FACTORS INFLUENCING EMPLOYEE COMMITMENT AMONG

EMPLOYEES AT “PEJABAT SETIAUSAHA KERAJAAN NEGERI

PULAU PINANG”

MOHAMAD SHAMEL BIN SUHAIME

940531-07-5483

BA750
MASTER OF SCIENCE (BUSINESS MANAGEMENT)
FACULTY OF BUSINESS AND MANAGEMENT
UNIVERSITI TEKNOLOGI MARA PERLIS

OCTOBER 2023
 ABSTRACT

The focus of this research is to study the relationship between independent variables

(IV), the effectiveness of training, job satisfaction, and the reward system, on the

dependent variable (DV) which is employee commitment.

The respondents in this study were “Pejabat Setiauasaha Kerajaan Negeri Pulau

Pinang” employees. Data was collected using a self-administered questionnaire. A

total of 100 questionnaires were distributed to the above-mentioned organisations,

and 100 were returned, resulting in a 100% response rate. The findings show that

job satisfaction and reward systems have a significant relationship; however, there is

no significant relationship between the training effectiveness and employee

commitment.

Several recommendations were put forth in this study for the organization in

promoting employees’ commitment as well as recommendations for future research.

i
 CHAPTER i1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Employee commitment is regarded as one of the most important benefits that any

organization requires from its employees. Some workers continue in their positions because

they enjoy their work or because their objectives line up with those of the organization.

Others could stay out of fear of losing something if they go. Others could continue to work

because they owe it to the organization or the management. Businesses must demonstrate

this kind of dedication if they want to keep their staff as loyal customers. According to

Mowday et al. (1982) and Hackett et al. (2001), employee commitment is defined as a

worker's faith in the organization's objectives and guiding principles, as well as their desire to

stay a part of it and devotion to it.

A few things affect employee commitment. The primary factor is job satisfaction. It is among

the most significant emotional states brought on by work experience. In general, it conveys

how a worker feels and thinks about his or her position. Employees with optimistic thoughts

will always take an active role in their responsibilities, whilst those with bad emotions won't

be able to do so.

The organization's training program's effectiveness comes in second. All employees should

receive training since it is necessary for enhancing employee performance and

accomplishing the organization's objectives. Employees that lack certain abilities can benefit

from training, which also lessens the level of stress that comes with having to work (Chen et

al., 2004). Additionally, it gives workers the chance to develop their professions and commit

themselves more fully.

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The incentive system, which consists of policies, practices, and procedures for rewarding

employees based on their participation and competencies, is the third significant component

that can affect organizational commitment. Exchange theory includes rewards, and it is

generally acknowledged that rewards are crucial for luring, inspiring, keeping, and sustaining

commitment among employees in any firm to assure good performance and workforce

stability (Abdullah, 2011). To accomplish objectives, an organization's behavior is shaped by

a variety of distinct processes and their results (Baron, 1983).

This study is conducted to identify the relationship between the effectiveness of training, job

satisfaction and rewards system on employee commitment in Malaysian public sector

specifically on Pejabat Setiausaha Kerajaan Negeri Pulau Pinang.

1.2 BACKGROUND OF THE ORGANIZATION

Penang is a state located in the north of Peninsular Malaysia. This state is under the rule of

His Excellency the Governor of Penang and under the leadership of His Honorary Chief

Minister. The State Administrator of Penang plays the main role in terms of administration

and is led by the Honorable Secretary of the State Government and is responsible to the

Governor-General and YAB Chief Minister. The first TYT Yang di-Pertua Negeri was Raja

Sir Udabin Raja Muhammad while the first Chief Minister was YAB Tan Sri Wong Pow Nee.

The first Penang State Administrator was an Englishman, namely H.R. Ellis who led the

Penang State administration from 6 September 1957. The first Malay administrator who took

over the administration from the British on 25 April 1960 was Abdullah bin Kulop Udi. Before

independence, the State Government administration was known as the “Pejabat Setiausaha

Negeri (PSUN). Immediately after the state administration was strengthened, PSUN

changed its name to the Pejabat Setiausaha Kerajaan Negeri (PSUK). The first State

Government Office was based in Ban Hin Lee Bank, Beach Street and operated until 1963.

2
Then it was moved to Bangunan Tuanku Syed Putra, Downing Street. On 22 December

1983, PSUK once again moved to the Kompleks Tun Abdul Razak (KOMTAR) until now.

1.3 PROBLEM STATEMENT

Employee commitment was the most important problem that any organization had to

address. For instance, it's a widespread concern in Malaysia that most employees aren't as

dependable as they once were. Most employees labor for financial and survival reasons.

Due to their reduced commitment, employees frequently leave their company for somewhat

higher income and greater job stability. Additionally, some workers are not happy with their

office setting, their coworkers, their bosses, or the rewards that the business provides. Less

dedicated workers will consequently suffer at work. Employers offer training to aid

employees in honing their skills and knowledge so they can perform their jobs more

successfully, but is it successful? Most organizations find it difficult to gauge how effective

their training is, which influences how well they perform because inadequate training will

have a negative impact on their workers' abilities and knowledge. Therefore, it is essential

for the organizations to thoroughly evaluate the efficiency of the training offered, as this will

influence employees' dedication.

Over the past 20 years, a lot of research has been conducted on the effects of employee

bonuses or rewards on particular people. Most studies examined the effects of perks or pay

on employees' intentions to leave, satisfaction, productivity, mobility, attractiveness,

retention, and motivation. There is limited data on how incentives or bonuses affect loyalty

among employees, especially in the public sector.

Based on the foregoing, this study aims to analyze the relationship between training efficacy,

work satisfaction, rewards systems, and employee commitment in public sector

organizations, particularly about Pejabat Setiausaha Kerajaan Negeri Pulau Pinang.

3
1.4 OBJECTIVES OF STUDY

The objective of this study includes: -

i. To study the relationship between the effectiveness of training employee

commitment.

ii. To identify the relationship between job satisfaction and employee

commitment.

iii. To examine the relationship between rewards system and employee

commitment

1.5 RESEARCH QUESTIONS

The research questions developed in this study are as follows: -

i. Is there any relationship between the effectiveness of training and employee

commitment?

ii. Is there any relationship between job satisfaction and employee commitment?

iii. Is there any relationship between a rewards system and employee

commitment?

1.6 SCOPE OF THE STUDY

Employees at Pejabat Setiausaha Kerajaan Negeri Pulau Pinang in George Town, Penang,

make up the study's target group. Employee commitment is the dependent variable in this

study, whereas the independent factors are the effectiveness of training, work satisfaction,

and rewards systems.

4
1.7 SIGNIFICANCE OF THE STUDY

The primary purpose of this research is to identify the most significant variables affecting

employee commitment in the Malaysian public sector. To fulfill the firm's aims and ideals, the

organization might focus its efforts on preserving employee commitment and inspiring them

to work harder. In addition, this research may contribute to advancing the theory behind

employee commitment. The number of thoughts and contributions to the body of knowledge

may rise because of this.

The researcher gains knowledge and experience from this study that will be helpful when

performing future research. By carrying out this study, the researcher was able to pinpoint

the issue in the literature as well as the issue in the organization, and she offers numerous

conclusions and suggestions to the problem.

1.8 LIMITATION OF THE STUDY

Several restrictions were experienced by the researcher while carrying out this study. First

off, because the respondents are preoccupied with their employment They are not entirely

dedicated to offering the study's solution. Second, the researcher had a time limit because

he was working and doing this investigation at the same time. The study's findings are

disappointing because only a small amount of time can be allotted to finishing it.

5
 CHAPTER 2

LITERATURE REVIEW

2.1 LITERATURE REVIEW

In the current competitive world, organizations must increase their resources, and leaders of

each firm must constantly be aware of numerous elements and how internal changes can

affect various requirements for great performance. Employee cooperation can be

encouraged to achieve all of this.

One of the most important aspects of a workplace study is the identification of factors that

influence the quality and quantity of an employee's performance. Organizational managers

should develop assumptions to improve performance on a regular basis. The employee's

performance is influenced by the task's structure and characteristics. Task characteristics

include whether the employee can work independently or not, whether the task is clearly

defined or not, and whether the employee will be rewarded for hard work or not (Chang, et

al, 1996).

2.2 THE EFFECTIVENESS OF TRAINING AND EMPLOYEE COMMITMENT

An intentional attempt to enhance the factors influencing each employee's performance on

the job is how training is described as effective. (Chiaburu and Tekleab, 2005, p. 29 in

Chiaburu and Tekleab). Commitment is a valuable benefit from employee connections since

employee turnover declines as the contribution ratio rises (Gaertner & Nollen, 1989).

Commitment is the cost associated with corporate membership and benefits (Reichers,

1985).

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Only a small number of studies have demonstrated the impact of training interventions on

employee attitudes. Employee commitment should be increased because of training (Lang,

1992). Human resource management techniques essentially relate to dedication. As a result

of these human resource management techniques, employees received promotions, training

opportunities, and job stability (Gaertner and Nollen, 1989).

The discussion that came before it was centered on the advantages of and impacts of

employee training on worker outcomes in a time of high turnover. People who switch

employment usually make more money than those who do not, claim Cheramie et al. (2007).

Because employees learn for their personal development rather than the organization's profit

at the expense of the organization, employers are discouraged from raining employees.

2.3 JOB SATISFACTION AND EMPLOYEE COMMITMENT

According to Locke (1976), an employee's opinion of how well his employment delivers the

items or experiences perceived as job-related determines how satisfied they are with their

jobs.

It has been discovered that there is a high and positive correlation between employee

commitment and desired outcomes (such as performance, job satisfaction, and adaptability)

(Angle & Perry 1981; Hunt, Chonko & Wood 1985; Mowday, Porter, & Dublin 1974).

Employees that are happy and devoted are more engaged to their work, have lower attrition,

have higher performance, arrive at work on time, and act in accordance with the

organization's policies, according to Aamodt (2007). According to empirical research (Kotze

and Roodt, 2005), there is a significant correlation between job satisfaction, employee

commitment, and retention.

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Employee commitment is impacted by a number of variables, such as the type of work, job

liability, job variety, desirability of the work, quality of social relationships, job independence,

opportunities for employee development, and the organization's rewards and compensation

systems (Riggio, 2009).

2.4 REWARD SYSTEM AND EMPLOYEE COMMITMENT

According to Barber and Bretz (2000), a reward system is a tool that can seize, keep, and

inspire high-potential workers, leading to high levels of performance. There are many

different types of people and their traits depicted in the literature on employee performance.

Innovation is affected by an employee's prior experience, personality, and other aspects like

age, education, and prior experience in research and development (Scott and Bruce, 1994).

(1991 Roberts and 1992 Rothwell). Research and development expenditures (Hadijimanolis,

2000), partnerships with outside technology providers, the influence of leaders (Hage and

Dewar, 1973), and reward structures (Eisenberger and Cameron, 1996; Janssen, 2000;

Mumford, 2000) are all organizational antecedents that affect employee innovation.

Employees can be encouraged by a properly managed rewards program, but they cannot be

encouraged by a poorly managed program. Employee motivation is increased by both

intrinsic and extrinsic benefits, claim Reio & Callahon (2004). Other rewards, such social

recognition, foster trust and zeal for attaining an organization's objectives (Burke, 2002).

Employee loyalty to the organization increases when they feel their supervisor is supportive

(Adeyemo & Aremu, 1999). Employees grow to trust their managers and take their cues

from them when they encourage them and behave in accordance with their desires and

feelings (Burke, 2002). Based on these arguments, the following hypothesis has been

developed.

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2.5 EMPLOYEE COMMITMENT

Employee commitment is essential since it has a favorable impact on many organizational

outcomes. It shows how devoted staff members are to the mission of the company and how

much they identify with it. Biljana Dordevic (2004) asserts that employee commitment is

crucial since it may be used to forecast employee performance, absenteeism, and other

behaviors. Employee commitment, which encompasses job commitment, career

commitment, and organizational commitment, is a subset of organizational commitment,

according to Rajendran Muthurveloo and Raduan Che Rose (2005). Having a higher level of

organizational commitment can increase productivity.

An enormous quantity of study has been conducted to clarify the ideas and ascertain how

organizational commitment affects worker performance. Aamir Ali Chughtai and Sohail Zafar

(2006) examined the relationship between organizational commitment and the intents to

leave a job and work performance. The 2005 study by Raduan Che Rose and Rajendran

Muthuveloo found that organizational commitment leads to successful organizational

outcomes. According to Komal Khalid Bhatti and Samina Nawab (2011), the greatest

influence on strong employee dedication and productivity is job satisfaction.

In their 1989 study, Meyer, Paunonen, Gellatly, Goffin, and Jackson looked at the evidence

supporting a link between organizational commitment and job performance. Low levels of

commitment have also been linked to low levels of morale (DeCottis & Summers, 1987).

Non-committed workers may portray the company negatively to outsiders, making it more

difficult for the company to hire top talent (Mowday, Porter, & Steers, 1982). They may also

show less altruism and compliance (Schappe, 1998).

Some studies examine the connection between commitment and numerous elements. The

degree of commitment has been demonstrated to be inversely associated to the employee's

9
level of education (Mathieu & Zajac, 1990) and positively connected to personal traits

including age, duration of service in a particular business (Luthans, McCaul, & Dodd, 1985),

and marital status. (1988, Glisson & Durick). Additionally, it has been discovered that

commitment is linked to certain work experiences, including job security (Yousef, 1998),

promotion opportunities (Gaertner & Nollen, 1989), training and mentoring opportunities

(Scandura, 1997), and supportive and considerate leadership (Dunham, Grube, &

Castaneda, 1994), feedback (Hutichison & Garstka, 1996), and job challenge (Meyer, Irving,

& Allen, 1998).

2.6 THEORETICAL FRAMEWORK

Independent Variables Dependent Variable

The Effectiveness of Training

(Chiaburu and Tekleab, 2005)

Job Satisfaction
Employee Commitment
(Locke, 1976)

Reward System

(Barber and Bretz, 2000)

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2.7 HYPOTHESES DEVELOPMENT

H1 : There is a significant relationship between the effectiveness of training and

employee commitment.

H2 : There is a significant relationship between job satisfaction and employee

commitment.

H3 : There is a significant relationship between the rewards system and employee

commitment.

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 CHAPTER 3

RESEARCH METHODOLOGY

3.1 INTRODUCTION

In this chapter, the study's methodology is explained. It includes details on the demographic,

sample size, sampling procedures, data collection, and data processing methods used in the

study.

3.2 RESEARCH DESIGN

This study aims to test hypotheses and be descriptive. To ascertain the type of link between

the independent and dependent variables, hypothesis testing is used. The two disciplines of

inquiry are intimately connected. This is so that it can be determined how the dependent

variable of employee commitment is affected by the independent variables of training

efficacy, work satisfaction, and reward schemes. In this study, which involved staff members

at Pejabat Setiausaha Kerajaan Negeri Pulau Pinang in George Town, individuals were the

unit of analysis. In this cross-sectional study, information is gathered once from a single

sample only.

3.3 STUDY VARIABLES

Three independent variables and one dependent variable make up this study. Employee

commitment was the dependent variable, whereas training efficacy, work satisfaction, and

the rewards system were the independent variables. These three factors were used to look

at the relationship between them.

12
3.4 MEASUREMENT

The questionnaires were used to collect data from employees at Pejabat Setiausaha

Kerajaan Negeri Pulau Pinang, George Town, Penang. The questionnaire used 5-point

Likert Scale which range from 5 = Strongly Agree, 4 = Agree, 3 = Neutral, 2 = Disagree, 1 =

Strongly Disagree.

Table 3.1 Measurement of Variables

No. Variables Items Source

1. The 1. My organization provides me with the Cheramie

Effectiveness opportunity to improve my skills. et al;
of Training (2007)
2. My organization frequently arranges training
programs for the employees.

3. During the training program, I came across

a lot of new ideas which are useful to me.

4. I am satisfied with the training and

development provided by the organization.

5. The training program was relevant to my

present job.

2. Job 1. Overall, I am satisfied with my work. Linder;

Satisfaction (1998)
2. My current work situation is not a major
source of frustration in my life.

3. My work in this practice has met my

expectations.

4. If I had to do it all over again, I would still

choose to work where I do now.

5. My job has more advantages than

disadvantages.

3. Rewards 1. I am satisfied with the incentives provided Janssen;

System by the organization to the employees. (2000)
2. The reward management system will
influence employee performance.

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 3. Financial incentives motivate me more than
non-financial incentives.

4. The salary increments given to employees

who do their jobs very well motivate them.

5. Employees are recognized and rewarded

appropriately in this organization.

4. Employee 1. I am happy with my work. Linder;

Commitment (1998)
2. I enjoy working in this organization.

3. I recommend this organization to my family

and friends.

4. I understand how I contribute to the

organization’s goal.

5. In general, I like my job.

Table 3.1 provides a description of how the variables utilized in this study were measured.

The Likert scale was used to evaluate the questions for independent and dependent

variables. Table 3.1 provides a description of how the variables utilized in this study were

measured. The Likert scale was used to evaluate the questions for independent and

dependent variables. The criteria for measuring training efficacy were derived from

Cheramie et al. (2007), while the criteria for measuring work satisfaction and employee

commitment were taken from Linder and Janssen, respectively, in 1998 and 1998.

3.5 POPULATION

100 staff members of the Pejabat Setiausaha Kerajaan Negeri Pulau Pinang, situated in

George Town, Penang, served as the study's subjects. Since they are best suited to

comment about employee commitment in the Malaysian public sector, they were selected as

the study's sample.

14
3.6 SAMPLE SIZE

Due to the modest number of respondents in this study, 100 employees who work at Pejabat

Setiausaha Kerajaan Negeri Pulau Pinang in George Town, Penang, were chosen as the

sample size.

3.7 SAMPLING TECHNIQUES

A census sampling technique had been used in this study because the sample size was

small and cannot represent the entire population’s view. All 100 respondents were chosen to

be samples in this study.

3.8 DATA COLLECTION

The main data for this study was collected via a self-administered online questionnaire. The

questionnaire was to be filled out by the respondents in their free time and returned to the

researcher.

3.9 DATA ANALYSIS TECHNIQUES

To code and analyze the data, IBM SPSS Statistics Version 20.0 was used. In this study, a

number of data analysis methods were employed, including:-

3.9.1 Frequency Analysis

Utilizing frequency analysis, the characteristics of the respondents who completed

the questionnaires for this study were described. It was accomplished by calculating

the percentage count of responses with varied variable values.

15
3.9.2 Descriptive statistics

The phrase "descriptive analysis" describes a statistical breakdown of the study's

variables. It includes information like maximum, minimum, mean, and standard

deviation that may be evaluated using SPSS. The fundamental analyses utilized in

descriptive analysis are the lowest, maximum, mean, and standard deviation of all

variables. The standard deviation is used to quantify the degree of variability in the

distribution of a variable, with minimum responses indicated at the bottom, mean

responses in the middle, and maximum responses at the top. Additionally, this

research might shed light on respondents' perceptions of each of the variables.

3.9.3 Reliability analysis

Reliability analysis was used to evaluate the questionnaire's items' consistency and

stability. It also enabled us to investigate the characteristics of research tools and

measurement scales. Using Likert Scale surveys, the Cronbach's Alpha reliability

coefficient for dependent and independent variables was determined. Cronbach's

Alpha further shows how strongly the elements in the set are positively connected.

Reliability acceptance is determined by the alpha value of the Cronbach's coefficient.

The dependability coefficient should be as near to 1.0 as possible. Reliabilities below

0.6 are regarded as poor, those between 0.70 and 0.80 as acceptable, and those

over 0.80 as good.

3.9.4 Pearson Correlation Analysis

Determine whether independent variables are correlated using the Pearson

Correlation analysis. To put it another way, a relationship between at least two

continuous variables was found using Pearson's correlation. Here is a scale that can

be used to interpret how independent and dependent variables relate to one another.

16
 Table 3.2 Pearson Correlation Value

Scale Relationship

0.80 and above Very strong relationship

0.50 – 0.70 Strong relationship

0.30 – 0.49 Moderate relationship

0.10 – 0.29 Low relationship

0.01 – 0.09 Very low relationship

3.9.5 Multiple Regression Analysis

To ascertain the link between all the independent factors and the dependent variable,

multiple regression analysis was developed. In this study, the link between the

dependent variable of employee commitment and the independent variables of

training efficacy, work satisfaction, and reward system was investigated using this

technique. Additionally, this analysis aims to determine whether the hypotheses are

supported or not.

17
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