influence of empowerment and job enrichment on employee loyalty in downsizing environment

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National University Of Modern Languages

Research methods for business

Presentation on research article

Presented to : Mrs. Humaira Hamid

Presented by: H. M. Nouman Riaz

“The influence of empowerment andjob enrichment on employee loyaltyin a downsizing environment”

by:BRIAN P. NIEHOFFKANSAS STATE UNIVERSITY

ROBERT H. MOORMANCREIGHTON UNIVERSITY

GERALD BLAKELYJACK FULLERWEST VIRGINIA UNIVERSITY

CONTENTS

• Problem Statement

• Literature Review

• Theoretical Framework

• Hypothesis

• Research design

• Methodology

Problem Statement

“to examine the degree to which empowering behaviors of managers and job enrichment are positively related to the loyalty of downsizing survivors”

LITERATURE REVIEW

Empirical studies have supported a positive relationship between empowerment and loyalty or commitment. Fulford and Enz (1995) found that perceived empowerment showed a significant and positive relationship with loyalty among service employees in private clubs

CONT. ….Empowerment, however, is also a job-altering process—empowering employees means either the content or context of the job has changed (Ford& Fottler, 1995).

Hackman and Oldham (1976) theorized that an enriched job is one that has more variety, identity, significance, autonomy, and feedback.

Theoretical Framework

empowerment Loyal boosterism

Job characteristics

x1 x2 x3 x4 x5

Hypothesis• H1: there is direct and significant

relationship between empowering managerial practices and loyalty behaviors among employees.

CONT…• H2: there is indirect relationship

between empowering managerial practices and employee loyalty as mediated by job enrichment as defined by perceived job characteristics.

RESEARCH DESIGN• Purpose of Study

Hypothesis Testing

• Type of Investigation

Causal Study

• Extant of researcher’s interference

Minimal interference

CONT…• Study Settings

Field study (Non-Contrived study)

Natural environment

Minimal interference

CONT…

• Unit of analysis

Individuals

• Time horizon

Cross sectional (questionnaire)

METHODOLOGY

POPULATIONMobilink telecom Inc. Lahore that had been downsized and restructured before six years

TARGET POPULATION

306 employees of mobilink

(working from at least last six years in business centers and technical departments of mobilink situated in Lahore)

SAMPLE SIZE

203 employees

(Two third of total population)

SAMPLING FRAME

Employees Directory

SAMPLING TECHNIQUESimple Random sampling

DATA COLLECTION METHODQuestionnaire (contained measures of loyal boosterism, job characteristics and empowerment)

RESPONSE RATE41.8% (80 complete questionnaire)

OPERATIONALIZATION OF VARIABLES

• Loyal boosterism was assessed by five items drawn from the organizational citizenship behavior scale developed by Moorman and Blakely

CONT.…

• Task characteristics were measured by the Job Diagnostic Survey developed by Hackman and Oldham

CONT.…..

• empowerment scale consisted of 15 items that included a variety of behaviors that a manager would exhibit in an empowering situation

DATA ANALYSIS

to hypothesize a mediated relationship between empowerment and loyal boosterism, path analysis using LISREL 8 (Jöreskog & Sörbom, 1993) was used to assess the significance of the paths between the variables

STATISTICAL TECHNIQUE

• Chi square (36.55 for 13 degrees of freedom)

• Comparative fit index ( .93)