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The relationship between QWL and Job satisfaction: A survey of

human resource managers in Iran
Hassan, Golkar
Department of Management, Shahid Bahonar University, Kerman, Iran

Abstract
A good quality of work life (QWL) can increase job satisfaction and task performance, reduce
absenteeism and turnover rate, lower tardiness frequency, and enhance organizational effectiveness and
organizational commitment. This research investigates the relationship between quality of work life
(QWL), institutionalization of ethics, and Job satisfaction In the midst of human resource managers in
Iran. The data were collected by means of Questionnaires mailed to human resource managers of 300
Iranian firms listed on the Stock Exchange of Iran. The results indicate that a positive relationship
between implicit form of ethics institutionalization and both lower-order and higher-order aspects of
QWL. The results also indicate that the implicit form of ethics institutionalization and the two aspects of
QWL have positive impacts on the Job satisfaction. Based on these results, implications for quality of
work life and research limitations are highlighted.
Keywords: QWL, Job satisfaction, human resource managers, Iran
1. Introduction
Providing employees with a good quality of work life (QWL) is important for reasons including the ability to
increase task performance, lower absenteeism and turnover rate, lower tardiness frequency, and increase
organizational effectiveness and organizational commitment (Sirgy et al., 2001; Wilson et al., 2004).
Generally, QWL refers to a person‘s subjective perception of his/her work and the total working environment
such as the compensation and development opportunities (Sirgy et al., 2001). An employee‘s QWL can be
affected by elements including the tasks, physical work environment, social environment in the organization,
administrative system, and work–life balance (Che Rose et al., 2006). Cause-related marketing (CRM) has
emerged in recent years as a new form of corporate philanthropy based on the rationale of profit-motivated
giving. Corporate involvement in social well-being began as voluntary responses to social issues and problems,
then evolved into a phase of mandated corporate involvement, and is now evolving into a phase in which social
responsibility is viewed as an investment by corporations (Stroup and Neubert 1987).
For the last decade, the increasing effects of factors such as globalization, information technology, world
business competitiveness, and limited natural resources have changed people's views of howa good company is
defined. In the past, financial figureswere themajor factor in defining ―a good company‖. In recent years, ethics,
quality of work life (QWL) and job satisfaction are increasingly being identified as progressive indicators related
to the function and sustainability of business organizations. The rising complexity of the competitive business
world and the cumbersome process of implementing effective social laws make ethics an important strategic
factor in protecting companies from unwanted disasters (e.g., Beauchamp and Bowie, 2004; Carroll and
Buchholtz, 2006; Ferrell et al., 2008). Regardless, it can be argued that good ethics is simply good business. As
nicely stated by LRN(2006a, p.1): Ethical cultures create trust within and outside corporations. Trust encourages
appropriate risk taking, which leads to innovation, which propels progress- and ultimately profitability.
The new expert views on organizational management emphasize the use of participatory methods that originate
from the needs of modern man (Giyorian and Rabieiman, 2005). Today, employees have different needs. Salary
and safety needs are not the only motivational factors anymore (Zohouri et al., 2007). The needs of modern man
are currently much more including the needs for consultation, participation, and opinion polls (Zohouri et al.,
2007). According to Maslow‘s hierarchy of needs, these are highlevel needs that result in the flourishing of all
the hidden talents of people (Suzanne and Stephen, 2003). The appropriate behavioral model of a manager in any
organization causes strong spirit and motivation in the staff, and increases their satisfaction with their jobs
(Kolagari and Khoddam, 2007).
The QWL dimensions and attributes identified shed light on those aspects that are critical for improving the
QWL of employees, which may ultimately help reduce turnover rate, especially in a tight labor market. The
findings also provide HR managers with insights into ways to enhance the work lives of human resource
managers.

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According to Werther‘s theory (1986), staff‘s participation in matters concerning their work increases their sense
of responsibility, and sometimes can create this feeling in them that they are the owners of the decisions that
have been made through their participation.
and advancement, social integration to the work environment, constitutionalism, social relevance, and work–life
balance. The dimensions of QWL identified by Havlovic (1991), Scobel (1975), and Straw and Heckscher (1984)
include job security, better reward systems, higher pay, opportunity for growth, and participative groups, while
Brooks and Anderson (2005) identified work–life balance, work design, work content, and work world as crucial
aspects.
Hackman and Suttle (as cited in Saklani, 2010) pointed out that QWL is not determined by personal or
situational characteristics alone but rather by the closeness of the individual–organization fit. Lau and Bruce
(1988) found that QWL comprises several aspects including job security, reward system, training and career
advancement opportunities, and participation in decision making.
Hackman and Oldham (1980) argued that QWL is related to the interaction between the work environment and
personal needs. Personal needs are satisfied when rewards from the organization such as compensation,
promotion, recognition, and development meet their expectations. An ethical company culture is also perceived
as a key dimension of QWL.
In parallel to the importance of ethics; QWL and job-related outcomes such as job satisfaction and organizational
commitment have been important topics in human resource (HR) and organizational development (OD) since the
beginning of 1960s (Cummings and Worley, 2005; Leopold, 2005). Writings and research in management, HR,
and OD often link QWL and job-related outcomes to ethics, productivity, corporate social responsibility, and
organizational performance (e.g., Cascio, 1998; Cummings andWorley, 2005; Dess et al., 2007; Lau and May,
1998; Leopold, 2005; Walker, 1992; Wheelan and Hunger, 2006; Yorks, 2005).
However, based on our literature review, there have been no studies linking ethics, QWL, and job-related
outcomes in Iranian business organizations. In fact, based on our review, the mainstream research on both ethics
and QWL tends to focus on either developed economies and/or Western countries. The present research is
designed to further validate our knowledge about such issues by examining the impacts of both ethics and QWL
on employee job-related outcomes in business organizations in Iran. Given that our research is in the context of
Iran, which is an Asian country and a developing economy, it is an important contribution not only to the ethics
and QWL literature but also to international business literature.
This research investigates The relationship between quality of work life (QWL), institutionalization of ethics,
and Job satisfaction In the midst of human resource managers in Iran.

2. Literature Review
2.1. Quality of Work Life (QWL)

QWL was first introduced as a concept at an International Labors Relation Conference in New York in 1972 that
aimed to share knowledge and initiate a coherent theory and practice on how to create the conditions for a
‗humane working life‘ (Ryan, 1995). Since then, QWL has gained substantial interest and importance among
management researchers and practitioners (Rathi, 2009).
QWL is a multidimensional construct. There is no universally agreed definition of QWL (Attewell and Rule,
1984; Kandasamy and Ancheri, 2009). It has been viewed in a variety of ways, such as quality of work (Attewell
and Rule, 1984), employment quality (Kraut et al., 1989), and as a set of organizational interventions and a
movement (Carlson, 1978). Some researchers have used a broad scope to define the QWL concept, while others
have defined
it based on specific facets of work life (Kandasamy and Ancheri, 2009).
For instance, Stjernberg (1997) linked QWL to the wider notion of ‗quality of life‘, which covers factors such as
general life satisfaction, leisure, and well-being beyond the workplace. Yet, some researchers have confined
QWL to one‘s workplace, believing that the nature of the work environment is directly related to the well-being
of employees and work-related behaviors such as absenteeism, job involvement, intention to quit, and
organizational commitment (Efraty and Sirgy, 1990; Rathi, 2009). For example, May et al. (1999) defined QWL
as the favorable conditions and environment of a workplace that support and promote employee satisfaction by
providing workers with rewards, job security, and growth opportunities. Heskett et al. (1994) viewed QWL as
‗internal service quality‘ while referring to the quality of working environment that contributes to employee

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satisfaction. QWL is defined as ―employee satisfaction with a variety of needs through resources, activities, and
outcomes stemming from participation in the workplace‖ (Sirgy, Efraty, Siegel, & Lee, 2001, p. 242).
Studies demonstrate that employees with high QWL tend to report high levels of identification with their
organizations, job satisfaction, job performance and lower levels of turnover and personal alienation (e.g., Carter,
Pounder, Lawrence, & Wozniak, 1990; Efraty & Sirgy, 1990; Efraty, Sirgy, & Claiborne, 1991; Lewellyn
&Wibker, 1990)
One conceptualization of QWL, based on need-hierarchy theory (Maslow, 1970), regards QWL as employee
satisfaction of seven sets of human developmental needs: (1) health and safety needs, (2) economic and family
needs, (3) social needs, (4) esteem needs, (5) actualization needs, (6) knowledge needs, and (7) esthetic needs
(Sirgy et al.,
2001).
Based on their research, these seven dimensions collapse into two major categories: lower-order and higher-
order needs, a la Maslow. Lower-order QWL is comprised of health/safety needs and economic/family needs;
higher-order QWL includes social, esteem, self-actualization, knowledge, and esthetic needs. While some
scholars question the relevance of some of the seven needs in collectivist cultures (e.g., Gambrel & Cianci, 2003;
Nevis, 1983), the authors (representing both cultures) believe the distinction between lower-order QWL and
higher-order QWL applies across cultures.
In summary, QWL can be defined as the favorable conditions and environment of a workplace that support and
promote employee satisfaction.

2.2. Ethics institutionalization

Ethics and QWL are two intertwined work environment factors of organizations. Ethics in this research refers to
the rules or standards governing the conduct of individuals or the members of a profession
(Morris,1980),whileQWL is the perceptions towhich the organizational environment meets the full range of
employees' needs for their wellbeing
at work (Cascio, 1998; Sirgy et al., 2001).
According to their research into different dimensions of need-based QWL, Sirgy et al. (2001) categorize QWL
into two major categories: lower- and higherorder needs. According to them, lower-order QWL is comprised of
health/
safety needs and economic/family needs and higher-order QWL is comprised of social needs, esteem needs, self-
actualization needs, knowledge needs, and aesthetic needs. Both categories of QWL were investigated in the
present study.
Singhapakdi and Vitell (2007) define institutionalization of ethics as ―the degree to which an organization
explicitly and implicitly incorporates ethics into its decision-making processes‖ (p. 284). Following Brenner's
(1992) explicit/implicit categorization, Singhapakdi and Vitell (2007) explain that ―mplicitly incorporating ethics
means that ethical behavior is implied, or not directly expressed, and is understood to be crucial; explicitly
incorporating ethicsmeans that ethical behavior is formally expressed without vagueness‖ (p. 285).
Implicit forms of ethics institutionalization include ethical leadership and open communication. Explicit forms
include codes of ethics and ethics training.
Because it refers to rules, uncertainty avoidance is one cultural factor that should affect ethics
institutionalization. As Hofstede (1980, p. 185) writes, ―organization reduce internal uncertainty…by the setting
of rules and regulations‖.
Scholtens and Dam (2007) test correlations between Hofstede's research on workplace values (1980) and a
number of measures related to ethics codes (e.g., does the company have an ethics code? Does the company have
policies on bribery?).
Scholtens and Dam's (2007) strongest finding ―is for the positive association between individuality [sic] and
ethical conduct‖ (2007, p. 281). They conclude that ―individualism puts an agent's own responsibility on the
foreground and, therefore…firms will pay more attention to their ethical policies‖ (2007, p. 280).
Due to increasing ethical problems in recent years, many business organizations have established ethics
programs to help improve ethical behavior and/or to help prevent ethical problems among their employees (e.g.,
Chonko et al., 2003; Somers, 2001; Valentine and Fleischman, 2008). According to Brenner (1992), there are
two categories of ethics programs in organizations — either explicitly created or implicitly inherited. Based on
his research, the explicit components include codes of ethics, policy manuals, ethics seminars, internal control

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systems, and ethics staff. The implicit components include corporate culture, incentive systems, valued
behaviors, promotion policies, and management behavior.

Researches and scholarlywritings generally suggest ethics either as a source of employees' QWL or as a work
condition related to QWL. For example, Guest (1980) characterized a work environment which provides QWL
as cooperative, evolutionary, open, informal, and interpersonal. Such a work environment can be considered
ethical and productive because it can be developed only if managers have trust and confidence in their employees
(e.g., Cascio, 1998; Shaw, 2005; Walker, 1992).
Consistently, Ferrell et al. (2008) argue that ethical culture occurs in organizations where essential factors such
as corporate policies and leadership by top management support its existence. The right to privacy, the need for
maintaining an acceptable work-family balance, and health and safety needs were pointed out by Shaw (2005) as
significant moral concerns in theworkplace. He also argued that ―…the success of QWL programs and other
workplace reform efforts depends on the ability of the organization to reinforce high levels of trust. To the extent
that it does so, organizational performance can improve‖.
Ethical culture develops in an organization from people's values, policies, and activities. When organizations
create an environment that makes their employees behave or act persistently according to their ethical values and
policies, those organizations are considered to have institutionalized their ethics. According to Sims (1991),
institutionalization of ethics should be examined in terms of specific behaviors or acts and it may vary in terms
of its persistence, the number of people in the organization behaving according to its ethics,
and the degree to which it exists as part of the organization.

2.3. Hypothesis
H1: Explicit ethics institutionalization is positively related to lower-order QWL.
H2: Explicit ethics institutionalization is positively related to higher-order QWL.
H3: lower-order QWL is positively related to job satisfaction.
H4: Implicit ethics institutionalization is positively related to job satisfaction.

3. METHODOLOGY

In the present study we investigated the relationship between quality of work life and Job satisfaction: A survey
of human resource managers. In order to analyze the hypothesis, inferential two-variable linear regression was
used to determine the relationship between two variables quality of work life and Job satisfaction by means of
distance scale in which the determination rate of criterion variance by means of predictor variable was identified
by R2 (coefficient of determination) and independent T-test. The current study, according to its purpose, is an
applied research and also is kind of descriptive surveys of the area of field studies considering the data collection
method. To investigate the relationship between the variables and testing hypothesis, after collecting the needed
data and information through questionnaires, statistical software SPSS20 was used.

All Iranian human resource managers form the Statistical population of this research. Due to the magnitude and
distribution of these managers, HR managers of organizations in Kerman underwent this survey. In this study,
simple random sampling has been used meaning that the researcher accidentally went to these organizations and
gave the questionnaire to the HR managers to fill out the questionnaire and some of the completed questionnaires
were chosen from each region according to the Cochran formula about the estimated sample. The sample size is
very important to generalize the results to the community. There are several methods for determining sample size
which among them mathematical methods are the most accurate ones for calculating the sample size.
Cochran's formula is used to obtain the sample size in this study based on which the number of sample is equal to
300, which shows the sample size in cases we may not have the exact population of the study with 5% of error.
In this study, the data collected in the field part was done by a questionnaire and the library method was used to
collect information about the concepts and theories related to the topic of the research.

The questions are based on a Likert scale from very much agreement to very much disagreement that the grading
is 1 to 5. In the present study, in order to more assurance a total number of 350 questionnaires were distributed

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among HR managers. Some of questionnaires were excluded due to wrong and incomplete responses and finally
300 questionnaires were analyzed for data analysis.

In the present study, Cronbach's alpha coefficient was used to assess the reliability of the questionnaire and the
reliability of the questionnaire is obtained Cronbach's Alpha: 0.80.

4. Findings and Discussion

In this part we have tried to examine each hypothesis by using inferential two-variable linear regression statistics
to test the hypothesis and independent T test to examine the hypothesis, and made a decision to approve or reject
the hypotheses. Test of the first hypothesis: There is a significant correlation between explicit ethics
institutionalization and lower-order QWL.

Our H0 is: Explicit ethics institutionalization is not positively related to lower-order QWL.

Our H1 is: Explicit ethics institutionalization is positively related to lower-order QWL.

A survey on the correlation between Explicit ethics institutionalization and lower-order QWL is achieved by
using an inferential two-variable linear regression statistics, based on which the calculated p-value (0.001) is less
than significant level 0.01, therefore, at this level, H0 is rejected. So it is concluded that the linear regression
model is significant and it means that explicit ethics institutionalization is positively related to lower-order QWL.
Correlation coefficient is R=0.73, which represents theextend of correlation between Explicit ethics
institutionalization and lower-order QWL. Given that the value of R2adj (adjusted R2) is equal to 0.52, it is
concluded that the variable of Explicit ethics institutionalization in this model, determine 0.52 of the variance of
Plower-order QWL by managers. (Table1).

The results also indicate that the regression coefficient of Explicit ethics institutionalization impact on lower-
order QWL is 0.68 and the due to the P-value (significance) of 0.001 which is smaller than the significance level
of α=0.05, the H0 is rejected in this level and thus it can be said that Explicit ethics institutionalization is
positively related to lower-order QWL.

Table 1: The coefficients of the regression model of the correlation between explicit ethics institutionalization
and lower-order QWL
The standard
Variable R R2 R2adj Estimate B SE t p-value
estimate of β
explicit ethics
institutionalization for 0.73 0.53 0.52 1.13 0.076 0.67 18.27 0.001
HR managers

Test of the second hypothesis: Explicit ethics institutionalization is positively related to higher-order QWL.

Our H0 is: Explicit ethics institutionalization is not positively related to higher -order QWL.

Our H1 is: Explicit ethics institutionalization is positively related to higher -order QWL.

A survey on the correlation between Explicit ethics institutionalization and higher -order QWL is achieved by
using an inferential two-variable linear regression statistics, based on which the calculated p-value (0.001) is less
than significant level 0.01, therefore, at this level, H0 is rejected. So it is concluded that the linear regression
model is significant and it means that explicit ethics institutionalization is positively related to higher -order
QWL. Correlation coefficient is R=0.79, which represents theextend of correlation between Explicit ethics
institutionalization and higher -order QWL. Given that the value of R2adj (adjusted R2) is equal to 0.63, it is

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concluded that the variable of Explicit ethics institutionalization in this model, determine 0.63 of the variance of
higher -order QWL by managers. (Table2).

The results also indicate that the regression coefficient of Explicit ethics institutionalization impact on higher -
order QWL is 0.71 and the due to the P-value (significance) of 0.001 which is smaller than the significance level
of α=0.05, the H0 is rejected in this level and thus it can be said that Explicit ethics institutionalization is
positively related to higher -order QWL.

Table2: The coefficients of the regression model of the correlation between explicit ethics institutionalization
and higher -order QWL
The standard
Variable R R2 R2adj Estimate B SE t p-value
estimate of β
explicit ethics
institutionalization 0.79 0.58 0.63 1.56 0.079 0.77 19.67 0.001
for HR managers

Test of the third hypothesis: lower-order QWL is positively related to job satisfaction.

Our H0 is: lower-order QWL is not positively related to job satisfaction.

Our H1 is: lower-order QWL is positively related to job satisfaction.

A survey on the correlation between lower-order QWL and job satisfaction is achieved by using an inferential
two-variable linear regression statistics, based on which the calculated p-value (0.001) is less than significant
level 0.01, therefore, at this level, H0 is rejected. So it is concluded that the linear regression model is significant
and it means that lower-order QWL is positively related to job satisfaction. Correlation coefficient is R=0.74,
which represents the extend of correlation between lower-order QWL and job satisfaction. Given that the value of
R2adj (adjusted R2) is equal to 0.69, it is concluded that the variable of lower-order QWL in this model, determine
0.69 of the variance of job satisfaction by managers. (Table3).

The results also indicate that the regression coefficient of lower-order QWL impact on job satisfaction is 0.87
and the due to the P-value (significance) of 0.001 which is smaller than the significance level of α=0.05, the H 0 is
rejected in this level and thus it can be said that lower-order QWL is positively related to job satisfaction.

Table 3: The coefficients of the regression model of the correlation between lower-order QWL and job
satisfaction
The standard
Variable R R2 R2adj Estimate B SE t p-value
estimate of β
lower-order QWL for
0.74 0.68 0.69 1.26 0.056 0.86 22.37 0.001
HR managers

Test of the fourth hypothesis: Implicit ethics institutionalization is positively related to job satisfaction.

Our H0 is: Implicit ethics institutionalization is not positively related to job satisfaction.

Our H1 is: Implicit ethics institutionalization is positively related to job satisfaction.

A survey on the correlation between Implicit ethics institutionalization and job satisfaction is achieved by using
an inferential two-variable linear regression statistics, based on which the calculated p-value (0.001) is less than
significant level 0.01, therefore, at this level, H0 is rejected. So it is concluded that the linear regression model is
significant and it means that implicit ethics institutionalization is positively related to job satisfaction.

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Correlation coefficient is R=0.82, which represents the extent of correlation between Implicit ethics
institutionalization and job satisfaction. Given that the value of R2adj (adjusted R2) is equal to 0.71, it is
concluded that the variable of Implicit ethics institutionalization in this model, determine 0.71 of the variance of
job satisfaction by managers. (Table4).

The results also indicate that the regression coefficient of Implicit ethics institutionalization impact on job
satisfaction is 0.84 and the due to the P-value (significance) of 0.001 which is smaller than the significance level
of α=0.05, the H0 is rejected in this level and thus it can be said that Implicit ethics institutionalization is
positively related to job satisfaction.

Table4: The coefficients of the regression model of the correlation between implicit ethics institutionalization
and job satisfaction
The standard
Variable R R2 R2adj Estimate B SE t p-value
estimate of β
Implicit ethics
institutionalization for 0.82 0.69 0.71 1.31 0.073 0.78 26.74 0.001
HR managers

5. Conclusions
The findings of this research are generally consistent with those from previous studies on institutionalization of
ethics (e.g., Hunt et al., 1989; Jose and Thibodeaux, 1999; Singhapakdi and Vitell, 2007) in that implicit
institutionalization of ethics is shown to positively related to quality of work life and Job satisfaction. Also
consistent with previous studies, we found that the effect of implicit form of ethics institutionalization on QWL
and the three job-related outcomes appears to be stronger than that of the explicit form. In general, our results
reveal that ethics in organizations is important to quality of work life and can lead, both directly and indirectly
via quality of work life, to more positive employee job-related outcomes. Even though explicit ethics
institutionalization appears to have smaller impact on quality ofwork life and Job satisfaction, we still
recommend that organizations explicitly institutionalize ethics.
Our results indicate that manager's job satisfaction and organizational commitment are significantly related to
lower-order QWL, while manager's team spirit is significantly related to higher-order QWL. Therefore, in order
to increase employee job satisfaction and organizational commitment, firms should try to enhance the lowerorder
QWL (i.e., meeting health/safety needs; providing good pay and job security). In contrast, in order to boost
employee team spirit, firms should try to enhance higher-order QWL (i.e., collegiality at work,
recognition/appreciation of work, realization of one's potential).
The outcomes measured in this study are based only on attitudinal measures. Future research should investigate
relationships between ethics institutionalization and other types of outcomes such as social responsibility. In
addition, future research should include other jobrelated outcomes including an organization's objective
performance
criteria such as growth (asset growth, sales growth), profitability (return on asset or equity), quality awards,
andturnover rate. For future research, it may be interesting to also include work-experience as a potential
predictor of both lower- and higher-order QWL. It is possible that the number of years of work experience will
generally bring about a better lower-order QWL (i.e., satisfactions in health & safety and economic & family
needs). This; however, may not necessarily lead to a higher-order QWL (e.g., satisfactions in social, esteem,
actualization needs). In addition to work-experience, we believe future research should include other
demographic variables as well.

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