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A STUDY OF EMPLOYEE JOB SATISFACTION IN GLOBAL

FOUNDRIES PTE. LTD.

SUJESH A/L SUPRAMANIAN

A project submitted in fulfillment of the requirements


for the award of the diploma of
Professional Diploma in Professional Supervisory Management

Universiti Teknologi Malaysia

JANUARY 2020
ii

I/We hereby declare that I/we have read this project and in my/our
opinion this project is sufficient in terms of scope and quality for
the award of the diploma of Professional Diploma in
Professional Supervisory Management

Signature :
Name of Supervisor : MR. WEE LAI HAN

Acknowledgement by BESTPARTNER SDN. BHD.

Signature :

Name : MR. OOI CHINHOE

MANAGINGDIRECTOR

Date :
iii

I declare that this project entitled “ A STUDY OF EMPLOYEE JOB


SATISFACTION IN GLOBAL FOUNDRIES PTE. LTD." is the result of my
own research except as cited in the references.

Signature:

Name : SUJESH A/L SUPRAMANIAN

Date : 5 JANUARY 2020


iv

ACKNOWLEDGEMENT

First and foremost, I am grateful to God for giving time, good health and well-
being to complete this research project. I would like to thank my beloved lecturer and
supervisor for endless guidance, valuable advices and encouragement extended to me. I
am indebted to all of those with whom I had the pleasure to work during this project.

My heartiest thanks to BESTPARTNER, Mr.Ooi Chin Hoe and Ms.Chong Bee


Kee who gave their fullest support and encouragement throughout the studies. I would
also like to thank the respondents who are very helpful and cooperative in answering the
survey questionnaires and complete the study successfully.

Special thanks to my family, especially to my lovely wife, who has been more
important to me in completing my project. Without her continuous support, my
accomplishment is meaningless. Thank you family for undying love, inspiration and
support.
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ABSTRACT

Employee job satisfaction is an important aspect that requires close attention of


the managers in the organization whether it is a small scale or high scale organization of
all industry. Since employees are perceived to be the back bone of an organization, every
organization will evaluate the satisfaction level of their employees. Thus, this study
intends to identify the job satisfaction level and factors influencing job satisfaction level
of Global Foundries Pte. Ltd. Global Foundries is a large semiconductor leader in
Singapore’s semiconductor industry. The company has been growing tremendously and
facing a biggest challenge in retaining their employees. In order to reduce the number of
employees’ turnover, studying the satisfaction level of the employee is a crucial task for
large organization such as Global Foundries. In other word, this study on identifying the
employees’ job satisfaction level and factors influencing the employee satisfaction is vital
to keep the employees motivated at Global Foundries. A questionnaire survey distributed
to 50 operations employees from different job level to conduct this study. There are four
determinant of employees’ job satisfaction that will be tested on the employees of Global
Foundries. The factors are salary and benefit, relationship with peers, training and
development and working environment. The overall employees’ job satisfaction level is
at the moderate level with the mean score of 3.54 and standard deviation of 0.84 which is
homogenous. Among the four factors, working environment has the strongest influence
towards the employees’ job satisfaction. The study created paths to explore the areas of
job satisfaction that need to be concentrated and improved through the recommendation
provided.
vi

ABSTRAK

Kepuasan pekerja merupakan salah satu aspek penting yang memerlukan


perhatian daripada pengurus dalam organisasi sama ada berskala kecil atau organisasi
skala tinggi di dalam semua industri. Sejak pekerja dilihat sebagai tulang belakang
sesebuah organisasi, setiap organisasi akan menilai tahap kepuasan pekerja mereka. Oleh
itu, kajian ini bertujuan untuk mengenal pasti tahap kepuasan kerja dan faktor yang
mempengaruhi tahap kepuasan kerja Global Foundries Pte. Ltd. Global Foundries ialah
salah satu syarikat semikonduktor yang besar dalam industri semikonduktor di Singapura.
Global Foundries telah berkembang dengan pesat dan menghadapi cabaran yang paling
besar dalam mengekalkan pekerja mereka. Dalam usaha untuk mengurangkan jumlah
pekerja yang meletak jawatan, membuat kajian terhadap tahap kepuasan pekerja
merupakan tugas yang penting bagi organisasi yang besar seperti Global Foundries. Oleh
itu, satu kajian mengenal pasti tahap kepuasan pekerja dan faktor yang mempengaruhi
kepuasan pekerja adalah penting untuk mengekalkan pekerja bermotivasi di Global
Foundries. Tinjauan soal selidik telah diedarkan kepada 50 pekerja operasi dari tahap
kerja yang berbeza untuk menjalankan kajian ini. Terdapat empat penentu kepuasan kerja
pekerja yang akan diuji pada pekerja Global Foundries. Faktor-faktor yang
mempengaruhi kepuasa pekerja adalah gaji dan faedah, hubungan dengan rakan sekerja,
latihan dan pembangunan dan persekitaran kerja. Tahap kepuasan kerja keseluruhan
adalah pada tahap sederhana dengan skor min 3.54 dan sisihan piawai 0.84 yang
homogen. Antara empat faktor, persekitaran kerja mempunyai pengaruh yang kuat
terhadap kepuasan kerja pekerja. Kajian ini juga memberi cadangan untuk memperbaiki
kajian yang akan datang mengenai kepuasan kerja pekerja.
vii

TABLE OF CONTENTS

CHAPTER TITLE PAGE

DECLARATION ii

ACKNOWLEDGEMENT iv

ABSTRACT v

ABSTRAK vi

TABLE OF CONTENTS vii

LIST OF TABLES xiii

LIST OF FIGURES xv

LIST OF APPENDICES xvi

1 INTRODUCTION 1

1.1 Introduction

1.2 Company Profile

1.2.1 Company Background

1.2.2 Company’s Vision, Mission and Values

1.2.3 Products
viii

1.24. Company Process Flow

1.3 Problem Statement

1.4 Research Questions

1.5 Research Objectives

1.6 Significance of Study

1.7 Scope and Limitation of the Study

2 LITERATURE REVIEW 10

2.1 Introduction

2.2 Variable

2.2.1 Job Satisfaction

2.3 Factors Influence the Variables

2.3.1 Salary

2.3.2 Organizational Culture

2.3.3 Relationship with Peers

2.3.4 Stress

2.3.5 Work Conditions

2.3.6 Training and Development

2.3.7 Promotion

2.3.8 Job Security

2.4 Underpinning Theories


ix

2.4.1 McClelland’s Theory of Needs

2.4.1.1 Need for Achievement

2.4.1.2 Need for Affiliation

2.4.1.3 Need for Power

2.4.2 Maslow’s Needs Hierarchy Theory

2.4.2.1 Physiological Needs

2.4.2.2 Safety Needs

2.4.2.3 Belonging Needs

2.4.2.4 Esteem Needs

2.4.2.5 Self-actualization Needs

2.4.3 Herzberg’s Motivator – Hygiene Theory

3 RESEARCH METHODOLOGY 31

3.1 Introduction

3.2 Research Design

3.3 Measurement of Variables

3.3.1 Demographic Data

3.3.2 The Level of Job Satisfaction

3.3.3 Factors Influencing Job Satisfaction

3.4 Questionnaire Design


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3.4.1 Measurement of Scale

3.5 Sample Selection

3.6 Data Collection Procedure

3.6.1 Primary Data

3.6.2 Secondary Data

3.7 Data Analysis

3.7.1 Frequencies

3.7.2 Means and Standard Deviation

4 RESULT AND DISCUSSION 41

4.1 Introduction

4.2 Profile of Respondents

4.2.1 Gender

4.2.2 Age

4.2.3 Ethnicity

4.2.4 Education Level

4.2.5 Level of Position

4.2.6 Salary Range

4.2.7 Years of Service

4.3 Mean and Standard Deviation


xi

4.3.1 Evaluation of Dependent Variable:

Job Satisfaction

4.3.2 Evaluation of Independent Variable:

Salary and Benefit

4.3.3 Evaluation of Independent Variable:

Relationship with Peers

4.3.4 Evaluation of Independent Variable:

Training and Development

4.3.5 Evaluation of Independent Variable:

Working Environment

4.3.6 Comparison between the Variables

5 CONCLUSION AND RECOMMENDATIONS 58

5.1 Introduction

5.2 Major Findings

5.2.1 Research Question 1

5.2.2 Research Question 2

5.3 Recommendations

5.4 Conclusion
xii

REFERENCES 64

APPENDICES 65
xiii

LIST OF TABLES

TABLE TITLE PAGE

3.1 Demographic Information 33

3.2 Questionnaire to Identify Job Satisfaction Level 34

3.3 Questionnaire to Identify the Factor Influence Job Satisfaction 35

3.4 The Structure of Questionnaire 36

3.5 Measurement of Scale 37

3.6 Mean Score Level 40

4.1 Gender 42

4.2 Age 43

4.3 Ethnicity 44

4.4 Education 45

4.5 Level of Position 46

4.6 Salary Range 47

4.7 Years of Service 48

4.8 Analysis of Job Satisfaction 50

4.9 Mean Score Level for Job Satisfaction 50

4.10 Analysis of Salary and Benefit 51

4.11 Mean Score Level for Salary and Benefit Factor 52


xiv

4.12 Analysis of Relationship with Peers 53

4.13 Mean Score Level for Relationship with Peers 53

4.14 Analysis of Training and Development 54

4.15 Mean Score Level for Training and Development Factor 55

4.16 Analysis of Working Environment 56

4.17 Mean Score Level for Working Environment Factor 56

4.18 Comparison between the Variables 57


xv

LIST OF FIGURES

FIGURES TITLE PAGE

1.1 The process flow of AQMS that begins and ends with the client 6

2.1 Maslow’s Theory of Needs 26

2.2 Herzberg’s Description of Satisfaction and Dissatisfaction 29

4.1 Gender 42

4.2 Age 43

4.3 Ethnicity 44

4.4 Education 45

4.5 Level of Position 46

4.6 Salary Range 47

4.7 Years of Service 48

5.1 Factors Influencing Job Satisfaction 61


xvi

LIST OF APPENDICES

APPENDIX TITLE PAGE

I Factors Influencing Job Satisfaction Questionnaire 65


CHAPTER 1

INTRODUCTION

1.1 Introduction

Job satisfaction refers to the feeling of satisfaction in a person's job, which serves
as an incentive to work. Organizations won't be successful without the cooperation and
dedication of their workers. The satisfaction of workers with their employment and their
dedication to their organizations was seen as a significant determinant of organizational
effectiveness. Job satisfaction and dedication are essential to the retention and
recruitment of highly qualified employees. Employees feel satisfied with the company
and job when the employer meets their standards. This will, therefore, increase the
output of the worker and the efficiency of the company.

Concerns about the job satisfaction and organizational engagement of workers


are just as critical or even more critical in knowledge-based industries, as in other
business sectors. Employee job satisfaction consists of five variables that are job
security, compensation, promotional opportunity, supervision support, and job
characteristic. Employees prefer a safe and secure employment such as safe working
2

environment and good salary in accordance with job performance. Employees are also
feel appreciated when they are exposed with proper opportunity to effectively utilize
their skills and abilities.

Employees need a proper guidance and support form supervisor and manager
because when they receive the support, care and assistance, it will give the employees
the feel of being appreciated, heard and cared for. Apart from that, monetary
compensation and benefits are also will give employees immense pleasure which by
means when the pay and benefits are sufficient enough to sustain, then they will feel
satisfied. At times, the job itself will develop the attitude of job satisfaction including
task identity, skill variety and task significance. Employees with these knowledges will
contribute in enhance the efficiency which later will reflect the job satisfaction of the
employee.

Being a large semiconductor foundry, Global Foundries is not an exception in


facing the global challenges. It has to forecast the demand, control the inventories,
improve the efficiency of manufacturing plant, coping with new technologies and so on.
These challenges are not only the big deal for the top management but also for the
retaining employees that loyal to the company. In order to retain them, their job
satisfaction must be fulfilled. Identifying the factors influencing the employees’ job
satisfaction is crucial. This project paper aimed to recognize the factors influencing
employees’ job satisfaction in Global Foundries. The first chapter will outlines the
introduction, company profile, problem statement, research question, research
objectives, significance of the study, and scope and limitation of the study.
3

1.2 Company Profile

1.2.1 Company Background

Global Foundries is an American semiconductor foundry based in Santa Clara,


California, USA. Global Foundries aiming to create world-class facilities and lead the
semiconductor industry. The company subsequently expanded with the acquisition of
Singapore-based Chartered and US-based IBM Microelectronics.

Today, Global Foundries operates in five manufacturing centers on three


continents. These facilities enable Global Foundries to serve a growing portfolio of more
than 250 global customers. Global Foundries provides a broad range of platforms and
features with a unique mix of design, development and fabrication services. With an at-
scale manufacturing footprint spanning three continents, Global Foundries has the
flexibility and agility to meet the dynamic needs of clients across the globe. Global
Foundries’ adoption of innovative technology methods puts it at the forefront of many
market segments. The company has one of the largest patent portfolios in the industry,
with more than 20,000 patents and applications.

1.2.2 Company’s Vision, Mission and Values

Vision

To reshape the semiconductor industry through collaboration and innovation.


4

Mission

To bring global resources together to unleash our customers’ potential to innovate and
create amazing new things with us.

Values

Create Together

We believe collaboration drives innovation, growth and shared success. We strive to


foster and maintain open, cooperative relationships with each other that drive the shared
goals of profitability and excellence.

Act with Integrity

We hold ourselves to the highest standards of fairness, honesty and transparency in


everything we do. Our relationships with each other are based on trust and mutual
respect. As a company, we believe in the importance of doing the right thing.

Deliver Solutions

We are problem solvers that deliver real solutions. We welcome challenges, and see
opportunities where others see only obstacles and risks. We do what we say we’re going
to do and work relentlessly to meet our commitments.
5

Will To Win

We are ambitious, and we strive for success for ourselves and our customers. We are
passionate about what we do and committed to continuously improving how we do it.
We will be the best semiconductor company in the world.

1.2.3 Products

The firm manufactures integrated circuits in high volume mostly for


semiconductor companies such as AMD, Broadcom, Qualcomm, and
STMicroelectronics. It has five 200 mm wafer fabrication plants in Singapore, one 300
mm plant each in Germany and Singapore, and three plants in the United States: one 200
mm plant in Vermont and two 300 mm plants in New York.
6

1.2.4 Company Process Flow

The top level business processes guide the context of the end to end Advanced Quality
Management System (AQMS). -

Figure 1.1: The process flow of AQMS that begins and ends with the client

The process flow of AQMS is as follows:

1. The enterprise execution systems that define the context of the AQMS start with
clear understanding of the roles and responsibilities.

2. The Global Foundries global network functions seamlessly supporting the global
market place with the speed and intimacy of being located near our clients.
7

3. The governance system allows the clients to have a common experience across the
Global Foundries network.

1.3 Problem Statement

This study is based on the recognition that job satisfaction is an important consideration
in order to make workers more successful, creative and dedicated. The research aims to
determine the important factors that affect the job satisfaction of employees that working
in Global Foundries and to investigate to what extent Global Foundries satisfies its
employee through the factors identified.

1.4 Research Questions

Research questions are:

1. What is the employees’ job satisfaction level in Global Foundries?


2. What are the factors influence the employee satisfaction level in Global
Foundries?

1.5 Research Objectives

Research objectives are:

1. To identify employee satisfaction level in Global Foundries.


2. To identify the factor influence the employee satisfaction level in Global
Foundries.
8

1.6 Significance of Study

The significance of this study is lies in identifying contributing factors that


influencing employees’ job satisfaction to recognize the organizational problems and to
solve them practically. Through the identification of the factors, Global Foundries may
increase their commitment towards the employees which could possibly deliver a
positive outcome in performance, decision making, and improvement in productivity
including staying profitable in long – term.

1.7 Scope and Limitation of the Study

The study carried out in one of the manufacturing plant of Global Foundries
which situated in Singapore. The respondents are consist of those who working in the
manufacturing floor to determine the extent of their satisfaction level towards the job
and rectifying steps to overcome the dissatisfaction among them. The study also will
help the management to determine the employer’s level of satisfaction towards
employees’ welfare.

One of the drawbacks of this research is that this analysis focuses only on
employee job satisfaction within an organization in Singapore. The results of this study
may not extend to the satisfaction of other organizations outside of Singapore. In other
words, the findings of this study apply only within the organization of the research and
do not reflect job satisfaction of the employees of Global Foundries throughout the
world.
9

The other limitation is the employee satisfaction is focuses on the manufacturing


plants only. This result is not applicable to other function of the company. Thus, this
study must aware that the data collected from manufacturing division only.
10

CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

Job satisfaction seems to be a very important element often observed by


organizations. This section will focus on the literature of job satisfaction and the factor
affecting employees' job satisfaction. The purpose of the literature review is to review
the contribution of previous researchers to job satisfaction studies. This is primarily to
see what did and did not work in other experiments and to assess the current research.
The literature on employees' job satisfaction variables will be addressed in the second
section of this chapter. Factors affecting employee's job satisfaction will be explored in
the third part. Finally, this chapter will also examine the theories involved in this study.

Global Foundries is one of the major semiconductor manufacturing plant in the


world. Involving in a highly competitive global business, Global Foundries has become
an integral part of the worldwide industry. Employees playing a vital role to make
Global Foundries to be highly productive and profitable among the other competitor.
11

Thus, this study identify the level of job satisfaction among all the employees in the
manufacturing plant located in Singapore.

2.2 Variable

Global employees will be evaluated on job satisfaction. By analyzing the Global


Foundries’ employee job satisfaction, the contributing factors of job satisfaction can be
identified too. Literature on job satisfaction is studied to relate them with the Global
Foundries’ employees’ satisfaction. Several job satisfaction models as underlined by
previous researchers are also applied to measure the employees’ satisfaction.

2.2.1 Job Satisfaction

Job satisfaction is a specific term with a number of meanings and principals


involved, which has been studied in many industries for many years. The traditional
meaning of job satisfaction is a person’s feeling towards a job assigned to him or her
(Lu, While and Barriball, 2005). In fact, there is no perfect description on job
satisfaction. Each writer has their method in describing the definition of employee’s job
satisfaction. The definition of employees’ job satisfaction is referring to the employees’
role in workplace where it is an affective orientations on the part of individuals toward
work roles which they are presently occupying (Vroom, 1964). Stating this further,
employees' job satisfaction is also seen as a final state of feeling where emotions could
be either positive or negative depending on whether the needs are met or not (Saiyadain,
2009).
12

Apart from that, job satisfaction is also referred as a positive feeling about a job
after analyzing and evaluating the job’s characteristics (Robbins & Judge, 2013). There
are many studies that concentrate on job satisfaction, as people spend most of their lives
working and knowing the factors that improve contentment is important to the well-
being of individuals (Gruneberg, 1997). Employees with positive feelings about the
work have a high level of job satisfaction while employees with negative feelings about
the job have a low level of job satisfaction (Robbins & Judge, 2013). An employee is
content when he or she meets or exceeds his or her normal job requirement (Schnake,
1991). Job satisfaction is also a combination of emotional, physiological and
environmental conditions that give people a reason to be content with the job (Hoppock,
1935). The interpretation by another researcher described job satisfaction as a
pleasurable or optimistic emotional state arising from the evaluation of one's job and
work experience (Locke, 1976).

In addition, in terms of improving the performance of an organization, it is


important for management to understand the concept of job satisfaction (Putman, 2002).
Job satisfaction can be considered one of the key components when it comes to the
quality and efficiency of business organizations. Job satisfaction has a significant impact
on organizational performance, such as customer satisfaction and financial benchmarks
for the achievement of organizational goals and competitive results (Saari & Judge,
2004). Job satisfaction is a compilation of feelings and perceptions people have about
their current work. Employees may also have opinions towards different aspects of their
jobs, such as the type of work they do, their fellow workers, their supervisors and
subordinates, or their salaries and benefits (George et al., 2008). A decent company
normally sees the average employee as the fundamental cause of productivity and
profitability. Such businesses are not worried with capital investment but with
employees as a key source of productivity (Gupta, Kaur, Gupta, Jain, & Sharma, 2012).
13

Job satisfaction can also be characterized as the degree to which a worker is


satisfied with the benefits that he or she receives from his or her job, particularly in
terms of his or her inner motivation (Statt, 2004). There are three perspective describing
the importance of job satisfaction study (Spector, 1997). Firstly, from a humane point of
view, organisations should be aware of the importance of treating employees equally and
respectfully. Second, from a utilitarian point of view, job satisfaction and frustration can
have a major impact on the actions of workers, which will have an influence on the
functioning and activities of the organization. Employees with a high level of job
satisfaction will result in positive behavior at work and vice versa, dissatisfaction at
work will result in negative behavior. Thirdly, job satisfaction may serve as a measure of
the success of organizational activities. Through evaluating job satisfaction in different
organizational structures, improvements in leadership can boost performance (Spector,
1997). The importance of job satisfaction is particularly obvious when considering the
many negative impacts of workplace dissatisfaction, such as lack of commitment,
chronic absenteeism and elevated number of accidents (Aziri, 2011).

Job satisfaction is connected to motivation, but the nature of the relationship is


not clear. Satisfaction isn't just about motivation, but rather a behavior, an inner state.
This could be related to a personal sense of achievement, whether quantitative or
qualitative (Mullins, 2005). Job satisfaction also represents a feeling that appears as a
result of the perception that the job enables the material and psychological needs (Aziri,
2008). Employment fulfillment likewise implies energy and happiness regarding one's
work that prompts acknowledgment, salary, advancement, and the accomplishment of
different objectives that lead to a sentiment of satisfaction (Kaliski, 2007). The word job
satisfaction alludes to the musings and feelings individuals have about their
employments. Positive and lovely mentalities towards work show job satisfaction.
Negative and undesired frames of mind towards work demonstrate job dissatisfaction
(Armstrong, 2006).
14

2.3 Factors Influence the Variables

In Global Foundries, employees are provided with plenty benefits and perks. The
employees are enjoying variety of leaves, insurance coverage, recognition awards, health
benefits, education and many more perks. The employee’s satisfaction in Global
Foundries are driven through learning and development. Global Foundries’ employees
and managers with systems, tools, and solutions they able to manage their personal and
professional growth. Knowledge is a core competence at Global Foundries.

Global Foundries perceive learning as a lifelong process which is essential for


acquiring knowledge, understanding change, generating the best ideas, increasing
productivity and achieving personal and corporate growth. To support this lifelong
process, Global Foundries offers employees the ability for technical and personal
development. Employees with the help of their manager plan learning activities aligned
with technical needs and development goals.

2.3.1 Salary

Prior studies by Frye (2004) show that there is a positive relationship between
wages and performance of employees and that income is a key factor in the satisfaction
of employees. Kathawala, Moore & Elmuti (1990) reached the conclusion that the pay
system is the sole motivating factor for employees. In the other hand, Hamermesh
(2001) found that the increase in wages had only a temporary effect on the satisfaction
of employees. As said by Wang & Seifert (2017), wage cuts could affect the morale of
employees. In addition, the performance of employees tends to go in the wrong
direction.
15

A study by Nguyen et al. (2003) also found that happiness at work is greatly
impacted by incomes. These findings have been corroborated by Cappelli and Sherer
(1988) and Brown et al., (2008). They further note that wages and remuneration are
important tools for managing the retention rate of employees. Heneman (1992)
recommended that managers set targets and reward workers who reach them with an
incentive program for achievement, thus increasing overall efficiency.

2.3.2 Organizational Culture

Organizational culture can be defined as a set of features that makes a company


unique and differentiates it from other firms, or as the way in which employees interact
within a company and the working environment that this engagement creates.
Organizational culture can have a substantial impact on employee morale and
performance. Past research have established the connection between culture and
commitment. Yildirim et al. (2016) discovered that a supportive atmosphere has
improved the engagement of employees. Organizational culture can be seen as a cultural
binding that binds the entire organization together (Tichy, 1982). Kim et al., (2017) in
his research identified that strong culture can attract talented employees and reduce
turnover rate.

Employees do not stay engaged in the overall operation of the company, do not
recognize their function. In a culture where supervisors fail to enrich their employees,
stress and mistrust become the way of things. Abu-Jarad, Yusof, & Nikbin (2010)
interpreted it as how things should be done and handled within an organization, as well
as being a way for new hires to measure how they communicate with coworkers. A
creative culture and an efficient working environment will foster effective change and
generate high quality services and products. Alvesson & Spicer (2012) upheld that
16

culture incorporates a mutual set of key principles, understandings, assumptions and


values among employees of a company.

Recognition and encouragement for good performance drive workers to greater


performance in order to meet their private and company job goals. Lee and Yu (2004)
claims that the distinguishing trait and style of organization of a given workplace can
influence the performance of employees. A productive system encourages employees to
carry out their work assignments with passion and energy. The more supportive and
optimistic the environment, the greater the happiness at work, the degree of engagement
and the consequent efforts made by employees. Since employees perceive themselves
crucial to the growth of the company, they take responsibility for the overall well-being
of the organization.

2.3.3 Relationship with Peers

An organization nature is to always work as a team while performing the tasks


and duties. Inevitably, the work group acts as a source of job satisfaction in terms of
social ties, communication and exchange of things in common in order to achieve the
goals set by the company. Katz (1964) points out that simulation, acceptance and
encouragement are derived from communication with colleagues. These are important
motivational factors that have a direct impact on job satisfaction. A further study by
Watson (1988) supported a positive and significant connection between social activity
and positive impact. He identified the weaker evidence of the connection between social
activity and negative impact.

According to Ting (1997), employees who experience rewarding experiences


quite often should be more satisfied with their work. Nevertheless, there is some proof
17

that engaging in more social relationships at work leads to higher overall job
satisfaction. Lately, however, academics have identified that different types of social
interactions differ in their degree of agreeable nature (Lucas & Diener, 2001).
Worldwide job satisfaction assessments are affected by peer relationship at work
because "the way people get along with their colleagues, supervisors or subordinates is
part of the overall perception of their work situation" (Tschan et al, 2004, p. 145). Early
studies on social interactions and emotional experiences either did not distinguish
between different types of social interaction (Watson, 1988) or concentrated on mostly
positive social interactions (Tschan, Semmer, & Inversin, 2004). Empirical research by
Diener, Oishi and Lucas (2003) provides evidence for the claim that popularity and
influence are robust predictors of well-being and that the number of peer nominations
received is related to self-esteem and reduction of peer role strain.

Close personal relations such as friendships are particularly important for job
satisfaction (Bettencourt and Sheldon, 2001). They claimed that close ties of friendship
affect satisfaction in two ways. First, these relations are an important resource for
psychosocial support; they are likely to increase satisfaction and buffer work problems.
Second, they are of key importance for effective negotiations and provide access to key
information and resources. Lucas and Diener (2001) mentioned that people involved
with communication ties had a higher level of job satisfaction than those who had no
ties. In the earlier study by Shaw (1964), the positive impact of job satisfaction and good
relationship within a small group of employees was reported.

2.3.4 Stress

Studies had already linked work stress to role ambiguity and role conflict
(Chang, 2008) and has shown that some factors, such as work overload and poor
working conditions, often lead to negative mental and physical health repercussions for
18

employees (Murphy, Cooper, & Payne, 1988).Employees who are subject to greater
demands and responsibilities than they are capable of handling suffer from increased
levels of stress, which can be detrimental to the emotional and physical response of the
employee, thus causing challenges for both the employee and the organization (Leong,
Furnham & Cooper, 1996). Since stress can have a direct impact on organizational
efficiency, companies need to identify the root cause of job stress and find ways to
control stress factors that affect employee satisfaction and performance. According to
Schabracq & Cooper (2000), stress is a key factor in poor concentration and
productivity, leading to low performance, high turnover, low job satisfaction, increased
absenteeism and low quality products and services.

2.3.5 Work Conditions

Throughout their study of bank employees, Brown and Mitchell (1993) reported
a number of significant negative ties between the different working environments and
the satisfaction of employees. While most of the research in this field have focused
primarily on the adverse impact of constraints on organizational efficiency, a few have
explored the influence of organizational constraints on employee job satisfaction.
Studies by Peters, O'Connor, and Eulberg (1985) suggests that organizational challenges
or limitations such as insufficient tools and equipment, lack of training, crowded work
spaces, and unsafe work conditions may be significant predictors of employee behavior,
morale, and efficiency. Work conditions not only apply to the physical place of work,
but also include the availability of materials, supplies, services for carrying out the
assigned work and the health aspect of the work place.
19

2.3.6 Training and Development

Employees should be provided with up-to-date field knowledge to be aware of


the company's mission and objectives. Employee positions should be clear-cut to ensure
that they perform well and make a significant contribution to the success of the
company. Garner (2012) points out that training and development are necessary to
increase the accuracy of the work of employees, minimize the role of dispute among
employees and strengthen the ongoing learning process so that employees can respond to
changes in company policy (Masa'deh et al., 2013; Shannak et al., 2010). With
globalization, innovation and leadership which bring increased competition among
businesses around the world, companies should attract and retain talented employees in
order to compete on the market (Allen, 2010).

Saleem et al. (2011) distinguish some of the advantages of training and


development as instruments to improve human capital, develop skills, boost employee
knowledge and work efficiency, lessen non-productive working time, such as sick days,
and reduce absenteeism, as well as improve quality by reducing employee error and
resulting waste. Throughout his work, Armstrong (2009) distinguishes between the
principles of training and development; defines progress as the new skills and
knowledge that workers learn from their employer which enable them to step forward in
a future position.

Training will help employees study their existing skills to a higher standard, thus
improving efficiency and helping them to progress in the work environment. Training
and development serve to strengthen the trust of employees and, as a result, can enhance
their general attitude towards the company. According to Gusdorf (2009), a change in
the business environment and policies has resulted in an increase in professional
20

development and skill inventory management. Training should aim to enhance


employees’ skills and performance in the workplace (Obisi (2011).

Training and development not only lay the groundwork for employees for the
next step on the promotional ladder, but can also strengthen employer-employee bonds,
enabling the employer to distinguish between employee performance and talent
(Qayyum et al., 2012). Sufficient data and information about their positions and the
products or services they deliver allows workers to perform better at work, making them
better equipped to assist customers. The appropriate training can alleviate many
workplace challenges, such as team work, employee conflict, innovation, and
organizational culture. Furthermore, training and development can spur employees to
think creatively.

Vemic (2007) notes out that when employees have sufficient knowledge and
experience, they feel assured enough to be part of the decision-making process. The
performance of each worker leads to the success of the company, so the greater the
performance of the workers, the more likely the company is to achieve its objectives. To
foster learning culture, senior management needs to be involved in the training program
(Tom & Harris, 2017). If higher management encourages a strong organizational
learning culture, employees able to develop their knowledge and skills through training
(Malik & Kanwal, 2016). Thus, human resource management should focus on training
and development so that employees can keep pace with new technologies and the current
market.
21

2.3.7 Promotion

The policies and procedures of company promotion play a major role in the
satisfaction of employees. Some companies have an internal promotion policy, while
others prefer to recruit new staff for vacancy. Large corporations praise their best
employees with promotions, as a clear appreciation and reward from management
encourages employees to maximize their efforts and thus increase productivity. A pro-
active employee will pursue advancement through education, training and development
programs, thereby improving their skills and experience in order to be accepted by
management as an individual deserving of promotion (Gupta, 2011; Abuhashesh,
2014).Obviously, an employee who maintains a high level of self-esteem can perform
tasks willingly and effectively, which will help the company as a whole.

Promotion can be characterized as internal flexibility within an organization by


changing its role vertically. As Prasad (2010) finds out, it is unusual for an employee to
stay in one role for 20 years. Whether he / she receives advancement or he / she tries
new challenges elsewhere. Employees find that holding the same position and repeating
the same daily tasks for many years is tiring, but this can be avoided if the employee
expects to be promoted to a higher position with new tasks and responsibilities. In fact,
promotion brings higher status and better wages, as well as a feeling that hard work and
loyalty are valued and rewarded.

Human resources departments can play a significant role in making employees


more empowered and engaged by introducing initiatives that can enhance performance
and reacting to competitive challenges that allow employees to exercise higher levels of
competence and responsibility in a new position. Porter and Steers (1973) concluded that
the rate of employee satisfaction reflected the aggregate level of worker aspirations and
their preferred interest. The scope and significance of these preferences varies across
22

individuals, but when expectations are not met and are sufficiently large, there is less job
satisfaction and, ultimately, withdrawal behavior that grow (Pearson, 1995). Employees
expect their job to provide a mix of features such autonomy, responsibility,
achievements and promotion that generally related to pay and status.

Employee confidence and loyalty will help the company achieve the goals and
achieve long-term success. According to Armstrong (2009), companies seeking to
increase stability and continue to maintain long-term employees should enhance
employer-employee relationships by building loyalty and trust through an internal
promotion policy. Some companies use merit promotion as a means of motivating
employees. Merit scheme is a reasonable approach that encourages employees to work
better and remain loyal to the company because they know that in the end the reward
will be a promotion to a higher position, leading to increased wages and higher status.
The outcome from this is increased job satisfaction, better performance and further
advancement.

2.3.8 Job Security

Job security refers to the period of time workers may expect to remain in their
jobs. Some companies offer lengthy contracts which protect employees from job
termination. Employees love to find a role that they can pursue in the long term which
works to the benefit of corporations. Job security is positively related to social safety
(Shi, 2017). Several studies have shown that job insecurity decreases employee
engagement, morale and productivity (Ashford et al. 1989). Employees with vulnerable
positions will improve their performance in order to sustain their high social status.
23

When an employee grows older and has more personal responsibilities, the need
for job security rises. Nonetheless, Rosow & Zager (1985) found no correlation between
job insecurity and job performance. Job security leads to increased employee
commitment, with long-term employees showing a stronger sense of loyalty according to
Iverson (1996). Personal factors, such as the age of the employee, level of education,
number of children, position level, and income combine to encourage employees to
remain in the job. Lifetime employment and seniority are transforming the quality of
workers and creating a sense of leadership. A long-term employee often has greater skill
levels, which means they perform tasks to a higher standard and are more productive.

Low productivity and increased spending on training new workers can result in
higher costs being passed on to consumers and can lead to disappointment on the part of
customers. When a company loses its customers ' confidence, it will inevitably lose both
business and revenue. On the other hand, a business that cannot guarantee job security
will find that its workers quickly seek more steady employment with little risk, causing
the organization to suffer from a high turnover rate that will negatively affect it.

2.4 Underpinning Theories

Job satisfaction theories align well with theories that describe human motivation.
The most prominent theories that used to analyze job satisfaction are McClelland’s
theory of needs and Maslow’s needs hierarchy theory and Herzberg’s motivator –
hygiene theory.
24

2.4.1 McClelland’s Theory of Needs

In the early 1960s, David McClelland proposed needs theory. This theory is also
known as David McClelland’s three needs theory or as the learned needs theory.
According to McClelland, human specific needs are learned over time and are
influenced by one's own life experiences. Irrespective of gender, culture or age, all
human beings have three motivating drivers, and one of them is the dominant motivating
driver. This powerful motivator is largely dependent on the understanding of culture and
life. The three motivators are achievement, affiliation and power.

2.4.1.1 Need for Achievement

People who has achievement has their dominant motivator has strong need to and
accomplish challenging goals. They willing to take risks just to accomplish their goals
and prefer to receive feedback on their development and achievements. Those who are
driven by achievement work very well either alone or with other high achievers.
Evidence shows that people who have a high need for recognition perform better at
work. Employees with a strong need for success would have a transparent and detailed
strategy to help themselves accomplish their goals. Employees with a low need for
achievement, however, perform better with a monetary incentive.

2.4.1.2 Need for Affiliation

Affiliation factors need to have harmonious relationships with others and to feel
accepted by others. Employees want to be part of the group, to be respected, and will
often go along with whatever the rest of the group wants to do. Anyone who is
25

motivated by affiliation also favor collaborative work over competitiveness and at the
same time do not like high risk. Employees who are high in need of affiliation would be
able to develop positive long-term relationships in active positions. However, they might
be less efficient in the allocation of decision-making that could lead to conflict. These
employees will create satisfaction and enjoyment in doing their job if the work
environment provides close interactions among staff.

2.4.1.3 Need for Power

Power is a measures of success which defined as taking control and influence


certain actions directly or indirectly. Employees with such need like to win arguments
and enjoy competition and winning apart from gaining status and recognition.
McClelland suggested two types of need for power. Firstly, known as the personalized
power that refers to those who enjoys power for its own sake use it to advance personal
interest and want it for status symbol. The second type is the socialized power and it is
used to help others. Leaders with a high need for socialized power tend to be more
effective than those with a high need for personalized power.

2.4.2 Maslow’s Needs Hierarchy Theory

Abraham Maslow suggests that motivation can be depicted as a hierarchy of


needs. As lower-level needs are satisfied, employees are likely to be motivated by
higher-level needs. Maslow states that there are five categories of needs: physiological,
safety, belongingness, esteem and self - actualization. Maslow believes that human
needs can be organized in a framework that tells us which needs we will normally
pursue first and which needs that we will pursue last (Reeve, 2005).
26

As the lower needs are satisfied, higher needs emerge. Higher needs cannot be
satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This
resembles the standard economic theory of diminishing returns. The hierarchy of needs
at work in the individual is today a routine tool of personnel trade and when these needs
are active, they act as powerful conditioners of behavior- as Motivators.

Needs hierarchy theory suggests that people always want what they do not yet
have. Consequently, the needs that are already satisfied no longer provide any
motivation for behavior and new needs must rise to prominence. Once people have
satisfied their lower level needs, they can pay attention to higher level needs. Five basic
needs proposed by Maslow are; physiological, safety, social, esteem and self-
actualization as shown in Figure 2.1.

Figure 2.1: Maslow’s Theory of Needs


27

Maslow’s need hierarchy theory has important contribution to understanding


work motivation. It has significantly made organizations more aware of the diverse
needs of employees at work. If an employee does not satisfy and respond to economic
incentives, the management has alternative sources of employee motivation to consider.

2.4.2.1 Physiological Needs

This is the lowest and most basic needs, which refer to primary needs such as
need of hunger, sleep, and cover from weather and thirst. For example, an employee who
is hungry or fear for his physical safety will be too busy attempting to satisfy these needs
to be concerned about job satisfaction or work performance.

2.4.2.2 Safety Needs

Maslow stressed emotional as well as physical safety in this next level of needs.
In times of economic hardship, when jobs are scarce, most employees are so intent on
survival that they cannot attend to higher needs such as self-actualization.

2.4.2.3 Belonging Needs

The third level of needs correspond to the affection and affiliation needs. An
example of this need is social acceptance. Belonging needs can be important motivating
forces on the job. Employees can develop a social support network and a sense of
belonging through interactions with co-workers which could lead to better job
satisfaction and work performance.
28

2.4.2.4 Esteem Needs

This level represents the higher needs of humans. It is the needs for power, need
for achievement and status. This need corresponds to self-esteem as well as esteem from
others. Esteem needs can be satisfied by buying a bigger house or car, which contributes
to the feeling of success and through on- the- job rewards such as praise from the boss, a
promotion, an office with a window or a reserved parking space.

2.4.2.5 Self-actualization Needs

This is at the highest human needs. Those who are self-actualized are self-
fulfilled and are aware of their potential. To satisfy the self-actualization need,
employees should be provided with opportunities for growth and responsibility so that
they can exercise their abilities to the utmost. For example a routine and boring job will
not satisfy the self-actualization need, no matter how high the salary.

2.4.3 Herzberg’s Motivator – Hygiene Theory

In Herzberg’s motivator – hygiene, Frederick Herzberg claims that there are two
types of motivational factors which are extrinsic and intrinsic. This theory identified that
job satisfaction and dissatisfaction are not two opposite ends of same continuum, but
instead two separate and sometime unrelated concepts. Extrinsic and hygiene
considerations include measurable results and issues that reflect on the physical well-
being of employees, such as pay and benefits, organization, regulations, performance of
management, job security, job security, organizational procedures and physical working
conditions. Intrinsic factors include intangible results such as appreciation, transparency
and respect.
29

Herzberg listed a number of motivating factors and hygiene factors that made a
significant contribution to job satisfaction and dissatisfaction. Motivating factors are
such as pay and benefits, recognition and achievement that contributing towards job
satisfaction. Whereas, hygiene factors are referred as working conditions, company
policies and structure, relationship with colleagues and quality of management that
associated with job dissatisfaction. Motivator – Hygiene theory is a crucial theory to be
used in job satisfaction due to the complexity of the employees’ feelings as they
probably might have both satisfied and dissatisfied feelings at the same time. Figure 2.2
shows the representation of Herzberg’s description of satisfaction and dissatisfaction.

Figure 2.2: Herzberg’s Description of Satisfaction and Dissatisfaction

Workers are content and inspired when they are satisfied with the intrinsic
factors such as level of responsibility and respect at work), which is why intrinsic factors
are also called motivating factors. If workers are not pleased with the underlying
conditions, Herzberg claims, they are not satisfied. But when they feel valued and enjoy
responsibility, they are more likely to be truly satisfied with their jobs. This suggests that
if want to motivate employees, the focus should be on intrinsic factors.
30

Herzberg suggests that workers will be unhappy with their jobs if they are not
satisfied with the work that is also regarded as an extrinsic variable such as pay, job
security and company policies. Appropriate levels of extrinsic factors are needed to
avoid job dissatisfaction, but even when employees are satisfied with their salary,
bonuses, vacations and health benefits, they will not necessarily feel satisfied or
motivated. For extrinsic factors Herzberg suggests, the best you can hope for is to stop
the workers from being dissatisfied.
31

CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

The primary purpose of this study is to analyze the job satisfaction level of
employees at Global Foundries and to identify the contributing factors that affect the job
satisfaction. Both primary data and secondary data are used to interpret the data. The
questionnaire method is used to collect the primary data from the respondents. The
secondary data collected from previous related researches, reference books, online
journals and articles. The application of analyzing both primary and secondary data in
this study is to get more accurate and reliable data. Through this method the research
objectives will be achieved and all the research questions will be answered. This section
dissected into six subtopics namely, research design, measurement of variables,
questionnaire design, samples selection, data collection procedure and data analysis.
32

3.2 Research Design

This study mainly focusing on factors influencing the job satisfaction level of
employees. A survey questionnaire distributed to the employees of Global Foundries to
measure the job satisfaction level. This method is known as quantitative research method
where the data will be interpreted using statistical analysis to conclude the results.

3.3 Measurement of Variables

3.3.1 Demographic Data

The demographic data is a compilation of seven initial component of respondents


with regards to the influencing factors. There are a total of seven questions listed as
demographic questions. There are seven questions in Section A, from Question 1 to 7 are
respondents’ gender, range of age, ethnicity, education level, level of position, range of
salary and years of service as shown in Table 3.1.
33

Table 3.1 Demographic Information

No. Information

1 Gender

2 Age

3 Ethnicity

4 Education Level

5 Level of Position

6 Salary

7 Years of Services

3.3.2 The Level of Job Satisfaction

The level of job satisfaction is a dependent variable in this study. Thus, the
survey questions are specifically related to satisfaction level of employees towards their
job. This part of the questionnaire is designed based on previous researches
questionnaire and also from journal articles. Phrases such as “I feel satisfied with my
job”, “I’m proud of my job”, and “I’m happy with my job” are the indicators to measure
the satisfaction level. The respondents will answer these questions by using the scale
from 1 (Strongly Disagree) to 5 (Strongly Agree). A total of six questions are in this
Section B of survey questionnaire, from Question 8 until 12 as shown in Table 3.2.
34

Table 3.2: Questionnaire to Identify Job Satisfaction Level

No. Question 1 2 3 4 5

Job Satisfaction

8 I’m satisfied with my job.

9 I’m satisfied regarding my associate works.

10 I’m getting opportunity to learn new skills


while working.

11 I’m proud to work with Global Foundries


Pte. Ltd.

12 I’m happy with my job.

3.3.3 Factors Influencing Job Satisfaction

Section C of survey questionnaire is consist of questions that measure the factors


influencing job satisfaction among employees at Global Foundries. The factors are
classified into 4 parts namely Salary and Benefit, Relationship with Peers, Training and
Development and Working Environment with 20 questions to be answered by the
respondents. The 20 questions on factors influencing job satisfaction with the scale of
measurement from 1 (Strongly Disagree) to 5 (Strongly Agree), are starting from
Question number 13 until 32. Table 3.3 depict the questionnaire for each factor.
35

Table 3.3: Questionnaire to Identify the Factor Influence Job Satisfaction

No. Question 1 2 3 4 5
Salary and Benefit
13 I’m getting decent income for the job I perform.
14 I’m feeling satisfied with the fringe benefits.
15 I’m able to understand the incentive system followed by
the management.
16 I’m satisfied with the process of annual raises.
17 I’m happy with career progression at this company.
Relationship with Peers
18 My supervisor actively listen to my ideas and suggestions.
19 I’m feeling happy with mutual cooperation among
employees.
20 I’m being encouraged by my supervisor and fellow
colleague.
21 I’m getting fair treatment from everyone.
22 I’m free to discuss with my colleagues and supervisor.
Training and Development
23 I’m provided with the tools and resources that I need to
do my job.
24 I’m technically trained.
25 I’m encouraged to explore growth or advancement
opportunities.
26 I understand what is expected for career advancement.
27 I’m getting practical training as much as I needed.
Working Environment
28 I’m happy with the availability of pleasant physical
environment.
29 I feel satisfied with the comfortability of the working
hours.
30 I’m happy with efficiency of the equipment and tools at
the work place.
31 Provision of lighting and ventilation facilities at the work
place.
32 Adequacy of working space to work efficiently.
36

3.4 Questionnaire Design

The survey questionnaire consist of three major sections and four sub-section.
The structure of the questionnaire is as shown in Table 3.4.

Table 3.4: The Structure of Questionnaire

Section Information Question Total Questions

A Demographic Information 1-7 7

B Job Satisfaction Level 8-12 5

C Factors Influencing Job Satisfaction

C1: Salary and Benefit 13-17 5

C2: Relationship with Peers 18-22 5

C3: Training and Development 23-27 5

C4: Working Environment 28-32 5

3.4.1 Measurement of Scale

The survey questionnaire used 5 point Likert scale to analyze the job satisfaction
level and factors contributing to the job satisfaction. The respondents must choose the
scale that they prefer during answering the survey questionnaire. The five point Likert
scale 1 to 5 is described as below in Table 3.5:
37

Table 3.5: Measurement of Scale

Scale Satisfaction Level

1 Strongly Disagree

2 Disagree

3 Neutral

4 Agree

5 Strongly Agree

3.5 Sample Selection

The sampling method that used in this study is by using population that
represented by the operational employees of Global Foundries.

The number of employees that chosen as population for this study are 50 in total.
They were consist of 10 senior executives, 15 junior executives, and 25 fresh level and
non – executive employees.
38

3.6 Data Collection Procedure

3.6.1 Primary Data

The primary data is collected through survey questionnaire. The survey


questionnaires which were printed out in papers are distributed to the 50 employees
during morning briefing before the operation starts. The respondents took almost 10 to
15 minutes to answer the survey questionnaires. The survey questionnaires are collected
on the same day after morning briefing from all the 50 respondents that select randomly
according to the sample proportion.

3.6.2 Secondary Data

The secondary data that used for this study is collected from the past researches
on job satisfaction and articles on human resource management. The data collected from
the secondary sources is important to enhance the related theories, definition, literature
and opinions from the past researchers. The secondary data also will provide an insight
on the relationship of dependent and independent variables, which in this study the
relationship between job satisfaction and the influencing factors. Apart from that, the
secondary data also will help this study to conclude the decision.
39

3.7 Data Analysis

The data analysis for this study is to analyze both primary and secondary data.
The raw data obtained from the survey questionnaire, analyzed and interpreted into
hypothesis before concluding the results. The definitions, theories, past results and
literatures are obtained from secondary data. The analysis of primary data are analyzed
by using quantitative method.

3.7.1 Frequencies

The raw data that collected from the survey questionnaire is tabulated
accordingly. The results is illustrated in the form of charts. The tabulation and chart of
the raw data are performed using Microsoft Excel. Before analyzing the data, the
questionnaires will be coded for data accuracy apart from examining and presenting the
demographic profile of respondents, using descriptive statistic method.

3.7.2 Means and Standard Deviation

The analysis that used to interpret the data is known as descriptive method. The
data will be interpreted into mean, frequency and percentage which will be also
presented in the form of table, chart and diagram. The mean is defined as arithmetic
average of a data set that applicable to analyze quantitative data. The formula of mean is
to add up all the scores in dataset and divided with the number of scores. Table 3.6 show
the mean score and the level of mean.
40

Table 3.6: Mean Score Level

Mean Variance Level

1.00 – 2.33 Low

2.34 – 3.67 Moderate

3.68 – 5.00 High

Whereas standard deviation defined as distance or average deviation of all value


from the mean. The low standard deviation shows the value is near to the mean of the
set, while the high standard deviation shows the values of datasets are in the wide range.
In analyzing the job satisfaction, if the standard deviation is small, the respondents
categorized as homogeneous. If the standard deviation is large, the respondents are
categorized as heterogeneous.
41

CHAPTER 4

RESULT AND DISCUSSION

4.1 Introduction

The purpose of this chapter is to mainly analyze 50 sets of questionnaire data


distributed to employees of Global Foundries Pte. Ltd. The objectives of this study were
achieved through the result of the study.

4.2 Profile of Respondents

In analyzing profile of the respondent, there are seven demographic questions


with regards to their background were asked in the questionnaire. The respondents were
required to provide information on gender, range of age, ethnicity, education level, level
of position and range of salary, years of service.
42

4.2.1 Gender

The 50 respondents that involved in this study were both male and female. The
ratio of male respondent is higher than female respondents. Table 4.1 and Figure 4.1
show the frequencies and percentage of the respondents based on gender. The male
respondents were 72% of total respondents. Whereas female respondents were 28% of
total respondents.

GENDER

Female
28%

Male
72%

Figure 4.1: Gender

Table 4.1: Gender

Gender Frequency Percentage

Male 36 72%

Female 14 28%

Total 50 100%
43

4.2.2 Age

There were five age groups in the questionnaire. For < 20 years and < 50 years,
there were no respondent. The highest number of respondents were in 31 – 40 age group
with a total of 21 respondents. Followed by 41 – 50 age group, with 18 respondents and
21-30 age group with 11 respondents. Table 4.2 and Figure 4.2 shows the representation
of these data.

AGE
21-30
41-50 22%
36%

31-40
42%

Figure 4.2: Age

Table 4.2: Age

Age Frequency Percentage

< 20 years - -

21-30 11 22%

31- 40 21 42%

41–50 18 36%

> 50 years - -

Total 50 100%
44

4.2.3 Ethnicity

The respondents are consist of employees from different races. For this study, the
race grouped into four category namely Indian, Chinese, Malay and Ohers. From the
total of 50 respondents, 24% were Indians, 40% were Chinese, 20% Malays and 16%
were others. Table 4.3 and Figure 4.3 show the number of respondents according to the
race.

ETHNICITY
Other
Malay

20%

Indian
24%

Chinese
40%

Figure 4.3: Ethnicity

Table 4.3: Ethnicity

Ethnicity Frequency Percentage

Indian 12 24%

Chinese 20 40%

Malay 10 20%

Others 8 16%

Total 50 100%
45

4.2.4 Education Level

The respondents that involved in this study were from different education
background. The employees are consist of employees with Table 4.4 and Figure 4.4
show the frequencies and percentage of the respondents based on education level. The
respondents with Higher Secondary School Certificate (HSSC) were 30%, respondents
with diploma were 46% and respondents with Degree were 24%.

EDUCATION LEVEL

Degree
HS
24%

Diploma
46%

Figure 4.4: Education Level

Table 4.4: Education Level

Education Level Frequency Percentage

HSSC 15 30%

Diploma 23 46%

Degree 12 24%

Total 50 100%
46

4.2.5 Level of Position

The respondents are various level of management. For this study, the employees
were grouped into three levels of management namely Lower Management, Middle
Management and Higher Management. From the total of 50 respondents, 42% were
lower level management, 36% were middle level management and 22% were higher
level management. Table 4.5 and Figure 4.5 show the number of respondents according
to the level of management.

LEVEL OF POSITION
Higher
22%
Lower
42%

Middle
36%

Figure 4.5: Level of Position

Table 4.5: Level of Position

Level of Position Frequency Percentage

Lower 21 42%

Middle 18 36%

Higher 11 22%

Total 50 100%
47

4.2.6 Salary Range

The respondents are separated based on their salary range for the purpose of
demographic information. For this study, the salary range grouped into four category
namely. From the total of 50 respondents, 20% were earning less than $1000, 42% were
earning from $1001 - $3000, 30% were earning $3001 - $5000 and 8% were earning
more than $5000. Table 4.6 and Figure 4.6 show the number of respondents according to
the salary range.

SALARY RANGE
> $5000, 8%
< $10
$3001 - $5000,
30%

$1001 - $3000,
42%

Figure 4.6: Salary Range

Table 4.6: Salary Range

Salary Range Frequency Percentage

< $1000 10 20%

$1001 - $3000 21 42%

$3001 - $5000 15 30%

> $5000 4 8%

Total 50 100%
48

4.2.7 Years of Service

The respondents were categorized based on the years of their service with Global
Foundries. The respondents with less than 3 years were 30%, respondents with 4 -6
years’ experience were 44%, 7 - 9 years’ experience were 22% and more than 10 years
of experience were 4%.

YEARS OF SERVICE
4 – 6 years,

50%
44%

40%
< 3 years, 30%
7 – 9 years,
30%
22%

20%

10%
> 10 years, 4%

0%
< 3 years 4 – 6 years 7 – 9 years > 10 years

Figure 4.7: Years of Service

Table 4.7: Years of Service

Years of Service Frequency Percentage

< 3 years 15 30%

4 – 6 years 22 44%

7 – 9 years 11 22%
> 10 years 2 4%

Total 50 100%
49

4.3 Mean and Standard Deviation

The questionnaires that distributed to the respondents intended to analyze the job
satisfaction level and factors contributing to the job satisfaction. The dependent variable
in his study is job satisfaction and factors are independent variables. Statistical analysis
will be conducted for both dependent and independent variable. The mean and standard
deviation are the helpful tools to carry out the statistical analysis.

4.3.1 Evaluation of Dependent Variable: Job Satisfaction

Mean score level for job satisfaction is reflected in Table 4.8. The mean score is
derived from the second part of the questionnaire which is evaluation of job satisfaction
level that respondents answered from the scale 1(Not Satisfied) to 5 (Extremely
Satisfied).

Referring to Table 4.8, the overall mean for job satisfaction is at 3.52 which is
moderate and overall standard deviation is 0.86 which is homogenous.
50

Table 4.8: Analysis of Job Satisfaction

No. Question SD D N A SA Mean STDEV

(1) (2) (3) (4) (5)

Q8 I’m satisfied with my job. - 11 20 14 5 3.26 0.92

0% 22% 40% 28% 10%

Q9 I’m satisfied regarding my - 6 26 14 4 3.32 0.79


associate works.

0% 12% 52% 28% 8%

Q10 I’m getting opportunity to - 7 15 17 11 3.72 0.88


learn new skills while
working.
0% 14% 30% 34% 22%

Q11 I’m proud to work with - - 20 23 7 3.74 0.69

Global Foundries Pte. Ltd.


0% 0% 40% 46% 14%

Q12 I’m happy with my job. - 5 12 29 4 3.64 0.78

0% 10% 24% 58% 8%

Average Mean and Standard Deviation 3.54 0.84

Table 4.9: Mean Score Level for Job Satisfaction

Mean Variance Level

1.00 – 2.33 Low

2.34 – 3.67 Moderate


3.68 – 5.00 High
51

4.3.2 Evaluation of Independent Variable: Salary and Benefit

Table 4.10 refers to the salary and benefit factor that increase the employees’ job
satisfaction. The overall mean is 3.51, which is at the moderate level and the standard
deviation is 0.73 which is homogenous.

Table 4.10: Analysis of Salary and Benefit

No. Question SD D N A SA Mean STDEV


(1) (2) (3) (4) (5)

Q13 I’m getting decent income - 4 14 28 4 3.64 0.75


for the job I perform.
0% 22% 40% 28% 10%

Q14 I’m feeling satisfied with - 6 17 26 1 3.44 0.73


the fringe benefits.

0% 12% 52% 28% 8%

Q15 I’m able to understand the - 4 18 27 1 3.50 0.68


incentive system followed
by the management.
0% 14% 30% 34% 22%

Q16 I’m satisfied with the - 5 21 22 2 3.42 0.73

process of annual raises.


0% 0% 40% 46% 14%

Q17 I’m happy with career - 4 19 23 4 3.54 0.76


progression at this
company. 0% 10% 24% 58% 8%

Average Mean and Standard Deviation 3.51 0.73


52

Table 4.11: Mean Score Level for Salary and Benefit Factor

Mean Variance Level

1.00 – 2.33 Low

2.34 – 3.67 Moderate

3.68 – 5.00 High

4.3.3 Evaluation of Independent Variable: Relationship with Peers

Table 4.12 refers to the how relationship with peers increase the employees’ job
satisfaction. The overall mean is 3.46, which is at the moderate level and the standard
deviation is 0.69 which is homogenous.
53

Table 4.12: Analysis of Relationship with Peers

No. Question SD D N A SA Mean STDEV


(1) (2) (3) (4) (5)

Q18 My supervisor actively - 7 20 23 - 3.32 0.71


listen to my ideas and
suggestions. 0% 14% 42% 46% 0%

Q19 I’m feeling happy with - 5 21 23 1 3.40 0.70

mutual cooperation among


employees.
0% 10% 42% 46% 2%

Q20 I’m being encouraged by - 4 19 24 3 3.52 0.74

my supervisor and fellow


colleague. 0% 8% 38% 48% 6%

Q21 I’m getting fair treatment - - 23 23 4 3.62 0.64

from everyone.
0% 0% 46% 46% 8%

Q22 I’m free to discuss with my - 2 25 23 2 3.46 0.65


colleagues and supervisor.
0% 4% 50% 46% 4%

Average Mean and Standard Deviation 3.46 0.69

Table 4.13: Mean Score Level for Relationship with Peers

Mean Variance Level

1.00 – 2.33 Low

2.34 – 3.67 Moderate

3.68 – 5.00 High


54

4.3.4 Evaluation of Independent Variable: Training and Development

Table 4.14 refers to the training and development factor that increase the
employees’ job satisfaction. The overall mean is 3.59, which is at the moderate level and
the standard deviation is 0.86 which is homogenous.

Table 4.14: Analysis of Training and Development

No. Question SD D N A SA Mean STDEV

(1) (2) (3) (4) (5)

Q23 I’m provided with the tools - 2 21 25 2 3.54 0.65

and resources that I need to


do my job. 0% 4% 42% 50% 4%

Q24 I’m technically trained. . - - 23 22 5 3.64 0.66

0% 0% 46% 44% 10%

Q25 I’m encouraged to explore - 2 20 24 4 3.60 0.70


growth or advancement
opportunities.
0% 4% 40% 48% 8%

Q26 I understand what is - - 23 21 6 3.66 0.69

expected for career


0% 0% 46% 42% 12%
advancement.

Q27 I’m getting practical - 4 19 24 3 3.52 0.74


training as much as I
0% 10% 24% 58% 8%
needed.
Average Mean and Standard Deviation 3.59 0.68
55

Table 4.15: Mean Score Level for Training and Development Factor

Mean Variance Level

1.00 – 2.33 Low

2.34 – 3.67 Moderate

3.68 – 5.00 High

4.3.5 Evaluation of Independent Variable: Working Environment

Table 4.16 refers to the working environment factor that increase the employees’
job satisfaction. The overall mean is 3.62, which is at the moderate level and the
standard deviation is 0.67 which is homogenous.
56

Table 4.16: Analysis of Working Environment

No. Question SD D N A SA Mean STDEV

(1) (2) (3) (4) (5)

Q28 I’mhappy with the - - 19 27 4 3.70 0.61

availability of pleasant
physical environment. 0% 0% 38% 54% 8%

Q29 I feel satisfied with the - 3 22 22 3 3.50 0.71

comfortability of the
working hours. 0% 6% 44% 44% 6%

Q30 I’m happy with efficiency - - 23 21 6 3.66 0.69

of the equipment and tools


at the work place. 0% 0% 46% 42% 12%

Q31 Provision of lighting and - 2 20 24 4 3.60 0.70

ventilation facilities at the


work place. 0% 0% 40% 46% 14%

Q32 Adequacy of working - - 22 23 5 3.66 0.66

space to work efficiently.


0% 0% 44% 46% 10%

Average Mean and Standard Deviation 3.62 0.67

Table 4.17: Mean Score Level for Working Environment Factor

Mean Variance Level

1.00 – 2.33 Low

2.34 – 3.67 Moderate


3.68 – 5.00 High
57

4.3.6 Comparison between the Variables

Table 4.18 reflects the summary and comparison of the average mean score and
standard deviation for dependent variable and independent variables. The dependent
variable is job satisfaction. The independent variables are salary and benefit, relationship
with peers, training and development and working environment.

Based on the data in the table, working environment achieved the highest mean,
which is 3.62. Followed by Training and development with mean score of 3.59. Salary
and benefit comes next with mean score of 3.51. Lastly, relationship with peers recorded
lowest mean score of 3.46.

The result of the study shows that the mean level for all the factors contributing
to the job satisfaction is at the moderate level.

Table: 4.18 Comparison between the Variables

Variables Average Mean Level Average Standard


Mean Deviation

Job Satisfaction 3.54 Moderate 0.84

Salary and Benefit 3.51 Moderate 0.73

Relationship with Peers 3.46 Moderate 0.69

Training and Development 3.59 Moderate 0.68

Working Environment 3.62 Moderate 0.67


58

CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

Job satisfaction is an essential element that helps an organization to improve


performance and productivity. When the employees feel satisfy it will contribute to the
reduction in employee turnover rate. The organization can reduce their cost on recruiting
and training new employees by making their current employees happy. This case study
specifically focuses job satisfaction among employees in Global Foundries.

The purpose of this chapter is primarily to summarize the findings of this


research project. There are three sub – sections in this chapter. First sub – topic focuses
on the major findings of this study and examine them based on the research questions.
The case study was able to provide answers for two research questions. The second part
of this chapter will discuss on the recommendation that can be implemented for future
studies. Finally, the conclusion part will explain on further points on improving this
research study and a brief summary of the overall conclusions.
59

5.2 Major Findings

Several major findings have been identified based on the data that gathered from
the employees for the purpose of this study. These data with the help from literature
review, the research objectives were able to achieve. The major findings were evaluated
based on the frequencies, means and standard deviations that derived from the data
collected through questionnaires distributed to the employees of Global Foundries.

The first major finding of this study is emphasis on the Global Foundries efforts
to keep their employees satisfied with the job. Second key finding is the identification of
overall employees’ satisfaction level. Third major finding is the factors influencing
employees’ satisfaction level at Global Foundries.

5.2.1 Research Question 1: What is the employees’ job satisfaction level in Global
Foundries?

Identifying the employees’ job satisfaction level is vital to retain the employees
in Global Foundries. The employees with high job satisfaction tend to perform well in
their job. Whereas, employees with low level of job satisfaction may bring negative
effect to the organization. Based on the data collected, the overall satisfaction level of
Global Foundries’ employees is at the moderate level with mean and standard deviation
at 3.54 and 0.84 respectively. The employees of Global Foundries are proud to work
with them. They are also getting opportunity to learn new skills and very much happy to
work at Global Foundries.
60

5.2.2 Research Question 2: What are the factors influence the employee satisfaction
level in Global Foundries?

The research question 2 primarily examine the factors influence the employees’
job satisfaction level. Identifying the factors that influencing employees’ job satisfaction
level is important to understand the needs of employees and take necessary efforts to
fulfill their needs in order to retain them in the organization.

Four factors were identified and tested through a questionnaire survey that
answered by 50 respondents consists of employees from different level of position. All
the four factors tested with five questions each. Figure 5.1 shows the result of most
influencing facto to least influencing factors that contribute towards employee job
satisfaction.

Respondents feels that the working environment plays important role in


increasing customer satisfaction. They feel happy with the pleasant physical
environment. Employees feels good about efficient tools and equipment at the
workplace. They are also satisfied with the adequate working space provided by the
management.

The second highly supported factor is training and development. According to


their employees, Global Foundries provide a good training and development. The
employer created awareness on career advancement to their employees. Apart from that,
most of the employees agreed that they are technically trained based on job requirement.
The employees are also encouraged to explore the growth and opportunities in career.
61

The third contributing factor is salary and benefit. Global Foundries employees
feel that they are getting a decent income for the job that they are doing. They are also
happy with pay and benefit that progress along with the career progression. The
employees are also agreed that they understand the incentive system practiced by the
management.

The fourth factor that influencing employees’ job satisfaction is relationship with
peers. The employees feel that they are getting fair treatment from everyone. They are
also happy about being encouraged by the supervisor and fellow colleague at the work
place. The employees are also given chance to discuss freely with colleagues and
supervisors.

SALARY AND
RELATIONSHIP BENEFIT
WITH PEERS

WORKING
TRAINING AND
ENVIRONMENT
DEVELOPMENT

Figure 5.1: Factors Influencing Job Satisfaction


62

5.3 Recommendations

Through the results of this study, there are few recommendation that can be
proposed in order to increase the employees’ job satisfaction level. The
recommendations will be very helpful to retain the employees and reduce turnover rate.

The results shows that there is no element of motivation. It is important to


identify the motivation factors that motivate the employees. The motivation in terms of
incentives, performance bonus and appreciation award can motivate employees to
perform well in their job. Thus, the performance eventually will lead to increase of their
satisfaction level.

The appraisal and promotional system should be more transparent. The appraisal
should equally give to all level of employees based on their performance and
productivity. The element of promotional and appraisal is not tested in this study. Thus,
it is difficult to determine the satisfaction level of the employees. Although there is no
measurement for this factor in this study, future studies may take this factor into
consideration

Apart from that, the welfare of the employee also must take into consideration
when analyzing employees’ satisfaction level. Welfare is refer to measurement of
empathy shown towards the employee. This could affect the employees’ satisfaction
where employees might feel that employer should show empathy towards them.
Situation such as birth of baby, funeral of immediate family and medical coverage for
immediate family are examples where employer can take extra care of their employees.
63

5.4 Conclusion

The fundamental objectives of this research project has been achieved by


analyzing the underlying factors influence the employees’ satisfaction through a
questionnaire survey. The employees’ expressed their satisfaction level based on the
factors that listed in the questionnaire. The data that collected through questionnaire
survey is used to determine the strongest factor that influence the satisfaction level.
These findings will help the management to focus on the way to satisfy the employees.

The determinant that used to test the satisfaction of the employees can be
improves so that the organization can adopt a better performance management system.
The result of his study can be applied in other organization also. The management must
understand that, in order to achieve desirable results, an insight about the job satisfaction
analysis is vital.
64

References

Abdulla, J. & Djebavni, R. (2011), Determinants of Job Satisfaction in the UAE: A


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Adeyinka T., Ayeni, & C.O., Popoola, S.O. (2007), Work Motivation, Job Satisfaction,
and Organisational Commitment of Library Personnel in Academic and Research
Libraries in Oyo State, Nigeria. Library Philosophy and Practice

Al-Anzi, N. M. (2009). Workplace Environment and Its Impact on


Employee Performance.

Champagne, P.J., & McAfee, R. B. (1989). Motivating strategies for performance and
productivity: A guide to human resource development. New York: Quorum Books.

Cheng, L. C. (2004). The Influence of Human Resource Management Practices on the


Retention of Core Employees of Australian Organisations: An Empirical Study.
Unpublished doctoral dissertation, Murdoch University.

Halil Zaim & Selim Zaim. (n.d.). Measuring Employee Satisfaction in Small
and Medium Sized Enterprises

Jobaid, M. I., Khan, M. M., Rahman, M. M., Imran, M., & Sarkar, R. H. (2015). Factors
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International Journal of Business and Management Review, Vol.3,No.1,pp. 64-69.

Nguyen Tran Thanh Binh (2008). Measurement of job satisfaction of workers at


a company in Long An (In Vietnamese). Master thesis.

Ramayah, T., Jantan, M., & Tadisina, S.K. (2001). Job satisfaction: empirical evidence
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Institute Conference, Track OB2, San Francisco: USA
65

Appendix I

FACTORS INFLUENCING JOB SATISFACTION QUESTIONNAIRE

Section A – Please (√) in the box.

Section A
1 Gender Male
Female
2 Age Less than 25 years
26–35
36–45
More than 45 years
3 Ethnicity Indian
Malay
Chinese
Others
4 Education Level Higher Secondary School Certificate
(HSSC)
Diploma
Degree
5 Level of Position Lower
Middle
Higher
6 Salary Range < $1000
$1001 - $3000
$3001 - $5000
> $5000
66

7 Years of Service < 3 years


4 – 6 years
7 – 9 years
> 10 years

Please select you Likert point and tick (√) at the appropriate box.

Scale Description

1 Strongly Disagree

2 Disagree

3 Neutral

4 Agree

5 Strongly Agree

Section B: Job Satisfaction Level

No. Question 1 2 3 4 5

Job Satisfaction

8 I’m satisfied with my job.

9 I’m satisfied regarding my associate works.

10 I’m getting opportunity to learn new skills while working.

11 I’m proud to work with Global Foundries Pte. Ltd.

12 I’m happy with my job.


67

Section C: Factors Influencing Job Satisfaction

No. Question 1 2 3 4 5
Salary and Benefit
13 I’m getting decent income for the job I perform.
14 I’m feeling satisfied with the fringe benefits.
15 I’m able to understand the incentive system followed by the management.
16 I’m satisfied with the process of annual raises.
17 I’m happy with career progression at this company.

Relationship with Peers


18 My supervisor actively listen to my ideas and suggestions.
19 I’m feeling happy with mutual cooperation among employees.
20 I’m being encouraged by my supervisor and fellow colleague.
21 I’m getting fair treatment from everyone.
22 I’m free to discuss with my colleagues and supervisor.
Training and Development
23 I’m provided with the tools and resources that I need to do my job.
24 I’m technically trained.
25 I’m encouraged to explore growth or advancement opportunities.
26 I understand what is expected for career advancement.
27 I’m getting practical training as much as I needed.
Working Environment
28 I’m happy with the availability of pleasant physical environment.
29 I feel satisfied with the comfortability of the working hours.
30 I’m happy with efficiency of the equipment and tools at the work place.
31 Provision of lighting and ventilation facilities at the work place.
32 Adequacy of working space to work efficiently.

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