YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF MANAGEMENT STUDIES

MBA PROGRAMME

FACTORS INFLUENCING EMPLOYEE LOYALTY IN

VICTORIA HOSPITAL

KHINE THINSAR MAUNG

EMBA II - 41

EMBA 17th BATCH

APRIL, 2022
 YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF MANAGEMENT STUDIES

MBA PROGRAMME

FACTORS INFLUENCING EMPLOYEE LOYALTY IN

VICTORIA HOSPITAL

ACADEMIC YEAR (2018-2022)

Supervised By: Submitted By:

Dr. Hla Hla Mon Khine Thinsar Maung

Professor EMBA II - 41

Department of Management Studies EMBA 17th Batch

Yangon University of Economics 2018-2022

 YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF MANAGEMENT STUDIES

MBA PROGRAMME

FACTORS INFLUENCING EMPLOYEE LOYALTY IN

VICTORIA HOSPITAL

A thesis submitted to the Board of Examiners in partial fulfillment of the

requirements for the degree of Master of Business Administration (MBA)

Supervised By: Submitted By:

Dr. Hla Hla Mon Khine Thinsar Maung

Professor EMBA II - 41

Department of Management Studies EMBA 17th Batch

Yangon University of Economics 2018-2022

 ACCEPTANCE

This is to certify that the thesis entitled “Factors Influencing Employee loyalty in
Victoria Hospital” has been accepted by the Examination Board for awarding Master of
Business Administration (MBA) degree.

Board of Examiners

------------------------------

(Chairman)
Dr. Tin Tin Htwe
Rector
Yangon University of Economics

----------------------------- ---------------------------

(Supervisor) (Examiner)

----------------------------- ---------------------------

(Examiner) (Examiner)

April, 2022
 ABSTRACT

This study aims to examine the influence of employee empowerment on job

satisfaction in Victoria Hospital and the influence of compensation on job satisfaction in
Victoria Hospital. It also analyses the impact of work happiness on worker’s devotion in
Victoria Hospital. Respondents are selected by using simple random sampling method. The
primary data are collected from 130 employees of Victoria Hospital with structured
questionnaire. The secondary data are collected from text books, previous research papers,
and reports from hospital. The result shows that staff joyfulness factors, both structural and
psychological factors, have the important impact on work pleasure. Among these factors,
structural empowerment is the main determinant factor of job satisfaction of employees at
Victoria hospital. The study also reveals that both extrinsic and intrinsic compensations are
strongly positive significant with job satisfaction. Among compensation factors, intrinsic
compensation is the main determinant factor of employee’s job satisfaction. In addition,
the job satisfaction has the significant effect on workers’ devotion in Victoria Hospital.
Regarding structural empowerment, Victoria hospital should support shared authorisation,
influential nurses, lifelong professional development, and strong community partnerships.
For psychological empowerment, the hospital should develop its employees and give
delegation to capable employees. Victoria hospital should pay attention to intrinsic
compensation first. The hospital should maintain and promote mutual respect culture.
Regarding extrinsic compensation, the hospital should examine staffs if they prefer
overtime pay or substitute day off. Regarding extrinsic compensation, the hospital should
inquire workers whether they prefer overtime pay or substitute day off. Finally, Victoria
hospital should monitor the work joy and loyalty status of the employees regularly in order
to retain valuable workforce and achieve competitive advantage.
 ACKNOWLEDGEMENTS

First of all, I would respectfully express my gratitude to Prof. Dr. Tin Tin Htwe,
Rector of Yangon University of Economics for her kind permission for the opportunity to
undertake the study as a partial fulfillment towards the Master Degree of Business
Administration.

Secondly, I would like to show respects and express my sincerest gratitude to

Professor Dr. Nu Nu Lwin, Head of Department of Management Studies and Professor
Dr. Myint Myint Kyi for their constructive suggestions, supporting excellence lectures and
comments to complete the thesis.

My deepest gratitude and greatest thanks to my supervisor Professor Dr. Hla Hla
Mon, Department of Management Studies of the Yangon University of Economics, for her
kindly guidance, helpful advice, supervising and providing valuable suggestions to
complete this study successfully.

In addition , I would like to extend special thanks to Dr Aye Aye San , Chief
Executive Officer and Dr Tin Min, Hospital Director of Victoria Hospital for allowing me
to collect data and their approval to disclose necessary information to complete thesis.
Moreover, my sincere gratitude to all participants who take part in my survey out of their
busy schedule.

Last but not least, My special thanks go to my superiors, collegues and friends who
support and encourage me to accomplish this paper. It would not have been possible to
finish my study without their support and encourgement.

Khine Thinsar Maung

EMBA - 41

EMBA 17th Batch

 TABLE OF CONTENTS

ABSTRACT i

ACKNOWLEDGEMENTS ii

TABLE OF CONTENTS iii

LIST OF TABLES v

LIST OF FIGURES vi

LIST OF ABBREVIATIONS vii

CHAPTER 1 INTRODUCTION 1

1.1 Rationale of the Study 2

1.2 Objectives of the Study 3

1.3 Scope and Method of the Study 3

1.4 Organization of the Study 4

CHAPTER 2 THEORETICAL BACKGROUND 5

2.1 Human Resource Management 5

2.2 Compensation 7

2.3 Employee Empowerment 11

2.4 Job Satisfaction 13

2.5 Employee Loyalty 17

2.6 Previous Studies 18

2.7 Conceptual Framework of the Study 20

CHAPTER 3 PROFILE, EMPOWERMENT AND COMPENSATION

PRACTICES OF VICTORIA HOSPITAL 22

3.1 Profile of Victoria Hospital 20

3.2 Empowerment Practices 27

3.3 Compensation Practices 27

3.4 Profile of the Respondents 30

CHAPTER 4 ANALYSIS ON JOB SATISFACTION AND

EMPLOYEE LOYALTY IN VICTORIA

HOSPITAL 31

4.1 Analysis on the Effect of Employee Empowerment and

Compensation on Job Satisfaction 31

4.2 Analysis on the Effect of Job Satisfaction on Employee

Loyalty 41

CHAPTER 5 CONCLUSION 43
5.1 Findings and Discussion 43

5.2 Suggestions and Recommendations 44

5.3 Need for Further Research 45

REFERENCES

APPENDIX A

APPENDIX B

APPENDIX C
 LIST OF TABLES

Table No. Descriptions Page

3.1 Number of Employees by Division 25

3.2 Monthly Salaries on Different Level of Victoria Hospital 28

3.2 Profile of the Respondents 31

4.1 Structural Empowerment 34

4.2 Psychological Empowerment 35

4.3 Job Satisfaction 36

4.4 Effect of Employee Empowerment on Job Satisfaction 37

4.5 Extrinsic Compensation 38

4.6 Intrinsic Compensation 39

4.7 Effect of Compensation on Job Satisfaction 40

4.8 Effect of Employee Empowerment and Compensation on

Job Satisfaction 42

4.9 Employee Loyalty 43

4.10 Effect of Job Satisfaction on Employee Loyalty 44

 LIST OF FIGURES

Figure No. Description Page

2.1 Conceptual Framework of Onsardi 19

2.2 Conceptual Framework of Frempong, Agbenyo & Darko 20

2.3 Conceptual Framework of the Study 21

3.1 Organization Structure of Victoria Hospital 23

 CHAPTER 1

INTRODUCTION

Today, human resources are considered as the most valuable assets of an

organization. At every organizational level, the company employs its staff according to its
specific planning needs and requirements. Loyal employees are crucial because they give
more of themselves for their jobs. They serve as positive public relations ambassadors
outside the organization. Also, they go above and beyond the norm in doing the little things
that can help the company thrive, and a loyal employee is interested in contributing to
increasing the company’s value (Storey,1988).

Employee satisfaction and loyalty have always been importance issues for every
organization. Job satisfaction is· the single most sought after attribute of the employment
relationship. The ramifications of job satisfaction are extremely influential to any
organization. It alone can be a determining factor affecting employee efficiency,
productivity, absenteeism, as well.as turnover (Rahman, Rahman & Khaleque,1995). The
delight of work is a key aspect in increasing and preserving a firm's total yield and work
satisfaction through better service and improved presentation. Work happiness, according
to (Kumari & Pandey, 2011), is mentioned as a happy expressive state arising from a
positive assessment of one's work; an emotive response to one's work; and a mindset toward
one's work.

Today's increasingly educated employees-knowledge workers-must be offered the

opportunity to engage in meaningful work if organizations are to realize their goals. By
encouraging employees to create competitive advantage by exercising individual discretion
and create searching for organizational goals. Empowerment and compensation initiatives
are instrumental in creating meaningful work environment. Compensation or remuneration
allows employee to keep on working and hence relates to the work output. Internal and
external motivations encourage the organizations to empower their employees. Empowered
employees are willing to take responsibility for the service encounter. The hospital
environment has a significant impact on employees’ job satisfaction and patient outcomes.

The officers and supervisors in healthcare industry will damage if they ignore their
employees' job happiness. Patients' perceptions and sights of their hospital stay are largely
influenced by the care provided by hospital employees. The growth of private hospitals
improves the competition in the industry. In Myanmar, healthcare delivery system is
comprised of hospitals, clinics, laboratories and nursing homes among others. One of the
issues in this healthcare industry is shortage of skillful employees and employee’s loyalty
becomes vital.

Victoria Hospital is one of the top ten hospitals in Myanmar and was established on
25th June 2011. It was founded with the goal of offering modern and high-
quality healthcare to the public via the united and devoted efforts of medical and non-
medical professionals. This paper analyses to how the influence of incentives and
empowerment on work joy and the loyalty of employees at Victoria Hospital.

1.1 Rationale for the Study

Organizations are struggling to maintain quality personnel through retention

strategies for competitive advantage against the rivalry organizations. Among others,
employees are the most valuable capital for enhancing the organization’s vision and
mission. In Myanmar, most service providers nowadays are facing the serious problems of
very little human resource pool for respective industry.

The delights of the workers at work, as well as their eagerness to stay or leave the
job, is influenced by the level of pleasure they have in the firm. Employers must continually
communicate with juniors to discover the aspects that will make them content with their
employment in order to avoid competent, committed, and skilled people leaving. Whether
it's for the better, the worse, the confident, or the destructive, everything that contributes to
or detracts from employee work delights has a significant bearing on one's trustworthiness
and keenness.

The devotion of the workers is unquestionably top essential factors in a healthcare

industry's triumph. Enhancing the adornment of juniors permit businesses to evade the high
expenses of replacing labors while also improving patient care and the general stage of
service delivered to the areas they perform. Employee empowerment activities will reduce
resigning and increase work pleasure by better pleasing workers.

Hospitals have been viewed as an important component of the healthcare system.

Private hospitals are increasing in the industry and trying to get the skillful people by
offering attractive compensations and building good image among the employees. In
Myanmar, there are now more than 249 private hospitals across the country and the number
is steadily growing. According to the survey released by the Department of Medical
Services, there are around 200 private expert clinics, 800 private dental clinics , and over
5,000 private general clinics. In order to give good service, each tries to attract, motivate
and retain skilful employees. Attracting and retaining employees become important issue
for the service industry such as hospitals.

Victoria Hospital is trying to retain or protect its valuable human resources from
attracting of other hospitals or clinics since skillful medical human resources are limited in
Myanmar. Without competent employees, hospitals could not provide any service. Thus,
job satisfaction and loyalty of the employees are also vital for Victoria Hospital. As a
service provider in healthcare industry, the inevitable challenge to improve customer
service and better outcomes has also become a critical factor for Victoria Hospital.
Therefore, employee empowerment and compensation are crucial for the employee delights
and the workers’ loyalty to have positive impact on the organization with lesser turnover
rate.

1.2 Objectives of the Study

The main objectives of the study are:

(1) To study the impact of employee empowerment on job satisfaction in Victoria Hospital

(2) To observe the effect of compensation on job satisfaction in Victoria Hospital

(3) To investigate the impact of work joyfulness on employee loyalty in Victoria Hospital.

1.3 Scope and Method of the Study

This Study mainly focuses on the employees at Victoria Hospital in Myanmar.

There are 652 front line employees of both management and non-management staff at
Victoria Hospital in Myanmar. Descriptive and analytical research methods are used to
achieve the above objectives. In order to examine the factors influencing on work pleasure
and the adornment of workers of Victoria Hospital, structured questionnaire with 5-point
Likert scale is used to collect the data from the respondents who are selected by using
simple random sampling method. Both primary data and secondary data are used in this
study. Primary data are collected from 130 employees out of 652 employees currently
working at Victoria Hospital in Yangon. Sample population is calculated by using Yamane
Formula. Secondary data are from documents of Victoria Hospital, previous research
papers, textbooks, websites and other related information resources. Data are collected
from January 2022 to February 2022.

1.4 Organization of the Study

This study is structured by five different chapters. Chapter one presents introduction
of the study, and it includes rationale of the study, objectives of the study, scope and method
of the study, and organization of the paper. Chapter two consists of about literature review
of empowerment practices, compensation, employee devotion and work pleased including
reviews on previous studies. Chapter three presents profile of Victoria Hospital,
compensation system and empowerment practices of Victoria Hospital. The analysis of the
impact worker participation in work, compensation, and work joyfulness and worker
loyalty is presented in chapter four. Finally, chapter five describes the findings and
discussions, suggestions, recommendations, and the need for future study.
 CHAPTER 2

THEORETICAL BACKGROUND

This chapter presents with the theoretical background of employee empowerment,

compensation, organizational commitments, and job performance. It also describes the
relationship among employee empowerment, compensation, work performance and
organizational pledge. This chapter also presents previous studies and conceptual
framework of the study.

2.1 Human Resource Management

Human Resource Management (HRM) is defined as a system of activities and

strategies that focus on successfully managing employees at all levels of an organization to
achieve organizational goals (Byars & Rue, 2006). Human Resources Controlling was
established to ensure that the firm achieves its goals by associating distinct aims with those
of the business, guaranteeing operative staff consumption and enlargement. It is in charge
of attracting employees, proposed by (Cherrington, 1995), into the company, assisting them
in their employment, rewarding them for their efforts, and resolving any issues that may
emerge.

Based on the finding of (Armstrong, 2009), the manangemnt of human resource

management procedures are methods for managing people. HRM strategies, according to
Wall and Wood (2005), include refined selection processes, review, coaching, cooperation,
communications, authorization, remuneration based on performance, and job safety. The
firm's resource-based perspective suggests that it may establish a long-term competitive
advantage by providing value that is occasional and hard to reproduce (Barney, 2001). HR
practices play an important role in achieving these requirements through their influence
over employee skills, motivation and organisational structure that provides employees with
the empowerment they need in order to perform well.

In terms of the research by Locke (1976), the theories of Content plan to determine
the precise desires that has got to be earned for a private to be happy together with one’s
work. Once managers understand that employees are motivated by diverse needs, they will
be in a position to satisfy these needs in order to achieve organizational goals (Pinnington
& Edwards, 2000).

(a) Job Enrichment Theory

The reshaping the work to upsurge its encouraging hypothetical can be considered
as job enrichment. By repealing the inclination, the improvement of work rises the risk of
one's job toward, greater specialization builds more complexity and depth into jobs by
introducing planning and decision- making, responsibility normally carried out at higher
levels. Job can be enriched by upgrading five cores dimension of work: a wide range of
skill, a distinct task, a significant task, independence, and response (Herzberg, 1966).

Employees who serve their jobs high on the core, job characteristics are rather
inspired: pleased and creative than people who· work on the jobs that are score low on these
characteristics. The same is true for absenteeism, responses to jobs high in objective
motivating potential are. more positive for people who have strong needs for growth than
for people with weak growth needs (Herzberg, 1966).

(b) Theory Z Participative Management

According to theory Z, explained that the organization empowerment should have:

Decision making are derived through democratic process involving remain with relevant
individual. For employee, there is a willingness to deal with the whole person rather than
fragmented organizational role player is built which, in tum, motivates all organization
member to do their best to achieve shared objective. The process of employee participative
is noted by (Ouchi, 1981), one of tools that allows for the widespread distribution of
information and values in the business as well as serving a symbolic part in indicating the
firm’s helpful goal in an unambiguous company.

(c) Path-Goal Theory

Robert house suggested that the leader in a number of ways could affect the
performance, satisfaction and motivation of a group by offering rewards for the
achievement of performance goals, clarifying paths towards these goals and removing
roadblocks to performance barriers. (Robert House, 1971) noted that these can be
accomplished by adopting a specific leadership style that is appropriate for the situation.
The group is provided directive leadership-specific instruction, and ground rules are
formed. Supportive leadership demonstrates solid connections with the group and attention
to the needs of subordinates: Participate leadership-decisions are made in consultation with
the group, and information is distributed with the team. Achievement-oriented leadership
sets goals and encourages high functioning while demonstrating faith in the capability of
the team.

(d) Achievement Motivation Theory

This theory explained that employee with a excessive necessity for accomplishment
will be more likely to respond favorable to enriched jobs than employees with little
necessity for accomplishment. Enriched jobs cue, or stimulate, the achievement motive,
typically leading to higher level performance, involvement, and satisfaction (Murray,
1938).

2.2 Compensation

Compensation is a method of offering value to juniors in interchange for their time

and effort. Compensation can help in employment, work functioning, and work pleasure
among other things. Wage and salary administration is concerned with designing and
implementing total compensation package. Prosed by (Dessler, 2000), tt denotes any
methods of compensation or benefits given to the workers, resulting from of their
performance of work. Employees are granted compensation in two ways: intrinsically and
extrinsically. The total compensation system of a company is made up of both intrinsic and
extrinsic compensation.

Intrinsic compensation reflects employees’ psychological mind-sets that result from

nonmonetary rewards. The workers are rewarded based on their working ability or for
obtaining work related realization or skills through monetary compensation plans
developed by compensation professionals. Monetary compensation represents core
compensation. Nonmonetary returns consist of safety packages (insurance for health care),
vacation paid day off, and services (day care help). Most compensation experts talk over
with staffs’ advantages consist of non economic incentives.
 The term "compensation" states to all of the touchable and untouchable benefits that
the worker attain from the employer as kind of their job process. The recompense can mean
altered things to altered people according to Zobal (1998). For example, according to the
American Compensation Association's (1995) definition, recompense, prizes, and salary
can all be used interchangeably. "cash and non-cash remuneration provided by an employer
for services rendered". Based on this definition, compensation has a tremendous range. It
can mean anything from a weekly paycheck to an occasional ticket to a ball game. Given
this scope, compensation can be classified, sorted, characterized, and redefined in many
ways. For example, compensation can be intrinsic or extrinsic, financial or non-financial,
and/or direct or indirect (Dessler, 2000).

It may be stated that repayment is the "adhesive" that fixes the worker and the
business enterprise collectively systemized sector, that is in addition arranged in the shape
of a settlement or adhesion legal paper that spells out precisely how a good deal must be
paid to the worker and the additives of the repayment bundle.

Similarly, rewards and advantages, according to (Cascio, 2003), are sort of

repayment projects which are crucial for workers. Economically, the pays ought to be
truthful in keeping with worker’s involvement. This offers a notable experience of
possession and an thrilling monetary gain for the workers. Non-monetary praise ought to
additionally be supplied to labor for his or her contributions toward any achievement of the
firm.

The repayment consists of problems concerning salary and income packages, in

terms of the approach by McNamara (2006), systems accruing from process descriptions,
merit-primarily based totally packages, bonus-primarily based totally packages, fee
primarily based totally packages amongst others even as advantages generally refers to
fitness lifestyles insurance, incapacity insurance, retirement plan, worker inventory
possession, vacation plan amongst others .

In the sector of supervision, the important thing to know-how the method of getting
a pleasure office life lies in the means of the connection amongst, necessities, energies, and
inducements. For so long as agencies have existed, repayment has been identified as a chief
motivator of worker in addition to an crucial device and a cost for corporations. To practice
reimbursement as a motivator effectually, concerning with (Popoola & Ayeni, 2007),
human aid executives should remember four important additives of a pay shape in the firm.
 The cash possesses substantial motivating electricity in as an awful lot, noted by
Sinclair (2002), because it symbolizes intangible desires like security, strength, prestige,
and a sense of feat and success. He additionally shows the motivational energy of salary
with the technique of task preference and develops that income has the energy to fascinate,
retain, and inspire personnel toward better performance. For instance, (Sinclair, 2002)
proposed that if an worker has any other career proposal, which gives extra monetary
rewards and has equal task traits together along with his cutting-edge process, that
employee might maximum possibly be prompted to simply admit the new task proposal.

The average worker withinside the prepared region is allowed to numerous

advantages–economic and non- monetary based on the learning of Aswathappa (2005). The
economic opportunities encompass pays, incomes, incentives, peripheral advantages and
perquisites. The non–economic advantages contain of hard process accountability,
popularity of merit, boom prospects, flexible supervision, work operating conditions, task-
sharing amongst others). It can be divided compensation system into intrinsic compensation
practices and extrinsic compensation practices based on the learning by Allen and Kilmann
(2001).

2.2.1 Extrinsic Compensation

Extrinsic repayment may be defined as while a commotion (action) is carried out

which will reap a few distinguishable end result and awareness on instrumental values
tangible in nature simply financially termed on the opposite aspect the maximum essential
that favored of personnel whilst operating withinside the agencies are security& safety, a
selected form of paintings place, promotions, vanity in order that diagnosed the cash or
extrinsic rewards aren't usually number one motivator for workers. In addition, extrinsic
repayment, according the approach by (Ryan, 1982), is “interjected law” this means that
internal law this is nonetheless viable purpose is that personnel carry out such movements
with strain for sake to keep away from tension or prides. Extrinsic rewards are the ones that
have bodily lifestyles and cash-primarily based totally rewards are lie beneathneath the
class of extrinsic rewards. Examples workplace pay, salary, bonuses, and such oblique sorts
of price as flexibility in time.

An extrinsic repayment honestly fulfils worker extrinsic elements or hygiene

elements and as a result do now no longer allow him begin considering leaving the
company. Examples consist of pay rise, bonuses, paid leaves, annual leisure plans etc.
There's a statistically tremendous dating among reimbursement and popularity respectively,
additionally motivation and satisfaction discovered by Danish (2010). Jamsheed and
Zaman (2011) elaborated “there should be an effective extrinsic compensation system to
retain the high performers in the firm and compensation should be related with their
productivity”. Alternative detail that may be found from the above dialogue and examples
is that intrinsic rewards are commonly qualitative in nature and can't be quantified as an
example extra respect, popularity etc. Extrinsic rewards are more of a quantitative in nature.

The first individual, dexcribed by Herzberg, who added the idea of intrinsic and
extrinsic repayment and virtually described the significance of each variables (Staw, 1976).
Another examine famous that extrinsic praise, according to the learning by (Perry et al.,
2006), now no longer first-class inspire amongst personnel and someday reason of de-
reimbursement in personnel. A monetary advantage has the have an effect on humans to
encourage in the direction of powerful achievements in time period of profits (Sinclair et
al., 2005). Another look at proposed, by the findings of (Lehr & Bergum, 2004), that an
worker who acquired character encouragement through acting challenge their hobby and
belief range character to character in the direction of rewards they obtained.

2.2.2 Intrinsic Compensation

An intrinsic compensation actually fulfils employee’s intrinsic factors or motivators

and thus motivates him. Patterns consist of giving hard venture, regarding in selection
making process, giving a better rank in hierarchy and so forth these kind of rewards do now
no longer require having elevated income as properly and worker can be operating at better
control rank with out an growth withinside the earnings and nevertheless greater stimulated.
Bosco (2014) said that “reward and popularity are the maximum green intrinsic repayment
that complements worker’s overall performance”. Stoner and Freeman (1992) described
intrinsic repayment because the mental praise this is skilled at once through an worker.
Intrinsic rewards are the ones which might be non-coins rewards or now no longer having
any bodily existence. For example, worker popularity, acknowledgement, expert growth,
authority to instantaneously tasks, appreciate and appreciation are intrinsic rewards.

As stated earlier, intrinsically encouraged personnel interact in a venture out of the

inherent hobby or enjoyment (Ryan & Deci, 2000). Thus, Deci, Vallerand, Pelletier and
Ryan (1991) said that such manners are engaged in for his or her very own sake making
outside rewards unnecessary. Vansteenkiste, Matos, Lens and Soenens (2007) showed to
this through arguing that intrinsically stimulated personnel have interaction in an pastime
due to the fact they need to, instead of due to the fact they have got to. People with the aid
of using nature display an inclination closer to self-motivation, interest and hobby (Deci &
Ryan, 2008). As a result, intrinsically prompted behaviour represents a natural shape of
self-decided behaviour (Black & Deci, 2000). In this case, the pride of the want for
autonomy promotes an inner perceived locus of causality, which has nice results at the
diploma of self-motivation and dedication (Ilardi et al., 1993). Cerasoli et al. (2014) argued
that intrinsic repayment is associated with the direction, patience and depth of dedication
and overall performance behavior.

2.3 Employee Empowerment

Authorization of workers may be described as a set of practices that integrate facts

sharing, delegation of authority, and improved worker autonomy with an elevated reliance
on groups or as technique of assignment which enables work decisions to be taken as near
as possible to the operating units and their customers (Raub & Robert, 2012).
Empowerment means to give power to. Influence has some significances. Power withinside
the legal awareness is by means of power; and in this example power enabling additionally
way authorization. On the opposite hand, strength also can be conveyed as dynamism. In
this situation, authorization manner to revitalize . From the decision-making perspective,
empowerment is defined as “a philosophy of giving more responsibility and decision-
making authority to more junior workers in the firm (Shackleton, 1995). Accoring to the
view of allocation, Seibert et al. (2004) taken into consideration empowerment as growing
person motivation at paintings via the delegation of authority to the bottom degree at office
wherein a ready choice may be made. Generally, the concept of empowerment relies upon
on a excessive diploma of flexibleness and performing freely to make choices inside the
workplaces. Most definitions of empowerment centered on giving personnel greater
authority, freedom, and reticence in a few responsibilities which associated with the one’s
paintings.

The employees’ anothorisaiton is a essential and essential component for a hit

achievement, productivity, and boom in any business (Hunjra et al., 2011). Employee
empowerment is seemed as a motivational exercise that targets to boom the overall
performance through growing the possibilities of participation and involvement in choice
making. It is in particular involved with growing trust, motivation, collaborating in choice-
making, and getting rid of any obstacles among an worker and pinnacle management
(Meyerson & Dewettinck, 2012). Empowerment is the mechanism of giving an worker the
authority to make selection and is frequently allied with the distribution of duty from
managers to different personnel (Saif & Saleh, 2013). Empowerment, noted by (Huxtable,
1994), became described in advance as offering an company’s personnel with the authority
to cope with topics associated with their each day activity activities.

Jacquiline (2014) said that empowered personnel are possibly to expand emotions
of motivation a good way to assist them to benefit the authority and manage and practice
the important understanding and abilties for handling patron needs. As the empowerment
programme ambitions to offer electricity and authority to personnel thru managers to
percentage the duty with them, this can sooner or later assist empowered personnel in
enhancing their recognitions and status. Such personnel might broaden superb questioning
and generally tend to do their fine to carry out nicely on the workplace (Wadhwa &
Verghese, 2015). Moreover, Ripley and Ripley (1992) validated that empowerment can
growth the inducement of personnel in doing the habitual paintings, improves their activity
delight, complements their loyalty and productivity, and decreases the turnover intentions
amongst them.

Employee empowerment has extensively been identified as an important

contributor to organizational fulfillment and lots of authors found its direct impact on
worker overall performance, activity delight and organizational commitment (Meyerson &
Dewettinck, 2012).

The hospital work environment is constantly changing to keep up with

technological advances and to develop strategies aimed at providing quality and safe care
to the patients. This situation calls for medical examiners to be proactive and to
continuously are looking for expert updating and improvement, mainly through nurses. In
addition, nurses are liable for the control of care and of the nursing services, which entails
the improvement of management practices, war control, workforce sizing, provision and
forecasting resources. For the right overall performance of those actions, it's far critical that
the groups undertake fashions and control rules that beautify the empowerment of nurses
(Santos,2014).
 Overall, authorization of worker is the method via way of which people highlight
or expand abilities to sell nice modifications withinside the framework wherein they're
implanted. In the nursing literature, empowerment can be applied to a comprehensive concept
to describe elements of professional growth and development. In the organizational context,
there are two different theoretical conceptions of empowerment: (1) Structural
empowerment and (2) Psychological empowerment (Karizme, 2016).

2.3.1 Structural Empowerment

Concerning with structural empowerment states the capability to mobilize resources

and achieve goals through access to information, support, resources, and opportunities.
Access to information refers to the knowledge of organizational changes and policies, as
well as to the technical knowledge necessary to carry out the work.

Structural empowerment mentions exact friendly office network atmosphere and

rules in company that enable access to the working chances, knowledge sharing, help, and
the supplies when needed. Opportunities for learning and development include access to
challenging work, fresh wisdom and innovative performance that allow professional
growth. The second workers’ authorization circumstance includes getting access to
information concerning firm’s target, values, rules and confirmations. The help involves
for attaining response and a support from co workers, juniors and the head office. The
resources points out for obtaining transient assist, described by (Kanter, 1977), if desired
and time essential to perform one’s job that leads to attain the aim of the firm.

Structural empowerment may be an important antecedent to worker burnout in

healthcare organizations. Structural Empowerment is defined as access to organizational
structures in the work environment through lines of communication, support, information,
and resources, which offer workers opportunities to share in the procedure of the
confirmation as finalised, assist in control of resources, and grow in their jobs (Mills &
Ungson, 2003).

Kanter (1993) defined the structure of opportunity as organizational attributes that

enable the workers’ ability to grow and develop in the job. According to Kanter, the
organizational provision of opportunity significantly influences workers’ motivation,
productivity, commitment and degree of engagement in work. Kanter defined the structure
of power as organizational attributes that enable workers to mobilize resources.
Specifically, the researcher asserted that structural power comes from three organizational
sources- information, support and resources. Information is defined as the necessary
knowledge and communication essential to the work of the organization. Resources are the
necessary people, money, equipment and supplies that enable the worker to perform work
effectively. Support is feedback, coaching and assistance that one receives from
management, peers and others. Subsequently these organizational empowerment structures
contribute to the workers’ success in accomplishing organizational goals.

Laschinger et al. (2014) targeted on organizational authorization because the extent

to which career surroundings offer get admission to to help, assets, records and
opportunities to broaden nurses’ capabilities. The availability of structural enablement in
an corporation is a managerial detail which can improve the authorization of nurses. The
operational permission of authorization involvement as a mechanism that links and
coordinates individuals within the framework of their roles, authority and energy assets.
The work office ought to consciousness on operational authorization that complements
family members, communique, and systems that assist employees with their responsibilities
to reach the goals of an organisation.

The authorization of the operation, based on the learning of (Ashena & Keikha
2015), includes moving authority and vigor to decrease classes of staff. Harada and Mndoor
(2016) emphasized that structural empowerment makes a speciality of the critical position
of managers who offer statistics, rewards, understanding and authority to nurses,
completing with exact plans and target, noted by (Salajeghe, Rezaei & Ahmadi, 2015),
wherein it must be implemented. Managers percentage energy with nurses thru specifying
sure plans and goals of the company and imparting statistics and sources wanted for nurses
to supply great affected person care. Wilson et al. (2015) said that mechanical liberation
should growth expert improvement and studies possibilities and empower nurses to
preparation at their complete probable.

2.3.2 Psychological Empowerment

Psychological empowerment is the worker’s psychological response to

empowerment arising from working conditions, which generates motivation and
contributes to the consciousness of private control in the workplace. The empowerment of
psychology comprises the insight of the proficient concerning with the job enhancement
and the care procedures which follows to the delights of liberty and proficiency. Thus,
structural empowerment leads to nurses’ psychological empowerment.

Psychological empowerment is defined as a process through which individuals gain

control (Peterson & Zimmerman, 2004). Zimmerman (1995) asserted that psychological
empowerment is included of one’s reaction in terms of their surroundings and the concept
of socialization in authorization. The authorisation of psychology proposed by Thomas and
Velthouse (1990), as an intrapersonal sense of empowerment which occurs as a result of
cognitive processes within the individual. They propose that workers shape their
perceptions based on their interpretation of the organizational climate, i.e., constraining or
empowering. Furthermore, they contended that positive worker outcomes are determined
by the workers’ personal perceptions of empowerment, i.e., psychological empowerment,
and not entirely by the empowerment structures of the organization.

Thomas and Velthouse (1990) identified four dimensions of psychological

empowerment; competence, meaning, self-determination and impact. Spreitzer (1995b)
further defined and measured the four scopes of the empowerment of psychology by the
findings of Thomas and Velthouse (1990). According to Spreitzer, competence is defined
as an individual’s feeling that they are able to handle their tasks professionally as they have
skills. Specifically, this dimension of psychological empowerment is comprised of one’s
belief that he or she has the ability and technical competence necessary to complete the
required tasks without resistance from the organization. Meaning is defined as the “degree
to which people care about their work” (Spreitzer, 1995). Spreitzer explained that workers
want to be pleased that their performance counts and is congruent with their value system.
The work takes on a personal meaning which in turn offers the individuals a sense of
intrapersonal reward, gives them a sense of personal identity and integrity that energizes
the workers and motivates them to perform as possible as they can do for the better
outcome.

The authorisation of the Psychology is a fresh option of inspiring labours and it

gives the outcome of receiving notice from the seniors at work. The enablement of
psychology is considered as inspiration and the method of workers’ acknowledgement for
their individual performance, comparing to the other individuals in organization, together
with an aid of formal and informal measures and methods for stimulating effectiveness.
Besides, psychological empowerment also can be depicted as a practice of improving self-
efficacy’s feeling among organizational members via the identification and elimination of
situations that foster powerless by both formal organizational practices and informal
techniques of delivering access to usefulness information.

2.4 Job Satisfaction

The theory of work joyful is largely reviewed and stated in the administrative
literature. Due to this fact, many definitions can be found by us (Westover & Taylor, 2010).
Employment happiness is mentioned as one’s cognitive manner or affective manner
towards their task: it is the degree to which they enjoy or unhappy their task mentioned by
(Ivancevich & Matteson, 2002). Regarding to Locke (1969), employment joyful is stated
as the emotional stage of happiness originating from the appraisal of one;s job as
accomplishing or completing the goal’s of values of one’s work. Mullins (2005) has
proposed that job satisfaction is an emotion, a feeling, an attitude and a matter of perception.
It seems to be associated with a personal feeling of achievement, either quantitative or
qualitative while Chan et al. (2004) stated that the joyful of work can be defined as the
worker’s entire assessment of one’s task and job related incidences which is inclined by an
individual's values, ideals and beliefs.

Job satisfaction is “a pleasurable or positive emotional state” that is “a function of

the perceived relationship between what one wants from a job and what one perceives it is
offering” (Locke, 1976). The job characteristics model (Hackman & Oldham, 1980)
proposes that critical psycho-logical states such as experienced meaningfulness, feelings of
responsibility, and knowledge of work results influence job satisfaction. The authorisation
at work is rather probable to occur at better ranges of career happiness. They additionally
claimed that the assessments of the authorisation make intrinsic rewards which thus can be
definitely associated with joyful of job.

According to Robbins and Judge (2015), a person who have high range of work
happiness usually have positive attitude towards their job; but if they have low range of
work happiness, they usually have negative attitude towards their job. In order to
understand the intricacy of job satisfaction as a concept, job itself creates feelings which
cause satisfaction or dissatisfaction (Spector, 1997). From this perspective, it can support
the organization to keep their employees (Saari & Judge, 2004).

Job pride of the worker is a hallmark of organizational success, that is stimulated

through dispositional and organizational factors (Rothmann & Coetzer, 2002). Most of the
superiors are conscious with the significance of task delight, in view that they diagnosed
that happy worker is likewise a efficient worker. Majority of managers, proposed by (Saari
& Judge, 2004), are privy to significance of task pride due to the fact they recognize that
glad worker is likewise a effective worker.

There appears to be robust proof of a tremendous affiliation among which means

and process pride (Thomas & Tymon, 1994). According to Herzberg (1966), an critical
determinant of activity delight is private that means. Job pride consequences from
fulfilment of preferred paintings values (Locke, 1976). Lack of that means, defined by
(Thomas & Velthouse, 1990), withinside the administrative center has been connected to
apathy and process dissatisfaction. Thomas and Tymon (1994) showed that better range of
personal control are related to job satisfaction.

Increasing job satisfaction among service personnel, for example, has the potential
of generating higher customer satisfaction with the service, repeat purchases by current
customers, and positive word-of-mouth communications to potential customers (Rogers et
al., 1994).

2.5 Employee Loyalty

The loyal of the staff is the willingness and devotion to stay with the organization
and have a willing participation in the business of the organization. It is the commitment
and voluntary involvement of an employee towards the organization when he considers
himself as the core part of the corporation and considers himself as an inseparable part of
the organization. When he feels happy to work and gets a sense of attachment to work in
the firm. In the words of Matzler and Renzl (2003) with the rise of the 'knowledge
economy', employee satisfaction and loyalty have become critical issues. Presence of
occupational fulfilment is the fundamental necessity to accomplish worker’s devotion.
Assuming a staff is happy with his or her current work and working profile, it automatically
leads to loyalty towards the organization. According to (Chang et al., 2010), employee job
satisfaction is an antecedent to employee loyalty. Immediately the worker work’s
fulfillment expanded, the level of authoritative steadfastness of worker additionally raise
higher figured out (Khuong and Tien, 2013). Conversely, when the worker work fulfilment
diminishes, it prompts the lessening of the staff’s devotion, worker assurance and the
increment of occupational turnover.

Employee loyalty can be understood as most employees desired a nice job

surrounding as an affective commitment among employee (Omar et al., 2010). The staff
devotion incorporates, according to the findings of (Eskildsen and Nussler, 2010), if the
staffs are submitted and take care of their work, and if they feel leaned to search for another
work. (Doorman et al., 1974) recommended that dedicated labour will generally be
imaginative and creative and are less inclined to quit than the individuals who are uncertain.
Worker dedication is the eagerness and commitment to remain with the association and
have a willing investment occupied with the association.

It is the commitment and voluntary involvement of the worker concerning with the
organization when he considers himself as the core part of the firm and considers himself
as an inseparable part of the organization (Matzler and Renzl, 2003). Drizin and Schneider
(2004) had seen employee loyalty as the tendencies of an employee to obligate and keep
staying in the firm and help the company regardless of their job assignment and
descriptions.

The worker dependability can be characterized as a mental connection or obligation

to the association and creates because of expanded fulfilment searching by Hooi (2018).
The worker's dependability is estimated by totalling four marks of conduct and altitudinal
parts into four signs of; by and large fulfilment with directors, merits my reliability,
probability to keep working at association and probability to give references to association.

Employee loyalty can be understood as most employees desired a flexible office

atmosphere as an affective commitment among employee (Omar et al., 2010). Employee
loyalty includes whether or not employees are committed and assume personal
responsibility regarding to their tasks, and whether or not they feel inclined to look for
another job (Eskildsen & Nussler, 2010). Porter et al. (1974) suggested that committed
employees tend to be creative and innovative and are less probable to leave than those who
are uncommitted. Employee loyalty can be defined in different ways by many researchers.
Worker reliability, noted by (Meryer, Meyer and Allen, 1991), is about a staff's sensation
of connection or idea manages the way of behaving of the workers to an association.

Loyalty has two aspects which were internal and external. The inner aspect is the
passionate part like sensations of mindful, of alliance and of responsibility. The outer aspect
has to do with the manner in which unwaveringness shows itself. This aspect, written by
(Mehta et.al, 2010), is included the ways of behaving that show the enthusiastic part and is
the piece of faithfulness that transforms the most.

2.6 Previous Studies

Previous studies are important in order to get the research idea and research
questions. For this study, two main previous studies are based in order to get the idea for
the conceptual framework.

Onsardi (2017) did the paper named “The Effect Of Compensation, Empowerment,
And Job Satisfaction On Employee Loyalty”. The purposes of research were to analyse the
direct influence of compensation, authorization, and career pleasure to employee loyalty,
to analyse direct influence of compensation and empowerment to job satisfaction, to
analyse direct influence of empowerment to job satisfaction and to analyse the direct
influence to compensation to empowerment. The researcher used quantitative research by
applying survey method, and the data analysis was path analysis. A sample of 109 people
is used based on the Slovin formula. The conceptual framework of Onsardi (2017) was
shown in Figure (2.1).

Fig (2.1) Conceptual Framework of Onsardi

Compensation

Job Satisfaction Employee Loyalty

Empowerment

Source: Onsardi (2017)

According to Onsardi (2017), the results of study indicated compensation directly

beneficial outcome on work fulfillment. He also found that empowerment had directly
positive impact on office joy. Finally, Onsardi (2017) proved that there was a direct positive
effect of career joy to employee loyalty as well.

Frempong, Agbenyo and Darko (2018) did the research titled “The Impact of Job
Satisfaction on Employees' Loyalty and Commitment: A Comparative Study Among Some
Selected Sectors in Ghana”. to secure whether work fulfillment affects the staffs' devotion
and responsibility. The review used clear and exploratory examination plan. An aggregate
of (150) representatives from the mining, monetary and manufacturing businesses were
experimented. The conceptual framework of Frempong, Agbenyo and Darko (2018) was
shown in Figure (2.2).

Figure (2.2) Conceptual Framework of Frempong, Agbenyo & Darko

Reward and Recognition

Employee Participation in
Decision Making Loyalty and
Job Satisfaction
Commitment
Work Place Environment

Empowerment

Source: Frempong, Agbenyo & Darko (2018)

The regression result showed a significant and positive relationship, individual

factor contributed to the satisfaction but did not have however, didn't unequivocally affect
work fulfillment in all areas. The research again depicted that, there was essentially a
decidedly huge connection between the HR rehearses', work fulfillment and
devotion/responsibility in different areas. The review presumed that work fulfillment
showed a critical effect on faithfulness and responsibility in the assembling and mining
area and there was essentially huge connection between the human asset rehearses, work
fulfillment and steadfastness/responsibility in different areas which approves the different
hypotheses and studies

2.7 Conceptual Framework of the Study

Based On the previous studies of Onsardi (2017) and Frempong, Agbenyo and
Darko (2018), the conceptual framework of the paper is developed. Figure (2.3) presents
the conceptual framework for this study.

As presented in Figure (2.3), this study focuses whether employee empowerment

or compensation mark the office joyfulness and loyalty. The employees' loyalty of Victoia
Hospital depends on work joyful of them. Two variables including employee empowerment
and compensation drive work pleasure in Victoria Hospital.

Figure (2.3) Conceptual Framework of the Study

Employee Empowerment
• Structural
Empowerment
• Psychological
Empowerment

Job Satisfaction Employee Loyalty

Compensation
• Extrinsic
Compensation
• Intrinsic
Compensation

Source: Own Compilation based on Previous Studies (2022)

Employee empowerment and compensation variables are independent variables. In

this study, employee empowerment is measured in terms of operational and psychological
authorization. Regarding to this analysis, employee loyalty is measured whether employees
want to continue working and recommend to others regarding Victoria Hospital. This study
focuses whether employees job satisfaction affect on the loyalty of the employees.
 CHAPTER 3
PROFILE, EMPOWERMENT AND COMPENSATION PRACTICES
OF VICTORIA HOSPITAL

Firstly, this chapter presents profile information and organization structure of the
Victoria hospital. Secondly, empowerment practices and compensation practices of the
Victoria hospital are presented. Finally, this chapter also presents profile of the respondents.

3.1 Profile of Victoria Hospital

The hospital named “Victoria aka Witoriya” was founded on May 2nd, 2011 and
was listd as an general medical hospital by Thukha Saytana Company Limited. It has been
rendering quality health care to people of Northern Yangon since its soft opening on June
25th, 2011. It is situated at number 68, Taw Win Street, 9 Mile, Mayangone Township,
Yangon, Myanmar.

For the purpose of offering the best medical services administrations in Myanmar,
Victoria is wisely organized and continually altered with mechanically progressed
equipments, a high level IT System, quality clinical items, and qualified experts. Victoria
has been planning to add more specialized services and facilities to fulfil the gap of the
healthcare requirements of the public.Victoria hospital is 100 bedded private general
hospital that furnishes finest feature care services with most efficient clinical items and
most capable specialists in each exact field for the patients in Myanmar.

Its mission is to provide international standard health services in Myanmar with

very reasonable price. The vision is to be the most dependable in wellbeing service and the
best quality medical hospital in private wellbeing sector in Myanmar.

3.1.1 Organization Structure of Victoria Hospital

There are 6 major divisions at Victoria Hospital namely HR and Admin, Supply
Chain, Customer Care, Sales and Marketing, Finance and Accounts, Medical divisions. The
organization structure of the Victoria Hospital is presented in Figure (3.1).
 Figure (3.1) Organization Structure of Victoria Hospital

Source: Victoria Hospital (2022)

According to Figure (3.1), there are six major divisions managed by directors which
composed of Victoria Hospital. Each division has its own specific operations. In additions,
CEO and directors are under direct control of managing director. At the planning stage,
directors make the plans for their divisions and correspondence managers have to
implement according to the strategic plans. Managers have to report their relative director
regarding job assigned.

(i) Admin and HR Division

In a hospital, admin and hr division is responsible for both the clinical and non-
clinical staff that delivers direct services to patients. It takes care of numerous fundamental
elements in the firm. It is instrumental in giving work regulation consistence, record
keeping, employing and coaching, remuneration, social help and support with taking care
of explicit execution issues. These capacities are vital that without those capacities being
finished, the organization wouldn't have the option to meet the fundamental necessities of
the executives and juniors.

In addition, this division is accountable for the administering the office staff and
supplying stationary to all divisions.
(ii) Supply Chain Division

The supply chain division is responsible for all the purchases of the hospitals. This
includes food items, medicines, engineering items, electro medical equipment, linen,
medical gases, cleaning supplies etc. In addition, it focuses on identifying new suppliers
and maintaining a healthy competition between vendors and suppliers, development of
specifications of technical items required, with users and technical experts. It also contracts
advertisement, evaluation of bids received and awarding contracts and keeps the
maintenance of records relating to the Procurement activities.

(iii) Customer Care Division

Customer care division is responsible for providing client assistance and care to
healthcare customers. It is responsible for providing good client assistance and care to
healthcare customers. In addition, it is responsible for scheduling appointments,
appointment check-in process, service delivery experience review, continuation of care,
post-appointment follow-up, billing and insurance claims and prepared for future visits.
This division uses helpdesk software that can support officials to efficiently organize
incoming queries and automate repetitive tasks that will make sure to consistently provide
good patient care at scale.

(iv) Sales and Marketing Division

The sector of sales and marketing is responsible for promoting core and specialty
services to the physician community. It is additionally liable for the services in all practical
areas of sales consisting the use of associate services, developing and reinforcing reference
exercises by completing and advancing proficient administrations.

It mainly focuses on advertising, branding and promotional tactics, and setting sales
targets to improve population health by interacting with community, building trust,
displaying expertise in care in order to acquire new sufferers and create long lasting
relationships.
(v) Finance and Account Division

The finance and account division is responsible for general bookkeeping duties,
such as fulfilling purchase orders for equipment or supplies, finalizing sales of merchandise
and services, keeping up with receipts from buying for the company, and handling payment
made by or to the medical services association. The finance department is likewise liable
for arranging contracts with specialist co-ops and workers for hire, managing finance, and
keeping up with cash holds for unforeseen or arranged costs.

(vi) Medical Division

Medical division is responsible for the overall well-being and health of the
communities they serve. It is a division of the medical staff of a hospital for the provision
of a specified type of medical diagnosis or treatment. The medical division occupies the
different clinical administrations. They are: medication, medical operation, eye,
gynaecology, obstetrics, paediatrics, ENT, dental, orthopaedics, neurology, cardiology,
psychiatry, skin, V.D., plastic surgery, nuclear medicine, infectious disease etc.

3.1.2 Number of Employees in Victoria Hospital

Table (3.1) shows the quantity of the staffs by division of Victoria Hospital. There
are 652 people in Victoria Hospital.

Table (3.1) Number of Employees by Division

No Division Number of Employees

1 Admin and HR 141
2 Supply Chain 35
3 Customer Care 115
4 Sales and Marketing 10
5 Finance and Account 33
6 Medical 311
7 BOD Office 7
Total 652
Source: Victoria Hospital (2022)
 Table (3.1) shows that number of employees by each division. At Victoria Hospital,
there are 652 total employees including directors at BOD office.

3.1.3 Organization Policy

Victoria Hospital formaly informs all employees about the organizational policy
including the configuration of the orgnaiztion and reporting process clearly. In addition, it
also clearly communicate about commensatoin beneftis. Head of department or manager
announces internal regulations and departmental goals. The policy that all employees must
be followed as follow:

(i) Working Hours and Leave

Victoria hospital sets the working days six days a week for all employees according
to its working nature. The followings present the working schedule at Victoria hospital.
There are distinct shifts for clinical and non-clinical staff. For supporting unit or non-
clinical staff, the shift is 9:00AM to 5:30AM. The total working hours are 48 hours per
week. Non-clinical staffs need to work from Monday to Saturday. Clinical staff has two
shifts: day and night. Day shift is from 7AM to 7PM while night shift is from 7PM to 7AM.
Total working hours for clinical staff are 240 hours per month.

Management can work by flexible time. Non-management can change the duty
shifts three times per month without affecting the allowances. All the employees can take
the leave according to the labor law. They can get 30 days leave a year without pay if they
have any specific issue.

(ii) Overtime

Overtime on weekdays shall be compensated by enjoying two hundred percent

(200%) of basic salary accordingly. Overtime on weekend and holidays shall be calculate
by hourly basis and compensated with both in leave and in cash. Victoria hospital restricts
employees not to work overtime more than 30 hours continuously. The hospital gives
overtime pay according to the labor law.
 Clinical staffs are able to earn the overtime pay according to the overtime policy
while non-clinical staffs usually get the substitute day off instead of overtime pay.

3.2 Empowerment Practices

Empowerment practices of Victoria hospital are presented in order to raise beyond

career happiness and loyalty of the employees. Victoria hospital is offering well-planned
empowerment practices to all employees working at the hospital.

Victoria hospital gives the best employee award, the best communication award,
Victoria’s most regular attendance award for each level of position. Moreover, the senior
employees such as managers are provided the necessary management training programs
such in both local and abroad. In 2021, Victoria hospital attained EDGE certificate and is
practicing the equal pay policy, flexible working arrangement policy, anti-harassment
policy, diversity and inclusion policy, non-discrimination policy. In addition, Victoria
hospital carefully manages the span of control to be effective working environment where
subordinates can get the solutions and recommendations if they have job related issues.

Victoria hospital is selecting HR improvement team leaders and sharing

information for purpose of good communication and employee engagement. Regarding to
business development, it manages HODs to make projects, and organize management talk
program once a month. Besides, leadership development training is offered to deputy
assistant manager and assistant manager and higher level. Concerning with global
communication, the company is providing English language training, customer services
training, BLS training, fire safety training and waste management training. Furthermore,
Victoria hospital creates the teams and arrange the activities and the BOD grants the prizes
to the best team according to the result of the team activities.

3.3 Compensation Practices

Compensation is the rewards that employees receive for doing their jobs. There are
two types of compensation, intrinsic and extrinsic. When talking about
compensations, intrinsic compensations are those that originate from within the person, and
extrinsic compensations are those that originate from something beyond the person.
3.3.1 Extrinsic Compensation

Good and exceptional performance of the individual employee or as members of

group and/or team may be granted a plus or pay prizes, the amount of which shall be
determined by the Management. Rewards and recognition will be awarded to employee
who attains the achievement having honestly served the firm for a stretched time,
continuous service with the company and exhibited remarkable capability and
distinguished service to become a model for other employees. Victoria hospital gives
reward to the employees who are recognized in accordance with award citation, prize,
vacation, payment of special bonus, or any other privilege as Victoria hospital considers
appropriate. Recognition and reward may be recommended by a director and shall be
executed at the sole discretion of the HR Committee.

Victoria hospital management gives consistency, fairness and equality top priority
when designing and implementing a recognition program and also ensures that the program
is open to all employees. Victoria Hospital gives two major types of rewards and
recognitions, cash and non-cash awards. Bonus, holiday trip or incentive is payable to the
incumbent employee after the project is finished based on the performance appraisal.
Victoria Hospital sets the pay day last day of the month.

Table (3.2) Monthly Salaries on Different Level of Victoria Hospital

Occupation Level Basic Salary (MMK)

Upper Level 1,300,000 and above

Unit Head and Same Rank 700,000-1,300,000

Senior to Supervisor 300,000-700,000

Operation Level Minimum Wages-300,000

Source: Victoria Hospital (2022)

In addition, Victoria hospital arranges ferry buses for the employees. Employees
can take the ferry at the nearest pickup point from their locations. There is late ferry for
night-shift employees. The hospital also provides the accommodation for the employees.
Victoria hospital also has health care benefits for employees and their closed family. If
employees get accidents at work, the hospital will take full responsibility. If employees get
accidents outside office hours, the hospital offers some discounts reliant on the career titles.
In addition, the hospital provides movement order and trip allowance procedures for its
employees.

Before working for Victoria hospital, all the medical expenses for pre-employment
medical check-up are reimbursed to the employees who become permanent employees after
7 months. Vitoria hospital gives the discount to the employee or immediate family member
houses in hospital and the rule is active from the first day of being permanent employees.

The hospital cut the permanent employees’ uniforms in one year instalment,
conversely, all the uniform charges are pay back along with salary when the employee quit
the job and return the uniforms. More importantly, the employees in probation period, the
hospital offers the shots for Hepatitis B vaccine 1,2,6 and booster.

Besides, the employees get the allowance for marriage and the funeral support for
the immediate family member if in case. In terms of the overtimes rule, some employees
can earn for overtimes fees, while others cannot earn fees and they can get substitute day
off.

The workers can get loan without interest. The Vitoria hospital grant the full salary
while the employees give birth and social security benefits. Moreover, the employees can
earn bonus once a year, and salary increment every year. The month of June and December,
the hospital reviews the performance appraisal which is ahead to the job promotion and
salary incensement in terms of the outcome. During covid 19 pandemic, the back-office
employees can work from home and the employees can get the covid 19 vaccine for four-
month instalment as staff discount.

3.3.2 Intrinsic Compensation

Superiors or seniors always deliver words of praise to the outstanding workers to

promote the sense of achievement. Employee recognition can benefit both employer and
employees more than any monetary rewards. Furthermore, Vitoria hospital allows freedom
that employees receive to make their own decision and work as per their schedule. The
hospital gives outstanding staffs challenging task. The hospital also allows capable
employees in resolution procedure and offers a developed rank in pyramid. It has the strict
policy for mutual respect and equality. Employees have the chance to learn something new
or expanding competence in a particular area while performing their tasks.
3.4 Profile of the Respondents

To achieve the objectives, 130 employees are surveyed. Profile of the participants
includes gender, age, education, position, income and work experience. The frequency and
percentage of the outline of the participants are firstly presented in Table (3.3).

Table (3.3) Profile of the Respondents

Particular Frequency Percent

Sr. No
Total 130 100.0
1. Gender: Male 21 16.15
Female 109 83.85
2. Age : 18 – 20 years 27 20.77
21 – 25 years 42 32.31
26-30 years 38 29.23
31-35 years 13 10.00
36-40 years 3 2.31
41-50 years 4 3.08
Above 50 years 3 2.31
3. Education: High School 41 31.54
Undergraduate 67 51.54
Graduate 21 16.15
Master 1 0.77
4. Occupation: GM 1 0.77
Manager 14 10.77
Doctors 7 5.38
Nurse 18 13.85
Housekeeping 21 16.15
Nurse Aid/Patient Care Assistant 37 28.46
Office Staff 21 16.15
Others 11 8.46
5. Income:140,000 - 250,000 MMK 36 27.69
250,001 - 350,000 MMK 38 29.23
350,001 - 500,000 MMK 22 16.92
500,001 - 700,000 MMK 14 10.77
700,001 - 1,000,000 MMK 16 12.31
Above 1,000,001 MMK 4 3.08
Source: Survey Data, 2022

Among 130 respondents, majority of the respondents get monthly salary from
250,001 - 350,000 MMK and they represent 29.23 percent of total respondents. Second
largest group earn from 140,000 - 250,000 MMK. The minority group gets above 1,000,001
MMK and this group represent only 3.08 percent of total respondents. The study shows that
most of the respondents are junior employees earning relevant salary according to their job
positions.
 CHAPTER 4

ANALYSIS ON JOB SATISFACTION AND EMPLOYEE LOYALTY

IN VICTORIA HOSPITAL

This chapter presents employee perception on employee empowerment and

compensation of Victoria hospital. It also presents employee perception on job satisfaction
and loyalty of employees at the hospital. Furthermore, analysis of the effect of
empowerment, compensation on job satisfaction and the effect of job satisfaction on
employee loyalty are conducted by using multilinear regression analysis.

4.1 Analysis on the Effect of Employee Empowerment and Compensation on Job

Satisfaction

There are many factors affect on job satisfaction. Job satisfaction is not only
determined by the amount of compensation provided but also employee empowerment.
This study analyses how the empowerment and compensation affect on job satisfaction of
employees.
 CHAPTER 5

CONCLUSION

This chapter presents the findings and discussions, suggestions and

recommendations and need for further research. It explores the perceptions of the
employees towards empowerment and compensation practices of Victoria hospital. Based
on the findings, this study suggests and makes recommendations in order to get further
work joyfulness and loyalty of the employees.

5.1 Findings and Discussion

This study is systematically done by collecting structured questionnaires from 130

employees who are currently working at Victoria hospital. For the purpose of examining the
link, the outcome of regression is applied to determine the effect of empowerment and
compensation practices of Victoria hospital on job satisfaction and loyalty of the employees.
According to the survey data, most of the respondents are females who are nurse aid and patient
care assistants. Thus, Victoria hospital pays much attention to these groups.

Regarding employee empowerment factors, both structural and psychological

factors are prominent impact on office joy. Among these factors, structural empowerment
is the main determinant factor of the pleased of work of employees at Victoria hospital.
Victoria makes sure that all employees have necessary information to perform their tasks.
Respondents get the problem-solving advice from their supervisors and comments to
improve the performance. The hospital systematically arranges co-operation among teams
to improve the operation efficiency. It is also found that psychological empowerment also
affects on the happiness of the work of the workers. Victoria provides trainings and
coaching to all employees. Therefore, most employees have confidence while performing
their jobs. Moreover, many employees have a sense that their careers are meaningful as
they are giving health care service and helping others. In other way, it is found that
employees are not given much authority and they do not have much influence at their
departments.

Regarding compensation factors, both extrinsic and intrinsic compensations are

strongly positive significant with job satisfaction. Among compensation factors, intrinsic
compensation is the main determinant factor of the workers’ work joy. Numerous
participants are gratified with learning opportunities at the hospital as they are nurse
aid/patient care assistants. It is found that most of the respondents are satisfied and enjoy
at job. In addition, most workers believe where they work currently are challenging and
meaningful. Employees get mutual respect from their supervisors and co-workers.
Therefore, employees are satisfied with intrinsic compensation offered by Victoria hospital.
The study reveals that extrinsic compensation affects on job satisfaction. Victoria hospital
provides leave benefits and fair compensation. It is also found that employees are satisfied
with promotion opportunities and bonus schemes. However, employees are moderately
satisfied with the extrinsic compensation since non-clinical staffs just get the substitute day
off instead of overtime pay. Generally, employees are satisfied with extrinsic compensation
of the Victoria hospital.

The study also reveals that workers’ authorities has more influence on work joyful
than compensation. Most of the respondents are nurse aid/patient care assistants. Thus, they
want empowerment and value at their jobs.

Work joyful is a prominent impact on workers devotion. Employees state that they
get fair compensation, recognition from supervisor, and chances for growth and
promotions. Therefore, employees enjoy at their workplace, and they have desire to
continue working at the hospital and recommend others to work at Victoria hospital.
Employees would like to spend entire career in Victoria hospital. It can be determined that
employees currently working at Victoria hospital are happy with their works and have
loyalty to their hospital.

5.2 Suggestions and Recommendations

In terms of the analysis findings, Victoria hospital could improve the work
adorement and loyalty of employees by adjusting empowerment and compensation
practices. Firstly, the hospital should focus on nurse aid/patient care assistants and
housekeeping when management makes strategic plan regarding empowerment and
compensation.

Victoria hospital should pay attention to employee empowerment first. Regarding

structural empowerment, the hospital should give enough time or hire more employees to
reduce the workload. It should support shared authorities such as assessment, influential
nurses, lifelong professional development, and strong community partnerships. In addition,
the hospital should continue practicing current structure empowerment to employees. For
psychological empowerment, Victoria hospital should develop employees and give
delegation according to the functioning of the labors. Victoria hospital should also
appreciate the contributions of the employees to show how their works are valued.
Moreover, the hospital should take suggestions and ideas from nurse-aid/patient care
assistants and housekeeping for the aim of enhancement the service quality and customer
satisfaction. Then, employees’ satisfaction can be raised as management takes ideas from
them.

For compensation, Victoria hospital should pay attention to intrinsic compensation

first. The hospital should assign the jobs according to the professions and interest of the
employees. It should create the environment where employees could learn for their career
developments. Moreover, the hospital should maintain and promote mutual respect culture.
Regarding extrinsic compensation, the hospital should ask employees whether they prefer
overtime pay or substitute day off. In addition, it should announce performance result of
the employees transparently and convince employees questioning about the performance
result. Victoria hospital should continue providing current rewards and benefits. Proper
training and promotion should be given to all employees irrespective of their sex. As a
result, employees will have a sense that they have opportunities and are valued at their
work. For non-clinical staffs, Victoria hospital should also offer overtime pay like that of
clinical staffs. This will significantly improve the labours’ gratification. Finally, Victoria
hospital should evaluate the work joyful and loyalty status of the employees regularly in
order to retain valuable workforce and achieve competitive advantage. Then, the facilities
provided to the employees should regularly be compared with that of other organizations
and facilities similar to it or more to be provided quickly.

5.3 Needs for Further Research

This study focuses only on the influence of the capabilities and compensation on
the workers devotion and work pleasure, and it does not cover other HRM practicing in
other hospitals in Myanmar. There are many theories for employees’ motivation such as
The need model of Maslow’s hierarchy, and the two factor theories presented by Herzberg
that should also be conducted for further research. Therefore, further researchers should
study the common HR practices affecting on motivation, company’s promise, and work
performance of hospitals in Myanmar. Further researchers should research with different
independent variables such as leadership, and the promise of the firm at hospitals in
Myanmar, because these variables can affect employee loyalty so that the further study can
shape the whole picture of health care industry in Myanmar.
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 APPENDIX A

Structured Questionnaire

PART I: Demographics

1. Gender
 Male  Female
2. Age
 18-20 years old
 21-25 years old  26- 30 years old
 31-35 years old  36-40 years old
 41 to 50 years old  Above 50 years old

3. Educational
 High School  Undergraduate
 Graduate  Master
 Other ............................................................................................

4. What is your Position?

 GM  Manager
 Doctor  Nurse
 Housekeeping  Nurse Aid/Patience Care Assistant
 Office Staff  Other ……………………………

5. Income

 144,000 ~ 250,000 MMK  250,001 ~ 350,000 MMK

 350,001 ~ 500,000 MMK  500,001 ~ 700,000 MMK
 700,001 ~ 1,000,000 MMK  Above 1,000,000 MMK.

6. Work Experience at Victoria Hospital

 Less than 1year  1- 3 years
 4 – 7 years  8 - 10 years
 Above 10 year
PART II: Employee Empowerment, and Compensation

Please tick how much degree you agree the following statements.
(5= Strongly agree, 4 =Agree, 3 =Neither disagree nor agree, 2 = Disagree, 1= Strongly
disagree)

Employee Empowerment Levels

Structural Empowerment 5 4 3 2 1

1. There is the cooperation at the work.

2. I can access the necessary information to perform the tasks.

3. Superiors give specific comments about things to improve.

4. Superiors give problem-solving advice

5. I have enough time available to accomplish obligation

Psychological Empowerment 5 4 3 2 1

6. I am confident about my ability to do my job.

7. The work I do is meaningful.

8. I have mastered the skills necessary for my job.

9. I have the authority to make the necessary decisions to

perform my job well.
10. I have significant influence over what happens in my
department.
Compensation

Extrinsic Compensation 5 4 3 2 1

11. Compensation given by Victoria is fair among private

hospitals in Myanmar.
12. Overtime is paid on the basis of hours earned/worked.

13. In the organization, bonus scheme is relevant.

14. The organization provides fair promotion opportunities.

15. Victoria Hospital provides leave benefits (including medical,

casual, vacation paid holidays)
 Intrinsic Compensation 5 4 3 2 1

16. I accomplish my work learning something new skills.

17. I can expand competence in my professional area.

18. I have feelings of respect from supervisors and co-workers.

19. Challenging tasks help me work at a continuously optimal

level work toward meaningful goals.
20. I get enjoyment and satisfaction doing my job.

PART III: Job Satisfaction

Please tick how much degree you agree the following statements.
(5= Strongly agree, 4 =Agree, 3 =Neither disagree nor agree, 2 = Disagree, 1= Strongly
disagree)
Job Satisfaction
Job Satisfaction 5 4 3 2 1
 1. I receive the right amount of compensation based on my
performance.
2. My supervisor recognizes my achievement.

3. I have many chances for growth and promotions in my

hospital.
4. I feel satisfied with my role and authority at work.

5. I feel positive and up most of the time I am working.

PART IV: Employee Loyalty

Please tick how much degree you agree the following statements.
(5= Strongly agree, 4 =Agree, 3 =Neither disagree nor agree, 2 = Disagree, 1= Strongly
disagree)

Employee Loyalty 5 4 3 2 1

1. I desire to continue working in Victoria Hospital.

2. I will recommend others to work at Victoria Hospital. .

3. I have deep feelings for the organization and my colleagues

around me.
4. I will mention the Victoria’s strengths to others.

5. I would like to spend my entire career in Victoria’s hospital.

 APPENDIX B

Effect of Employee Empowerment on Job Satisfaction

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
a
1 .958 .918 .917 .10043
a. Predictors: (Constant), Psychological Empowerment
Mean, Structural Empowerment Mean

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 14.351 2 7.176 711.420 .000b
Residual 1.281 127 .010
Total 15.632 129
a. Dependent Variable: Job Satisfaction Mean
b. Predictors: (Constant), Psychological Empowerment Mean, Structural
Empowerment Mean

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .293 .101 2.897 .004
Structural .588 .040 .604 14.877 .000
Empowerment Mean
Psychological .335 .033 .410 10.105 .000
Empowerment Mean
a. Dependent Variable: Job Satisfaction Mean
Effect of Compensation on Job Satisfaction

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .952a .907 .905 .10709
a. Predictors: (Constant), Intrinsic Compensation Mean,
Extrinsic Compensation Mean

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 14.176 2 7.088 618.061 .000b
Residual 1.456 127 .011
Total 15.632 129
a. Dependent Variable: Job Satisfaction Mean
b. Predictors: (Constant), Intrinsic Compensation Mean, Extrinsic Compensation
Mean

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .580 .103 5.654 .000
Extrinsic Compensation .331 .061 .374 5.431 .000
Mean
Intrinsic Compensation .468 .054 .597 8.665 .000
Mean
a. Dependent Variable: Job Satisfaction Mean

Effect of Employee Empowerment and Compensation on Job Satisfaction

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
a
1 .962 .925 .924 .09582
a. Predictors: (Constant), Compensation Mea , Employee
Empowerment Mean
 ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 14.466 2 7.233 787.702 .000b
Residual 1.166 127 .009
Total 15.632 129
a. Dependent Variable: Job Satisfaction Mean
b. Predictors: (Constant), Compensation Mea , Employee Empowerment Mean

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .428 .087 4.944 .000
Employee .480 .083 .509 5.783 .000
Empowerment Mean
Compensation Mea .392 .075 .462 5.244 .000
a. Dependent Variable: Job Satisfaction Mean

Effect of Job Satisfaction on Employee Loyalty

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
a
1 .889 .790 .788 .15174
a. Predictors: (Constant), Job Satisfaction Mean

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression 11.092 1 11.092 481.737 .000b
Residual 2.947 128 .023
Total 14.040 129
a. Dependent Variable: Employee Loyalty Mean
b. Predictors: (Constant), Job Satisfaction Mean
 Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .964 .148 6.513 .000
Job Satisfaction .842 .038 .889 21.949 .000
Mean
a. Dependent Variable: Employee Loyalty Mean