Industrial Management & Data Systems

Industrial Management & Data Systems Empirical study of public sector employee loyalty and satisfaction Ali Turkyilmaz Gulsen Akman Coskun Ozkan Zbigniew Pastuszak

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

Article information: To cite this document: Ali Turkyilmaz Gulsen Akman Coskun Ozkan Zbigniew Pastuszak, (2011),"Empirical study of public sector employee loyalty and satisfaction", Industrial Management & Data Systems, Vol. 111 Iss 5 pp. 675 - 696 Permanent link to this document: http://dx.doi.org/10.1108/02635571111137250 Downloaded on: 16 December 2015, At: 07:52 (PT) References: this document contains references to 80 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 9556 times since 2011*

Users who downloaded this article also downloaded: Jasna Auer Antoncic, Bostjan Antoncic, (2011),"Employee satisfaction, intrapreneurship and firm growth: a model", Industrial Management & Data Systems, Vol. 111 Iss 4 pp. 589-607 http:// dx.doi.org/10.1108/02635571111133560 Olivia Guillon, Cécile Cezanne, (2014),"Employee loyalty and organizational performance: a critical survey", Journal of Organizational Change Management, Vol. 27 Iss 5 pp. 839-850 http://dx.doi.org/10.1108/ JOCM-02-2014-0025 Rhian Silvestro, (2002),"Dispelling the modern myth: Employee satisfaction and loyalty drive service profitability", International Journal of Operations & Production Management, Vol. 22 Iss 1 pp. 30-49 http://dx.doi.org/10.1108/01443570210412060

Access to this document was granted through an Emerald subscription provided by emerald-srm:605448 []

For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information.

About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download.

The current issue and full text archive of this journal is available at www.emeraldinsight.com/0263-5577.htm

Empirical study of public sector employee loyalty and satisfaction

Public sector employee loyalty

Ali Turkyilmaz Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

Department of Industrial Engineering, Fatih University, Istanbul, Turkey

675

Gulsen Akman and Coskun Ozkan Department of Industrial Engineering, Kocaeli University, Kocaeli, Turkey, and

Zbigniew Pastuszak

Received 16 December 2010 Revised 17 February 2011 Accepted 18 February 2011

Institute of Management, Maria Curie-Skłodowska University, Lublin, Poland Abstract Purpose – The purpose of this paper is to identify the factors which determine the level of public employees’ job satisfaction and as result help to have effective and efficient management system in the public sector, in developing countries such as Turkey. Design/methodology/approach – Based on theoretical considerations, a model was proposed linking the employee satisfaction and loyalty (ESL) constructs. The paper exhibits the findings of a satisfaction and loyalty survey of employment factors within the Turkish public sector. The survey was conducted in 2009 and covered 220 employees within the Istanbul Branch of a Social Security Institution in Turkey. A model was developed by including effecting factors of employee satisfaction, their relations and effects of employee satisfaction on employee loyalty. Partial least squares structural equation model was employed to test the model in the public insurance sector in Turkey. Findings – Data analysis reveals that there is a strong relationship between ESL in a branch of a public sector Social Security Institution in Turkey. Training and personal development was found the most effecting factor of customer satisfaction. The study also finds a positive relationship between working conditions and satisfaction. Originality/value – The paper reveals the relationship between the employee satisfaction and affecting factors in the public sector in Turkey. These factors are developed only incidentally in the public sector in Turkey. Human resource management (HRM) applications such as measuring employee satisfaction, performance development are widely used in private sector. Specifically, in developing countries such as Turkey, these applications are rarely used in the public sector. Therefore, the paper advocates the use of HRM applications in the public sector in a developing country. Keywords Turkey, Public administration, Employees, Job satisfaction, Human resource management Paper type Research paper

1. Introduction In the last decades, the public sector has seen substantial disorder in most industrial developed and developing countries. Rapid changes and globalization in the world caused imperative changes and structuring in classical public administration. The scope, organization and management of public services have changed dramatically since 1970s (Farnham and Horton, 1996). Thus, a new paradigm was born “New Public Administration” that conceives of the superiority of private sector and private sector management techniques (Metcalfe, 1989; Demir and Yavuz, 2009). Most of processes used in the private sector of such as organizational forms (i.e. teamwork), restructuring, reorganizations and privatizations and concepts used in private sector such as performance management and project management have assisted in the changes in the public sector (Steijn, 2002).

Industrial Management & Data Systems Vol. 111 No. 5, 2011 pp. 675-696 q Emerald Group Publishing Limited 0263-5577 DOI 10.1108/02635571111137250

IMDS 111,5

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

676

As a result, these changes create a pressure on public sector institutions about delivering high-quality and customer-oriented services. This pressure has increased substantially in recent years. Consequently, to improve their organizational performance, public sector organizations have taken numerous initiatives. As a result of this pressure, in terms of personnel management, public sector organizations have showed an increased interest in human resource management applications such as performance management, performance pay, employee and manager evaluation, job satisfaction (Willems et al., 2004). Following the management models and techniques developed by the private sector, public firms have shown a growing interest in researching the job satisfaction of their employees. This is considered important for both good employee relations and service quality (Horton, 2006). For example, in the Dutch public sector, a large number of public sector employees have interviewed about their job, their perception and evaluation of several aspects of their job, and their organization since 1999 (Steijn, 2005). In spite of such important changes, numerous differences between the public and the private sector still exist. Public employees’ nature of job differs from that work in private sector. Important characteristics of public employees are feeling of benevolence and self-sacrifice. Also, there are some other predictors determining job satisfaction in public sector (Halepota, 2009). In most countries, public sector employs a different labor law; often, the job security of public sector employees is higher compared to private sector employees. Many public sector employees also have different job motivations and different work values (Steijn, 2002). Restructuring of public management or new public administration agenda has included in reform agenda started in 2000s in Turkey. In the Turkey, the restructuring efforts have a long history. In addition to the restructuring term in the first years of the Turkish Republic, many projects have been developed since 1960s, the best known of these projects are the MEHTAP project of 1960s and the KAYA project of 1980s. Moreover, restructuring has always been a part of all development plans in Turkey (TBMM, 2008). The reform agendas are decided by the factors that are “civilianization”, “avoidance of bureaucracy”, “privatization”, “budget reforms”, “performance measurements” and “competition” (Demir and Yavuz, 2009). At the beginning of the 2000s, various regulations have started to be established accordingly. Also, in Turkish public sector, lots of changes have been lived in last decade and some applications used in private sector such as total quality management (TQM), strategic management; performance appraisal systems, permanent staff applications, etc. have started to be applied in public sector in Turkey since beginning of 2000s. In this study, employee satisfaction and loyalty (ESL) in an organization in public sector in Turkey are surveyed. First, concepts of ESL were defined. Then, effecting factors of employee satisfaction were explained, and relationships among these factors and employee satisfaction, as well as relationship between ESL were clarified. Then, hypotheses related to these relationships were developed, and an ESL model was constructed. Hypotheses were tested by using variance-based structural equation model (ss) with Spad Decisia software. Results were evaluated and discussed. 2. Literature review and hypotheses The literature review is presented in three sections. Section 2.1 reviews briefly the literature on employee satisfaction. Section 2.2 examines the impacts of employee satisfaction factors which are named empowerment and participation, working conditions,

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

reward and recognition, teamwork and training and personal development on the employee satisfaction. Section 2.3 defines employee loyalty and investigates the relationship between ESL. 2.1 Employee satisfaction Employee satisfaction is considered within empirical studies either as an overall feeling about the job, or as a related set of attitudes about various aspects of the job (Spector, 1997). Locke (1976) defined employee satisfaction as “[. . .] a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience.” Rice et al. (1989) proposed that “satisfaction is determined, in part, by the discrepancies resulting from a psychological comparison process involving the appraisal of current job experiences against some personal standards of comparison.” Le´vy-Garboua and Montmarquette (2004) defined employee satisfaction as “an index of preference for the experienced job against outside opportunities conditional on information available at time”. This definition contains a comparison between the real experience of job in the past and the mental experience of outside opportunities until then. It also contains the comparison between future expectations of own job and outside opportunities in the future (Le´vy-Garboua et al., 2007). Employee satisfaction is an important variable that is able to give an opinion about general emotion and thinking forms of employees about their job and workplace. Thus, employee satisfaction refers to expectations of the employee about the workplace and his attitudes forward his job. As a result, job satisfaction is a function of the extent to which one’s needs are satisfied in a job (Togia et al., 2004). Multiple theories related to definition of employee job satisfaction have been proposed in the literature. For example, Herzberg’s (1968) motivation-hygiene theory factors involved in creating job satisfaction were separate and distinct from factors that led to job dissatisfaction. Factors that led to job satisfaction are called motivators and include achievement, recognition, work itself, responsibility and advancement. Factors that prevent job satisfaction and lead to job dissatisfaction are called hygiene factors and include administrative policies, supervision, salary, interpersonal relations and working conditions (Petty et al., 2005). 2.2 Effecting factors of employee satisfaction The global approach to measurement of employee job satisfaction is used when the objective is to measure overall aspect to the job. However, facet approaches can specify which specific viewpoints of the job are generating satisfaction or dissatisfaction for the individual. Facets of job satisfaction can involve any aspect of the job such as pay, co-workers, supervisors, organizational factors and work environment (Coomber and Barriball, 2007). Pearson (1991) suggests that employees wait for their job to provide an aggregation of features (e.g. pay, promotion and autonomy) for which the employee has certain favourable values. In terms of employee satisfaction, Luthans (1992) has mentioned five dimensions comprising pay, characteristics of job, working conditions, management politics and working colleagues. While pay has been considered an external function, other factors (factors of job characteristics) have been defined as internal factors (Rose, 2003). Mcafee et al. (1995) investigated effects of discretion, outcome feedback and process feedback on employee job satisfaction. They found that providing discretion

Public sector employee loyalty

677

IMDS 111,5

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

678

and outcome feedback alone does not improve employee satisfaction. Significantly, but providing employees with discretion and both outcome feedback and process feedback concludes in statistically significant developments on job satisfaction of employees. According to Drummond and Stoddard (1991), employee satisfaction contains an evaluation of various characteristics of the job. These characteristics are working conditions, pay, relationships with co-workers and supervisor, organizational policies and the nature of the job itself. Also, according to Dinham and Scott (2000) and Koustelios (2001), there are various factors-related job satisfaction, for example job characteristics (e.g. work overload and time pressure), occupational characteristics (e.g. various types of work), organizational characteristics (role ambiguity and role conflict), background characteristics (e.g. age and gender) and personality characteristics (e.g. locus of control and self-esteem) have been studied in relation to both concepts (Tsigilis et al., 2006). Kazemzadeh and Bashiri (2005) investigated various studies related to employee satisfaction and identified ten main groups. These are management and personnel relationship, relation between employees, employees’ motivation, education, wage and salary, other welfare facilities, employees’ commitment, job promotion, performance, organization’s systems and processes. Also, Bodur (2002) suggested that work content, age, gender, educational level, working conditions, location (rural or urban), co-workers, salary and working hours are some of the factors related to job satisfaction. Kuo et al. (2010) suggested that both the job characteristics of work redesign and employee empowerment are significant attributes in providing higher employee commitment and loyalty toward the organization. Jun et al. (2006) investigated direct and indirect relationships among top management commitment, HR-focused TQM practices, employee satisfaction and employee loyalty. They found a strong relationship between TQM practices and job satisfaction-loyalty. Total quality management states that employee involvement and feedback improves employee satisfaction. Employees feel they are a major part of the organization and are motivated to further participate in improving the system (Teh et al., 2009). Mostly used explanatory variables in the public administration literature about job satisfaction are pay and benefit levels, leadership, working environment, job characteristics, communication, etc. These variables are at the organizational level. Other explanatory variables such as perceived procedural fairness, trust, perceived job security, etc are at the individual level. Also, they are typically found in the business literature (Yang and Kassekert, 2009). Table I has summarized some studies about job satisfaction performed in public sector. In this study, providing factors of job satisfaction were determined based on characteristics of the public institution surveyed in this study and based on the literature (Table II shows criteria affecting job satisfaction in the literature (Lee and Wilkins, 2011; Shen, 2010)) as following. These following criteria are all significant variables affecting job satisfaction among employees of Istanbul Branch of Social Security Institution in Turkey: . empowerment and participation; . working conditions; . reward and recognition; . teamwork; and . training and individual development.

Taipei City Government in the capital of Taiwan

Municipal clerks of Illinois in the USA

Gordon et al. (2010)

Federal agencies in the USA

State government IT employees in the USA

Yang and Kassekert (2009) Chang et al. (2010)

Badran and Kafafy (2008) Gupta and Sharma (2009) Kim (2009)

Choi (2008)

Tsigilis et al. (2006)

Saibou (2006)

Steijn (2005)

Willems et al. (2004)

Bodur (2002)

Steijn (2002)

Job satisfaction and expected pension accrual

Focus of study

Job satisfaction, job characteristics work environment and monetary rewards and promotions Job satisfaction, trust in leadership and perceived effectiveness of performance appraisal Job satisfaction employee empowerment, employee compensation, teamwork and management leadership Job satisfaction, working conditions, advancement and promotion and training opportunities

Job satisfaction, participative management, participative strategic planning process and supervisory communication The different Dutch public sector workers Job satisfaction, individual characteristics, job characteristics, work environment and personnel management practices Health care workers employed at public health centers in Konya Job satisfaction, demographic variables, working conditions, in Turkey salary and working hours Belgian federal public sector workers Job satisfaction, individual factors, organizational factors, policy influences and psychological contract The different Dutch public sector workers Job satisfaction, individual characteristics, job and organizational context and soft organizational characteristics Civil servants employed by the Ministry of Public Health in Job satisfaction, personality, social influence, work Niger environment variables and demographic variables Greek early educators: a comparison between public and Job satisfaction, the work itself, pay, promotion, supervision, private sector employees working conditions and organization as a whole Federal agencies in the US Federal Government Job satisfaction, demographic variables, diversity effects and diversity management effects An Egyptian public sector bank Job redesign, job satisfaction, resilience, commitment and flexibility Different public sector organizations of Jammu region Job satisfaction environmental factors and physical factors

Large public utility employees in Canada

Luchak and Gellatly (2002) Kim (2002)

Local government agencies in the USA

Sample

Authors (year)

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

Public sector employee loyalty

679

Table I. Studies about job satisfaction in public sector

Kim (2002) Steijn (2002)

Empowerment-participative management

Lee and Wilkins (2011)

Gordon et al. (2010)

Shen (2010)

Chang, Chiu, Chen (2010)

Yang and Kassekart (2009)

Kim (2009)

Gupta and Sharma (2009)

√

√

√

√

√

√

√

√

√ √

√

√

√

√

Saibou (2006)

√

√

Tsigilis et al. (2006)

√

Togia et al. (2004)

√

√

√

√

√

√

Saalary, recognition-rewards -promotions

Willems et al. (2004)

Jun et al. (2006)

Bodur (2002)

√

Authors (year)

Table II. Affecting factor of job satisfaction in the literature Leadership/Supervisor/ management

Team work and cooperation √

√

√

Training program-career development √

√

√

√

√

√

√

√

Working conditions Communication

Family-friendly policies

√

√ √

√

√

√

√

√

√

√

√

√ √

Corporate culture √

√

Compensation √

√

√

√

Job itself (task, work load etc.)

√

√

√

√

Organization a s a whole √

√

√

Emototional exhaustion √

Performance management √

Recruiment √

Demopraphics √

√

√

Co-vorkers rrelations √

680 Public sector

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

Country study performed USA

USA

China

Taiwan

USA

USA

India

Niger

Greece

Greece

Belgium

Mexico

Turkey

USA Germany

IMDS 111,5 Private sector

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

Empowerment and participation. Participation consists of involvement of employees in management and decision making related to strategies, goals and policies of the firms. According to Chao et al. (1994), employees’ understanding of the goals, values and politics of their companies were positively and significantly related to job satisfaction. According to Brewer et al. (2000), public managers should consider employees in decision-making processes. Bhatti and Qureshi (2007) suggest that employee participation in organization events may improve job-satisfaction level. Empowerment involves creating values for employees to do their job independently without constant intervention of management (Ampofo-Boateng et al., 1997). Velthouse (1990) defined empowerment as one’s belief in his/her ability to employ choice. Aim of the employee empowerment is to develop individual and organizational performance and to help employees achieve their goals by authorizing employees to participate in the decision-making process. Employees think about their own jobs, and find and solve problems related to their job (Seibert et al., 2004; Jun et al., 2006). From an employee’s viewpoint, feelings of empowerment should have a positive impact on attitudinal responses and satisfaction from job (Snipes et al., 2005): H1. There is a positive and strong relationship between participation and empowerment and employee job satisfaction. Physical working conditions. Physical working conditions contain factors about the job such as comfortable workplace, ventilation, lighting and temperature, bigger, better and cleaner work spaces, and office spaces. These factors influence employee job satisfaction since employees want a work environment that provides more physical comfort (Ceylan, 1998). When this is provided by the firm, employee satisfaction increases. Some studies have shown that low job-satisfaction levels can be mainly imputed to the physical working conditions (De Troyer, 2000): H2. There is a positive and strong relationship between working conditions and employee satisfaction. Reward and recognition. Reward and recognition could be recognized as one of the key factors related to employee satisfaction. Maurer (2001) suggests that rewards and recognition should be linked to organizational success as a result of employee job satisfaction and they are frequently considered as one of the key factors influencing employee satisfaction ( Jun et al., 2006). The research of Pascoe et al. (2002) indicates that the lack of recognition and external reward for someone’s work is mainly in virtue of the system because rules and regulations mainly anticipate supervisors from offering “encouragement rewards” in recognition of a job well done. In other words, lack of proper recognition and rewarding decreases job satisfaction of employees. Therefore, management of organizations institutions should develop the systems for providing rewards and recognition for jobs well done to increase employee job satisfaction: H3. There is a positive and strong relationship between rewards and recognition and employee satisfaction. Teamwork. Effective teamwork can motivate employees and improve employee performance and self-efficacy. This increases motivation and self-efficacy through teamwork can be a source of employee autonomy, significance, bonding with team members and satisfaction. For example, according to results of Rahman and Bullock’s

Public sector employee loyalty

681

IMDS 111,5

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

682

(2005) surveys performed with manufacturing companies in Australia and New Zealand, the use of teams has a significantly positive relationship with employee morale. We expect the same positive relationship between effective teamwork and employee satisfaction in the public sector: H4. There is a positive and strong relationship between teamwork and employee satisfaction. Training and individual development. Employee training provides opportunities to employees widen their knowledge and abilities for more efficient teamwork and achieve individual development (Jun et al., 2006). When workers receive self-development training, the level of their job satisfaction is higher than those without such training (Saks, 1996). Also, Martensen and Gronholdt (2001) found that the development of individual competencies through various training programs has a positive influence on employee satisfaction. When employees attended to training programs, they gain self-confidence of making their jobs, they perceive career development opportunities and they think that their companies make investment in them (Jun et al., 2006). As result of this positive situations, employee satisfaction increases. Thus, following hypothesis is developed: H5. There is a positive and strong relationship between training and individual development and employee satisfaction. 2.3 Employee satisfaction and loyalty According to Allen and Grisaffe (2001), loyalty is a psychological state and it characterizes the relationship of an employee with the organization for which they work and that has implications for their decision to remain with the organization. According to the definition of Mathieu and Zajac (1990), loyalty means as attachment to the organization that may be considered an emotional response, especially when an employee believes strongly in organizational goals and values and has a strong desire to maintain membership of the organization. According to Becker et al. (1995), loyalty could be defined as a strong desire to maintain a member of an organization; a willingness to slug on high levels of efforts for the sake of the organization; and a definite belief in and admissibility of the values and goals of the organization. Thus, loyalty is characterized by the strong wish to continue membership of an organization, which plays a positive role in retention of members in the organization. Organizational loyalty of employees could be defined as “the relative strength of an individual’s identification with and involvement in a particular organization” (Wu and Norman, 2006). While job satisfaction represents an effective response to specific features of the job and an attitude toward a job, employee loyalty is an effective response to the whole organization (Chen, 2006). Empirical evidence suggests that job satisfaction is an antecedent to organizational loyalty of employees. This means that organizational loyalty of employees develops from job satisfaction, such that loyalty mediates the effects of satisfaction on turnover variables (Chen, 2006). Employee job satisfaction has a positive impact on organizational loyalty of employees (Fletcher and Williams, 1996). According to Martensen and Gronholdt (2001), employee satisfaction is positively related to employees’ loyalty to their companies. Also, some studies such as Al-Aameri (2000) and Fang (2001) also consistently report a strong relationship between organizational loyalty of employees and employee job satisfaction (Wu and Norman, 2006). Low job satisfaction leads to low loyalty to organization,

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

low employee morale and increased job turnover (Soler, 1998). Also, low job satisfaction could cause employees to recede from their jobs, seek new jobs, or change their current jobs and careers. Employees who are satisfied with their jobs have greater organizational loyalty than dissatisfied employees (Kim et al., 2005). Some researchers such as Fisher (2000) and Locke (1976) have found similar results (Petty et al., 2005). When employee job satisfaction increased, the degree of organizational loyalty of employee is higher:

Public sector employee loyalty

683

H6. There is a positive and strong relationship between employee satisfaction and employee’s loyalty. According to these hypotheses, a model was constructed and the research framework developed in this study is shown in Figure 1. 3. Research methodology 3.1 Survey setting A case study method was used to collect the required data on the underlying dimensions of the research model. The public insurance sector was chosen as an ideal research setting in Turkey. The main rationale for selecting insurance industry is that the social security system has been redesigned and previously existing three different public security systems: (1) SSK, the insurance scheme for private sector employees and blue-collar public sector employees. (2) Bag-Kur, the insurance scheme for merchants, artisans and the self-employed. (3) GERF, which insures retired civil servants – were merged into a single public security system named Social Security Institution.

Empowerm. and participation Working conditions

Reward and recognition

Job satisfaction

Job loyalty

Team work

Training and development

Figure 1. Model of the study

IMDS 111,5

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

684

The integration of the clients of each public insurance institution increased the number of operations and total workload. Because of this operational change, Istanbul Branch of Social Security Institution has been selected for the case study. Social Security Institution is the biggest public security institution in Turkey, and now it serves 90 percent of the total population of the Turkey. Its main services areas about employees are retirement, health and insurance (i.e. unemployment insurance). 3.2 Survey instrument and respondents In order to determine the critical factors on ESL, and their importance, a survey is developed and conducted. The conceptual definition of construct was adopted from the literature survey given in Section 2 of the study. A multi-item scale was developed to operationalise each construct in public insurance company in Istanbul. Each item related to employee satisfaction context and employee loyalty was rated on a five-point scale, ranging from “very low” to “very high”. The developed employee satisfaction model consists of the aforementioned constructs, which are based on well-established theories and approaches in employee motivation theory. The constructs of the model are unobservable (latent) variables indirectly described by a block of observable variables, which are called manifest variables or indicators. The constructs and their observable items are given in Table III. The use of multiple questions for each construct increases the precision of the estimate, compared to an approach of using a single question. A survey, developed to measure the manifest variables of the above-mentioned model, was prepared in Turkish language. Besides the model questions, some demographic questions (e.g. age, gender, education level, etc.) are also included in the questionnaire. A five-point measurement scale was used where 1 expresses a very negative point of view and 5 expresses a very positive. Latent variables

Observable (manifest) variables

Empowerment and participation (EP)

EP1: participation in decisions EP2: participation in meetings EP3: employee empowerment – initiative WC1: physical working conditions WC2: work measurement RR1: recognition RR2: rewards RR3: just and fair corporate policy RR4: fair promotion TW1: efficient teamwork TW2: conflict resolution TW3: sharing problems TPD1: importance of training TPD2: importance of personal development JS1: to be content with the type of work JS2: enjoying the job JS3: learning and growth potential JS3: feeling important JL1: desire to continue working the same institution JL2: recommending the institution to others

Working conditions (WC) Reward and recognition (RR)

Teamwork (TW) Training and individual development (TPD) Job satisfaction ( JS) Table III. Latent and manifest variables

Job loyalty ( JL)

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

Data were gathered from the survey applied in Istanbul Branch of Social Security Department. In order to ensure the reliability of the data, a face-to-face survey method performed. Among the collected 246 data, 220 were found satisfactory for data analysis. Occasional missing data on variables were handled by replacing them with the mean value. Table IV shows demographic characteristics of the sample. Of the 220 responses, 73.20 percent were male and 26.8 percent were female. Age was unevenly distributed between the brackets, with the majority of employees (51.1 percent) between the ages of 21 and 30 years. With respect to tenure, 57.2 percent experienced three years or more with the organization. About 36.8 percent have university education level.

Public sector employee loyalty

685

4. Data analysis and results SEM is a comprehensive statistical approach for testing hypotheses about relations between observed and latent variables. It combines features of factor analysis and multiple regressions for studying both the measurement and the structural properties of theoretical models. SEM is formally defined by two sets of linear equations called the inner model and the outer model. The inner model specifies the relationships between unobserved or latent variables, and the outer model specifies the relationships between latent variables and their associated observed or manifest variables (Gefen et al., 2000). Partial least squares (PLS) procedure uses two-stage estimation algorithms to obtain weights, loadings, and path estimates (Wold, 1982, 1985).

Variables Gender Male Female Education Primary school Secondary school High school Industrial high school Vocational school of higher education University Master Doctorate Age ,21 21-30 31-40 41-50 51þ Tenure Less than six months Six months-one year One to two years Two to three years More than three years

Frequency (%) 73.2 26.8 2.8 1.4 29.2 4.2 24.3 36.8 1.4 2.8 51.1 26.0 19.1 3.8 1.4 6.2 19.3 15.9 57.2

Table IV. Demographic characteristics of the sample

IMDS 111,5

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

686

In the first stage, an iterative scheme of simple and/or multiple regressions contingent on the particular model is performed until a solution converges on a set of weights used for estimating the latent variables scores (Chin, 1998). The PLS algorithm starts with arbitrary selected initial weights, and is iterated until convergence. Once the outer weights are estimated, final results of the latent variables are calculated as weighted mean of manifest variables (Fornell and Cha, 1994). The second stage involves the non-iterative application of ordinary least squares (OLS) regression for obtaining loadings, path coefficients, mean scores and location parameters for the latent and manifest variables (Chin, 1998). The latent variables and their related observable variables used in the structural model of employee satisfaction are given in Table V. 4.1 Unidimensionality check of the blocks Before starting to analyze the path model, unidimensionality of each construct in the proposed model was checked. Unidimensionality check is necessary when the manifest variables are connected to their latent variables in a reflective way (Tenenhaus et al., 2005). There are three tools available for the unidimensionality check of a block: principal component analysis of the block, Cronbach’s alpha and Dillon-Goldstein’s r. A block is essentially unidimensional if the first eigenvalue of the correlation matrix of the block manifest variables is larger than 1 and the second one smaller than 1, or at least very far from the first one. A block is also considered as unidimensional when Cronbach’s alpha and Dillon-Goldstein’s r-values are larger than 0.7 (Tenenhaus et al., 2005). For the dataset collected, Cronbach’s alpha and Dillon-Goldstein’s r-values of each block are found to be greater than 0.80. From principal component analysis, first eigenvalue is found greater than 1 and second eigenvalue is less than 1 for each block. These results lead to an acceptation of the unidimensionality of all blocks. Latent variables and inner model equations

j1 empowerment and participation (EP) j2 working conditions (WC) j3 reward and recognition (RR)

j4 teamwork (TW) j5 training and individual development (TID) H1 job satisfaction ( JS) h1 ¼ g11 j1 þ g12 j2 þ g13 j3 þ g14 j4 þ g15 j5 þ z1 Table V. Model variables, parameters and relations

H2 job loyalty ( JL) h2 ¼ b21 h1 þ z2

Manifest variables

Outer model equations

x11 EP1 x12 EP2 x13 EP3 x21 WC1 x22 WC2 x31 RR1 x32 RR2 x33 RR3 x34 RR4 x41 TW1 x42 TW2 x43 TW3 x51 TID1 x52 TID2 y11 JS1 y12 JS2 y13 JS3 y13 JS3 y21 JL1 y22 JL2

x1i ¼ l1i j1 þ d1i x2i ¼ l2i j2 þ d2i x3i ¼ l3i j3 þ d3i

x4i ¼ l4i j4 þ d4i x5i ¼ l5i j5 þ d5i y1i ¼ l1i h1 þ 11i

y2i ¼ l2i h2 þ 12i

Public sector employee loyalty

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

4.2 Results of PLS estimation PLS results are estimated in two stages: (1) outer model estimation; and (2) inner model estimation. Outer model results. The outer model (or measurement model) defines how each block of indicators is related to their latent variable. The outer model estimation results (i.e. outer weights, loadings and communality measures) are given in Table VI. In PLS, individual item reliability is assessed by examining the loading of the manifest variables with their respective construct. A rule of thumb employed by many researchers is to accept items with loadings of 0.70 or more, which implies that there is more shared variance between the construct and its manifest variable than error variance (Carmines and Zeller, 1979; Hulland, 1999). In this study, the loadings between manifest variables and their related latent variables are relatively large and positive. The manifest variables are good measure of their latent variables. According to Fornell and Larcker (1981), convergent validity of the reflective constructs can be examined by its average communality (i.e. average variance extracted). A construct’s average communality should be, at least, higher than 50 percent to guarantee more valid variance explained than error in its measurement (Fornell, 1992). In the studied model, the average communality scores of EP, WC, RR, TW, TPD, JS and JL are 0.59, 0.66, 0.69, 0.63, 0.68 and 0.86, respectively. All scores are acceptable. In other words, the correlations between each reflective construct and its indicators that are supposed to measure it are high. Discriminant validity, the traditional methodological complement to convergent validity, represents the extent to which measures of a given construct differ from Latent variable EP WC RR

TW TID JS

JL

Manifest variable

Outer weight

Loadings

Communality

EP1 EP2 EP3 WC1 WC2 RR1 RR2 RR3 RR4 TW1 TW2 TW3 TID1 TID2 JS1 JS2 JS3 JS4 JL1 JL2

0.3255 0.2975 0.2426 0.4767 0.3774 0.2158 0.1757 0.3668 0.2496 0.3641 0.4312 0.3005 0.6294 0.4235 0.2630 0.2228 0.2232 0.3007 0.4281 0.3921

0.8067 0.7822 0.7258 0.8549 0.7594 0.8600 0.7661 0.8683 0.8283 0.8179 0.8243 0.7399 0.8780 0.7764 0.7834 0.8254 0.7649 0.7569 0.9363 0.9245

0.6507 0.6119 0.5268 0.7308 0.5767 0.7395 0.5869 0.7539 0.6861 0.6690 0.6794 0.5474 0.7709 0.6029 0.6137 0.6813 0.5851 0.5729 0.8767 0.8547

687

Table VI. The outer model estimation

IMDS 111,5

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

688

measures of other constructs in the same model. In PLS, one criterion for adequate discriminant validity is that a construct should share more variance with its measures than it shares with other constructs in a given model (Hulland, 1999). To assess discriminant validity, average communality measure should be greater than the variance shared between the construct and other constructs in the model. In Table VII, while the diagonal elements are the square root of the variance shared between the constructs and their measures (average communality), the off-diagonal elements are the correlations among constructs. Average communality measures of the blocks are greater than the variance shared with other blocks. That is, all the seven reflective constructs are both conceptually and empirically distinct from each other. Inner model results. Once the outer weights are estimated, the inner model is estimated by individual OLS multiple regressions. Simple/multiple regression coefficients for each endogenous latent variable, p-value and R 2 statistics are presented in Table VIII. It is important to notice that all the relationships between the latent variables in the model are positive. Therefore, for each regression model, an increase in the value of an independent latent variable will also increase the value of related dependent latent variable. Based on the test results of the overall model, factors of employee satisfactions explain approximately 60 percent of the variation in overall employee satisfaction and overall employee satisfaction explains almost 50 percent of employee loyalty. According the inner model results given in Table VIII, all six hypothesized relationships between the effecting factors and employee satisfaction, and relationship between ESL are confirmed. Latent variable

Table VII. Discriminant validity of the blocks

EP WC RR TP TID JS JL

Block

EP

WC

RR

TP

TID

JS

JL

0.5930 0.1818 0.4828 0.3889 0.3938 0.4169 0.1712

0.1818 0.6538 0.1433 0.1035 0.1694 0.2550 0.1224

0.4828 0.1433 0.6916 0.3638 0.5078 0.4375 0.1668

0.3889 0.1035 0.3638 0.6319 0.2893 0.3418 0.2250

0.3938 0.1694 0.5078 0.2893 0.6869 0.4222 0.2118

0.4169 0.2550 0.4375 0.3418 0.4222 0.6133 0.4846

0.1712 0.1224 0.1668 0.2250 0.2118 0.4846 0.8657

Factor 2

Table VIII. Inner model results

SATISFACTION R INTERCEPT EMP WORK CONDITIONS MOTIVATION TEAMWORK TRAINING LOY R2 INTERCEPT SATISFACTION

Contribution to R 2

Regression coefficient

Student’s t

p-value

0.6457

18.5688

0.0000 0.1706

2.1082

0.0367

0.5049 0.6614 0.5847 0.6498 0.4846

17.8743 22.8922 16.6681 23.9966

0.2100 0.2053 0.1691 0.2191

3.5552 2.3976 2.3960 2.7840

0.0005 0.0177 0.0178 0.0061

0.6962

100.0000

0.0000 0.6962

11.9952

0.0001

Correlation 0.5932

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

5. Discussion and managerial implications The primary objective of the study is to determine the critical factors of the employee satisfaction and find the impact of employee satisfaction on employee loyalty in the public sector in Turkey. Satisfaction construct contains five main factors, which are named empowerment and participation, working conditions, reward and recognition, teamwork and training and personal development. In this study, training and personal development was found to be the most important factor on employee satisfaction with the value of its standardized regression weight being 0.2191 ( p , 0.01). This result is consistent with consequences of the Martensen and Gronholdt’s (2001) study. Training of workforce provides various benefits to organizations such as fewer production errors, increased productivity, decreased turnover and improved safety. Training and education may also help the organization to develop a learning environment, which may enhance innovation and a better organizational culture. Educating and training the employees, for example, on TQM implementation and its related consequences are crucial for the success of an organization. Training needs of employees should be identified very carefully and considered as a quality awareness workshop. Missing skill sets should be determined and new training should be scheduled to fulfill these gaps. Necessary financial resources should be available for such efforts. Implication of this finding for public sector is that executive managers in public organizations need to create a work environment in which individual workers perceive a support in their career-development aims. They should provide career planning opportunities and training and development experiences to employees. Public organizations will provide long-term benefits from creating clear career paths for their employees. In this study, working condition was found to be the second most important factor on employee satisfaction. Working condition has also a significant effect (b ¼ 0.21; p , 0.01) on employee satisfaction. Job satisfaction can be influenced by the quality of the physical environment in which they fulfill in their work. Whether work is physical or cognitive, it is performed in an environment that includes both physical and social aspects. Working conditions include satisfactory work space, appropriate lighting, noise, thermal environment, usability-related issues and office equipments. Ergonomic design of office workplaces increases the organization performance. Management should create a new concept for work environments to improve worker effectiveness. In addition to that, management of the organization should provide ergonomically designed workspaces that enhance employees’ health and well-being, and supports employees’ job tasks by being adaptable to the changing work process through flexible, moveable and adjustable workspaces. Well-designed work environment also increases communication and collaboration among employees and departments. Work measurement and task analysis is the second criteria of working condition construct. Work measurement is very important activity for the effective management of the public organizations. Task analysis describes the specific interaction between a person and their physical equipment. Task analysis can be used to determine the appropriate allocation of the function of humans and the application of equipment in work-related operational systems, determining staffing and job organization levels, and assessing what is needed to do a particular job and how it will be provided. It can also help to ensure that people within the system are capable of carrying out their assigned tasks, and it can measure work performance, system safety and reliability. Reward and recognition factor was found to be the third important construct that effect employee satisfaction. This result supports study of the Jun et al. (2006)

Public sector employee loyalty

689

IMDS 111,5

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

690

and Maurer (2001). Organizations must develop formal reward and recognition systems to encourage employee involvement, and support teamwork. Recognition of excellence on related efforts by any employee, department should be rewarded as a means of supporting particular performance level. In order to stimulate employee commitment to TQM implementation, performance measures for organization may need to be modified to take the quality efforts into consideration. Implication of this finding for public sector is that executive leaders and managers in public sector should be aware of the importance of reward and recognition. Managers should examine organization’s incentives to identify ways in which internal politics are rewarded. Reward system should be prepared in the organization based on individual performance. In public sector, to generate customer satisfaction, a high level of empowerment and participation that must be initiated by the top management. Empowerment and participation was the fourth important factor related to employee satisfaction. These results have been endorsed by Chao et al. (1994) and Snipes et al. (2005). Empowering employees involves moving decision making to the lowest level possible in the organization. Study indicates that employees should be encouraged to get together in the meetings to discuss reports and measurements and policies. Employee involvement covers information sharing and employee relationships. Quality improvement plans proposed by several gurus emphasize primarily the involvement of empowered employees. Most employee involvement systems without empowerment fail regardless of whether the organization uses suggestion systems, brainstorming sessions and regular meetings or not. Without clear support and contribution of the employees, a successful management implementation may not be accomplished. Implication of this finding for public sector is that executive leaders and managers in public sector should be aware of the importance of participation and empowerment. Organizational leaders in the public organizations should give importance changing organizational culture from traditional structure to participative management and empowerment. When public organizations apply leadership development and other training programs for managers, they should include participative decision-making and employee-empowerment techniques as a key constituent of this programs. Teamwork has been found as the least important criteria related to employee satisfaction. This result is consistent with study of Rahman and Bullock (2005). The relationships among team members are also very important in establishing a well-organized team. Teamwork throughout any organization is an essential component of the implementation of TQM. Cross-functional team formations, collaboration among employees, voluntary employee participation to TQM studies and acceptance of employee suggestions regarding the system are some indicators of employee involvement in organization. Implication of this finding for public sector is that executive leaders and managers in public sector should give importance to teamworking because an effective teamworking provides that the employees work together to achieve a common goal, and enhances motivation of the employees and job satisfaction. This is important to achieve the mutual goals of the public organization 6. Conclusion Number of factors has been identified to extend satisfaction level of employees. However, these factors have been reevaluated in time, and job satisfaction determinants information is still inadequate. This has caused to develop a conceptual model

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

and test it in developing country to assess the factors that might develop job satisfaction of employees in public sector. It has been widely accepted that ESL are very important concept for the success of the public organization. This study analyzed employee satisfaction and the factors affecting the loyalty of the employees in public sector in Turkey. Five factors of employee satisfaction have been chosen namely empowerment and participation, working conditions, reward and recognition, team work and training and personal development. The findings show that there is a positive linear relationship between employee satisfaction and employee loyalty. By examining outcomes variables effecting satisfaction and loyalty, this study offers a holistic approach to effective employee behavior. Most affecting factors of ESL are, respectively, training and personnel development, working conditions, reward and recognition, empowerment and participation and teamwork. The relationship between dependent variables and ESL were statistically significant in the SEM. With government officials, satisfaction with their jobs may have strong and important influence on improving the quality of government services. Specifically, workers’ satisfaction of social security institution with their job may have a direct impact on the quality of services given to citizen. It is crucial for policy makers to measure the level of social security workers’ job satisfaction exactly in order to develop the quality of social security services given to citizen. The study, however, is subject to some limitations. While the findings of this study confirm the direct and positive relationships between employee satisfaction and employee loyalty, they cannot be generalized to the whole population of public insurance organization in Turkey due to the case study approach. The sensitive nature of the subject and the availability of personal connections, however, have made the selection of case study methodology mandatory over other large-scale quantitative surveys. Another limitation is that while there is a general assent on the likely impacts of critical factors of employee satisfaction on overall employee satisfaction in the extant literature, it may not be claimed that these five factors solely determine the employee satisfaction and employee loyalty. Instead, there are several other factors that may influence them, which is beyond the scope of this research. Despite the above limitations, we believe that this study provides a contribution to the literature. Because this study is performed in the public sector organization in a developing country, the results of the study will provide to understand the concept of public employees’ job satisfaction in the public sector in a developing country. In conclusion, it is hoped that this research contributes to both academicians and business practitioners by improving our understanding of satisfaction and loyalty of employees in public sector. References Al-Aameri, A.S. (2000), “Job satisfaction and organizational commitment for nurses”, Saudi Medical Journal, Vol. 21 No. 6, pp. 531-5. Allen, N.J. and Grisaffe, D.B. (2001), “Employee commitment to the organization and customer reactions mapping the linkages”, Human Resource Management Review, Vol. 11, pp. 209-36. Ampofo-Boateng, K., Merican, W.R.A., Jamil, A. and Wiegand, B. (1997), “Employees’ adaptation to technological changes in a multinational corporation in Malaysia, innovation in

Public sector employee loyalty

691

IMDS 111,5

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

692

technology management – the key to global leadership”, PICMET’97: Portland International Conference on Management and Technology, Portland, 27-31 July, pp. 987-9. Badran, M.A. and Kafafy, J.H. (2008), “The effect of job redesign on job satisfaction, resilience, commitment and flexibility: the case of an Egyptian public sector bank”, International Journal of Business Research, Vol. 8 No. 3, pp. 27-41. Becker, T.E., Randal, D.M. and Riegel, C.D. (1995), “The multidimensional view of commitment and theory of reasoned action: a comparative evaluation”, Journal of Management, Vol. 21 No. 4, pp. 617-38. Bhatti, K.K. and Qureshi, T.M. (2007), “Impact of employee participation on job satisfaction, employee commitment and employee productivity”, International Review of Business Research Papers, Vol. 3 No. 2. Bodur, S. (2002), “Job satisfaction of health care staff employed at health centres in Turkey”, Occupational Medline, Vol. 52 No. 6, pp. 353-5. Brewer, G.A., Selden, S.C. and Facer, R.L. II (2000), “Individual conceptions of public service motivation”, Public Administration Review, Vol. 60 No. 3, pp. 254-63. Carmines, E.G. and Zeller, R.A. (1979), “Reliability and validity assessment”, Sage University Paper Series on Quantitative Applications in the Social Sciences, No. 7-17, Sage, Beverly Hills, CA. Ceylan, A. (1998), “O¨rgu¨tsel Davranıs¸ın Bireysel Boyutu”, GYTE Publishing No: 2, GYTE Baski ve Fotofilm merkezi, Gebze. Chang, C.C., Chiu, C.M. and Chen, C.A. (2010), “The effect of TQM practices on employee satisfaction and loyalty in government”, Total Quality Management & Business Excellence, Vol. 21 No. 12, pp. 1299-314. Chao, G.T., O’Leary-Kelly, A.M., Wolf, S., Klein, H.J. and Gardner, P.D. (1994), “Organizational socialization: its content and consequences”, Journal of Applied Psychology, Vol. 79, pp. 730-43. Chen, C. (2006), “Job satisfaction, organizational commitment, and flight attendants’ turnover intentions: a note”, Journal of Air Transport Management, Vol. 12, pp. 274-6. Chin, W.W. (1998), “The partial least squares approach for structural equation modeling”, in Marcoulides, G.A. (Ed.), Modern Methods for Business Research, Lawrence Erlbaum Associates, Mahwah, NJ, pp. 295-336. Choi, S. (2008), “Diversity in the US federal government: diversity management and employee turnover in federal agencies”, Journal of Public Administration Research and Theory, Vol. 19, pp. 603-30. Coomber, B. and Barriball, K.L. (2007), “Impact of job satisfaction components on intent to leave and turnover for hospital-based nurses: a review of the research literature”, International Journal of Nursing Studies, Vol. 44, pp. 297-314. Demir, H. and Yavuz, A. (2009), “Cadastral services in Turkey within the framework of new public management”, African Journal of Business Management, Vol. 3 No. 10, pp. 582-90. De Troyer, M. (2000), “The hospital sector in Europe – introductory report”, TUTBSALTSA Conference, Brussels, pp. 25-7. Dinham, S. and Scott, C. (2000), “Moving into the third outer domain of teacher satisfaction”, Journal of Education Administration, Vol. 38 No. 4, pp. 379-96. Drummond, R.J. and Stoddard, A. (1991), “Job satisfaction and work values”, Pychological Reports, Vol. 69, pp. 1116-18. Fang, Y. (2001), “Turnover propensity and its causes among Singapore nurses: an empirical study”, International Journal of Human Resource Management, Vol. 12 No. 5, pp. 859-71.

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

Farnham, D. and Horton, S. (1996), Managing People in the Public Services, Macmillan, Houndmills. Fisher, C.D. (2000), “Mood and emotions while working: missing pieces of job satisfaction?”, Journal of Organizational Behavior, Vol. 21, pp. 185-202. Fletcher, C. and Williams, R. (1996), “Performance management, job satisfaction and organizational commitment”, British Journal of Management, Vol. 7 No. 2, pp. 169-79. Fornell, C. (1992), “A national satisfaction barometer: the Swedish experience”, Journal of Marketing, Vol. 56, pp. 6-21. Fornell, C. and Cha, J. (1994), “Partial least squares”, in Bagozzi, R.P. (Ed.), Advanced Methods of Marketing Research, Blackwell, Cambridge, MA, pp. 52-78. Fornell, C. and Larcker, D.F. (1981), “Evaluating structural equation models with unobservable variables and measurement error”, Journal of Marketing Research, Vol. 18, pp. 39-50. Gefen, D., Straub, W.D. and Boudreau, M.C. (2000), “Structural equation modelling and regression: I for research practice”, Communications of the Association for Information Systems, Vol. 4 No. 7, pp. 1-80. Gordon, V., Osgood, J.L. and Piiiliips, J. (2010), “Municipal clerks: examining a model of job satisfaction”, Public Personnel Management, Vol. 39 No. 4, pp. 327-52. Gupta, M. and Sharma, P. (2009), “Job satisfaction level among employees: a case study of Jammu region, J&K”, The Icfaian Journal of Management Research, Vol. VIII No. 5, pp. 17-25. Halepota, J. (2009), “Predictors of job satisfaction of public employees”, paper presented at the PDH Doctoral Symposium, available at: www.brunel.ac.uk/329/BBS%20documents/ PHD%20Doctoral%20Symposium%2009/JamshedHalopota0631627.pdf (accessed 11 January 2011). Herzberg, F. (1968), Work and the Nature of Man, World Publishing, New York, NY. Horton, S. (2006), “High aspirations: differences in employee satisfaction between university faculty and staff”, Applied Research in Quality of Life, Vol. 1, pp. 315-22. Hulland, J.S. (1999), “Use of partial least squares (PLS) in strategic management research: a review of four recent studies”, Strategic Management Journal, Vol. 20 No. 2, pp. 195-204. Jun, M., Cai, S. and Shin, H. (2006), “TQM practice in maquiladora: antecedents of employee satisfaction and loyalty”, Journal of Operations Management, Vol. 24, pp. 791-812. Kazemzadeh, R.B. and Bashiri, M. (2005), “Determination of critical factors on employee satisfaction – a case study on a financial institute”, Proceedings of the IEEE International Engineering Management Conference, Vol. 1, September, pp. 16-20. Kim, S. (2002), “Participative management and job satisfaction: lessons for management leadership”, Public Administrative Review, Vol. 62 No. 2, pp. 231-41. Kim, S. (2009), “IT employee job satisfaction in the public sector”, International Journal of Public Administration, Vol. 32, pp. 1070-97. Kim, W.G., Leong, J.K. and Lee, Y. (2005), “Effect of service orientation on job satisfaction, organizational commitment, and intention of leaving in a casual dining chain restaurant”, Hospitality Management, Vol. 24, pp. 171-93. Koustelios, A. (2001), “Personal characteristics and job satisfaction of Greek teachers”, The International Journal of Education Management, Vol. 15 No. 7, pp. 354-8. Kuo, T.H., Ho, L., Lin, C. and Kai, K.K. (2010), “Employee empowerment in a technology advanced work environment”, Industrial Management & Data Systems, Vol. 110 No. 1, pp. 24-42.

Public sector employee loyalty

693

IMDS 111,5

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

694

Lee, Y. and Wilkins, V.M. (2011), “More similarities or more differences? Comparing public and nonprofit managers’ job motivations”, Public Administration Review, January/February, pp. 45-56. ´ Levy-Garboua, L. and Montmarquette, C. (2004), “Reported job satisfaction: what does it mean?”, Journal of Socio-Economics, Vol. 33, pp. 135-51. Le´vy-Garboua, L., Montmarquette, C. and Simonnet, V. (2007), “Job satisfaction and quits”, Labour Economics, Vol. 14, pp. 251-68. Locke, E. (1976), “The nature and causes of job satisfaction”, in Dunnette, M. (Ed.), Handbook of Industrial and Organizational Psychology, Rand McNally, Chicago, IL, pp. 1297-349. Luchak, A. and Gellatly, I. (2002), “How pension accrual affects job satisfaction”, Journal of Labor Research, Vol. 23 No. 1, pp. 145-62. Luthans, F. (1992), Organizational Behaviour, 6th ed., McGraw-Hill, New York, NY, p. s.126. McAfee, B., Quarstein, V. and Ardalan, A. (1995), “The effect of discretion, outcome feedback, and process feedback on employee job satisfaction”, Industrial Management & Data Systems, Vol. 95 No. 5, pp. 7-12. Martensen, A. and Gronholdt, L. (2001), “Using employee satisfaction measurement to improve people management: an adaptation of Kano’s quality types”, Total Quality Management, Vol. 2 Nos 7/8, pp. 949-57. Mathieu, J.E. and Zajac, D.M. (1990), “A review and meta-analysis of the antecedents, correlates, and consequences of organizational commitment”, Psychological Bulletin, Vol. 108 No. 2, pp. 171-94. Maurer, R. (2001), “Building a foundation for change”, Journal for Quality & Participation, Vol. 24 No. 3, pp. 38-9. Metcalfe, L. (1989), “Accountable public administration: UK concepts and experience”, in Kakabadse, A., Brovetto, P.R. and Holzen, R. (Eds), Administration Development in the Public Sector, Avebury Press, Aldershot. Pascoe, C., Ali, I.M. and Warne, L. (2002), “Yet another role for job satisfaction and work motivation – enabler of knowledge creation and knowledge sharing”, Informing Science InSITE – “Where Parallels Intersect”, June, pp. 1239-48. Pearson, C.A. (1991), “An assessment of extrinsic feedback on participation, role perceptions, motivation, and job satisfaction in a self-managed system for monitoring group achievement”, Human Relations, Vol. 44 No. 5, pp. 517-37. Petty, G.C., Brewer, E.W. and Brown, B. (2005), “Job satisfaction among employees of a youth development organization”, Child and Youth Care Forum, Vol. 34 No. 1. Rahman, S. and Bullock, P. (2005), “Soft TQM, hard TQM, and organizational performance relationships: an empirical investigation”, Omega, Vol. 33 No. 1, pp. 73-83. Rice, R., McFarlin, D. and Bennett, D. (1989), “Standards of comparison and job satisfaction”, Journal of Applied Psychology, Vol. 74, pp. 591-8. Rose, M. (2003), “Good deal, bad deal? Job satisfaction in occupations”, Work, Employment and Society, Vol. 17 No. 3, p. 506. Saibou, H. (2006), “Employee job satisfaction in public sector: a study based on the case of Niger”, Proceedings of the 7th International Conference on Innovation & Management, pp. 777-80. Saks, A.M. (1996), “The relationship between the amount and helpfulness of entry training and work outcomes”, Human Relations, Vol. 49 No. 4, pp. 429-51.

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

Seibert, S.E., Silver, S.R. and Randolph, W.A. (2004), “Taking empowerment to the next level: a multiple-level model of empowerment, performance, and satisfaction”, Academy of Management Journal, Vol. 47 No. 3, pp. 332-49. Shen, J. (2010), “Employees’ satisfaction with HRM in Chinese privately-owned enterprises”, Asia Pacific Business Review, Vol. 16 No. 3, pp. 339-54. Snipes, R.L., Oswald, S.L., La Tourc, M. and Armenakis, A.A. (2005), “The effects of specific job satisfaction facets on customer perceptions of service quality: an employee-level analysis”, Journal of Business Research, Vol. 58, pp. 1330-9. Soler, C.H. (1998), “The relationship of organizational structure and job characteristics to teacher’s job satisfaction and commitment (Doctoral dissertation, St John’s University, 1998)”, Dissertation Abstracts International, Vol. 60, pp. 42-73. Spector, P. (1997), Satisfaction: Application, Assessment, Causes and Consequences, Sage, London. Steijn, B. (2002), “HRM and job satisfaction in the Dutch public sector”, Abstract for the EGPA-Conference in Potsdam, Study Group on Public Personnel Policies, 4-7 September, available at: http://soc.kuleuven.be/io/egpa/HRM/potsdam/steijn.pdf (accessed 4 April 2008). Steijn, B. (2005), “Determinants of organizational satisfaction in the Dutch public sector”, paper presented at the NIG Annual Work Conference, Public Management Session, Nijmegen, 11 November. TBMM (2008), Kamu Yo¨netimi Temel Kanunu Tasarısı ile ˙Ic¸is¸leri Plan ve Bu¨tc¸e ve Anayasa Komisyonları Raporlar (1/731), Do¨nem:22, Yasama Yılı:2, available at: www.tbmm.gov.tr/ sirasayi/donem22/yil01/ss349m.htm (accessed 11 January 2010). Teh, P., Yong, C., Arumugam, V. and Ooi, K. (2009), “Does total quality management reduce employees’ role conflict?”, Industrial Management & Data Systems, Vol. 109 No. 8, pp. 1118-36. Tenenhaus, M., Vinzi, V.E., Chatelin, Y.M. and Lauro, C. (2005), “PLS path modeling”, Computational Statistics and Data Analysis, Vol. 48, pp. 159-205. Togia, A., Koustelios, A. and Tsigilis, N. (2004), “Job satisfaction among Greek academic librarians”, Library & Information Science Research, Vol. 26, pp. 373-83. Tsigilis, N., Zachopoulou, E. and Grammatikopoulos, V. (2006), “Job satisfaction and burnout among Greek early educators: a comparison between public and private sector employees”, Educational Research and Review, Vol. 1 No. 8, pp. 256-61. Velthouse, B.A. (1990), “Creativity and empowerment: a complementary relationship”, Review of Business, Vol. 12, Fall, pp. 13-18. Willems, I.R., Janvier, R. and Henrerickx, V. (2004), “The unique nature of psychological contracts in public sector: an exploration”, paper presented at the EGPA Annual Conference, Study Group 3: Personnel Policies, Ljubljana, 1-4 September, available at: http://soc.kuleuven.be/io/egpa/HRM/ljubljana/Willems-Janvier&Henderickx.pdf (accessed 5 June 2008). Wold, H. (1982), “Soft modeling: the basic design and some extensions”, in Jo¨reskog, K.G. and Wold, H. (Eds), Systems under Indirect Observation, Part 2, North-Holland, Amsterdam, pp. 1-54. Wold, H. (1985), “Partial least squares”, in Kotz, S. and Johnson, N.L. (Eds), Encyclopedia of Statistical Sciences, Vol. 6, Wiley, New York, NY, pp. 581-91. Wu, L. and Norman, I.J. (2006), “An investigation of job satisfaction, organizational commitment and role conflict and ambiguity in a sample of Chinese undergraduate nursing students”, Nurse Education Today, Vol. 26, pp. 304-14.

Public sector employee loyalty

695

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

IMDS 111,5

Yang, K. and Kassekert, A. (2009), “Linking management reform with employee job satisfaction: evidence from federal agencies”, The Journal of Public Administration Research, and Theory, Vol. 20, pp. 413-36.

696

Further reading Burke, R.J. (1995), “Benefits of formal training courses within a professional service firm”, The Journal of Management Development, Vol. 14 No. 3, pp. 3-13. Matzler, K. and Renzl, B. (2007), “Assessing asymmetric effects in the formation of employee satisfaction”, Tourism Management, Vol. 28 No. 4, pp. 1093-103. Corresponding author Ali Turkyilmaz can be contacted at: [email protected]

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

This article has been cited by: 1. Bedman Narteh, Raphael Odoom. 2015. Does Internal Marketing Influence Employee Loyalty? Evidence From the Ghanaian Banking Industry. Services Marketing Quarterly 36, 112-135. [CrossRef] 2. Li-Chun Hsu, Pei-Wen Liao. 2015. From Job Characteristics to Job Satisfaction of Foreign Workers in Taiwan's Construction Industry: The Mediating Role of Organizational Commitment. Human Factors and Ergonomics in Manufacturing & Service Industries n/a-n/a. [CrossRef] 3. Malcolm John Beynon, Paul Jones, David Pickernell, Gary Packham. 2015. Investigating the impact of training influence on employee retention in small and medium enterprises: a regression-type classification and ranking believe simplex analysis on sparse data. Expert Systems 32:10.1111/exsy.v32.1, 141-154. [CrossRef] 4. Abd Rahim Romle, Razli Che Razak, Abdul Shukor Shamsudin. 2015. Mapping the Relationships between Quality Management Practices, Human-Oriented Elements and Organizational Performance: A Proposed Framework. International Journal of Innovation, Management and Technology 6, 196-201. [CrossRef] 5. Yong-Ki Lee, Sally Kim, Sun Yong Kim. 2014. The Impact of Internal Branding on Employee Engagement and Outcome Variables in the Hotel Industry. Asia Pacific Journal of Tourism Research 19, 1359-1380. [CrossRef] 6. Momna Yousaf, Shiza Zafar, Abida Abi Ellahi. 2014. Do public service motivation, red tape and resigned work satisfaction triangulate together?. International Journal of Productivity and Performance Management 63:7, 923-945. [Abstract] [Full Text] [PDF] 7. Maha Ibrahim, Saoud Al Falasi. 2014. Employee loyalty and engagement in UAE public sector. Employee Relations 36:5, 562-582. [Abstract] [Full Text] [PDF] 8. Siqing Shan, Cangyan Li, Wei Yao, Jihong Shi, Jie Ren. 2014. An Empirical Study on Critical Factors Affecting Employee Satisfaction. Systems Research and Behavioral Science 31:10.1002/sres.v31.3, 447-460. [CrossRef] 9. Tina Tomažic, Damir Boras, Jelena Jurišic, Dušan Lesjak. 2014. Covert advertising as inadmissible presentation of information. Industrial Management & Data Systems 114:1, 107-122. [Abstract] [Full Text] [PDF] 10. Jui-Sheng Chou, Chun-Pin Yeh. 2013. Influential constructs, mediating effects, and moderating effects on operations performance of high speed rail from passenger perspective. Transport Policy 30, 207-219. [CrossRef] 11. Ali Turkyilmaz, Asil Oztekin, Selim Zaim, Omer Fahrettin Demirel. 2013. Universal structure modeling approach to customer satisfaction index. Industrial Management & Data Systems 113:7, 932-949. [Abstract] [Full Text] [PDF] 12. Miikka Palvalin, Antti Lönnqvist, Maiju Vuolle. 2013. Analysing the impacts of ICT on knowledge work productivity. Journal of Knowledge Management 17:4, 545-557. [Abstract] [Full Text] [PDF] 13. Susan Linz, Linda Good, Michael Busch. 2013. Does worker loyalty pay? Evidence from transition economies. Evidence-based HRM: a Global Forum for Empirical Scholarship 1:1, 16-40. [Abstract] [Full Text] [PDF] 14. Nada Trunk Širca, Katarina Babnik, Kristijan Breznik. 2013. Towards organisational performance. Industrial Management & Data Systems 113:3, 367-384. [Abstract] [Full Text] [PDF]

Downloaded by Politeknik Negeri Batam, Mr Politeknik Negeri Batam At 07:52 16 December 2015 (PT)

15. Bedman Narteh. 2012. Internal marketing and employee commitment: Evidence from the Ghanaian banking industry. Journal of Financial Services Marketing 17, 284-300. [CrossRef]