Factors affecting on the job behavior at sparton corporation

RESEARCH PROJECT FACTORS AFFECTING ON THE JOB BEHAVIOR AT SPARTON CORPORATION STUDENT’S FULL NAME : NGUYEN THANH NAM STUDENT ID : CGS00019386 INTAKE : MARCH, 2015 ADVISOR’S NAME & TITLE : DR BUI PHI HUNG FEB, 2017 ACKNOWLEDGEMENTS On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards all the personages who have helped me in this endeavor Without their active guidance, help, cooperation & encouragement, I would not have made headway in the project I am extremely thankful and pay my gratitude to my faculty Dr Bui Phi Hung for his valuable guidance and support on completetion of this project in its presently I also acknowledge with a deep sense of reverence, my gratitude towards my family, who has always supported me morally as well as economically At last but no least gratitude goes to all of my friends who directly or directly helped me to complete this project report Any omission in this brief acknowledgement does not mean lack of gratitude Thank You NGUYEN THANH NAM Advisor’s Assessment - Advisor’s signature DR BUI PHI HUNG TABLE OF CONTENT ACKNOWLEDGEMENTS LIST OF FIGURES LIST OF TABLE EXECUTIVE SUMMARY CHAPTER I: INTRODUCTION 1.1 General 1.2 Medical Segment 1.3 Complex Systems Segment 1.4 DSS Segment 1.5 Risks and Uncertainties 1.6 Sparton Vietnam 1.7 Research Introduction: 1.8 Goal of the Research 1.9 Objective of the Research 1.10 Limitations of the Research 1.11 Research Questions CHAPTER II: LITTERATURE REVIEW 2.1 Organization Commitment 2.2 Work Control 12 2.3 Goad and Process Clarity 15 2.4 Fairness Perceptions of an Organization Policy 16 2.5 On the Job Behaviors 20 CHAPTER III: RESEARCH MODEL AND HYPOTHESES 22 3.1 Research Model 22 3.2 Hypotheses 23 3.2.1 Organizational Commitment 23 3.2.2 Work Control 26 3.3.3 Goal and Process Clarify 29 3.3.4 Fairness Perceptions on an Organization Policy 32 3.3.5 On the Job Behaviors 36 3.3 Research Methodology 39 3.3.1 Introduction 39 3.3.2 Research design 39 3.3.3 Sampling 39 3.3.4 Data collection method 40 3.3.5 Data collection instrument 41 3.3.6 Analysis of data 41 CHAPTER IV: ANALYSIS AND RESULT 43 4.1 Demographic Characteristics of the respondents 43 4.2 Reliability Analysis 44 4.3 Descriptive Statistic 45 4.4 Correlation of all variables statistics 46 4.5 Hypotheses Testing 48 CHAPTER V: CONCLUSION 50 5.1 Summary and Discussion 50 5.2 Management Implications 51 5.3 Limitations and Recommendation for Further Research: 53 REFERENCES 55 APPENDIX 59 LIST OF FIGURES Figure 1: Financial highlights of Sparton Corporation Figure 2: Hypothesized Research Model 22 Figure 3: Correlation of all independent variables with dependent variable 47 LIST OF TABLE Table 1: Summary of Cronbach’s Alpha of the variables 44 Table 2: Descriptive Statistics 45 Table 3: Summary of Correlations of all variables 47 Table 4: Model Summary of all hypotheses 48 Table 5: Coefficients of all hypotheses 48 EXECUTIVE SUMMARY The success of an organization is widely believed to stem from individuals’ contributions and its fellows are precious assets of an institution This is especially true for Sparton Corporation Sparton Corporation is currently facing challenges is in recently some employees have intention to leave Sparton Corporation after being a long time in service Accordingly, identifying the factors affecting the levels of organization commitment to attract employee’s cooperation and contributions in the long time is critical Being able to tackle this mission will bring about a desirable success for Sparton Corporation in the Human Resource Management The theoretical framework of this study will be tested by collecting data from 300 Sparton Corporation employees in the Office and Production floor They are provided their ideas in the trial and official surveying processes The reliability analysis, descriptive analysis, and hypothesis testing were employed to analyze the data The purpose of the study is to explore factors affecting to the organizational commitment of employees in Sparton Corporation through a questionnaire Following the analysis process, factors collected are Organizational Commitment, Work Control, Goal and Process Clarity, Fairness Perceptions on an Organization Policy and On The Job Behaviors The interpretation of collected data will be followed by the researcher’s strategic recommendations related to organizational commitment In spite of unavoidable limitations, the research outcomes are expected to be a possible constructive source for Sparton Corporation to refer in planning and developing the strategies to enhance the organizational commitment of the employees Key words: On The Job Behaviors, Organizational Commitment, Work Control, Goal and Process Clarity and Fairness Perceptions on an Organization Policy CHAPTER I: INTRODUCTION 1.1 General Sparton Corporation and subsidiaries (the “Company” or “Sparton”) has been in continuous existence since 1900 It was last reorganized in 1919 as an Ohio corporation The Company is a provider of design, development, and manufacturing services for complex electromechanical devices, as well as sophisticated engineered products complementary to the same electromechanical value stream The Company serves the Medical & Biotechnology, Military & Aerospace and Industrial & Commercial markets through three reportable business segments; Medical Device (“Medical”), Complex Systems (“CS”) and Defense & Security Systems (“DSS All of the Company’s facilities are certified to one or more of the ISO/AS standards, including ISO 9001, AS9100 or ISO 13485, with most having additional certifications based on the needs of the customers they serve The Company’s products and services include offerings for Original Equipment Manufacturers (“OEM”) and Emerging Technology (“ET”) customers that utilize microprocessorbased systems which include transducers, printed circuit boards and assemblies, senso9rs, and electromechanical components, as well as development and design engineering services relating to these product sales Sparton also develops and manufactures sonobuoys, anti-submarine warfare (“ASW”) devices used by the United States Navy and other free-world countries Many of the physical and technical attributes in the production of sonobuoys are similar to those required in the production of the Company’s other electrical and electromechanical products and assemblies The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company’s resources on a segment basis Net sales are attributed to the segment in which the product is manufactured or service is performed A segment’s performance is evaluated based upon its operating income (loss) Page A segment’s operating income (loss) includes its gross profit on sales less its selling and administrative expenses, including allocations of certain corporate operating expenses Certain corporate operating expenses are allocated to segment results based on the nature of the service provided Other corporate operating expenses, including certain administrative, financial and human resource activities as well as items such as interest expense, interest income, other income (expense) and income tax expense (benefit), are not allocated to operations and are excluded from segment profit These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments Inter-segment transactions are generally accounted for at amounts that approximate arm’s length transactions Identifiable assets by segments are those assets that are used in each segment’s operations The accounting policies for each of the segments are the same as for the Company taken as a whole Financial Highlights: Figure 1: Financial highlights of Sparton Corporation (source: Sparton annual report) Page up more policies to encourage, motivate and fairly treat the employees to work for the development of company 5.2 Management Implications As above analysis results, we can conclude that Organization Commitment, Work Control, Goal and Process Clarity and Fairness Perception of an Organization Policy had taken significant influence to On the Job Behaviors of Sparton employees Therefore, the following recommendations will focus on deployment the solutions of developing the relationship among the four constructs and On the Job Behaviors Firstly, the findings showed that most of employees of Sparton feel happy with current Organization Commitment and Work Control, the BOD need to make their organizations appeal to employees Employees with positive feelings about the company they work for will show organizational commitment, which leads to higher motivation and productivity Manager can instill organizational commitment in employees by creating a desirable corporate culture, stimulating employees and rewarding both quality performance and company loyalty Besides that, BOD observes the activities of other companies with higher levels of organizational commitment Study businesses within the same industry to understand how they keep employees committed to their current employer Determine which commitment methods may be appropriate for them business Encourage employee innovation Many employees enjoy working in a cutting-edge environment that encourages creative ideas and personal innovations Employees who feel that they are contributors to the company’s strategic direction may feel greater ownership of their work, which often leads to enhanced commitment Take steps to retain employees Let them know their work is appreciated Institute company loyalty programs Visibly honor and promote employees who work hard and demonstrate commitment to the organization Institute tenure timetables rewarding the commitment of long-standing employees Use the Sparton’s history to install a desirable corporate culture Sparton Page 51 have a long history full of uplifting stories contributing to the company culture and encouraging continued loyalty Tell these stories during employee orientation to instill commitment in new employees Create a rich employment environment Host employee events such as picnics and holiday parties Make the company a fun place to work Secondly, Goal and Process Clarity, many organizations will inevitably be confronted with more age-diverse teams Based on the finding in this present study, we suggest that organizations and managers pay more attention to teamwork design More specifically, the mediating role of goal clarity calls for attention of managerial interventions on goal setting, such as outlining and clarifying team goals, and on team role design, such as connecting individual responsibilities to the team goals Finally but not all, Fairness Perception of an Organization Policy, this research showed that the Sparton has a fair and professional working environment because all employees are satisfied with the fairness at work There are numerous steps an organization can take to increase levels of employee engagement and fairness in the workplace A few examples are listed below; however the list is far from exhaustive The most important aspect to note is that as the levels of reported involvement employees have throughout the employment life cycle increases (or in other words, the number of touch-points affected), the higher the reported levels of employee engagement and fairness For example, five procedural components, (thereby reinforcing the notion of procedural justice), specific to job evaluation were identified by Greenburg (2002) that can be easily incorporated by the organization.1) Soliciting for and using input from others prior to evaluation, 2) Using two-way communication during the information gathering process, 3) Allowing the employee to have the ability to challenge/rebut the evaluation, 4) Rater familiarity with the ratees’ work and 5) Consistent application of standards across the organization (Beugré, 1998) Simply using rater diaries for performance evaluation decisions greatly enhances the ratees’ perceived level of fairness The diary also helps to ensure that Page 52 information used for the evaluation is not simply the most recent – which is often what is most easily recalled and used by the rater Additionally, any element of selfappraisal by the employee is likely to increase the perceived level of fairness of the evaluation (Beugré, 1998) In terms of compensation and benefits, allowing employees to participate in the setting of their own wages may seem somewhat outlandish, but it can be an effective way to promote an employees’ belief in the fairness of those wages As pay systems reflect the distribution of outcomes and distributive justice; organizations should ensure full-disclosure of the employee pay plan or at the very least, limit the level of secrecy The ability to offer “cafeteria-style” benefits can not only assist the organization in reducing its overall costs, but the employee is then able to be involved in the decision-making process and is able to better understand the costs to both him/herself and the organization Organizations will undoubtedly find it quite difficult to incorporate employee involvement in all aspects of its internal and external operations Therefore, at the very least, they should incorporate and leverage effective communication and frequent feedback throughout all touch-points of the employment life cycle– from start to finish Both essential elements greatly contribute to both employee engagement and fairness in the workplace 5.3 Limitations and Recommendation for Further Research: Firstly, the time is limited; most of Sparton have to concentrate on their daily work Answer the survey is not their high priority They will use free time on break to fulfill this survey so the survey does had to spend a lot of time for explaining in the survey Secondly, it is limited of field, Sparton operate on electronic field so other bias factors may have implied an imprecision in the data collected, which is probably inapplicable at other field Finally, only 284 survey feedback count about 47% of Sparton employees This may take a little impact on the integrity of the output of the research Page 53 For further research, it is recommended that should expanded to other field to obtain a more expository comparison Page 54 REFERENCES a Adams JS (1965) Inequality in social exchange In: L Berkowitz (Ed.) 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Justice issues in the affirmative action debate Am Behav Scientist 41(2):232-245 aa Parker, D F., & DeCotiis, T A (1983) Organizational determinants of job stress Organiza- tional Behavior and Human Performance, 32, 160 – 177 bb Perry, J.L., Debra, M., & Paarl berg, L (2006) Motivating Employees in a New Governance Era: The Performance Paradigm Revisited Public Administration Review 66(4) cc Raffety, B D., Smith, R E., & Ptacek, J T (1997) Facilitating and debilitating trait anxiety, situational anxiety, and coping with an anticipated stressor: A process analysis Journal of Personality and Social Psychology, 72, 892–906 Page 57 dd Roch SG, Shanock LR (2006), Organisational justice in an exchange framework: Clarifying organizational justice distinctions J Manage 32(2):299322 ee Schriesheim, C., & Tsui, A N.(1980), “Development and Validation of a Short Satisfaction Instrument for Use in Survey Feedback Interventions,” Paper represented at the Western Academy of Management Meeting ff Skarlicki, D P., Folger, R., & Tesluck, P (1997) Personality as a moderator in the relationship between fairness and retaliation Academy of Management Journal, 42, 100-108 http://dx.doi.org/10.2307/256877 gg Smith, C S., & Brannick, M T (1990) A role and expectancy model of participative decision making: A replication and theoretical extension Journal of Organizational Behavior, 11, 91-104 hh Sparton website: http://www.sparton.com ii Statt, D (2004) The Routledge Dictionary of Business Management, Third edition, Routledge Publishing,Detroit, p 78 jj Stecher MD, Rosse JG (2005) The distributive side of interactional justice: The effects of interpersonal treatment on emotional arousal J Manage Issues 17 (2): 229-246 kk Tang, T L., & Baldwin, L J S (1996) Distributive and procedural justice as related to satisfaction and commitment SAM Advanced Management Journal, 61, 25-31 ll Thibaut JW, Walker L (1975) Procedural justice: A psychological perspective Hillsdale, NJ: Erlbaum mm Van Dyne L, LePine JA (1998) “Helping and voice extra-role behaviours: Evidenc of construct and predictive validity” Acad Manage J 41(1): 108-119 nn Williamson K, William KJ (2011) Organisational justice, trust and perceptions of fairness in the implementation of agenda for change Raadlography 17: 61-66 Page 58 APPENDIX SURVEY QUESTIONNAIR Dear Sir/Madam, I am Nguyen Thanh Nam, a student of Open University Malaysia Business Research assignment is a most importance part in Master Business Administration Collaboration Program The purpose of this research is to help Board of Management to improve company’s situation of high employee turnover rate Thank you for talking your time to participate in this employee survey All of your answer will be kept confidential and will be used for the study purpose only Please answer the following questions by circling the number in the table below indicating the level of agreement to the questions Please don’t hesitate to contact me if you have any question regarding to this research Nguyen Thanh Nam Email: namnt3@bidv.com.vn I’m really thankful to your cooperation Strongly Disagree Strongly Agree Page 59 No Questions I'm quite proud to be able to tell people who it is that I work for 5 5 I sometimes feel like leaving this employment for good (R) I'm not willing to put myself out just to help the organization (R) Even if the firm were not doing too well financially, I would be reluctant 5 to to another I change feel myself to employer be part of the 5 5 5 5 In my work I like to feel I am making some effort, not just for myself, but for the organization as well The offer of a bit more money with another employer would not seriously make me think of changing my job I would not recommend a close friend to our staff ® To know that my own work had made a contribution to the good of the organization would please me How much control you have over 10 variety of methods you use in completing you work? How much can you choose among 11 variety of tasks or projects to do? How much control you have 12 personally over the quality of your [Type text] Page 60 How much can you generally predict 13 the amount of work you will have to 5 5 5 5 5 on any given day? How much control you personally 14 have over how much work you get done How much control you have 15 over how quickly or slowly you have to work? How much control you have over 16 scheduling and duration of your rest breaks How much control you have over 17 when you come to work or lease How much control you have over 18 when you take vacation or days off? How much are you able to predict 19 what the results of decisions you make on the job will be? How much are you able to decorate, 20 rearrange, or personalize your work area? How much can you control the 21 physical condition of your work station (lighting, temperature)? How much control you have 22 over how you your work? [Type text] Page 61 How much can you control when and 23 how much you have to interact with others at work? 5 5 5 5 5 How much influence you have over 24 the policies and procedures in your work unit? How much control you have over 25 the sources of information you need to your job? How much are things that affect you at 26 work predictable, even if you can't directly control them? How much control you have 27 over the amount of resources (tools, material) that you get? How much can you control the 28 number of times you are interrupted while you work? How much control you have 29 over how much you earn at your job? How much control you have 30 over how your work is evaluated? In general, how much overall control 31 32 you have over work and workrelated matters? My duties and responsibilities 33 The goals and objectives for my job [Type text] Page 62 How my work relates to the 34 35 overall objectives of my work The expected results of my 5 5 5 5 5 work What aspects of my work will 36 lead to a positive evaluation? How to divide my time among the 37 38 tasks required of my job How to schedule my work day How 39 to determine the appropriate procedures for each work task The procedures I use to my 40 job are correct and proper Considering all your work tasks, how 41 certain are you that you know the best ways to these tasks Paying faculty members for having 42 babies is not fair to non-childbearing faculty members (R) Every parent deserves the right to paid 43 leave when a child is born It is everyone's, including non- parents, responsibility to provide for 44 children, and a parental leave policy helps to accomplish this task [Type text] Page 63 It 45 is not [the organization's] responsibility to provide paid time off 5 5 5 5 to new parents (R) Having a child is a strain on parents, 46 and they deserve the aid of parental leave Children are a necessary part of society and it is the responsibility of 47 large institutions like [organization] to help in the effort Those who choose not to have children should subsidize those who 48 choose to have children under a parental leave program In the past, employees have borne children without the benefit of special leave, and therefore it is not 49 fair to offer parental leave to new parents (R) Having a baby is a personal choice and provisions for that event should be 50 51 52 53 made by the family, rather than by the employer (R) Done more work than required Volunteered to work overtime Made attempts to change work conditions [Type text] Page 64 54 55 Negotiate with supervisors to improve job Tried to think of ways to the job 5 better Items denoted with (R) are reverse scored General information Gender Male Female Education High school Master College Ph.D Bachelor Other…… Your position Direct Employee Staff Manager Senior Manager Supervisor Your service time: Under years from to years From to 10 years over 10 years [Type text] Page 65 ... reflects the psychological bond that ties the employee to the organization but that the nature of the bond can take three forms, labeled compliance, identification, and internationalization (O’Reilly... production, Congressional legislation, uncertainties associated with the outcome of litigation, changes in the interpretation of environmental laws and the uncertainties of 28 environmental remediation... based on elements so that its answers to search the relationship between the job behavior and its element factors such as 1.11.1 How does the organization commitment influence on the job behavior?