Surveying the Impact of Organization Structure on Employee s Job Satisfaction of Agricultural Bank in Ardebil Province

Transcription

1 76 Surveying the Impact of Organization Structure on Employee s Job Satisfaction of Agricultural Bank in Ardebil Province Mohammad Feizi (PhD), Department of Management, Ardabil Science and research Branch, Islamic Azad University, Ardabil, Iran Saleh Farid (MA), Department of Management, Ardabil Science and research Branch, Islamic Azad University, Ardabil, Iran ABSTRACT This study focuses this study surveying the impact of organization structure on employees' job of agricultural bank in Ardebil province. Data has collected from 105 employees of agricultural bank in Ardabil Province by two questionnaires with study of variables. Organizational structure Questionnaire, an18 item scale according to Robins (2000) theory and A Structured, closed- ended questionnaire was given to respondents for collecting their opinion regarding job All the reliability and validity of measures has examined. In order to analyze the data resulted from collected questionnaires deductive and descriptive statistical methods are used, and to display some statistical data we used column diagram and in deductive level to test the hypothesis of the research we used Spearman correlation coefficients and Freedman test and Multiple regression analysis. Findings shows that The complexity, formalization and centralization explain only 32 percent of job So, with pay attention to this fact that only 32 percent of employees' job is significantly explained by these three variables and 68% of the variation in job of employees is still unexplained. So, bank management must study other factors that affect to employees job Keywords Formalization, Complexity, Centralization, job INTRODUCTION Organizations have face with speed, intensity and depth of changes in internal and external conditions. In the meantime, it is most important tasks the goals of the organization, employee, management attitudes, strategies and activities of senior managers. Besides these matters, it should be reminded that culture plays an important role in sync with the organization is responsible for various changes. As pointed out by Mohr (1982), the early theorists of organizational structure, Taylor, Fayol, and Weber "saw the importance of structure for effectiveness and efficiency and assumed without the slightest question that whatever structure was needed, people could fashion accordingly. Organizational structure was considered a matter of choice... When in the 1930s, the rebellion began that came to be known as human relations theory, there was still not a denial of the idea of structure as an artifact, but rather an advocacy of the creation of a different sort of structure, one in which the needs, knowledge, and opinions of employees might be given greater recognition." However, a different view arose in the 1960s, suggesting that the organizational structure is "an externally caused phenomenon, an outcome rather than an artifact" (Mohr, 1982). In the 21st century, organizational theorists such as Lim, Griffiths, and Sambrook (2010) are once again proposing that organizational structure development is very much dependent on the expression of the strategies and behavior of the management and the workers as constrained by the power distribution between them, and influenced by their environment and the outcome (Lim et al, 2010). On the other hand, While overall employee has declined to 45%, the percentage of employees satisfied with their jobs is lowest in the under 25 age group with only 35.7% satisfied. Among employees in the age group 25-34, 47.2% are satisfied; employees in the age group scored 43.4% in job Employees in the age range scored 46.8%; employees scored 45.6% in employee and, of those employees age 65 and over, 43.4% are satisfied. Employee at work has decreased significantly in the past twenty years, as these figures indicate and I predict employee will get worse in the next few years. A combination of events is creating a perfect storm affecting employee A generation of employees who feel entitled to employee has entered the workforce and several generations of employees for whom work never quite fulfilled their dreams, are leaving. And, they are leaving in the worst of economic times which will affect their with the rest of the quality of life they experience (Susan, 2011). In this paper, we Survey the impact of organization

2 77 structure dimensions on employees' job in Agricultural Bank of Ardebil Province. REVIEW OF LITERATURE 1- Organizational structure Organizational structure provides the basic foundation within which an organization functions. One of the structural parameters which has received a great deal of attention in organizational research is the one that defines the extent to which decision-making within the organization is centralized or decentralized (Chia, 1995). The structure is shown by organization charts, job descriptions, procedures and regulations. Organizational structure is associated with work flow and given pattern. In addition to organizational structure can provide the link between social and psychological sub-systems (Rezayian, 2007). Organizational structure is determined, fundamental mission, fundamental management, the overall mission, the communication and the decision (Rahimi and Vazifeh, 2012). It has three dimensions as has been laid down by Robins they are: - Formalization: The standard refers to the amount of jobs within the organization. The most important formalization techniques are selection process, requirements, roles, procedures and policies, and practices for employees to prove their loyalty and their commitment to obey. (Robins, 2008) - Complexity: The breakdown of the organization implies that there are three separate horizontal and vertical resolution based on the geographic areas studied. (Esmi, 2009) - Centralization: Power density for a formal decision to focus on individual, unit or organizational level to be focused and to allow employees to participate in decisions that cites at least. (Talebbidokhti &A nvari, 2004) Organizational structure is reflected in the organizational chart. Organizational chart is a visible symbol of the entire organization's activities and processes. On the other hand, the culture of entrepreneurship, creativity and innovation set of values, attitudes, norms and behaviors that constitute the identity of individual entrepreneurs. Entrepreneurs who are trying to look different with different modes of behavior in the face with phenomena around and around, to take entrepreneurial activities and new product and service provide to the community. Characteristic of entrepreneurs, who can be creative, innovate, take risks, tolerate ambiguity conditions, failure tolerance, perseverance, self-control, confidence, flexibility, foresight and independence and... cited (Rezayian, 2007). The organizational structure literature suggests that organizational structure affects employees judgments and perceptions and, thus, plays an import role in humanresource issues (Bowrin, 1998). Organizational structure also affects judgments and perceptions in that unstructured firms offer relatively little structured guidance or other mechanisms to encourage control and uniformity, whereas structured firms impose more specific guidance and control mechanisms to enhance consistency and uniformity (Cushing & Loebbecke, 1986; Prawitt, 1995). 2- Job Job has been one of the most focused and well studied topics in the field of industrial and organizational psychology. Locke (1976), in his work, The Nature and Causes of Job Satisfaction, presented a historical overview of job theories. He noted that attempts to study the nature and causes of job began in earnest in the 1930s, but original mention of this concept began with Taylor in Following World War II, the focus of the studies turned to the human relations aspect of job attitudes. This focus emphasized the importance of the supervisor and the work group in determining employee and productivity; real with the job could only be provided by allowing individuals enough responsibility and discretion to enable them to grow mentally (Locke, 1976, p. 1304). Generally speaking, job refers to the pleasurable or positive emotional state resulting from the evaluation of one s job or job experiences (Locke, 1976). In other words, job is the degree to which people like their jobs. Some people enjoy work and find it to be a central part of life. Others hate to work and do so only because they must (Knoop, 1995). Job may be defined as a positive emotional response from the assessment of a job or specific aspects of a job (Locke,1976).It is influenced by many factors such as: the working conditions, work itself, supervision, policy and administration, advancement, compensation, interpersonal relationships, recognition, and empowerment (Castillo & Cano, 2004). According to Quick (1998), each person has a different set of goals and can be motivated if he/she believes that: there is a positive correlation between efforts and performance; effective performance will result in a pleasing reward; the reward will satisfy an important need; and the desire to satisfy the need is strong enough to make the effort meaningful (Quick, 1998). According to the human behavior, people are more interested to work in those companies and service organizations from where they get mental Study found that politics-free work environment is significantly correlated to job of employees (Pathik and Pestonjee, 1997). The work situation also matters in terms of job and organization impact. Research studies across many years, organizations,

3 78 and types of jobs show that when employees are asked to evaluate different facets of their job such as supervision, pay, promotion opportunities, coworkers, and so forth, the nature of the work itself generally emerges as the most important job facet (Judge & Church, 2000). According to Herzberg et al. (1952), it is a hygiene factor that may lead to job dis Employees in organizations are often attracting their supervisors for different reasons. These relationships are called functional and entity relationships (Locke,1976). Functional relationships between supervisor and subordinate are based on which services can be provided for each other. An employee may be attracted to his or her supervisor to a degree that he or she views the supervisor or helping to attain salient job values (Locke, 1970). These values are normally related, or are related to the rewards the employee can accrue for task performance. Again, welfare (wellness) programs including benefits, bonus, overtime, transport allowance, medical allowance, etc., have positive relationships with job of employees (Bonner, 1997). Variables, such as needs, values, expectancies, perceptions, as well as the interrelationship of these variables, are considered to be related to overall job RESEARCH HYPOTHESES In this paper have one main hypothesis and tree secondary hypotheses. The statistical way of analysis of hypotheses is two ways, H 1 is acceptance of hypothesis and H 0 is rejecting of hypothesis. In other words, it means that H 1 has positive meaning and H 0 has negative meaning. 1) Complexity (as one of the most important aspects of the structure) has an impact on employees' job 2) Formalization (as one of the most important aspects of the structure) has an impact on employees' job 3) Centralization (as one of the most important aspects of the structure) has an impact on employees' job METHODOLOGY This study focuses on surveying the impact of organization structure on employees' job of agricultural bank in Ardebil province. Data has collected from 105 employees of agricultural bank in Ardabil Province by two questionnaires with study of variables. Organizational structure Questionnaire, an18 item scale according to Robins (2000) theory and A structured, closed- ended questionnaire was given to respondents for collecting their opinion regarding job The respondents were also asked about their sex, total years of education, academic rank, and total years of work experience. All the reliability and validity of measures has examined. In order to analyze the data resulted from collected questionnaires deductive and descriptive statistical methods are used, and to display some statistical data we used column diagram and in deductive level to test the hypothesis of the research we used Spearman correlation coefficients and Freedman test. The analysis has performed with SPSS. ANALYSIS AND CONCLUSION 1- Descriptive Analysis The population of the study was all employees of agricultural bank in Ardebil province. 44 percent of them was male and 56 percent was female. And the sample was consisted of employees from different levels of organization. Majority of the employees are young (between 31 years to 45 years.) and only 22 % are more than 45 years of age. From this study it was found that only 14 percent of the employees have higher degrees like MA and among them male are dominant. Table 1 reports descriptive statistics including means and standard deviation for samples. Table 1: Means and standard deviations for variables Variable Statistical characteristics mean Formalization 22.8 Complexity Centralization 28.7 Payment 2.08 Promotion 2.30 Supervisor 3.18 Nature of work 3.23 Partner 3.46 Means of Formalization and Complexity shows that that the bank has a high degree of formalization and complexity. 2- Hypothetical Analysis Table 2, which present the correlations of each of the three hypothesis. The results show that organizational structure and their dimensions are not all significantly and highly related with employees' job Strong correlation was found between formalization and employees' job (r=0/556). Also there is not found relationship between Complexity and Centralization and employees' job Table 2- Correlation matrix between the parameters examined ComplexityFormali-Centralizatiozation job Complexity 1 Formalization * Centralization Job *

4 79 For Rating of job and to investigate the equality significance job, Friedman test was used. Table 3, the result of Freedman Test Statistics Value n 1105 Coefficient F 4 Sig Findings show that Friedman significant test results in level of 95% is less than 0.01 (p=0.000<0.01), it means that job from the perspective of bank employees do not have the same importance and priority. Table 4 shows The average group of each component of the quality of working life Table 4, average group of each component of the quality of working life Items Means Payment 1.68 Promotion 1.37 Supervisor 3.30 Nature of work 4.17 Partner 4.48 According to the above tables component of job, Partner component have the most importance and priority in employees (with mean of 4.48). And Promotion have the lost importance in employees (with mean of 1.37). To study of independent variables (Complexity, Formalization and Centralization) effects on job was used multiple regression. The results can be seen in Table 5 Table 5. The results of multiple regression* Variable T Complexity Formalization Centralization *Independent Variables: job Sig According to significant coefficients (sig), Formalization significant coefficients has been less than and complexity and Centralization greater than Therefore, we can conclude that the formalization variable has an impact on job and recognize the complexities and Centralization variables has not an impact on job Thus with 95 percent confidence level Hypothesis 2 has confirmed and Hypotheses 1 and 3 have rejected. So we can say that if bank increased formalization the employee s job will increase. Table 6 show the multiple correlation coefficient (R) results for structure and dependent variable relationship. There R is and R 2 is It means that 32 percent variability in job Significantly is expressed by three independent variables (Complexity, Formalization and Centralization). Table 6. The multiple correlation coefficient (R) variables Model R R Squar The complexity, formalization and centralization explain only 32 percent of job So, with pay attention to this fact that only 32 percent of employees' job is significantly explained by these three variables and 68% of the variation in job of employees is still unexplained. So, bank management must study other factors that affect to employees job REFERENCES [1] Esmi,A., (2009). The effect of Building a culture of entrepreneurship in developing a culture of Entrepreneurship in society, Journal of Entrepreneurship Management, Second year, No.3, pp [2] Rezayian, Ali.(2007). Principles of Organizational Behavior, Tehran, Agah Publishers. [3] Robbins, S..(2008). Organization theory (structure, design and applications), Translated by seyed Mehdi Alvani and Hassan DanaeeFard, Tehran University Press. [4] Taleb Bidokhti, A., Anwar, A.,(2004). Creativity and innovation in persons and organizations, Tadbir monthly, year 15, No. 152, [5] Rahimi, Gh. and Vazifeh, D.Q., (2012), Organizational Behavior, Islamic Azad University Publisher, Jolfa International Branch. [6] Mohr, L. B. (1982). Explaining Organizational Behavior. San Francisco: Jossey-Bass Publishers. [7] Lim, M., G. Griffiths, and S. Sambrook. (2010). Organizational structure for the twenty-first century. Presented at the annual meeting of The Institute for Operations Research and The Management Sciences, Austin. [8] Susan M. Heathfield,( 2011), Keys to Employee Satisfaction: What You Can Do to Increase Employee Satisfaction, About.com Guide

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