) the appropriate box.
1. Gender
Male Female
2. Malaysian Nationality
Yes No
3. Races
Indian Malay
Chinese Others
4. Age
18-28 years old 39-48 years old
29-38 years old > 48 years old
5. Level of Education
SPM Degree
Diploma Others
6. Income
Below RM 1000 RM 2001- RM 3000
RM 1000-RM 2000 RM 3001- Above
7. Marital Status
Single Single Parent
Married
8. Length of Service
Less than 1 Year 1-5 years
5-10 year Above 10 Years
9. Which CIMB branch do you work?
Kampung Kerinchi Bangsar
Jalan Melaka Bukit Tunku
10. Distance of your home to work place
Less than 2 Kilometre 2-4 Kilometre
4-10 Kilometre Above 10 Kilometre
84 PART B: SECTION 2: Importance of compensation management on employees’ Job
Satisfaction
Kindly indicate your level of agreement or disagreement with each of the statements using the following scale:
2.1 The level of Job Satisfaction of employee and compensation role in your organization.
STRONGLY
DISAGREE DISAGREE UNCERTAINTY AGREE STRONGLY AGREE
1 2 3 4 5
1 2 3 4 5
1 My work gives me a feeling of personal accomplishment 2 I like the kind of work I do
3 The people I work with cooperate to get the job done
4 I am satisfied with the recognition that company rewards for doing an excellent job
5 I am satisfied with the opportunity to get a better job in the company 6 I am satisfied with the information I received from the management on
what's going on in the company
7 Compensation package offered is meant to meet the employer's legal obligation
8 Compensation package offered is to encourage employees to work hard 9 Compensation package offered is meant to help employees meet their basic
needs
10 Compensation package offered in the organization I work is meant to enhance the organization's image.
STATEMENT
NO SCORING
85 2.2 Employees’ opinion on how effective compensation management influences employee Job Satisfaction. The satisfaction relationship between Direct Compensation and Job Satisfaction and the satisfaction relationship between Indirect Compensation and Job Satisfaction
Kindly indicate your level of agreement or disagreement with each of the statements using the following scale:
STRONGLY
DISAGREE DISAGREE UNCERTAINTY AGREE STRONGLY AGREE
1 2 3 4 5
NO STATEMENT
1 2 3 4 5
11 Motivates employees to perform better 12
Improves employee punctuality to work and and reduces employee absenteeism
13 Improves employee willingness to do extra work and go the extra mile 14
Makes employees committed to the organization and tehrefore commitment to work increase
15
Increases employees’ readiness to learn new skills and preparedness to transfer skills onto the job
16
Creates a healthy environment for work and improves the health (soundness) of employees
17
Creates very good working relationship between management and employees to improve employee satisfaction
18 Makes employees feel appreciated and they give their best 19 Attracts and motivates qualified personnel to work better 20 Rewards hardworking employees to sustain high performance
SCORING A welll-designed compensation policy and its effective management and
implementation has an effect on employee Job Satisfaction in the following
ways:
86 PART C: SECTION 3: Employees awareness of compensation packages and satisfaction with management of compensation packages in policy manuals.
3.1 To what extent are you satisfied with the compensation packages you have selected above and their management in your organisation?
Please tick appropriately as follows.
3.2 Challenges in the management of Compensation:
TO LITTLE EXTENT
TO LESS
EXTENT NEUTRAL TO SOME EXTENT
TO A GREAT EXTENT
1 2 3 4 5
1 2 3 4 5
1 Vehicle maintenance allowance 2 Extra duty allowance
3 Free recreation 4 Provident fund
5 Retirement Benefit Package 6 Fuel Allowance
7 Rent Allowance
8 Career Development Opportunity 9 Pension Scheme
10 Vacation Leave 11 Study Leave
12 Free Medical Services 13 Free Medical Insurance 14 Regularity of Promotion 15 Car & Motorcycle Loan 16 Long Service Awards 17 Free Training Workshops 18 Maternity Leave 19 Sick Leave
20 Free Accommodation 21 Free Transportation
NO STATEMENT SCORING
87 To what extent do you agree with the following statements as they apply and as listed below?
Kindly indicate according to the rating as follows:
3.5 Briefly suggest ways in which the compensation Packages can be better managed.
………
………
3.6 In your opinion how do you think the challenges in compensation management can be overcome to towards the Job Satisfaction of employees?
………
………
Thank you for your time.
NO STATEMENT
1 2 3 4 5
1 The packages of compensation are managed well
2 Employees receive adequate notice and information on any changes that will affect their compensation packages
3 Compensation is managed to ensure that all employees receive equal compensation for the same kind of work
4 My colleague in another department with the same qualification receives more compensation than I do
5 The managers of compensation packages are well trained to do so 6 Communication of issues concerning compensation is generally good in
the organization
7 Every detail of available Compensation packages is well communicated to the employees
8 Employees are well informed and involved in the formulation, discussion and implementation of policies concerning compensation
9 I do not know what is going on as far as compensation is concerned in this organization
10 The compensation packages are well defined and explained to employees
SCORING Management and Communication
88 APPENDIX B – DEMOGRAPHIC ANALYSIS
Gender Frequency Percent
Valid Percent
Cumulative Percent
Valid Male 72 45.0 45.0 45.0
Female 88 55.0 55.0 100.0
Total 160 100.0 100.0
Age
Frequency Percent
Valid Percent
Cumulative Percent
Valid 18-28 Years old 54 33.8 33.8 33.8
29-38 Years Old 62 38.8 38.8 72.5
39-48 Years Old 29 18.1 18.1 90.6
48 Years old and
above 15 9.4 9.4 100.0
Total 160 100.0 100.0
Level of Education Frequency Percent
Valid Percent
Cumulative Percent
Valid SPM 42 26.3 26.3 26.3
Diploma 54 33.8 33.8 60.41
Degree 61 38.1 38.1 98.1
Master 3 1.9 1.9 100.0
Total 160 100.0 100.0
89 Income
Frequency Percent
Valid Percent
Cumulative Percent Valid RM1000-RM
2000 7 4.4 4.4 4.4
RM 2001-RM
3000 66 41.2 41.2 45.6
RM3001-Above 87 53.4 53.4 99.0
Total 160 100.0 100.0
Marital Status Frequency Percent
Valid Percent
Cumulative Percent
Valid Single 106 66.3 66.3 31.3
Married 50 31.3 31.3 96.9
Single Parent 4 2.5 2.5 99.4
Total 160 100.0 100.0
Length of Service Frequency Percent
Valid Percent
Cumulative Percent Valid Less than 1
Year 45 28.1 28.1 28.1
1-5 years 78 48.8 48.8 76.9
6-10 years 27 16.9 16.9 93.8
Above 10 Years 10 6.2 6.2 100.0
Total 160 100.0 100.0
90 Which CIMB Branch you work
Frequency Percent
Valid Percent
Cumulative Percent Valid Kampung
Kerinchi 76 47.5 47.5 47.5
Jalan Melaka 13 8.1 8.1 55.6
Bangsar 57 35.6 35.6 91.2
Bukit Tunku 14 8.8 8.8 100.0
Total 160 100.0 100.0
Distance of your home to workplace Frequency Percent
Valid Percent
Cumulative Percent Valid Less than 2
Kilometre 35 21.9 21.9 21.9
2-4 Kilometre 52 32.5 32.5 54.4
5-10 kilometre 40 25.0 25.0 79.4
Above 10 Kilometre 33 20.6 20.6 100.0
Total 160 100.0 100.0
91 APPENDIX C- DESCRIPTION ANALYSIS
Demographic Profile
Descriptive Statistics N
Minimu m
Maximu
m Mean
Std.
Deviation Statistic Statistic Statistic Statistic
Std.
Error Statistic
Gender 160 1 2 1.55 .039 .499
Nationality 160 1 1 1.00 .000 .000
Races 160 1 4 2.22 .066 .839
Age 160 1 4 2.03 .075 .948
Level of Education 160 1 4 3.04 .065 .823
Income 160 1 4 3.23 .071 .897
Marital Status 160 1 4 1.73 .042 .537
Length of Service 160 1 4 3.19 .074 .935
Which CIMB Branch
you work 160 1 4 2.54 .088 1.109
Distance of your home
to workplace 160 1 4 2.31 .090 1.133
Valid N (listwise) 160 Dependent Variables
Descriptive Statistics N
Minimu m
Maximu
m Mean
Std.
Deviation Statistic Statistic Statistic Statistic
Std.
Error Statistic
JS1 160 1 5 2.19 .079 1.004
JS2 160 1 4 2.11 .076 .962
JS3 160 1 5 2.11 .070 .890
JS4 160 1 5 2.39 .089 1.127
JS5 160 1 5 2.34 .088 1.111
JS6 160 1 5 2.19 .081 1.025
Valid N
(listwise) 160
92 Independent Variables
Descriptive Statistics N
Minimu m
Maximu
m Mean
Std.
Deviation Statistic Statistic Statistic Statistic
Std.
Error Statistic
CPD1 160 1 5 1.90 .072 .906
CPD2 160 1 4 1.96 .065 .823
CPD3 160 1 5 2.05 .072 .910
CPD4 160 1 4 2.04 .069 .878
CPD5 160 1 5 1.98 .064 .812
CPD6 160 1 5 2.06 .076 .963
CPD7 160 1 5 1.95 .080 1.008
CPD8 160 1 5 2.03 .076 .961
CPD9 160 1 5 1.95 .076 .957
CPD10 160 1 5 1.94 .077 .979
CP1 160 0 5 1.57 .087 1.102
CP2 160 1 5 2.89 .116 1.471
CP3 160 1 5 1.14 .051 .649
CP4 160 0 5 .70 .118 1.491
CP5 160 0 5 1.48 .150 1.900
CP6 160 0 5 .47 .095 1.197
CP7 160 0 5 .26 .075 .955
CP8 160 0 5 1.17 .135 1.709
CP9 160 0 5 .71 .120 1.516
CP10 160 0 5 .78 .118 1.496
CP11 160 0 5 .54 .108 1.364
CP12 160 0 5 3.22 .150 1.892
CP13 160 0 5 2.96 .161 2.031
CP14 160 0 5 .41 .099 1.256
CP15 160 0 5 1.64 .143 1.807
CP16 160 0 5 .59 .113 1.429
CP17 160 0 5 1.29 .155 1.957
CP18 160 0 5 2.68 .157 1.982
CP19 160 0 5 3.74 .111 1.407
CP20 160 0 5 .37 .097 1.227
CP21 160 0 5 .24 .082 1.032
MC1 160 1 5 3.73 .073 .923
MC2 160 1 5 3.67 .067 .845
93
MC3 160 1 5 3.51 .075 .945
MC4 160 1 5 3.21 .082 1.042
MC5 160 1 5 3.26 .084 1.061
MC6 160 1 5 3.29 .081 1.019
MC7 160 1 5 3.26 .084 1.067
MC8 160 1 5 3.33 .080 1.008
MC9 160 1 5 3.15 .082 1.041
Valid N
(listwise) 160
94 APPENDIX D – RELIABILITY ANALYSIS
Job Satisfaction
Reliability Statistics (Pilot Study)
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized
Items
N of Items
.948 .948 6
Reliability Statistics (Main Study)
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized
Items
N of Items
.932 .933 6
Item Statistics v Mean
Std.
Deviation N
JS1 1.78 .974 40
JS2 1.78 .920 40
JS3 1.98 .832 40
JS4 2.05 .846 40
JS5 1.85 .864 40
JS6 1.83 .903 40
95 Item Statistics (Main Study)
Mean
Std.
Deviation N
JS1 2.19 1.004 160
JS2 2.11 .962 160
JS3 2.11 .890 160
JS4 2.39 1.127 160
JS5 2.34 1.111 160
JS6 2.19 1.025 160
Item-Total Statistics (Main Study) Scale Mean
if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple Correlation
Cronbach's Alpha if Item
Deleted
JS1 11.14 20.023 .792 .641 .921
JS2 11.22 19.962 .844 .729 .915
JS3 11.22 21.342 .731 .617 .929
JS4 10.94 18.670 .843 .719 .915
JS5 10.99 18.906 .829 .721 .916
JS6 11.14 19.968 .778 .698 .923
Compensation Policy Design
Reliability Statistics (Pilot Study)
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized
Items
N of Items
.953 .953 10
Reliability Statistics (Main Study)
96 Cronbach's
Alpha
Cronbach's Alpha Based
on Standardized
Items
N of Items
.952 .952 10
Item Statistics (Main Study) Mean
Std.
Deviation N
CPD1 1.90 .906 160
CPD2 1.96 .823 160
CPD3 2.05 .910 160
CPD4 2.04 .878 160
CPD5 1.98 .812 160
CPD6 2.06 .963 160
CPD7 1.95 1.008 160
CPD8 2.03 .961 160
CPD9 1.95 .957 160
CPD10 1.94 .979 160
Item-Total Statistics (Main Study) Scale Mean
if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple Correlation
Cronbach's Alpha if Item
Deleted
CPD1 17.98 48.855 .762 .623 .948
CPD2 17.91 49.640 .776 .705 .948
CPD3 17.83 48.284 .807 .748 .946
CPD4 17.83 48.921 .783 .679 .947
CPD5 17.89 49.857 .767 .621 .948
CPD6 17.81 48.128 .768 .653 .948
CPD7 17.93 46.988 .819 .713 .946
CPD8 17.84 47.667 .808 .732 .946
CPD9 17.93 47.579 .820 .765 .946
CPD10 17.93 47.121 .836 .738 .945
Compensation Packages
97 Reliability Statistics (Pilot Study)
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized
Items
N of Items
.923 .931 21
Reliability Statistics (Main Study)
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized
Items
N of Items
.858 .889 21
Item Statistics (Main Study) Mean
Std.
Deviation N
CP1 1.58 1.102 160
CP2 2.89 1.471 160
CP3 1.14 .649 160
CP4 .70 1.491 160
CP5 1.48 1.900 160
CP6 .48 1.197 160
CP7 .26 .955 160
CP8 1.17 1.709 160
CP9 .71 1.516 160
CP10 .78 1.496 160
CP11 .54 1.364 160
CP12 3.22 1.892 160
CP13 2.96 2.031 160
CP14 .41 1.256 160
CP15 1.64 1.807 160
CP16 .59 1.429 160
CP17 1.29 1.957 160
CP18 2.68 1.982 160
CP19 3.74 1.407 160
CP20 .37 1.227 160
98
CP21 .24 1.032 160
Item-Total Statistics (Main Study) Scale Mean
if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple Correlation
Cronbach's Alpha if Item
Deleted
CP1 27.29 242.080 .607 .489 .848
CP2 25.97 250.100 .255 .200 .859
CP3 27.72 249.119 .711 .792 .851
CP4 28.16 243.860 .387 .289 .854
CP5 27.38 233.181 .471 .362 .851
CP6 28.39 237.346 .687 .704 .845
CP7 28.60 242.405 .699 .817 .847
CP8 27.69 238.591 .428 .339 .853
CP9 28.16 238.007 .509 .432 .850
CP10 28.09 237.590 .526 .444 .849
CP11 28.32 242.697 .460 .437 .852
CP12 25.64 241.627 .321 .402 .858
CP13 25.90 244.933 .237 .424 .863
CP14 28.45 234.714 .723 .770 .844
CP15 27.22 239.458 .382 .263 .855
CP16 28.27 234.110 .639 .738 .845
CP17 27.57 235.090 .420 .288 .854
CP18 26.18 250.703 .151 .124 .867
CP19 25.12 252.915 .206 .408 .860
CP20 28.49 237.333 .669 .797 .846
CP21 28.62 240.363 .708 .792 .846
Management and Communication
Reliability Statistics (Pilot Study)
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized
Items
N of Items
.863 .874 9
99 Reliability Statistics (Main Study)
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized
Items
N of Items
.878 .880 9
Item Statistics (Main Study) Mean
Std.
Deviation N
MC1 3.73 .923 160
MC2 3.67 .845 160
MC3 3.51 .945 160
MC4 3.21 1.042 160
MC5 3.26 1.061 160
MC6 3.29 1.019 160
MC7 3.26 1.067 160
MC8 3.33 1.008 160
MC9 3.15 1.041 160
100 Item-Total Statistics (Main Study)
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple Correlation
Cronbach's Alpha if Item
Deleted
MC1 26.69 33.587 .586 .535 .867
MC2 26.75 33.421 .673 .618 .861
MC3 26.91 32.533 .676 .572 .860
MC4 27.21 34.504 .418 .263 .882
MC5 27.16 31.152 .712 .649 .856
MC6 27.13 30.777 .786 .776 .849
MC7 27.16 30.246 .795 .744 .848
MC8 27.09 32.420 .634 .538 .863
MC9 27.27 35.280 .351 .311 .888
101 APPENDIX E – MEAN TEST
Job Satisfaction
Compensation Policy Design
Statistics
CPD1 CPD2 CPD3 CPD4 CPD5 CPD6 CPD7 CPD8 CPD9
CPD1 0
N Valid 160 160 160 160 160 160 160 160 160 160
Missi
ng 0 0 0 0 0 0 0 0 0 0
Mean 1.90 1.96 2.05 2.04 1.98 2.06 1.95 2.03 1.95 1.94
Compensation Packages
Statistics C
P 1
C P 2
C P 3
C P 4
C P 5
C P 6
C P 7
C P 8
C P 9
CP 10
CP 11
CP 12
CP 13
CP 14
CP 15
CP 16
CP 17
CP 18
CP 19
CP 20
CP 21 N Vali
d 1 6 0
1 6 0
1 6 0
1 6 0
1 6 0
1 6 0
1 6 0
1 6 0
1 6 0
16 0
16 0
16 0
16 0
16 0
16 0
16 0
16 0
16 0
16 0
16 0
16 0 Mis
sing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mean 1.
5 8
2.
8 9
1.
1 4
.7 0
1.
4 8
.4 8
.2 6
1.
1 7
.7 1
.7 8
.5 4
3.
22 2.
96 .4
1 1.
64 .5
9 1.
29 2.
68 3.
74 .3
7 .2
4 Statistics
JS1 JS2 JS3 JS4 JS5 JS6
N Valid 160 160 160 160 160 160
Missing 0 0 0 0 0 0
Mean 2.19 2.11 2.11 2.39 2.34 2.19
102 Management and Communication
Statistics
MC1 MC2 MC3 MC4 MC5 MC6 MC7 MC8 MC9
N Valid 160 160 160 160 160 160 160 160 160
Missing 0 0 0 0 0 0 0 0 0
Mean 3.73 3.67 3.51 3.21 3.26 3.29 3.26 3.33 3.15
103 APPENDIX F: PEARSON CORRELATION ANALYSIS
Correlations
JS CPD CP MC
JS Pearson Correlation
1 .511** -.256** -.421**
Sig. (2-tailed)
.000 .001 .000
N 160 160 160 160
CPD Pearson Correlation
.511** 1 -.267** -.320**
Sig. (2-tailed)
.000 .001 .000
N 160 160 160 160
CP Pearson Correlation
-.256** -.267** 1 .412**
Sig. (2-tailed)
.001 .001 .000
N 160 160 160 160
MC Pearson Correlation
-.421** -.320** .412** 1
Sig. (2-tailed)
.000 .000 .000
N 160 160 160 160
**. Correlation is significant at the 0.01 level (2-tailed).
104 APPENDIX G: REGRESSION ANALYSIS
Model Summary Mod
el R
R Square
Adjusted R Square
Std. Error of the Estimate
Change Statistics R Square
Change
F
Change df1 df2
Sig. F Change
1 .579a .336 .323 4.36566 .336 26.273 3 156 .000
a. Predictors: (Constant), MC, CPD, CP
ANOVAa Model
Sum of
Squares df Mean Square F Sig.
1 Regression 1502.236 3 500.745 26.273 .000b
Residual 2973.207 156 19.059
Total 4475.444 159
a. Dependent Variable: JS
b. Predictors: (Constant), MC, CPD, CP
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 14.906 2.264 6.585 .000
CPD .286 .048 .415 5.943 .000
CP -.011 .024 -.032 -.447 .655
MC -.228 .061 -.275 -3.722 .000
a. Dependent Variable: JS