The aim is to study and examine human resource management and practices, emphasizing satisfaction and loyalty effects on employees and the factors influencing them to be more productive and satisfied. The study is based upon the key variables like financial incentives, non-financial incentives, participation in decision making, feedback, training and development and their potential impression on an individual's loyalty and satisfaction level. In order to demonstrate the study, we have selected five of the telecom companies of Pakistan, namely Mobilink, Telenor, Zong, Ufone & Warid. The employees were asked several questions through structured questionnaires, mainly focusing on the main source of increase in and ways to cater towards organizational loyalty and job satisfaction in employees. The research was conducted on a sample size of 125 and it was revealed that a number of factors, such as promotion and career development opportunities, financial as well as non-financial incentives and acknowledgment for the employees work etc contribute to a great deal in enhancing job satisfaction and organizational loyalty.
CHAP # 1
The telecom sector, particularly the cellular services providers in Pakistan, is rapidly growing and is one of the few areas in which the country is truly developing. This sector continues to attract the interest of foreign investors and for the right reasons too, as it has a huge potential for growth and an equally large market. In the world of today, the importance of the telecom sector for a developing country like Pakistan is considered to be utmost and un-deniable.
Pakistan has come a long way in this sector as hardly more than a decade ago, there was only one mobile operator in the country, i.e. Mobilink. However, time changed and this monopoly was soon put an end to with the emergence of other mobile operators in the market. The progress in this sector was accelerated by the foreign investors who showed a keen interest in investing in this industry and so soon, other mobile corporate giants entered the market with a bang and changed the situation. Considering the highly competitive telecom industry of today, it is hard to imagine that there was once a monopoly in action there. Today, the cellular services providers consist of mainly five mobile operators offering their services to the people of Pakistan, namely Mobilink, Ufone, Telenor, Warid and Zong (previously Paktel).
The cellular service provider sector is growing at an outstanding pace where all the stakeholders are getting due benefit out of it. The PTA (Pakistan Telecommunications Authority) is the rule making and governing body of the telecom sector. It is foreseeing and is carrying out its responsibilities in a very conscientious manner, working hard for the betterment and development of the telecom sector of Pakistan.
The cellular services provider sector is contributing about 2% in GDP directly. This percent is expected to continue in the coming years as more development is anticipated. This includes more foreign investors being interested in investing in the cellular services provider companies of this country and relaxation in the taxation etc, in order to promote the progress in this field and increase its share in the GDP of Pakistan.
In this context, the telecom sector and more specifically, the cellular services providers, have importance which cannot be denied at any cost. However, it is seen the employees of the mobile operator companies are not much satisfied with their jobs, due to which the employee turnover is quite high. The turnover rate is high as the loyalty of the employees does not rest with the telecom company. Therefore, it is important to study this phenomena and our report aims at studying the employee job satisfaction and organizational loyalty in the telecom sector. Therefore, there is an increasing need to study this phenomenon and try to discover the reasons behind this dissatisfaction and thus, reduce the employee turnover rate and increase the loyalty among the employees.
Employee loyalty (typically synonymous with commitment) to the organization has sometimes been regarded as an attitude (Meyer & Allen, 1991). However, it is not so much the attitude that is important in organizations, but rather it is the action of the employees that are more important. Some of these actions are simply prescribed as the required traits of the employee's written job description, e.g., following work place rules and regulations, obeying the orders of the boss, doing up to the mark work and not mis-using the company resources etc. But other actions are based on unwritten policies or norms of the organizational culture, e.g., staying overtime to complete pending work, participating in extracurricular activities and company charity shows and giving feedback etc.
In short, there are four main points that need to be considered with respect to the definition of employee loyalty and they are as follows:
- Willingness to remain with the organization (Solomon, 1992).
- Doing more than what is required (Mowday, Porter & Steers, 1982).
- Exhibiting selfless behavior (Laabs, 1996).
- Having an equal relationship, i.e., the employee should be loyal to the organization and in the same way, the organization should also be loyal to the employee and both must work in the best interests of each other (Solomon, 1992).
In this way, a clear framework in which to understand "loyalty" is to view it as a fair exchange between a company and its employees.
Loyalty has two dimensions: internal and external. Loyalty is, fundamentally, an emotional connection. The internal dimension is the emotional component. It includes feelings of care, affiliation and of commitment. This is the dimension that must be given due attention. The external dimension has to do with the way loyalty looks obvious and visible. Both dimensions are equally important.
Job satisfaction has been defined as a pleasurable emotional state resulting from the evaluation of one's job; an emotional reaction to one's job; and an attitude towards one's job. Weiss (2002) argues that job satisfaction is an attitude but wants to make it clear that researchers should clearly distinguish the objects of cognitive evaluation which are emotions, beliefs and behaviors. According to this definition, we form attitudes towards our jobs by considering our feelings, beliefs and behaviors. Moods, on the other hand, are what are considered more important towards job satisfaction by other researchers (Weiss and Cropanzano, 1996). Moods have a tendency to be longer lasting but are often weaker while emotions are often more intense, short-lived and have a clear object or cause.
The Job Description Index (JDI), created by Smith, Kendall, & Hulin (1969), is a specific questionnaire of job satisfaction that has been widely used and still continues to be used. It measures one's satisfaction in five aspects:
- Promotion and promotion opportunities.
- The work itself.
Managers are interested in employees job satisfaction and commitment chiefly because of the relationship between attitudes and behavior. They assume that employees who are not satisfied with their jobs and who are not loyal to the organization will be more absent or late for work, will quit more often and will not work very well. Poor job attitudes therefore lead to lowered productivity and organizational performance. There is strong evidence to prove this (Ryan, A. M., Schmit, M.J. & Johnson, 1996). In many important ways, it is clear that job satisfaction and organizational loyalty are interrelated. This study covers the aspects like whether the employees of telecom sector are satisfied with their jobs and are loyal to the organization or not; and if they are not satisfied and loyal then what are the important factors and forces which satisfy the employees and what forces them to be loyal to their respective organizations.
"Job satisfaction is also defined as "The extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs."
This definition suggests job satisfaction is a general or emotional reaction that the individuals hold about their job. While researchers and practitioners most often measure global job satisfaction, there is also interest in measuring different "aspects" or "dimensions" of satisfaction. Traditional job satisfaction aspects include: co-workers, pay, job conditions, supervision, nature of the work and benefits while some might have changed in the recent times, such as work timings, flexibility of the boss etc.
Job satisfaction, an employee's sense of achievement and success, is generally perceived to be directly linked to productivity as well as to their personal well-being. Job satisfaction involves doing a job one enjoys, doing it well and being suitably rewarded for it.
IMPORTANCE TO WORKER AND ORGANZIATION
Often, work motivates and employee and gives a boost to his self-esteem while unemployment lowers self-worth and produces anxiety. Similarly, boring and monotonous jobs can wear away a worker's enthusiasm and lead to absenteeism and unnecessary turnover. Job satisfaction is a major factor in inducing feelings of personal satisfaction, self-respect and self-esteem in an individual. A satisfied worker is more likely to be creative, innovative and loyal.
For the organization, job satisfaction is very important as it ensures a work force that is motivated and committed to high quality performance. It is important to note that the literature on the relationship between job satisfaction and productivity is neither conclusive nor consistent. However, it does seem logical that more satisfied workers will tend to be more loyal to an organization. Unhappy employees, who are always in fear of losing their jobs will not be able to give their 100 percent and resultantly, will not be very productive. Though fear is a powerful motivator, it is also a temporary one and as soon as the threat is lifted, the performance could decline.
Measurable ways in which job satisfaction benefits the organization include reduction in complaints by the employees, less absenteeism, less turnover and termination and improved productivity and results. Job satisfaction is also linked to a healthier work force. Although little correlation has been found between job satisfaction and productivity, Brown (1996) observes that some employers have found that satisfying or delighting employees is a precondition to satisfying or delighting customers and thus, increasing business.
CREATING JOB SATISFACTION
Organizations can create job satisfaction by ensuring that workers are challenged and then rewarded for being successful. Organizations that aspire to create a work environment that enhances job satisfaction need to assimilate the following important points:
- Flexible work arrangements.
- Training and other professional growth opportunities.
- Interesting work that offers variety and challenge to the employee.
- Opportunities to be creative.
- Opportunities to take responsibility and make decisions yourself.
- A secure work environment that includes job security.
- Providing feedback, no matter positive or negative, in order to improve the work performance of employees.
- Helpful benefits, such as child-care and gym facilities.
- Up-to-date technology and state of the art laboratories.
- Competitive salary and promotion opportunities.
Probably the most important point to consider while studying job satisfaction is that there are many factors involved with it and what makes employees happy is something that varies from individual t individual. Apart from the factors mentioned above, job satisfaction is also influenced by the employee's personal characteristics, the manager's personal characteristics and management style and the nature of the work itself. Managers who want to maintain high levels of job satisfaction in their offices must understand the needs and wants of their employees. They must be sympathetic and exhibit humane behavior. For example, when creating work teams, managers can enhance worker and job satisfaction by putting people with similar backgrounds and experiences in the same workgroup. Also, managers can enhance job satisfaction by carefully matching workers with the type of work. As much as they possibly can, managers should try to match the job with the employee's personality.
WORKERS' ROLES IN JOB SATISFACTION
If job satisfaction is considered a worker benefit, then the worker must contribute his own satisfaction and well-being to the job. The following propositions can help a worker find personal job satisfaction:
- Look for opportunities to demonstrate your skills and talents. This often leads to more challenging work and greater responsibilities but it is a great chance to prove oneself.
- Build up excellent communication skills. Employers prefer hiring workers who have excellent reading, listening, writing, and speaking skills.
- Enhance your knowledge. Having something to say about everything important will get you noticed and will enable an employee to become more productive.
- Prove your creativity and initiative. Many companies value employees who come forward in time of need and who are full of bright ideas and ready to take on the world.
- Show teamwork and polish people skills. It is often very important to work well with others and get the job done.
- Accept the diversity in people, cultures and backgrounds. Learn to give and receive criticism constructively and positively.
- Appreciate what you do. Realizing the value of what one does can lead to satisfaction with the work itself.
- Do not get stressed out. Apply healthy stress-management techniques if required.
ASSURING JOB SATISFACTION
Assuring long term job satisfaction demands careful planning and effort both by the management and by the workers. Good organizations encourage their managers to consider such theories as Herzberg's (1957) and Maslow's (1943). Creating a first-rate blend of factors that contribute to a challenging, supportive and rewarding work environment is vital. However, there is a lot of importance given to pay as well as it is the main facet of the reward system, so it cannot be ignored. Therefore, it is very important that salaries be linked to job responsibilities and that pay increases be tied to performance rather than seniority.
In short, job satisfaction is composed of the events and conditions that people experience on their jobs. Brief (1998) wrote: "If a person's work is interesting, his pay is fair, his promotional opportunities are good, his supervisor is supportive and his coworkers are friendly, then a situational approach leads one to predict that he is satisfied with his job".
What we expect to achieve by undertaking this research report is that the telecom sector will be able to have a clear understanding of the factors that cause job satisfaction among employees. This understanding will help them reduce the employee turnover rate and increase the employees' loyalty towards the respective organization.
"Due to better career switching options and competitive environment, employees of mobile operator companies are increasingly becoming dissatisfied with their current jobs and are showing trends of disloyalty to their organization."
The basic research objective is to understand the reason behind the high rate of employee turnover in the cellular service providers of Pakistan and to identify what factors cause loyalty towards the company. Besides this, other significant points and objectives of the research include:
- This study will provide results that will enable cellular service providers to make better decisions regarding the employees so that the turnover rate reduces.
- It will help in discovering what factors contribute towards creating strong organizational loyalty.
- It will help in figuring out the role that various factors play in creating organizational loyalty and job satisfaction among employees.
- This research study will act as a guide line for future studies in the similar discipline.
PURPOSE OF RESEARCH
The mobile operator companies are among the few fields of Pakistan that are progressing and moving ahead. The telecom sector as a whole is contributing about 2 % to the GDP directly. Therefore, this study holds great importance for the telecom companies and future researchers in order to understand what causes job satisfaction and what gives rise to loyalty in the telecom sector.
The main purpose of this research work is to explore and critically examine the impact of job satisfaction among the employees in the cellular services provider companies and their loyalty to the respective company. Our research will also facilitate further study in this field.
The research was conducted in the city of Islamabad. The scope was kept narrow keeping in mind the academic nature of the project and the limitation of resources.
The research was conclusive in nature comprising descriptive study. The sampling technique employed was non-probabilistic convenient sampling, keeping in mind that the sample selection would not be representative of the population due to the limitations and also considering the academic nature of the project.
Questionnaires were developed in light of the research goals mentioned earlier. 125 survey questionnaires were distributed among the five mobile operator companies in Islamabad as per the sampling plan.
The sample was selected from the cellular services provider companies operating within the city of Islamabad which was the sampling frame. The sampling process was designed in such a way so that the survey questionnaires could be filled in by employees from almost all departments of their respective companies.
Non-Probability convenience sampling was used, keeping in mind the limitation of resources and the academic nature of the project.
A sample size of 125 was determined for this research, with 25 survey questionnaires being filled in by each of the five respective company employees.
The project audiences include not only the five main cellular service providers, i.e. Mobilink, Telenor, Zong, Warid and Ufone but also future researchers who would want to extend this field of study. The knowledge of the various factors that contribute towards enhancing an employee's loyalty and job satisfaction that we will find out from this research will enable businesses and particularly the cellular services providers of Pakistan to function in a better way and will enable the employees to be more productive.