Intellectual Capital, Total Quality Management towards Lecturers’ Job Satisfaction, - An Evidence from Lecturers of Private Universities in Bandung, Indonesia.

 Ronny Buha Sihotang*,Faculty of Economics,Department of Management,Universitas Advent Indonesia.Bandung, IndonesiaEmail: ron_cniners@yahoo.com; ronny.sihotang@gmail.com

 

Abstract: The purpose of this research is to know Lecturers’ Job Satisfaction in private Universities in Bandung, Indonesia. There were two variables that examined relating to Lecturers’ Job Satisfaction, namely Intellectual Capital and Total Quality Management. Research results showed that (1) Intellectual Capital had a positive effect towards Lecturers’ Job Satisfaction, (2) Total Quality Management had a positive effect towards Lecturers’ Job Satisfaction, (3) Intellectual Capital and Total Quality Management had a positive and significant correlation, (4) Intellectual Capital and Total Quality Management simultaneously had a positive effect towards Lecturers’ Job Satisfaction.

Keywords: Intellectual Capital, Total Quality Management, Job Satisfaction, Lecturers, University.

Biographical notes: Ronny Buha Sihotang is a Senior Lecturer and Researcher in Department of Management, Universitas Advent Indonesia, Bandung. He holds a Doctorate degree from Universitas Katolik Parahyangan, Bandung, Indonesia; Master in Management degree from Asian Institute of Management, Philippines. His interests are operation management, quality management, financial management, strategic management, taxes management. He has the practical experiences in some companies (local and multinational companies).

1. Introduction.

Each organization expects that every one of its employees must have job satisfaction. Because employees who have job satisfaction will produce better work. That is why the leadership of an organization must note the job satisfaction of all its employees. The phrase above states that as long as the organization still operates, employee job satisfaction issues must be noted.              In this case, Lecturers’ Job Satisfaction in higher education needs to be considered. The Indonesian Government is noting on the Lecturers’ Job Satisfaction in order for Lecturers in Indonesia to increase and better their work performance. For this purpose, the Government of Indonesia provides financial assistance through the certification of lecturers and study opportunities through scholarships for lecturers who want to learn in a higher program level.              Several researchers previously; Sharma and Jyoti (2010), Islam et al., (2012) found that the Lecturers’ Job Satisfaction in Higher Education must be noted so that the lecturers will pay considerable attention to the process of learning and teaching. Furthermore Gowan (2012), found that whatever the operational strategy of a University and the completeness of facilities owned

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by an educational institution, if the Lecturers’ Job Satisfaction is not considered, then the operational results of the University will not be good. This is also consistent with the findings Smayling & Miller (2012), which showed that if the Lecturers’ Job Satisfaction is not addressed then there is a gap between performance achievement of lecturers and the maximum results that should be achieved. Even from a few studies regarding Lecturers Job Satisfaction in the United Kingdom (Oshagbeni, 200 0), Pakistan (Islam et al., 2012), China (Na et al., 2011), Singapore (Paul & Keng, 2012), Malaysia (Mustafa, 2013), Bangladesh (Masum et al., 2015), Israel (Bogler & Nir, 2012) showed that Lecturers Job Satisfaction is very influential towards the maximum work results. Therefore, every university needs to determine the operational factors associated with the Lecturers Job Satisfaction.

Other variables associated with a Lecturers’ Job Satisfaction is the Intellectual Capital owned by Lecturers. In the academic field, Intellectual Capital of Lecturer is a collection of knowledge, experience of the Lecturer in performing tasks and work in joint academic activities and to various parties (Bornemann & Wiedenhofer, 2014). This understanding is similar to Stewart's (1997) explanation of a collection of intellectual material which includes knowledge, information, intellectual property rights and maintaining relationships with related parties through the experience one has for creating and achieving goals.

For Indonesia, the approach of knowledge theory relating to the approach of Intellectual Capital application practice in a University is still very limited, but for developed countries, organization and development of Intellectual Capital of lecturers for the academic discipline has made into a study of the most important and foremost (Sanchez et al., 2009; Serenko & Bontis, 2013; Siboni et al., 2013; Ramirez et al., 2013). Intellectual Capital of Lecturers play a role and is very strategic for the University because Lecturers are the main and leading part on the operational points of the University (Serenco & Bontis, 2013). Intellectual capital of lecturers is collectible and also have interrelated relationships with one another. Intellectual capital of lecturers in a University gives several meanings, including; (1) all activities or operational functions will generate something about the mapping of knowledge (Hellstrom & Husted, 2004). For example, the level of education, experience, professionalism, books, courses, equipment (classroom, chair, desk, computer, internet, laboratories, and others), buildings, students, faculty, staff, and garden, (2) meeting place of educated people, (3) a place of learning and teaching, researching, consulting and other academic interests, (4) have expertise to share ideas, knowledge and information effective for students. University is the organization (also called other educational institutions such as University, Institute, Academy) that manufactures or produce (output) knowledge with added value for to people with previously obtained education. According to Indonesian Constitution No. 14 Year 2005 concerning Teacher & Lecturer and Indonesian Constitution No. 37 Year 2009 concerning Lecturer, states that lecturers are professional educators, intellectual scientists, working as a transferor of knowledge, technology and the arts to the public. Government Regulation indicates that a Lecturer is required to have a minimum level of Master Degree in accordance with the field to be taught. This requirement has given meaning to the increasing Intellectual Capital for Lecturer who will implement the college Trinity. Intellectual Lecturers in various competencies namely (a) pedagogic competence (ability to manage the subjects that will be taught to students), (b) personality competence (exceptional personality ability, noble actualizations, wise, dignified and can become role models for students), (c) professional competence (the ability to master the course material taught widely and deeply, and pride of being a Lecturer), (d) social and relational competence (Lecturer’s to communicate, relate and

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interact effectively and efficiently with students, fellow lecturers, parents, and other parties related to the teaching and learning process).

If the Intellectual Capital of Lecturers is managed properly then it is better for the University, and become an asset "more capable" to get a competitive advantage over other countries in the development of human resources (Brown & Russel, 2011). Intellectual capital of Lecturer is very important for the organization (University), so that many organizations have calculated that of the total capital owned, 80% are in the form of Intellectual Capital (Dewhurst & Navarro, 2004; Pablos, 2002). That is why Intellectual Capital is built, maintained and developed maximally and sustained by practitioners and academics as it will always be knowledge (Sanchez et al., 2009; Sanchez and Elena, 2006) and real to the organization (Pedrini, 2007). These facts show that the organization of Intellectual Capital lecturers at the University will produce faculty performance as the main source of intellect in advancing education for the Nation. Therefore, universities in Indonesia need to examine factors of Intellectual Capital of Lecturers.

The next factor associated with satisfaction of lecturer is Total Quality Management (Sallis, 2012). Total Quality Management looks at the overall aspects that must be met by Lecturers in producing quality products (Zubair, 2013). This is in line with the objectives of the Center for Education Quality Assurance and Agency for Human Resource Development and the Ministry of Indonesia National Education Quality Assurance namely the continuity of education in Indonesia because the doctrine of Total Quality Management is a continuous process for education based on International Quality Standards (Foster, 2007). Hutchins (1991) suggested that the quality is: (1) a value of a measurement and the used standard (conformance to applicable specifications and standards), (2) accuracy of use (fitness for use). (3) the fulfillment of satisfaction regarding wants, needs and expectations of customers (satisfaction of customer wants, needs, and expectations). Of course, the principle of quality approach is applicable in teaching and learning in the University.

In short, the implementation of Total Quality Management in education aims to: (1) Improve the quality of human resources in the field of education so that resources are capable and skilled in performing the task well. (2) create job satisfaction of lecturers in teaching serving the society as a customer. (3) Increasing between human resources and education so work morale can be maintained well. (4) Improving the performance of work. (5) Lowering cost. (6) Implementation of policies and objectives of the University (Zubair, 2013; Sallis, 2012; Chen, 2012). One of the main satisfactions of lecturers in the University is knowing that the graduates (students) who they taught are qualified people. The quality result is surely obtained from the practical application of Total Quality Management approach in the teaching and learning process (Zubair, in 2013; Sultan & Wong, 2010)

Research questions.   

a). Does Intellectual Capital have a positive effect towards Lecturers’ Job Satisfaction?b). Does Total Quality Management have a positive effect towards Lecturers’ Job Satisfaction?c). Does Intellectual Capital have a positive correlation with Total Quality Management?d). Does Intellectual Capital and Total Quality Management simultaneously have a positive

effect towards Lecturers’ Job Satisfaction?

2. Literature Reviews

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Job Satisfaction

For an organization, the job satisfaction of the people involved in the organization itself is one of the conditions for success. Because the organization itself was formed on the sense of community and commitment to work together. People who work with "a sense of satisfaction with one another" will make an organization succeed. This shows that employee satisfaction is one of the requirements and one of the core for an organization to succeed. Although it is well known that the image of job satisfaction is very complex because it touches the multi-sense of the meaning of "satisfaction" that can vary between from person to person. Basically the "sense" of job satisfaction is an individual thing because each individual will have different levels of satisfaction in accordance with the values prevailing in each individual. For these reasons the human resource management and human resource management research focus on studying and understanding employee job satisfaction within an organization (Noe et al., 2010; Byars & Rue, 2006).

According to Mullins (2007: 700), Nelson and Quick (2006) job satisfaction is an atmosphere of positive emotions or feelings of a person over the aspects of the employee and the scope of work they experience while working. Locke, quoted by Luthans (2011), gives a sense of job satisfaction as a cognitive, affective, and evaluative or attitude reaction by stating as a positive or pleasant emotional state of an appraisal or experience of one's work. Further, Baron et al., (2006: 540) explain job satisfaction as a person's attitude towards the work being done with full responsibility so that the person likes, is enthusiastically and thoroughly doing their work.              Feelings related to job satisfaction tend to reflect the employees' self-interpretation of past experiences, current and future expectations. The meaning of the results of job satisfaction can be seen from the values of work and achievement results according to the responsibilities given to each employee. Job values (viewed from the work) are the goals to be achieved in doing the job task. When the work is achieved, then an employee is considered to have job satisfaction. So, overall job satisfaction of an individual is the sum of job satisfaction over every aspect of the work multiplied by the degree of importance of the aspect of the work for the individual. Where, the amount of job satisfaction can be seen from the motivation from the employees themselves to do the best in their work.

There are three dimensions of job satisfaction, namely (1) an emotional response of a work result - though not visible but can be felt, (2) job satisfaction is often determined by the achievement of results because it exceeds what is expected - because when our work could be compared with the work of others, it turns out we are better. But more often those achievements are less awarded, (3) job satisfaction that is the way (attitude) we show our wellness and that we are better than other people (employees).

Lecturers are professional and scientific educators. As a professional job satisfaction should have existed within a Lecturer. However, since the lecturer is part of an operational university, the work attachment is within the rules of each University. In this case, the lecturer's job satisfaction needs to be considered and understood by the University in particular and the nation in general. Because of some findings indicate that the work satisfaction of Lecturers depends on the work situation faced by the lecturer at the university where the lecturer is working (Masum et al., 2015; Kaba, 2012). The main task of Lecturers is transforming, developing and distributing knowledge and technology to the public through the University's trinity principle. In supporting that profession, a lecturer is given a teaching certificate and profession allowance in accordance with the level or functional position ranging from (1)

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Lecturer, (2) Senior Lecturer, (3) Associate Professor, and (4) Professor. The educator's certificate given to a Lecturer, shows a formal evidence that the Lecturer is recognized as a professional.  As a professional job satisfaction should have existed within the Lecturer. However, since the lecturer is part of an operational university, the work attachment is within the rules of each University. In this case, the lecturer's job satisfaction needs to be considered and understood by the University in particular and the nation in general. Due to some findings indicate that the work satisfaction of Lecturers depends on the work situation faced by the lecturer at the university where the lecturer is working (Masum et al., 2015, Kaba, 2012).

Job satisfaction is influenced by many factors. These factors have become the main variable in the research development which is of course prepared through (1) the general theory approach, (2) the results of previous studies, and (3) Job Descriptive Index (JDI). The following are given factors that determine Job Satisfaction namely: (1) Field of work, (2) Compensation, (3) Career Opportunities, (4) Supervision, (5) Working Team, (6) Work Environment and Facilities (Masum et al., 2015; Zhong & Mitchell, 2013; Gowan, 2012; Noe at al., 2010) Intellectual Capital

Intellectual capital is an intangible capital that a person has in living and conducting everyday life. Ownership of intellectual capital has been owned by the person from birth, which then grows and grows in accordance with the interactions the person has in their life environment. Where the interaction of life through the environment, ranging from formal and non-formal such as; interaction with the closest people, family, friends, school and others become a useful capital for one's self (Nerdrum & Erikson, 2001). That is why, if a person has a good intellectual Capital, then that person has potential in themselves, for the organization, and for their own people (Yeh & Edvinson, 2010). Intellectual capital represents a valuable resource for a person because they are able to act based on (1) knowledge, (2) circumstances - situations, and (3) interaction with others regarding what is known and experienced. So, when someone’s Intellectual Capital is managed properly, it would be an asset "more capable" of getting an advantage to work and get a better objective (Lerro et al., 2014; Sanchez et al., 2009).

A person’s Intellectual Capital could be assessed or measured on three elements: (1) human capital, (2) structural capital, and (3) relational capital (Bornemann & Wiedenhofer (2014); Fallahi & Baharestan (2014); Ramirez and Gordillo, 2014; Ramirez et al., (2013); Siboni et al., (2013); Sanchez et al., (2009); The three elements measuring Intellectual Capital are generally applied to understand the intellectual parts (elements) an employee or lecturer who work in an organization. The measurements include (a) knowledge, (b) experience and expertise, (c) the ability to use the facilities and creativity, (d) interaction with friends and stakeholders in implementing the tasks (Putri, 2015, Ramirez et al., 2014; Sokolovska et al., 2014). That is why Intellectual Capital owned by Lecturers is very important for a University because Lecturers are the determinant of intellectual result of Higher Education or University itself (Putri, 2015; Bornemann & Wiedenhofer, 2014; Ramirez et al., 2013).

This concept understanding gives descriptions that Intellectual Capital of Lecturer is closely related with their duties as teachers. It shows that everything (abilities, intellect, experience, education, diligence, discipline, will, patience and other forms of behavior) are abstract becoming intellectual capital of Lecturers. Intellectual Capital of Lecturers is an important element in carrying out a task. Because the Intellectual Capital is a decisive tool in doing anything in everyday life. For universities, communities, and governments Intellectual

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Capital of Lecturers is the asset that determines the future because they (lecturers) are determinant of educational progress which at the same time will determine the progress of the intellectual Capital of their students. The higher Intellectual Capital is in the community, then the Intellectual Capital of the nation will be better also (Baron & Armstrong, 2007; Hall, 2008).

Total Quality Management

Total Quality Management (TQM) becomes a strategic business operational reference. The meaning of Total Quality Management is elaborated by Besterfield et al., (1999: 1) as: Total - Made up of the whole; Quality - Degree of excellence a product or service provide; Management - Act, art, or, manner of handling, controlling, directing and evaluating the progress of something that would have been done in an organization.

Total Quality Management has changed the concept of the management world that ultimately excellence will only be obtained if the resources produce products (goods and services) that are "qualified". The parties involved in the management of the University need to adopt themselves because quality is, other than as a strategy and strategic quality management, also "the role of doing something based on quality" (Saez et al., 2011; Srinidhi 1998). This indicates that any elements of lecturer operational activities such as man, machines, method are required to make quality as a work reference. Therefore, the approach to quality is the first and main operational target. As the main operational objective, management quality becomes "strategic management" approach both to provide value for customer satisfaction as well as to improve customer perception (Caruana et al., 2000).

Total Quality Management has the doctrine that whatever is done by Lecturers in their daily work let it be ensured that the work results are better than the results of previous work- in its original language called continuous improvement. Due to continuous improvements then a university through the lecturers can survive (Saez et al., 2011). According to Foster (2007: 5-7) quality from the angle of (a) customers or consumers - if customers are satisfied with products (goods or services) they received, they mention that the product is of quality, (b) products (goods or services) - if the attributes and components of products are favored by customers then the products are of quality, (c) value (value based) - if the price according to the value of the product then that product is of quality.

Quality of lecturers in the university is very strategic, because Lecturers are dealing directly with students as the main customer. In this case the Rectorate is main Leader of the University becomes a detector in making the formulation of the rules of quality management internally through all the lecturers and support staff, as the Rectorate is the person responsible for (1) defining quality, (2) measuring quality, (3) analyzing quality, (4) improving quality, (5) controlling quality (Fabnound, 2002; Zubair, 2013). In order for lecturers to have quality then all the factors supporting the implementation of Total Quality Management in the University must be owned by the Lecturer because they are (1) inter-related, (2) mutual influence, (3) in need of each other (Baird et al., 2011).

In applying Total Quality Management, Lecturers in the University there are several factors that must be met, namely: 1. Quality of Facilities and infrastructure. Facilities (facilities and infrastructure) owned by the University is a basic reference for Lecturers in implementing the teaching and learning process. The availability of facilities owned becomes the basis or pillars in learning. The availability of building facilities with all equipment contained therein includes: (a) Study room (class room) - some important points to note in the study area include:

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(1) the complete maintenance of the room size comparable to the capacity of learning in accordance with the maximum number of students per classroom, (2) comfort of classrooms, covering the air conditioner temperature (air), (3) other equipment such as whiteboards (white board), computer, liquid crystal disk, slides, and other equipment; (b) Library - A Library is a must-have supporting facility of a University. The size and layout of libraries, the availability of books, journals (including electronic journals) and other magazines in science studies are a basic need in maintaining the quality of teaching and learning.  The balance of books and journals corresponding to or per course becomes a basic requirement that must be met. With the hope that the lecturers and students will utilize the facilities (facilities) maximally; (c) Technology (Internet) - In this modern era of internet network facilities become one of the main reference point in the teaching-learning process. The availability of this Internet network is an obligation that is not forced but is a liability. Due to the availability of the internet network then access to obtain knowledge information related to every aspect of the course can be extracted or downloaded globally. Because a lecturer may be less than perfect in the transferring the knowledge (explaining the subject matter they taught in the classroom), but by downloading the course on the Internet then there will be a comparison between the courses described by the Lecturer in the classroom and a description available on the Internet network. The Internet network itself has a positive impact in the teaching-learning process, both for students, lecturers and other interactions related to the courses between Lecturers and Students. 2. Lecturer. The lecturer role becomes a strategic factor in Integrated Quality Management. The integration of quality Lecturer suggests that a Lecturer is a holistic academic carrier because they require the qualification and competence in order to meet the learning achievements of graduates from and to each student. That is why the standard and quality of lecturers is clearly regulated by Government Regulation Number 49 year 2014 which is valid since June 2014. The regulation regulates academic qualification and lecturer competence to become a special reference in educator standard (quality) for Universities.  Lecturer’s academic qualifications (evidenced by a diploma) and academic rank become specific references in determining the course to be taught.            Several Total Quality Management variables that must be considered along with the owner of the University Lecturer integrated manner are namely: (1) Leadership Support and Commitment, (2) Analysis of Data and Information, (3) Strategic Quality Planning , (4) Human Resources - Lecturer, (5) Quality Implementation Process(management process) , (6) Focus and Customer Satisfaction, (7) Operational Quality results ( Talib et al., 2013; Bell & Omachonu, 2011; Baird et al., 2011; Psomas, Fotopoulos, 2010; Mustafa & Chiang, 2007).

Hypothesis is developed by searching theory and several researchers that relating to Intellectual Capital, Total Quality Management and Job Satisfaction. Chan (2009) found that Intellectual Capital of people would show how is him (her) to response of doing daily job on different environments. People who has intellectual capital is adaptable and enjoy to do the duties consistently. While Ooi et al., (2007) and Dimas et al., (2011) also found out that Total Quality Management influence employees’ job satisfaction. Hammer et al., (2011) and Toth & Jonas (2012) also find out both Intellectual Capital and Total Quality Management have mutual relationship. Based on this founding we conclude the hypothesis that:

a. Intellectual Capital positively affects towards Lecturers’ Job Satisfaction b. Total Quality Management positively affect towards Lecturers’ Job Satisfaction.c. Intellectual Capital has a positive relationship towards Total Quality Management.d. Intellectual Capital and Total Quality Management simultaneously have positive effect

towards Lecturers’ Job Satisfaction.

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3. Research method

The method used was a survey research carried out to assess the population, where the studied data were sourced data sample taken based on the population. Unit of analysis is Lecturers from 20 Private Universities in Bandung, Indonesia. Total population = 4,148; Total sample = 365 (using Slovin Formula). Based on the above number of lecturers, the author examined based on the academic position of each i.e (1) Lecturer, (2) Senior Lecturer, (3) Associate Professor, (4) Professor in each university.          To determine a representative sample of each academic position (functional) Lecturer the " proportionate stratified random sampling " was made (Sugiyono 2009: 64). Data collection technique was conducted through a questionnaire. Each questionnaire from the variables has been conducted a validation test and reliability test (Cooper & Schindler, 2006). Data were collected through the deployment of 62 questionnaires designed using the 7 digits numerical scale, representing a range of attitude from strongly disagree to strongly agree (Sekaran & Bougie, 2013: 219). Data is processed by using AMOS 20. In accordance with a model of the proposed research, the research model will be tested using path analysis (path analysis). Path analysis examines the relationship between structural cause and effect taking into account the link between the independent variables. 4. Result and discussion

In this section, the effect of Intellectual Capital and Total Quality Management towards Lecturers’ Job Satisfaction was tested. The path coefficient of each independent variable towards Lecturers’ Job Satisfaction. The result is based on AMOS 20 output as follow. 

Table 1Path coefficient

Independent variables Path coefficient t count p-value R-

squareIntellectual Capital 0, 134 2, 964 .00 3 0, 620

Total Quality Management 0, 687 15, 166 <0.001

 The determination coefficient (R -Square) of 0, 620 indicates that simultaneously Intellectual Capital and Total Quality Management contribute towards job satisfaction of the private universities lecturers in Bandung is 62%. While 38% of the contribution comes from others factors outside those two independent variables.

Visually the path diagram of the effect of Intellectual Capital and Total Quality Management towards Job Satisfaction is shown in below figure.

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Figure 1. Path Diagram

Once the path coefficients were calculated, hypothesis testing was made to proof whether Intellectual Capital and Total Quality Management affects Lecturers’ Job Satisfaction from private universities in Bandung.

a). The effect of Intellectual Capital towards Lecturers’ Job Satisfaction.  The first hypothesis to be tested is the effect of Intellectual Capital towards Lecturers’

Job Satisfaction with statistical hypothesis are as follows.

H0: ρY .1≤0 Intellectual Capital does not positively affect Lecturers’ Job Satisfaction.

H1: ρY .1>0 Intellectual Capital positively affects Lecturers’ Job Satisfaction.

 Table 2

T- test of Intellectual Capital towards Lecturers’ Job Satisfaction

            

Table 2 shows that the significant value (P_ value) is 0,003; which is lesser than alpha (5%). This means that Ho is rejected, and it be concluded that Intellectual Capital positively affect the Lecturers’ Job Satisfaction from private University in Bandung. This conclusion empirically proved that the increasing of Intellectual Capital will increased the Lecturers’ Job Satisfaction from private University in Bandung.

 b) The effect of Total Quality Management towards Lecturers’ Job Satisfaction.  

The second hypothesis to be tested is the influence of Total Quality Management towards Lecturers’ Job Satisfaction with statistical hypothesis are as follows.

H0: ρY .2≤0 Total Quality Management does not positively affect Lecturers’ Job Satisfaction.

H1: ρY .2>0 Total Quality Management positively affect Lecturers’ Job Satisfaction.

 

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Path coefficient t count p-value t table (df: 362 )

0, 134 2, 964 .003 1, 967

Table 3T_ test of Total Quality Management towards Lecturers’ Job Satisfaction.

 Table 3 shows that the significant value (P_ value) is 0,001, which lesser than alpha

(5%). This mean that Ho is rejected, and it can be concluded that Total Quality Management positively affect the Lecturers Job Satisfaction from private Universities in Bandung. This conclusion empirically proved that the increasing Total Quality Management will increased the Lecturers Job Satisfaction from private Universities in Bandung.  

 c) The relationship between Intellectual Capital and Total Quality Management

The third hypothesis to be tested is the relationship between Intellectual Capital towards Total Quality Management with statistical hypothesis are as follows.

H0: ρ12≤0 Intellectual Capital does not have a positive relationship towards Total Quality Management.

H1: ρ12>0 Intellectual Capital has a positive relationship towards Total Quality Management.

 Table 4

Test Result for Intellectual Capital towards Total Quality Management Relationship

                

The result within Table 4 shows that there is strong relationship between Intellectual Capital and Total Quality Management (r = 0,714). Based on the test results, it can be concluded that Intellectual Capital has a positive relationship with Total Quality Management in private universities in Bandung. These test result provide empirical evidence that a high Intellectual Capital will be followed by improvement of Total Quality Management in a private university in Bandung. 

d)  The effect of Intellectual capital and Total Quality Management towards Lecturers’ Job Satisfaction.

The fourth hypothesis to be tested is the simultaneous effect of Intellectual Capital and Total Quality Management towards Lecturers’ Job Satisfaction with statistical hypotheses are as follows.

H0: ρY .12

≤0 Intellectual Capital and Total Quality Management does not simultaneously affect towards Lecturers’ Job Satisfaction.

H1: ρY .12

>0 Intellectual Capital and Total Quality Management, simultaneously affect towards Lecturers’ Job Satisfaction.

 

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Path coefficient t count p-value t table (df: 362 )

0, 687 15, 166 < 0, 001 1, 967

Correlation coefficient t count p-value t table (df: 362 )

0, 701 10, 956 <0.001 1, 967

Table 5Test result for the simultaneously Affect

Coefficient of determination

F count p-value

F table ( 2 : 362 )

0, 620 295, 3 <0.001 3, 021 

              In Table 5, because the value of F count  (295, 3) is greater than F table  (3, 021), or because the P-value is lesser than alpha (5%), then H0 is rejected. So, it can be concluded that Intellectual Capital and Total Quality Management simultaneously affect Lecturers’ Job Satisfaction in private Universities in Bandung. Therefore, it is suggested to all private Universities Director in Bandung to increase the Intellectual Capital and develop the Total Quality Management as well, since both of those factors provide Job Satisfaction of their Lecturers.   5. Conclusion and implication

The results of this study provide proof (evidence) that the Private Universities in Bandung must consider Lecturers’ Job Satisfaction. The best approach to provide Lecturers’ Job Satisfaction is through the maintenance and development of Intellectual Capital and Total Quality Management for lecturers. Variables Intellectual Capital and Total Quality Management either individually or simultaneously influence greatly towards Lecturers’ Job Satisfaction. Both variables continuously are required as a work planning reference in each university.

As a top leader, University President’ has to consider that maintaining and developing Lecturers’ Intellectual Capital is a necessary. By doing so, it will sharpen the ability of Lecturers for gaining (1) human capital – increasing higher Lecturers’ education, the ability of knowledge transfer, maintaining team work amongst peers as well as students, increase academic ranks; (2) Structural Capital – enhancing the ability of using modern technology and other facilities; (3) Relational Capital – maintaining relationship to the peers, students, superiors, students’ parents, communities, and government.

Business line of University is service industry. As a service industry University President has to be aware that implementing of Total Quality Management to the Lecturers also is a mandatory. As frontline workers Lecturers is the patron and image of whole Universities’ operation. Developing Total Quality Management approach to the Lecturers is an added value for each Lecturers. Based on this fact it is required that University leaders (President, Deans, Chair Persons) have to care for handling quality survival. This research also found out that Total Quality Management has positive effect towards Lecturers Job Satisfaction. Therefore the management of University has to increase Total Quality Management because it will increased Lecturers Job Satisfaction.

Consistent with research findings, countries such as United Kingdom (Oshagbeni, 2000), Pakistan (Islam et al., 2012), China (Na et al., 2011), Singapore (Paul & Keng, 2012), Malaysia (Mustafa, 2013), Bangladesh (Masum et al., 2015), Israel (Bogler & Nir, 2012) has decided that Lecturers’ Job Satisfaction is mandatory maintained to enable them competing and leading on educational resources. These finding required that Indonesia (particularly private

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University in Bandung) has adopt and review all resources that enable them reaching target that Indonesian higher institution has to be an example for ASEAN countries.

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