Do general practices of management play role as drivers for employee job satisfaction in Pakistani entrepreneurial companies? Текст научной статьи по специальности «Экономика и бизнес»

For citation: Polbitsyn, S. N. & Abidullah (2017). Do General Practices of Management Play Role as Drivers for Employee Job Satisfaction in Pakistani Entrepreneurial Companies? Ekonomika regiona [Economy of Region], 13(1),

pp. 196-203

doi 10.17059/2017-1-18 JEL: F610

S. N. Polbitsyn a b), Abidullah a)

a) Ural Federal University (Ekaterinburg, Russian Federation; e-mail: [email protected]) b) Institute of Economics of the Ural Branch of RAS (Ekaterinburg, Russian Federation)

DO GENERAL PRACTICES OF MANAGEMENT PLAY ROLE AS DRIVERS FOR EMPLOYEE JOB SATISFACTION IN PAKISTANI ENTREPRENEURIAL COMPANIES? 1

Using general practices of management is management philosophy; many organizations practice these tools that endeavor to improve their efficiency and competitiveness in the business markets. It is an integrated approach to reaching and maintaining high-quality production and services focusing on the maintenance and continuous improvement of operations in order to satisfy or exceed the customer satisfaction. Many researchers have done a lot of work on other management practices; total quality management is an important one of them in this competitive era, which has rarely studied especially in small and medium size entrepreneurial companies in Pakistan. This quantitative research study tried to determine the impact of Total Quality Management practices on job satisfaction level of the employees of those small and medium size companies based on new and creative ideas in the capital city. The conducted survey among550 employees of small and medium size entrepreneurial companies in the capital of Pakistan got 200 employees response properly in filling out the questionnaire. The collected data was analyzed after applying software (version 20) Statistical Package for Social Sciences. Multiple regression was applied to test the proposed model, which was found satisfied. Leadership and top management support were founded the most dominant practice among the selected Total Quality Management practices which has a significant effect on employee job satisfaction. The findings of this study prove that the implementation of Total Quality Management practices can help in increasing employees' job satisfaction which intern would increase Productivity of small and medium size entrepreneurial companies.

Keywords: employee job satisfaction, leadership and top management support, employee participation, employee-management relationship, total quality management, entrepreneurship

Introduction

Total Quality Management (TOM) is a complex and holistic approach to the long-term success of the organization that views continuous improvement in all areas of an establishment as a process and not as a short-term goal. Those companies which are currently implementing TQM, or planning to implement TQM will become more sensitive to the barriers as compared to other ones, and their chances of success will be high. Improving the condition of the industries which are currently implementing TQM practices, the industries should learn and understand that benchmarking is the best tool which is used to identify the strengths, weaknesses and threats in comparison to those which are best in their class of category.

Many research studies indicate that the employee's loyalty represents value and growth for the company and these employees are mostly com-

1 © Polbitsyn S. N., Abidullah. Text. 2017.

mitted and participate in the improvement of service and product quality. It expects to drastically change the association through dynamic changes in mentality, practices, structures and frameworks. Among its objectives is to build an administrative framework and corporate society to guarantee that customer loyalty is improved; this includes a precise strategy for constant change of organizational process, which result will be the quality product and services. While the past research has paid great concentration on interactions among TOM practices and employee satisfaction, whose effect are the organizational performance, growth and customer satisfaction, previous literature on the topic of understanding the employee satisfaction and the impact of TOM practices on this satisfaction and loyalty has come out gradually and slowly. Therefore, this topic requires a focus study. In this research study, we used abbreviations for different terms, they are Employee job satisfaction (EJS), Leadership and top management support (LTMS), Employee Participation (EP), Employee-

management relationship (EMR). Total Quality Management (TQM) is defined as an approach to improving the competitiveness, effectiveness and flexibility of a whole organization. It is essentially a way of planning, organizing and understanding each activity, and depends on each individual at each level [1, pp. 29-42]. The research gives recommendations on construction sectors in Pakistan where the support and commitment of top management play an important role in the goal and task achievement of an organization [2, pp. 205-227]. On the basis of managerial perspective leadership, people management elements of TQM influence the performance of the organization in the manufacturing sector of Pakistan [3, pp. 01-18]. It is recommended to implement the TQM practices for increasing productivity and services in the organization, employees always look to their leadership and top management support to provide participative culture and the environment in the organization [4, pp. 332-338].

The implementation of TQM practices is associated with performance improvement, an organizational support to employees provides a "boost" to organizational performance and image [5, pp. 617-627]. Companies may use different techniques for measurement and then can modify these changes step by step using TQM practices [6, pp. 820-855]. Total quality management is a basic management strategy to maintain an advantage over competitors and it is a better technique for managing companies to increase overall performance and effectiveness to achieve global image [7, pp. 730-755]. To improve organizational competitiveness, organizations are always focusing on the higher level of effectiveness across all processes and functions they are choosing TQM as the best strategy to stay in business competition [8, pp. 156-177]. Implementing TQM effectively increase employee involvement, reduced operating cost and increase the morale of the company [9, pp. 675-695]. The great outcomes prescribe for top management of the organization to review their TQM practices, they are using and make them the part of their strategic planning process which as an important factor to enhance employee job satisfaction [10, pp. 382-403].

The work life balance, empowerment and the relationship between employees and proper management style which increase employee job satisfaction motivate employees to face challenges to deliver quality in production and services [11, pp. 173-180]. TQM is one of the most common sparkle expressions in organization management and it is the system that all of its components are completely and clearly harmonized, proportional,

and also having scientific value for doing an activity is based on cooperation and collaboration among staffs and even the managers of the company [12, pp. 152-172].

The continuous improvement affects organization general performance. Internal and external customers, Employee empowerment, employee training, commercial strategies, communication and organization climate etc. are the areas of continuous improvement and that improvement is the important element of total quality management [13, pp. 455-472]. In this case, when employees make a mistake it turned into learning opportunities in order to match the companies' mission and goal of the employee [14, pp. 227-239].

There is a clear output by the implementation of TOM for employee job satisfaction, the employee gives a good result when they are satisfied with their job when they are looking their job from every angle [15, pp. 85-96]. Total quality management concept has emerged as one of the most important strategic choices during the nineties and has mostly adopted by the most part of the world [16, pp. 606-625]. However, total quality management in service providing companies is rare in the practical implementation and they are still in theory development stage [17, pp. 62-75].

Generally, total quality management has been explained and represented in different ways, for instance, a hunt for "excellence", developing a "right-first-time" approach, "zero defects" and satisfying the customer [18, pp. 363-376].

Total quality management is primarily a company-wide procedure, where workers are empowered and motivated to do all activities correctly on time and feedback them on what they perform and show them progress [19, pp. 166-180]. TOM was described for incorporated method to reaching and also sustaining high quality output, centering on the particular preservation and also constant enhancement connected with techniques along with deficiency avoidance whatsoever levels and in all of the capabilities on the corporation, as a way to fulfill or maybe go over buyer targets [20, pp. 339-366].

TOM is often a way of controlling to enhance the effectiveness, overall flexibility, in addition to the competition of a small business as a whole according to [21, pp. 61-80]. TOM literary works reveal that different scientists implemented different TOM explanations in addition to frameworks dependent by themselves understanding of TOM in addition to analysis aims.

As it is clear that employee satisfaction plays a back-bone role in the organization growth and productivity, it becomes important for Top man-

agement in Pakistan to implement total quality management practices for the improvement of employee satisfaction in the organizations.

TQM Practices and Job Satisfaction

TOM may be observed to have an essential effect on an individual's job satisfaction [22, pp. 3554]. Adaptations of TOM practices and its implication in the form of associates employees, their commitment to employees' satisfaction are considered as a competitive strategy [23, pp. 247272]. Improvement of workers relations, allowing employees to take a decision, encouragement through effective communication are important tools of TOM to be implemented within the organization [24, pp. 482-498]. The research on the manufacturing sector of Pakistan in which U. Subhan found that the top management supports their subordinates and empower employees to be positively effective for the organization [25, pp. 57-62]. Employee empowerment and their participation in different decision-making process make them better in performance. These TOM practices are valuable in service organization but there is no limitation for using TOM practices in any kind of business [26, pp. 109-117]. Total quality management sometimes generates healthier organization places within the working environment [27, pp. 294-302].

Job satisfaction and Total quality management were studied by conducting a survey to find out the relationship between the employee job satisfaction and their result showed positive significance on the employees' performance due to this satisfaction [28, pp. 39-49]. The analysis of employee participation as a TOM driver for employee job satisfaction gives the positive effects on employee job satisfaction and targeted manufacturing, health and education sector for conducting the survey [29, pp. 423-433]. The research on employee performance and job satisfaction is conducted by using the total quality management practices of Top management support and employee-management relationship. To analyse it, we have used the method of the questionnaire survey and by collecting responses from selected motor vehicle parts and accessories industries. The result has shown a positive significance on the employees' performance and satisfaction [30, pp. 810-829]. In one of the recent studies, the author applies an exploratory factor analysis [31, pp. 730-755]. Studying employee job satisfaction together with a regression analysis finds that TOM practices have a dominant effect on employee job satisfaction [32, pp. 169-175]. The conducted research on employee job satisfaction revealed the

employee-management relationship to be a significant factor of employee job satisfaction [33, pp. 234-258]. Employee job satisfaction is amongst the nearly all studies thoroughly looked into staff work-related attitudes and associated with the company along with managing [34, pp. 182-225]. Although many researchers have studied and defined job satisfaction, currently no universally accepted definition of job satisfaction has been agreed upon. Job satisfaction describes an affective result of men and women to distinct facets of his or her employment or maybe good emotional standing.

Another idea describes employees' share along with the identification in the direction of achievement associated with organizational objectives [35, pp. 5-20]. Therefore, focusing on TQM procedures can cause improvement within employee job satisfaction. The advancement connected with the idea of satisfaction is founded on the project by Fastener, who describes job satisfaction as being a beneficial or maybe pleasant over emotional point out, caused by some sort of person's thanks connected with his/her personal job or maybe knowledge [36, pp. 395-406]. This formulation is dependent on the fact that the task of full satisfaction may be spelled out as a weighted sum of this discrepancies between the importance of certain areas of task, work clarity and supervisory support also the importance which the person might be expecting or might need [37, pp. 315329]. Further, the investigation considers job satisfaction as additionally critical with everyday activity [38, pp. 45-50]. Employees will give the best output when they are satisfied with their jobs [39, pp. 233-251]. Most of the researchers point out that job satisfaction is not a static state but is subject to influence and modification from forces within and outside an individual which are his or her own personal characteristics and the immediate working environment.

Leadership is the activity of influencing people to strive willingly towards the achievement of stipulated goals. Leadership establishes directions, the unity of purpose and should create and maintain the organizational environment in which employees totally involved in achieving the organization's goals. Top management and leadership support are the key factors in quality improvement, employees' satisfaction and organization performance. If top managers and leadership are committed to quality, they should not only actively be focused on quality management and improvement process, but also strongly encourage the employee to involve them in quality management and improvement pro-

TQM Practices

I

Employee Participation

Leadership & Top Management Support

<

Employee-Management _

Relationship

■

Fig. Conceptual research framework

EMPLOYEE JOB SATISFACTION

cess. According to the findings of [40, pp. 122144], the participation of employees in different organization activities and the decision may enable the employees to improve their skills and personal capabilities, enhance their self-respect, commit themselves and try their best to the success of their organizations, and these participations change their certain personality traits. It may also change the negative attitudes of the employees.

Employee's participation encouraged them to report their work problems. This involvement increases employee's job satisfaction which increases the organization performance and quality [41, pp. 22-31]. It is the relationship between management and their subordinate employees, the relationship of these two groups within the organization contribute to the growth and performance of the organization. Managerial support and relationship with subordinates are consistently emphasized in studies and discussions as a factor influencing employees job satisfaction. Managers play a vital role in the success of their subordinate employees because they are in such a position to discourage or encourage employees' efforts to increase their performance and take part in the organizational growth.

Conceptual Research Framework

Based on the previous research review, the conceptual framework was developed. It is used to take a look at the relationship concerning TOM practices in addition to task satisfaction from the small and medium size entrepreneurial companies working within the capital of Pakistan.

The relationship between Job satisfaction and TOM practices are shown in Figure. In this particular framework, Job satisfaction is dependent variable and TOM practices (employee participation, leadership and top management support and

Employees-management relationship) are independent variables respectively. In the study, TOM has been defined as a management philosophy for continuously improving overall organizational performance and employees' job satisfaction based on leadership and top management support, employee participation and employee-management relationship.

H1: Implementing TQM practices in Pakistani entrepreneurial companies can have positive significance impact on employees' job satisfaction.

Data Analysis

The data was analyzed by the techniques and procedure used in literature, most of the variables were analyzed by the methods used by [32, pp. 169175] because the topic of this study was closely related to his participation in the literature.

Methodology

The research questionnaire was designed from the previous literature from [31, Pp 730-755] and [41, Pp. 22-31] for this study. This questionnaire was a combination of Likert Scale directing from strongly disagree 1, to strongly agree 5 and Cronbach's Alpha test found the most useful method in this kind of research in literature. The reliability of the questionnaire was checked on the basis of a simple of 20 respondents used as a pilot test and that result was with a value of 0.965 higher than the acceptable limit 0.7 according to [40, Pp 122-146] and the result was not the part of the actual result. The questionnaires were distributed in different entrepreneurial companies working in Pakistan among the employees of the different level by hand using hard copy, through emails and social network. The data was analyzed by using (SPSS IBM 20) by applying different statistical tests to test the hypothesis and research model which are given below.

Exploratory Factor Analysis

This test was done with applying Bartlett's Test to find out that the factors model represents clearly. The result was satisfactory with a value of 0.87 which greater than acceptable limit value 0.50 and was significant at 0.000 the data satisfactorily explain the model as shown in Table 1.

Table 1

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .875

Bartlett's Test of Sphericity Approx. Chi-Square 914.821

Df 6

Sig. .000

Reliability Statistics

After EFA, the common method of Cronbach Alpha was used to find out the internal reliability and consistency. The result was satisfactory with a value of 0.96 and 0.7 is commonly cited, and is acceptable according to [40, pp. 122-146]. It means that the questionnaire which was designed for this study explains the model as shown below in Table 2.

Table 2

Reliability Statistics

Variables No of Items Cronbach's alpha

Employee participation Item1, Item2, Item3, Item4 0.887

Leadership and top management support Item1, Item2, Item3 0.844

Employee management relationship Item1, Item2, Item3, Item4, Item5 0.875

Job satisfaction Item1, Item2, Item3, Item4 0.909

Descriptive Statistics and Correlation

The next test was a correlation to find out the relationship between the independent variables. Total quality management practices and dependent variable employees' job satisfaction were positively correlated and significant as shown in Table 3.

Descriptive statist

Multiple Regression Analysis

This test was applied to better analyze the link between independent variables and dependent variable. The result was found significant, which is the statistical proof of the relationship between TOM practices and employee Job satisfaction. For finding collinearity the values of tolerance lie above the lowest accepted value of the independent variables 0.1. According to acceptance it means that all 4 values were tolerated in the model and all the values of Variation Inflation Factors are less than 10. The result is shown in the Table 4.

For multicollinearity, Durbin-Watson Test was applied which gave the acceptable value of 1.74 which is greater than 1.5 and less than 2.5. The result presented in Table 5 shows that there is no autocorrelation in the data which was used for the research.

The study was conducted by selecting the key TOM practices and targeted population. After collecting and analyzing the data, we concluded that the implication of TMO practices effectively improves the satisfaction of the employees during the job 84 % which support our hypothesis (H1) from rejection.

Discussions

The finding of the study shows consistency with previous studies established a view that there is a strong relationship between TOM practices and employees job satisfaction.

Those employees who are satisfied with their jobs and their satisfaction along with the implication of TOM practices perform better in the organization that supports the findings of [22, pp. 3554]. This finding continues the outcomes of the study demonstrated that employee participation was an important TOM practice that influenced job satisfaction of employees. It proved that team work, giving suggestions on work place issues, job commitment and involvement in decision making were the activities that made employees feel valued at the work place.

Therefore, enhancing their dedication to work leads to job satisfaction [29, pp. 423-433]. Furthermore, top management support and em-

Table 3

s and correlations

Correlations Mean Std. Div. 1 2 3

Employees Participation 3.707 1.01

Leadership and Top Management Support 3.736 0.99 0.862**

Employees Management Relationship 3.867 1.09 0.819** 0.852**

Employees Job Satisfaction 3.870 0.97 0.872** 0.880* 0.864**

** Correlation is significant at the p < 0.01 level (2-tailed).

Table 4

Multiple linear regression between TQM Practices and Employee Job satisfaction

Model Unstandardized Coefficients Standardized Coefficients T Sig. Collinearity Statistics

B Std. Error Beta Tolerance VIF

(Constant) .421 .108 3.903 .000

1 EP .322 .056 .336 5.792 .000 .230 4.341

LTMS .315 .062 .322 5.080 .000 .192 5.203

EMR .278 .050 .315 5.614 .000 .246 4.061

a. Dependent Variable: EJS.

Table 5

Durbin-Watson

Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson

1 .921a .848 .846 .38134 1.746

a. Predictors: (Constant), EMR, EP, LTMS.

b. Dependent Variable: EJS.

ployee management relationship give courage to employees due to the fact that employees' performance gives better outcomes and becomes the source of success for the organization as explained by [30, pp. 810-829] in their research.

The study found that employee-management relationship was also a key TOM practice that had influenced job satisfaction of employees within the entrepreneurial companies. It identified that employee-management relationship gives the employees the environment of courage where they can easily bring new innovative ideas for the development of the organization. This TOM practice supports the previous research work of [3, pp. 0118]. It revealed that the total quality management consists of the activities of coaching of junior employees, availing adequate resources for execution of tasks, evaluating performance, delegating duties and building of trustful relations with junior employees.

These were important components in the managerial support according to the literature of [31, pp. 730-755].

Conclusion

The result of this research study showed that there is a positive significant effect of TOM practices on employee job satisfaction. Moreover, leadership and top management support was found the most dominant factor of the TOM practices in this study which has a significant impact on improving job satisfaction level of employees.

The multiple regression analysis, which was run through SPSS supported the predicted and proposed research framework (model), was found supportable to the hypothesis. Beside this, the study supported and confirmed the previous findings and research which had reported that by im-

plementing TOM practices the job satisfaction level of the employees can be improved.

The research findings of the study have an important implication for leaders and policy makers of small and medium size entrepreneurial businesses in developing countries like Pakistan. The result of the implementation would lead to better employee results.

After our findings, we came to know leadership and top management was the most dominant factor in job satisfaction for our study, because when the employees will get support from their top management on every aspect of job, they would be satisfied with their jobs and will easily face the challenges and will find the best and easy way to overcome.

This factor of employee participation was also found important for employee job satisfaction. When employees will be allowed to openly express their ideas and will take part in different organization activities, it would give courage to them and they would try their best to increase the organization performance and growth.

Managers and supervisor are those employees in the organization whose cooperation with their subordinates influence the organization outcomes. So, we find out that employee-management relationship is a significant factor for the employee job satisfaction because when their relationship with their subordinates will be fair and good, they would be encouraging and will feel happy in the environment of the organization.

The result from this study looks satisfactory but there are some limitations. The sample was selected only in the capital and targeted only small and medium size entrepreneurial companies. The employees are more educated in the capital territory about TOM practices, especially the variables

which we had selected for this study. The research data can be collected with large sample size from other cities and from large organizations of different industries of Pakistan.

Further research can be done by changing industry, applying other TOM practices and city which can affect the employee job satisfaction according to the situation. In addition, the researcher collected research information not in

the official time for purposes of appearing less formal to the respondents and probably much more approachable, because the selected sample for the study was 500, but most of the respondent did not respond the questionnaire sent by emails. The collected data of 210 filled questionnaires out of which 200 were useful in analysis without any mistakes.

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Authors

Sergey Nikolaevich Polbitsyn — Doctor of Economics, Professor, Ural Federal University; Senior Research Associate, Institute of Economics of the Ural Branch of RAS (51, Lenina Ave., Ekaterinburg, 620083; 29, Moskovskaya St., Ekaterinburg, 620014, Russian Federation; e-mail: [email protected]).

Abidullah — PhD Student, Ural Federal University (51, Lenina Ave., Ekaterinburg, 620083, Russian Federation; e-mail: [email protected]).