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literature review 

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The Impact of Soft Total Quality Management Practices on Employees’ Job

Satisfaction: Evidence From Project Based Organizations in Pakistan

Conference Paper · April 2015

DOI: 10.22364/pmdpp.2015.01

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THE IMPACT OF SOFT TOTAL QUALITY MANAGEMENT PRACTICES ON EMPLOYEES’ JOB SATISFACTION: EVIDENCE FROM PROJECT BASED

ORGANIZATIONS IN PAKISTAN Humera Amin, (SZABIST) Islamabad1

Basheer Ahmad, Iqra University Islamabad Abstract

In Pakistan number of manufacturing, information technology and construction sectors are adopting hard Total Quality Management (TQM) tools. Despite extensive research on TQM, rare papers highlighted the role of soft TQM practices in project oriented organization. Study intends to find the impact of soft TQM practices on employees’ job, growth and work satisfaction in project based organization with the moderating role of demographic variables (Gender, Age, Education, Employment Status, and Professional Experience). The paper proposes and tests 26 hypotheses on the relation of soft TQM practices and job satisfaction with the moderation effect of demographic variables. Some of the project oriented organizations are facing challenges regarding human resource and quality issues. TQM practices are the ultimate way that enables them to overcome those challenges. Research findings of the study will be pragmatic for the project based organizations as they can enhance quality related financial and non-financial performance by practicing/adopting soft TQM practices. Five main and common soft TQM dimensions are selected from literature (Top Management Commitment, Involvement, Reward, Training, and Empowerment). The questionnaire comprises of 54 items and the study sample is 220 individuals working in project based organizations in Pakistan. The data are collected from three project activity sectors (Construction, Development, and Information Technology) and the response rate is 63%. Data is analyzed through SPSS. The results are very coherent they verify and empirically validate many of the hypotheses. Results demonstrate that soft TQM practices have significant positive impact on job satisfaction and demographic variable moderates the relation between soft TQM practices and job satisfaction. Key Words: Soft TQM Practices; Job, Work; Growth; Satisfaction; Demographic Attributes JEL Codes: H43, O22 and J28

1 Introduction During the last couple of decades numbers of studies have explored the role of total quality management in organizational culture and it has promoted positive changes in organization by enhancing financial and operational organizational performance. According to literature little work has been contributed regarding the role of soft TQM in job satisfaction, specifically in Pakistan’s project based organizations. The Quality gurus Crosby, Deming, Juran, and Ishikawa have worked for quality management foundations and guiding principles to achieve organizational effectiveness and ultimately to improve internal customer’s satisfactions. TQM scope is not bound to enhance only financial position effectiveness but it also leads to improve internal customer’s satisfaction (Ahire et al., 1996). ) Some HR related practices like compensation, teamwork, empowerment, performance appraisal, and training in Baldrige National Quality Program (2005). Ahire et al. (1996) revealed that validation of key attributes of people related soft items and more important human resource factors like

1 Corresponding author -email address ( [email protected]) Contact number: +92-343-5819738

empowerment, training, involvement, and employee empowerment were categorized as HR related soft practices. Empowerment is defined in dual context, initially it provides the project team a chance to participate in quality issues like assessing challenges and resolving them, secondly keeps the employee’s independent by giving them freedom to make decision at their own (Hill and Huq, 2004). Empowerment is grounded on the idea to enhance performance of employees (Seibert et al., 2004). Reward is a general concept to be given to employees in return of their contribution and it tends to give value to employees (Chiang and Birtch, 2008). Leader’s actions and plans can bring positive changes in organization. Changes can be engineered in the attitude of employees and teamwork by receiving support and resources provided by leaders (Yeung et al., 2005). Literature is enriched with studies related to TQM practices but limited research is conducted on HR related soft TQM practices. Prajogo and Cooper (2010) examined the association between job satisfaction and people related TQM practices and further recommended that exploration of soft TQM practices related factors like reward, recognition and recruitment. Hosie et al. (2013) studied on the association between age and salary on job satisfaction and they further outlined that exploration would be valuable into the links between employment status and age on job satisfaction. Rayton (2006) outlined that to date not any research yet has been done to use demographic variables as moderators. The study objective is to investigate the impact of soft TQM practices on job satisfaction in project oriented organizations of Pakistan and to analyzing to what extent demographic variables moderates the relation of soft TQM practices and job satisfaction. The below research questions were suggested for exploring the study: What is the impact of soft/HR related TQM practices on job satisfaction? What is the moderation effect of demographic attributes (Age, Education, employment status, employment experience, and gender) on relation of soft TQM practices and job satisfaction?

2 Literature Review

2.1 Soft TQM Practices Major part of the previous research work contribution shows that soft TQM practices comprise of people related factors which are specifically directed toward employees enhancement for example reward and recognition, teamwork and empowerment (Guimaraes, 1996, Guimaraes, 1997, Karia and Ahmad, 2000). There has been general consensus that Total Quality Management comprise of soft and hard dimensions, hard TQM involves tools and techniques, whereas soft TQM comprise of HR related factors like commitment, empowerment, team and involvement (Kochan et al., 1995, Kekäle and Kekäle, 1995). Majority of TQM gurus agree that soft facets of TQM practices are substantial for successful implementation of TQM (Deming, 1986). Soft TQM is about the social and people based issues related to management of quality (Rahman and Bullock, 2005). Butler (1996) finds that, organizations which adopt TQM practices, progress better in organizational issues like attendance, turnover, safety, employee satisfaction, and health. Forsyth (1995) mentions that factors like Supportive working conditions, equitable rewards and helping colleagues lead to job satisfaction. The soft nature of TQM is supposed to contribute in promoting organizational culture that stress on continuous improvement and is most related to

motivating human resource related factors (Samson and Terziovski, 1999). Organization’s success and growth is determined by the extent to which employees are satisfied with their organization’s system and culture where the level of commitment is the key indicator of success and growth (Loscocco and Roschelle, 1991, Harrison et al., 2006). Lam (1995) concludes that adaptation of TQM practices does not necessary enhances all the aspects of employees satisfaction. They perceive it as sort of controlling environment after introducing TQM practices. Employees feel less freedom while it has not any effect on pay, job security, and promotion activities; moreover it has not any significant role in personal effectiveness.

2.2 Soft TQM Practices and Job Satisfaction Jun et al. (2006) suggest that loyal employees are valuable asset to organization. Karia and Hasmi Abu Hassan Asaari (2006) conduct a study in private and public organizations working in Malaysia find that empowerment and training have strong correlation with job satisfaction. Ugboro and Obeng (2000) find that management commitment and employee empowerments are the most adopted practices in the literature for promoting job satisfaction. Organization’s success and growth is determined by the extent to which employees are satisfied with their organization system and culture (Harter et al., 2002, Harrison et al., 2006). Baran (1986) explores that Job satisfaction is not static state, it varies from situation to situations, influenced by external factors and forces which comprise of individuals, their personal traits and organization’s working environment. Savery (1996) finds causes of job dissatisfaction of workers with minor job responsibility interest, little credit or accomplishments are more willing to quit in short period of time. Hendrie (2004) mentions that most of the organizations with inefficient work environment, lack of career development opportunities and poor employee relations lead to increase job dissatisfaction.

2.3 Soft TQM Dimensions Prajogo and Cooper (2010) find that top management commitment is significantly related to job satisfaction, most of the quality gurus recognize that, for the successful implementation of total quality management, the leadership plays a vital role (Deming, 1986). Top management act as driver’s role in TQM implementation as they define goal, objective and values to satisfy employees. According to Dwyer (2002), reasons of TQM failure are poor management efforts by people, like, lack of teamwork, low level of employee involvement and poor motivation. Top management can successfully implement TQM in organizations through the trust of employees, fostering internal communication and participating in problem solving (Ooi et al., 2013). Honda‐Howard and Homma (2001) mention that lack of development opportunities and insufficient training lead significantly to turnover. Employees who avail training are more committed as compared to those who don’t avail training in organization (Royalty, 1996, Bartel, 1992). Training opportunity intends to give multiple ways to broaden individuals thinking level though which they can enhance their existing knowledge. Jun et al. (2006) highlight the critical role of employees’ training as basic pillars for enhancing teamwork and employees’ empowerment. Empowerment activities in organizations lead to positive job experience (Seibert et al., 2004). Ripley and Ripley (1992) define empowerment as the key ingredient to organization growth where employees can utilize, promote and enhance their talent and knowledge for the improvement of themselves and organization’s welfare as well (Seibert et al., 2004).

The past studies in the field of HRM and TQM show that employees’ empowerment is positively associated with job satisfaction supported by many authors (Blackburn and Rosen, 1993, Ugboro and Obeng, 2000). He et al. (2010) find positive relationship among job satisfaction, job quality and empowerment. Freeman (1978) says that keeping employees involved in organizational activities will lead to commitment. Employees’ involvement in quality development activities is foremost accomplishment of total quality management (Mohanty and Lakhe, 1998). The participation of lower level employees in decision making has a positive relation with work satisfaction which ultimately increases commitment, loyalty and performance (Kim, 2002). Lee and Bruvold (2003) draw from social exchange theory that when organization keeps investing on human resource besides increasing the employment opportunity, it makes employees feel that they are valued and their contribution is significant to organization. Reward system is key management tool often implemented within organization (Lawler and Cohen, 1992). The paradigms of organization is shifted to financial reward because the non-monitory reward is not much appreciated by employers and employees as well, most of the labor intensive firms use non-monitory reward to control costs which do not benefit employees in monetary sense where it is used to motivate employee and to increase employee satisfaction (Chiang and Birtch, 2008). Job satisfaction is affected by both financial and non-monitory rewards (Kalleberg, 1977). Pratheepkanth (2011) show significant association between reward and job satisfaction. In TQM environment the recognition of reward is very necessary for motivating employees. The above literature leads to following hypothesis. H1: There exist a significant relation between soft TQM dimensions (empowerment, top management commitment, reward, involvement, and training) and job satisfaction.

2.4 Moderating Role of Demographic Variables Rhodes (1983) mentions that job satisfaction depends upon age level, the relation between them is positive up to 60. Herzberg et al. (2011) mention that job satisfaction is U-shaped in nature with respect to age, with higher level of confidence among fresh workers but it starts decreasing after some period of time, satisfaction again increases when employees get familiar of job. Clark et al. (1996) mention that employment experience and employment status play a vital role in the prediction of job satisfaction where in some other context employees with high experience are more satisfied as compared to low experienced because they stopped searching for new opportunities as existing job meets their expectations. Oshagbemi (2000) elaborates that employment status has a significant role in the measurement of job satisfaction where satisfied workers prefer to stay in organization and dissatisfied workers try to quit the organization. Oshagbemi (2000) finds that job satisfaction level varies with respect to age. Groot and van den Brink (1999) study job satisfaction among different age brackets and examined that there is not any significant impact of on/off job training and development on job satisfaction for aged employees. Georgellis and Lange (2007) examined an opposite result regarding different age groups, employees who avail recent training opportunity, they are least interested in future trainings. Employees who avail training are more committed to organization and ultimately turnover ratio decreases gradually as compared to those who don’t avail training in organization (Bartel, 1992,

Royalty, 1996). High educated workers are more satisfied than low educated workers because highly educated workers have better quality job (Verhofstadt et al., 2007).

2.5 Theoretical framework:

2.6 Hypotheses The above literature leads to following hypotheses, 25 subsidiary hypothesis and six major hypotheses were proposed as based on theoretical framework. H2: Employment status has moderating impact on the relation between Soft TQM practices and job satisfaction. H21: Employment status has moderating impact on the relation between top management commitment and job satisfaction. H22: Employment status has moderating impact on the relation between empowerment and job satisfaction. H23: Employment status has moderating impact on the relation between involvement and job satisfaction. H24: Employment status has moderating impact on the relation between training and Job satisfaction. H25: Employment status has moderating impact on the relation between reward and Job satisfaction. H3: Employment experience has moderating impact on the relation between soft TQM practices and Job satisfaction. H31: Employment experience has moderating impact on the relation between top management commitment and Job satisfaction.

Job satisfaction

(Employment Status, gender, age, Education, Employment experience)

Top Management Commitment

Empowerment

Involvement

Reward

Training

H32: Employment experience has moderating impact on the relation between empowerment and Job satisfaction. H33: Employment experience has moderating impact on the relation involvement and Job satisfaction. H34: Employment experience has moderating impact on the relation between training and Job satisfaction. H35: Employment has moderating impact on the relation between reward and Job satisfaction H4: Education has moderating impact on the relation between top management commitment and Job satisfaction. H41: Education has moderating impact on the relation between top management commitment and Job satisfaction. H42: Education has moderating impact on the relation between empowerment and Job satisfaction. H43: Education has moderating impact on the relation between involvement and Job satisfaction. H44: Education has moderating impact on the relation between training and Job satisfaction. H45: Education has moderating impact on the relation between reward and Job satisfaction H5: Gender has moderating impact on the relation between soft TQM practices and job satisfaction. H51: Gender has moderating impact on the relation between top management commitment and job satisfaction H52: Gender has moderating impact on the relation between empowerment and job satisfaction. H53: Gender has moderating impact on the relation between involvement and job satisfaction. H56: Gender has moderating impact on the relation between training and job satisfactions. H51: Gender has moderating impact on the relation between reward and job satisfaction. H6: Age has moderating impact on the relation between soft TQM practices and job satisfaction. H61: Age has moderating impact on the relation between top management commitment and job satisfaction. H62: Age has moderating impact on the relation between empowerment and job satisfaction. H63: Age has moderating impact on the relation between involvement and job satisfaction. H64: Age has moderating impact on the relation between training and job satisfaction. H65: Age has moderating impact on the relation between reward and job satisfaction

3 Research methodology Our study is empirical in nature and population of the study covers all project oriented organizations like construction sector, development sector, and information technology sector. The unit of analysis was project managers and project team members. The questionnaire on soft Total Quality Management dimensions were gauged by five item scale adopted from (Ugboro and Obeng, 2000, Jun et al., 2006, Prajogo and Cooper, 2010). Dependent variable: job satisfaction was measured by ten items adapted from (Güngör, 2011). The response of respondents were anchored on five point Likert scale (1=strongly agree, 2=agree, 3=neutral, 4=strongly disagree, 5=Disagree). The adopted scale showed

highly reliable as the Cronbach’s Alpha values range from (.83 and .90) which shows the high reliability of scale.

3.1 Sampling Techniques and results Convenient sampling strategy was used to collect sample. The sample sizes 350 was taken for collecting the data through self-administered and web based methods. Only 215 responses were received back and the overall response rate was 61%. The self-administered response was appreciating where web based response was not good, as the web based response was 50%.

3.2 Demographics Percentage of female respondents is 45% while the percentage of male respondents is 34%. Employment status reflects that 65% respondents have contractual status and 35% have permanent status. Education level is distributed as bachelor 20%, sixteen years of education 65%, and MS/MPhil 15%. Age groups contribute as “below 25” 30%, “26-35” 66%, and “36-45” 4%. Experience is grouped as “1-5” 50%, “6-10” 32%, and “10 and above” 18%.

4 Results and Findings General Linear Model Analysis (GLM)

Table 1: GLM summary: Soft TQM practices and job satisfaction with moderation results of employment status.

Employment Status Contractual Permanent Independent variables

Before Moderation B Value

After Moderation B Value

Before Moderation B Value

After Moderation B Value

*After Mode Sig

R2

Training 1.087 -0.331 0 0 .001 .3 Involvement 1.708 -0.479 0 0 .000 .3 Reward -1.094 0.304 0 0 .022 .16 Top management commitment

0.908 0 -0.214 0 .113 .31

Empowerment 0.796 -1.96 0 0 .113 .29 Dependent variable: Job satisfaction. *After mode sig= after moderation significance value

Table 2: GLM analysis with moderation of gender with soft TQM items and job satisfaction

Gender Male Female Independent variables

Before Moderation B Value

After Moderation B Value

Before Moderation B Value

After Moderation B Value

*After Mode Sig

R2

Top management commitment -1.794 0 0 .462 .000 .37 Dependent variable: Job satisfaction *after mode sig= after moderation significance value.

Top management commitment has high significant relation with job satisfaction when interacts with gender. The beta value .46 after moderation shows that female are more satisfied than male when top management is committed with the organization. Table 3: GLM summary of Soft TQM practices & job satisfaction with age moderation

Age

Below 25 years 26 - 35 years 36-45 years

Independent variables

Before Moderation B Value

*After Mod B

Before Moderation B Value

After Mode B

Before Moderation B value

After Mode B

R2 After Mode Sig

Training

-1.317 0.219 -2.337 0.52 0 0 0.3 0.03

*After mod B= after moderation value of beta. Dependent variable: Job satisfaction. *after mode sig= after moderation significance value Age only moderates the relation between training and job satisfaction. The beta values change significantly in opposite direction after moderation. Employee’s falling in age brackets 26-35 year old are most satisfied after training while in highest age bracket 36-45 are least satisfied after training. Table 4: GLM summary Soft TQM practices and job satisfaction with education moderation

Education BA/BSc Masters MS/M.Phil. Interaction variables

**Before Mode B

*After Mod B

Before Mode B

After Mod B

Before Mode B

After Mod B

R2 After mod sig

Empowerment -2.068 0.611 -2.905 .82 0 0 .36 .000 Top management commitment

-1.943 0.527 -2.952 .807 0 0 .35 .001

Involvement -1.673 0.531 -1.915 .565 0 0 .3 .002 Reward -4.466 1.237 -4.498 .237 0 0 .25 .000

**Before mode B= before moderation beta value. *After mod B= after moderation value of beta. Dependent variable: Job satisfaction. *After mode sig= after moderation significance. Education moderates the relation between job satisfaction and soft TQM practices (empowerment, top management commitment, involvement, and reward). The employees with master degree (sixteen years of education) are most satisfied and employees with MS/MPhil education level are least satisfied among all the four soft TQM practices. The relation almost reverses with respect to education levels after moderation. Table 5: Soft TQM practices and job satisfaction with moderation of experience

Employment Experience

1_5 Years 6_10 Years Above 10 years

Interaction variables **Before Mode B

After* Mod B

Before Mode B

After Mod B

Before Mode B

After Mod B

R2 *After Mode Sig

Reward 2.374 -57.4 1.068 -.146 0 0 .28 .000 Top management commitment

1.808 -0.442 1.566 -.361 0 0 .34 .019

Training 1.654 -0.399 1.477 -.293 0 0 .36 .003 Involvement 1.959 -0.54 1.224 -.262 0 0 .37 .000 Empowerment 2.094 -0.574 1.306 -0.3 0 0 .37 .001 **Before mode B= before moderation beta value. * After mod B= after moderation value of beta. Dependent variable: Job satisfaction. *After mode sig= after moderation significance value. The employment experience moderates the relation between job satisfaction and soft TQM practices (reward, top management commitment, training, involvement, and empowerment). The job satisfaction is gradually increasing with increase in experience in case of top management commitment, training, involvement, and empowerment; however, highest change occurs in case of reward after five years of experience.

Relation between soft TQM dimensions and job satisfaction without moderation. All the soft TQM practices have strong and positive relation with job satisfaction with regression coefficients given in brackets along with each soft TQM dimension as follows empowerment (.54) top management commitment (.55) training (.50) involvement (49) and reward (.37). Linear regression model is used to estimate all the above regression coefficients.

4.1 Discussion of Results Our first hypothesis of study was supported which shows that there exists positive relation between soft TQM practices (top management commitment, empowerment and involvement, training and reward) and job satisfaction result are also supported by (Karia and Hasmi Abu Hassan Asaari, 2006, Guimaraes, 1996). Employees with permanent job status are comparatively more satisfied than employees with contractual status as permanent employees are relatively better empowered as compared to contractual employees, the results are supported and aligned with (Asaari, 2006, Chang et al., …

Attachment 2

THE EFFECT OF TOTAL QUALITY MANAGEMENT (TQM) AND WORK-LIFE BALANCE TOWARDS JOB

SATISFACTION

Kua Ching Yi

A research project submitted in partial fulfillment of the requirement for the degree of

Master of Business Administration

Universiti Tunku Abdul Rahman

Faculty of Accountancy and Management

April 2016

ii

Copyright @ 2016 ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, graphic, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior consent of the authors.

iii

DECLARATION

I hereby declare that:

(1) This Research Project is the end result of my own work and that due

acknowledgement has been given in the references to all sources of

information be they printed, electronic, or personal.

(2) No portion of this research project has been submitted in support of any

application for any other degree or qualification of this or any other university,

or other institutes of learning.

(3) The word count of this research report is 20104 words.

Name of Student: Kua Ching Yi

Student ID: 12UKM07732

Signature: ____________

Date: ____________

iv

ACKNOWLEDGEMENT

First and foremost, I would like to express my deepest gratitude to Ms. Shirley

Chung Chay Yoke for her guidance and mentorship throughout this dissertation.

It was an honour to work with her and she has helped me all the way through

this research study.

I would also like to thank the members of Faculty of Accountancy and

Management and Institute Postgraduate Studies and Research, for their

assistance during the programme.

Last but not least, I would like to thank my family, friends and colleagues who

have been supporting me throughout my programme and motivating me to

move forward. Without their constant support, I would not be able to

successfully complete this dissertation.

Thank you.

v

Table of Contents

Table of Contents ............................................................................................................................ v

LIST OF TABLES ......................................................................................................................... ix

LIST OF FIGURES ....................................................................................................................... xi

Abstract ........................................................................................................................................ xiii

CHAPTER 1: RESEARCH OVERVIEW ...................................................................................... 1

Introduction ..................................................................................................................................... 1

1.0 Research Background ............................................................................................................... 1

1.1 Problem Statement .................................................................................................................... 4

1.2 Research Objectives .................................................................................................................. 7

1.2.1 Broad Objective: ................................................................................................................ 7

1.2.2 Specific Objective: ............................................................................................................. 7

1.3 Research Questions ................................................................................................................... 8

1.4 Importance of the Study ............................................................................................................ 8

1.5 Hypothesis of the Study .......................................................................................................... 10

1.6 Proposed Conceptual Framework ........................................................................................... 13

1.7 Definition of Terms................................................................................................................. 16

1.7.1 Total Quality Management (TQM) .................................................................................. 16

1.7.2 Employee Training........................................................................................................... 16

1.7.3 Teamwork ........................................................................................................................ 17

1.7.4 Employee Rewards and Recognition ............................................................................... 17

1.7.5 Management leadership ................................................................................................... 17

1.7.6 Employee empowerment ................................................................................................. 17

1.7.7 Work-life balance............................................................................................................. 18

1.7.8 Job satisfaction ................................................................................................................. 18

1.7.9 Turnover intention ........................................................................................................... 18

1.8 Limitation of the Study ........................................................................................................... 19

1.9 Delimitation of the Study ........................................................................................................ 19

1.10 Conclusion ............................................................................................................................ 20

vi

CHAPTER 2: LITERATURE REVIEW ...................................................................................... 21

Introduction ................................................................................................................................... 21

2.0 Review of Literature ............................................................................................................... 21

2.0.1 Total Quality Management (TQM) .................................................................................. 21

2.0.2 Employee Training........................................................................................................... 22

2.0.3 Teamwork ........................................................................................................................ 23

2.0.4 Employee Rewards and Recognition ............................................................................... 23

2.0.5 Management Leadership .................................................................................................. 24

2.0.6 Employee Empowerment ................................................................................................. 24

2.0.7 Work-life balance............................................................................................................. 25

2.0.8 Income level ..................................................................................................................... 25

2.0.9 Job Satisfaction ................................................................................................................ 26

2.0.10 Turnover Intention ......................................................................................................... 27

2.0.11 Small and Medium Enterprises (SMEs) ........................................................................ 27

2.1 Proposed Conceptual Framework ........................................................................................... 29

2.2 Hypothesis Development ........................................................................................................ 31

2.3 Conclusion .............................................................................................................................. 34

CHAPTER 3: METHODOLOGY ................................................................................................ 37

Introduction ................................................................................................................................... 37

3.0 Research Design...................................................................................................................... 37

3.1 Data Collection Methods ........................................................................................................ 38

3.1.1 Primary Data .................................................................................................................... 38

3.2 Sampling Design ................................................................................................................. 40

3.2.1 Target Population ......................................................................................................... 40

3.2.2 Sample Size .................................................................................................................. 41

3.2.4 Sampling Technique .................................................................................................... 42

3.3 Research Instrument................................................................................................................ 43

3.3.1 Questionnaire Design ....................................................................................................... 43

3.3.2 Measurement Scale .......................................................................................................... 46

3.3.2.1 Nominal Scale ........................................................................................................... 46

vii

3.3.2.2 Ordinal Scale ............................................................................................................. 46

3.4 Pilot Testing ............................................................................................................................ 48

3.5 Data Processing ....................................................................................................................... 49

3.5.1 Questionnaire Checking ................................................................................................... 50

3.5.2 Editing .............................................................................................................................. 50

3.5.3 Coding .............................................................................................................................. 50

3.5.4 Transcribing ..................................................................................................................... 50

3.5.5 Data Cleaning................................................................................................................... 51

3.6 Data Analysis .......................................................................................................................... 52

3.6.1 Reliability Test ................................................................................................................. 52

3.6.2 Descriptive Analysis ........................................................................................................ 52

3.6.3 Multiple Regressions Analysis ........................................................................................ 53

3.6.4 Simple Regression Analysis ............................................................................................ 54

3.6.5 ANOVA Analysis ............................................................................................................ 55

3.7 Limitation of the study ............................................................................................................ 56

3.8 Ethical Considerations ............................................................................................................ 57

3.9 Conclusion .............................................................................................................................. 57

CHAPTER 4: RESEARCH RESULT AND FINDING ............................................................... 58

Introduction ................................................................................................................................... 58

4.0 Reliability test ......................................................................................................................... 58

4.1 Descriptive Analysis ............................................................................................................... 60

4.1.1 Background of the respondents ........................................................................................ 60

4.1.2 Frequency of Respondent Based on Industry Type ......................................................... 60

4.1.3 Frequency of Respondent Based on Company Category ................................................ 63

4.1.4 Frequency of Respondent Based on Gender Group ......................................................... 65

4.1.5 Frequency of Respondent Based on Age Group .............................................................. 66

4.1.6 Frequency of Respondent Based on Job Category .......................................................... 68

4.1.7 Frequency of Respondent Based on Personal Monthly Income ...................................... 69

4.1.8 Frequency of Respondent Based on Year of Service ....................................................... 71

4.2 Multiple Linear Regression Analysis...................................................................................... 73

viii

4.2.1 Total Quality Management (TQM) Practices: employee training, teamwork, employee

rewards recognition, management leadership, employee empowerment and work-life balance

towards Job Satisfaction ........................................................................................................... 73

4.3 Simple Linear Regression Analysis ........................................................................................ 77

4.3.1 Job Satisfaction towards Turnover Intention ................................................................... 77

4.4 ANOVA Analysis ................................................................................................................... 79

4.4.1 Income level towards employees’ job satisfaction .......................................................... 79

4.5 Results summary of the research questions ............................................................................ 80

4.6 Results summary of the hypothesis......................................................................................... 81

4.7 Conclusion .............................................................................................................................. 82

CHAPTER 5: DISCUSSION AND CONCLUSION ................................................................... 83

Introduction ................................................................................................................................... 83

5.0 Discussion of Major Findings ................................................................................................. 83

5.0.1 Identify the variables - TQM Practices: employee training, teamwork, employee rewards

and recognition, management leadership, employee empowerment and work life towards

employees’ job satisfaction for SMEs within Klang Valley, Malaysia .................................... 84

5.0.2 Identify employees’ job satisfaction towards turnover intention of SMEs employees

within Klang Valley, Malaysia ................................................................................................. 88

5.0.3 Identify income levels towards employees’ job satisfaction of SMEs within Klang Valley,

Malaysia .................................................................................................................................... 89

5.1 Implications of the Study ........................................................................................................ 90

5.1.1 Theoretical implications ................................................................................................... 90

5.1.2 Managerial implications ................................................................................................... 91

5.2 Limitation of the Study ........................................................................................................... 93

5.3 Future Research ...................................................................................................................... 94

5.4 Conclusion .............................................................................................................................. 95

REFERENCES ............................................................................................................................. 97

ix

LIST OF TABLES

Table 1: Percentage of SMEs in each states of Malaysia ............................................................. 41

Table 2: Sources of Questionnaire ................................................................................................ 43

Table 3: Rule of Thumb about Cronbach's Alpha coefficient size ............................................... 49

Table 4: Reliability Analysis Result for Pilot Testing .................................................................. 59

Table 5: Industry Type .................................................................................................................. 60

Table 6: Category .......................................................................................................................... 63

Table 7: Gender Group ................................................................................................................. 65

Table 8: Age Group ...................................................................................................................... 66

Table 9: Job Category ................................................................................................................... 68

Table 10: Personal Monthly Income ............................................................................................. 69

Table 11: Year of Service ............................................................................................................. 71

Table 12:: Model summary for TQM Practices: employee training, teamwork, employee rewards

and recognition, management leadership, employee empowerment and work-life balance towards

Job Satisfaction ............................................................................................................................. 73

Table 13: ANOVAa for for TQM Practices: employee training, teamwork, employee rewards

and recognition, management leadership, employee empowerment and work-life balance towards

Job Satisfaction ............................................................................................................................. 74

Table 14: Coefficientsa for for TQM Practices: employee training, teamwork, employee rewards

and recognition, management leadership, employee empowerment and work-life balance towards

Job Satisfaction ............................................................................................................................. 75

Table 15: Ranking if TQM Practices ............................................................................................ 76

Table 16: Model summary for job satisfaction towards Turnover Intention ................................ 77

Table 17: ANOVAa for job satisfaction towards Turnover Intention .......................................... 77

Table 18: ANOVAa for job satisfaction towards Turnover Intention .......................................... 78

Table 19: One Way ANOVA test: Income level towards employees’ job satisfaction level ....... 79

Table 20: Results summary of research question ......................................................................... 80

Table 21: Results summary of the hypothesis .............................................................................. 81

Table 22: Summary Result of Multiple Linear Regression .......................................................... 84

x

Table 23: Summary Result of Simple Linear Regression ............................................................. 88

Table 24: Summary Result of One Way Anova ........................................................................... 89

Table 25: Summary Result of Simple Linear Regression ............................................................. 89

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LIST OF FIGURES

Figure 1: Conceptual Framework of TQM Practices towards job satisfaction and turnover

intention ........................................................................................................................................ 13

Figure 2: Proposed Framework ..................................................................................................... 15

Figure 3: Proposed Conceptual Framework of Total Quality Management (TQM) practices and

work-life balance towards job satisfaction and turnover intention ............................................... 30

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LIST OF PIE CHART

Pie Chart 1: Industry Type ............................................................................................................ 62

Pie Chart 2: Category .................................................................................................................... 64

Pie Chart 3:Gender Group ............................................................................................................ 65

Pie Chart 4: Age Group................................................................................................................. 67

Pie Chart 5: Job Category ............................................................................................................. 68

Pie Chart 6: Personal Monthly Income ......................................................................................... 70

Pie Chart 7: Year of Service ......................................................................................................... 71

xiii

Abstract

In the past few decades, there are many studies about Total Quality Management (TQM) and

work-life balance. Total Quality Management (TQM) and work-life balance is very critical for

business sustainability of SMEs as this is related to Human Resource Management (HRM). Human resources have been a critical factor to contribute to the success of a business. High

performing organisations not only need improvement on the services and products but also need

the improvement on handling human resources and handling process flow in this competitive

business environment nowadays. The purpose of this research study is to understand how TQM

practices: employee training, teamwork, employee rewards and recognition, management

leadership, employee empowerment and work-life balance towards employees’ job satisfaction

at SMEs within Klang Valley, Malaysia. The quantitative survey has been carried out and a total

of 195 usable responses were collected. It can be concluded that employee training, employee

rewards and recognition, employee empowerment and work-life balance plays an important role

that will lead to employees’ job satisfaction and turnover intention.

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CHAPTER 1: RESEARCH OVERVIEW

Introduction

In the past few decades, there are many studies about Total Quality Management (TQM) and

work-life balance which also related to Human Resource Management (HRM) has been a critical

factor to contribute to the success of a business. High performing organisations not only need to

improvement on the services and products but also need to need the improvement on handling

human resources in this competitive business environment nowadays.

This chapter proposes a research that can have further understanding on how Total Quality

Management (TQM) practices and work-life balance can affect employees’ job satisfaction and

turnover intention that will contribute towards business sustainability of SMEs within Klang

Valley area, Malaysia. Specifically, the study aims to examine the relational factors of Total

Quality Management (TQM) practices that included employee training, teamwork, employee

rewards and recognition, management leadership, employee empowerment and work-life balance

which will influence employees’ job satisfaction that lead to turnover intention. The main areas

that will be covered in this chapter included research background, problem statement, research

objectives, research questions, the importance of the study, hypothesis of the study, proposed

conceptual framework, definition of terms, limitation of the study, delimitation of the study and

conclusion.

1.0 Research Background

According to SME Master plan, 2012-2020, the development of Malaysia’s economy is highly

relying on SMEs which is contributing the GDP rate. The performance of Malaysia SMEs is

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improving although the business environment is very competitive. This statement is proved by

the report from SME which showed that the SMEs’ GDP growth increased to from 6% to 6.3%

in 2012. SME growth also exceeded the overall GDP growth of the country of 4.7%. These

figures showed the importance of SME in shaping Malaysia economic landscape. The success of

SMEs has shown a positive influence of the economic growth and development in both

developed and developing direct countries (Demirbag et al., 2006). Besides that, there is also a

research conducted by Aharoni (1994) found out that the performance of SMEs will affect

economies of almost all countries. Thus, this research proposed to have a study which is only

focus on SMEs that are contributing to country economy growth.

Nowadays, the business environment is very competitive. The competitive environment has

pressured SMEs to implement new methods of working processes to improve the performance

(time efficiency, quality issue, shorten lead time etc.) of the organisations. Efficient working

methods or process flows are important with increased of international trade, low wage economy

competition (different countries), domestic competitors positioning and few large-scale

customers that buy products within the region. Internal improvement activities has therefore

resulted in increased interest from SME businesses in term of innovative (engaging with new

models of manufacturing) and the awareness created by national awards deliberately targeted at

SMEs. Efficient working method also allows SMEs to reduce the wastage in terms of time,

materials etc. in which also directly lower the cost and provide savings to the organisations and

enable them to remain competitive in the market.

Total Quality Management (TQM) is one of the methods to improve the working processes of

SMEs. Total quality management (TQM) is a key factor to increase an organisation’s

effectiveness and to develop the management practices (Thai Hoang et al., 2006). According to

Lee & Chang (2006), total quality management (TQM) can is dedication of an organisation’s

employees to the make changes and endless improvement in working method which targeted to

fulfill customers’ requirements and needs. The function of Total Quality Management (TQM) is

ratified as a critical factor in contribution of business sustainability for both manufacturing and

service organisations especially in today’s business competitive environment. The findings from

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some researchers found out that the effective application of Total Quality Management (TQM)

led to enhancement in organisational performance (Flynn et al., 1994). The Total Quality

Management (TQM) practices to be explored in this study included employee training, teamwork,

employee rewards and recognition, management leadership and employee empowerment. It is

important to understand how Total Quality Management (TQM) practices will affect employees’

job satisfaction which will be conducted in this research.

Work-life balance is a key factor at the workplace. The main reason is because society and

organisations are filled with multi tasks and responsibilities to fulfill in the highly competitive

market nowadays. According to McMillan et al., (2011), work-life balance is defined as the

absence of conflict between the work and life domains. Other scholars also suggesting energy,

time and responsibilities need to be distributed efficiently across domains in order to achieve a

balanced life and satisfaction (Kirchmeyer, 2000). Work-life balance is also defined as the

minimum role of conflict …