Investigating the Impact of Employee s Empowerment on Their Job Satisfaction (Case Study: Tejarat Bank, West Azerbaijan Province, Iran)

Transcription

1 Investigating the Impact of Employee s Empowerment on Their Job Satisfaction (Case Study: Tejarat Bank, West Azerbaijan Province, Iran) Hasan Sobhani* Department of Management, Master of Human Resource Management, University of Mahabad, Iran * Corresponding Author: hso1348@yahoo.com Abstract The aim of this study was to investigate the impact of employees' empowerment on their job satisfaction (Case Study: Tejarat Bank, West Azerbaijan Province, Iran). The population of the research was employees of the Trade Bank of West Azerbaijan province, Iran. The sampling was performed using clustering sampling method by selecting from Urmia, Mahabad and Khoy city and the sample volume was determined 205 individuals using Morgan table. In the present study, standard questionnaires of Spreitzer psychological empowerment and Minnesota job satisfaction were used to measure the variables. Cronbach's alpha coefficient was obtained and for empowerment and job satisfaction variables, respectively that indicating good reliability of the questionnaire. Statistical analysis of the study data was performed based on the Pearson correlation and multiple linear regressions using SPSS 18 software. The results showed that employee empowerment processes had impact on job satisfaction including feelings of effectiveness, significance, autonomy and competence. Keywords: organizational behavior, employees' empowerment, job satisfaction, Tejarat Bank. Page 1452

2 Introduction The new era organizations have distance from hierarchical traditional structures and have trended from flexible network and teams structures (Sprietzer et al., 1997). In other words, in the current era of human resources management perform innovative management techniques such as Total Quality Management and instead of dry traditional structures develop structures that encourage and are developer of innovative approaches and partnerships task. Empowering employees is also one of the attitudes that have attracted the attention of managers. Many definitions of empowerment are provided. Most writers agree on the subject that the main element of empowerment is giving freedom to employees in activities related to their job. From the perspective of Wilkinson (1998), empowerment is to build consensus and strengthen people's confidence in them and work towards the effectiveness of the activities of the organization. According to the definition of Whetten and Cameron (1998), empowering employees is that they can all develop their skills and knowledge and use them to achieve personal and organizational goals (quoted by Beigi-nia et al, 2010 ). Spreitzer (1995) using a psychological model of Thomas and Veltos performed to find validation and measure dimensions of psychological empowerment as the first research study in the field of empowerment in both American industrial and insurance company. These dimensions include feelings of competence, autonomy feeling (choice), effectiveness feelings, and meaningful feelings of the job. On the other hand, job satisfaction as well as one of the most important management concepts has key role in the success of employees and the organization. Reactions and responses that organizations provide to the demands of staff form positive or negative feelings of individuals towards their jobs (job satisfaction or dissatisfaction). Job satisfaction leads to increase productivity, organizational commitment, physical and mental health, resulting in an increased morale and satisfied with his life and is trying to learn new skills on the job and eventually his performance is enhanced (Hong et al, 2007). Therefore, the aim of this study was to investigate the impact of employees' empowerment on their job satisfaction (among employees of Tejarat Bank, West Azerbaijan Province, Iran. Materials and Methods The research method was descriptive and correlation type. The population of the research was employees of the Trade Bank of West Azerbaijan province, Iran that 205 individuals were selected as sample using Morgan table. In this study, empowerment of employees and job satisfaction were independent and dependent variables, respectively. The concept of empowerment is intended based on Spreitzer (1995) in four dimensions of competence, autonomy, effectiveness, and meaningful feeling. Job satisfaction was considered also based on Minnesota (Weiss et al, 1967) based on the system of payment, type of job, opportunities for advancement and physical conditions. The study was performed after describing in detail to participants the introductory remarks about the gauges and the purpose of the test, how to response to tests. It can be noted that regarding to ethical considerations, they were assured that the information will be used only in the research and be protected from any abuse after obtaining the consent of the people and giving the necessary knowledge. The questionnaire by researcher was used to measure the variables. Page 1453

3 This questionnaire contains three sections and 31 questions. The response scale was based on five-point Likert. Demographic questions: This section includes questions about general characteristics of respondents such as gender, age, education and work experience, which have been used to analyze the data. Specific questions include different questions that measure dimensions of research dependent and independent variables. Employee empowerment questionnaire was designed by Spreitzer (1995) that include four dimensions (effectiveness, meaningful, competence and autonomy feeling). In the questionnaire, the following questions were evaluated questions 1-3, effectiveness feeling; questions 4-6 meaningful feeling; questions 7-9, competence and questions 10-12, feelings of autonomy. The questions were related to job satisfaction (from Minnesota questionnaire with 19 questions) that was consisted of 6 dimensions (system of payment, type of job, opportunities for advancement, organizational atmosphere, leadership style, and physical condition). The validity of the questionnaire was confirmed by professors and experts. Cronbach's alpha was used for reliability. The results showed that Cronbach's alpha coefficient for variables of empowerment and job satisfaction was and 0.853, respectively, which indicates good reliability of the measurement tool. Correlation and regression were used for data analysis. In all analyzes, the significance level was considered as p <0.05. Results Kolmogorov-Smirnov test results showed normal distribution of the data (p> 0.05). Pearson correlation was used in order to investigate the competence sense on job satisfaction of employees Tejarat Bank, West Azerbaijan province. Results are presented in Table 1. Since, the level significance was and this correlation was significant at the 0.05 level; as a result, the null hypothesis was rejected and H1 was accepted (p 0.05). Pearson correlation coefficient was equal to and this suggests that competence feeling had effect on the job satisfaction among employees of Tejarat Bank of West Azerbaijan province. This means improving employees' competence feeling leads to job satisfaction. As a result, the first hypothesis was accepted. Table 1. Pearson correlation coefficient between competence feeling and job satisfaction Job Satisfaction Competence feeling Pearson correlation coefficient Sample *: Correlation was significant at the 0.05 level (Two-way) * Since, the level significance was and this correlation was significant at the 0.05 level; as a result, the null hypothesis was rejected and H1 was accepted (p 0.05). Pearson correlation coefficient was equal to and this suggests that meaningful feeling had effect on the job satisfaction among employees of Tejarat Bank of West Azerbaijan province. This means improving employees' meaningful feeling leads to job satisfaction. Page 1454

4 Table 2. Pearson correlation coefficient between meaningful feeling and job satisfaction Job Satisfaction Meaningful feeling Pearson correlation coefficient Sample *: Correlation was significant at the 0.05 level (Two-way) * Since, the level significance was and this correlation was significant at the 0.05 level; as a result, the null hypothesis was rejected and H1 was accepted (p 0.05). Pearson correlation coefficient was equal to 0.19 and this suggests that to be effectiveness feeling had effect on the job satisfaction among employees of Tejarat Bank of West Azerbaijan province. This means improving employees' to be effectiveness feeling leads to job satisfaction. Table 3. Pearson correlation coefficient between to be effectiveness feeling and job satisfaction Job Satisfaction To be effectiveness feeling Pearson correlation coefficient Sample 0.19* *: Correlation was significant at the 0.05 level (Two-way). Since, the level significance was and this correlation was significant at the 0.05 level; as a result, the null hypothesis was rejected and H1 was accepted (p 0.05). Pearson correlation coefficient was equal to and this suggests that autonomy feeling had effect on the job satisfaction among employees of Tejarat Bank of West Azerbaijan province. This means improving employees' autonomy feeling leads to job satisfaction. Table 4. Pearson correlation coefficient between to be autonomy feeling and job satisfaction Job Satisfaction Autonomy feeling Pearson correlation coefficient Sample 0.177* *: Correlation was significant at the 0.05 level (Two-way). Regression analyses of variables are presented in Table 5. Column B in the above table shows the regression equation coefficients. The first factor in this equation was fixed number, and the rest were related to the four independent variables. Column Beta shows the regression equation coefficients after the removal of affective external factors. For example: the effect of X1 (effectiveness feeling) considering external factors on job satisfaction was 0.19 that after removing the external factors, the net effect was to All variables were significantly less than 0.05, so, they were remained in the regression equation and were not removed from the equation. So, variables of effectiveness feelings, meaningful feelings, competence feelings, autonomy feelings explained the dependent variable of job satisfaction. As, it can be seen, the Page 1455

5 coefficient of determination (R Square) of the above analysis was 0.17; in other words, these five variables explained 17% of dependent variable (job satisfaction). One of condition for using regression is the independence of residuals, as far as the Durbin- Watson test was 1.5> D.W=1.652>2.5, so, the residuals are independent. Sig =0.007 for statistics was less than Therefore, we conclude coefficients were acceptable and the regression model was valid. Based on these values, the regression equation would be as follows: Y= (0.190)* (effectiveness feeling) + (0.213)* (Meaningful feeling) + (0.184)*(competence feeling) + (0.164)*(Autonomy Feeling) Table 5. Predicting job satisfaction of employees based on the variables Variables Standardized Non-Standardized coefficients coefficients T Standard Value B Beta deviation Fixed number effectiveness Feeling X Meaningful Feeling X Competence Feeling X Autonomy Feeling X Durbin Watson R Multiple correlation coefficient determination Coefficient (R Square) Modified determination coefficient F statistic Path analysis chart of the relationship between variables is shown in Figure 1. Conclusion Figure 1. Path analysis charts The aim of this study was to investigate the impact of employees' empowerment on their job satisfaction (Case Study: Tejarat Bank, West Azerbaijan Province, Iran). The results showed that employee empowerment processes have impact on job satisfaction among employees of Tejarat Bank of West Azerbaijan province, Iran. Page 1456

6 Results showed that competence feeling had effect on the job satisfaction among employees of Tejarat Bank of West Azerbaijan province, Iran. It is clear that employees will increase their required effort to perform efficiently organizational tasks if employees get staff feedback on having top individual and work abilities to obtain the necessary internal motivation. As a result, by achieving organization to determined goals, job satisfaction will enhance as a member of organizational success collection. The obtained results from this study were consistent with the findings of Fry et al. (2005) and Anami et al. (2011). The feeling to being effectiveness had effect on the job satisfaction among employees of Tejarat Bank of West Azerbaijan province, Iran. According to the new theories of organization and management, it is always claimed that in many cases dealing with employees will assist in the organization to promote view and working methods as a valuable part of the organization. In other words, the employees have high job satisfaction if there is not the difference in thinking of management between the organizations overall objectives and the human needs and desires of the individual and the employees. So, the application of human resource management policies will result in order to create a sense of effectiveness and to be valuable to motivate employees and improve job satisfaction. As a result, the second hypothesis was accepted. The results of this research were consistent with the research findings of Spreitzer (1997) and Mir-kamali et al (2010). To be effective had effect on job satisfaction among employees of Tejarat Bank of West Azerbaijan province, Iran. Organization employees will benefit all academic and administrative abilities in organizations if they think that they actually have the ability to influence the successful implementation of enterprise applications. Managers will help organizations to improve their job satisfaction by providing opportunities for employees to play a role in the short and long term goals and programs. As a result, the third hypothesis was accepted. The results of this research were consistent with the research findings of Avolio et al. (2004) and Safari et al (2008). A sense of autonomy had effect on the job satisfaction among employees of Tejarat Bank of West Azerbaijan province, Iran. As a result, fourth research hypothesis was accepted. Based on the literature, it is argued that in terms of organizational management, a lot of classic management theories related to the efficiency and effectiveness will not be necessary in organizational new conditions. In other words, due to the increasing changes in inside and outside environmental conditions, adapting to changes in the environment will be impossible for the organization without granting independence and freedom of action necessary to staff at different levels. Staff in the enjoyment of freedom would react against environmental factors in a better manner of managers and even they will achieve impressive results. Obviously, the success of the organization will be accompanied by improved job satisfaction among employees because employees because of the authority will think they are as one of the main factors in achieving goals and success of the organization. The results of this research were consistent to the research findings of Doai et al. (2010). According to the findings, it is suggested that managers should prioritize necessary planning for improved employees' empowerment in organizational activities. In other words, managers should change cultural, structural and technological factors of organization in order to be provided an opportunity to promote a sense of effectiveness, significance, autonomy and competence of staff. Page 1457

7 effective solutions to achieve such a goal can be pointed out to adopt new policies, such as delegating management to employees, teamwork and team development, creating opportunity for employees to intervene in strategic and operational planning, implementation strategies based on make organization, employing sweeping changes in organizational culture to focus staff on new managerial topics and so on. Page 1458

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