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European Journal of Business and Management

www.iiste.org

ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.21, 2013

Determinants of Employee Satisfaction (ES) in Public Health
Service Organizations (PHSO) in Eastern Province of Sri Lanka:
A Pilot Study
Ismail, M. B. M., Ph. D. Research Scholar, Faculty of Graduate Studies, University of Jaffna, Sri Lanka,
mbmismail1974@gmail.com, 0094 77 69 444 77.
Prof.(Dr). Velnampy, T., Dean/ Faculty of Management Studies & Commerce, University of Jaffna, Sri Lanka,
tvnampy@yahoo.co.in, 0094 777 44 83 52
Abstract
Employee satisfaction in public health service organizations is meeting the expectations of employees with
respect to psychological, structural and environmental factors. Many authors have studied employee satisfaction
in different context in different organizations. This study tries to determine factors affecting employee
satisfaction in PHSOs; to know the reliability and validity of items & factors and to create a mathematical
equation model. Data are collected in both secondary and primary sources. Researcher collected 41 from
employee satisfaction in public health service organisations’ performance during the period of 2012 to 1996.
Primary data have been collected using questionnaire. Since this is a pilot study researcher selected only 100
hospital employees out of 3 selected government hospitals in Addalaichenai Divisional Secretariat of Ampara
District. Collected questionnaires have been analysed by a factor analysis and regression analysis. Results found
that environmental, psychological and structural factors have been factors have been identified as determinants
of employee satisfaction in public health service organizations. Values of Cronbach alpha for items in
environmental factor, psychological factor and structural factor are 0.961, 0.807 and 0.928. It shows the
existence of high reliability among items of these factors. KMO is used to know the statistical validity of factors.
In this study, values of KMO environmental factor, psychological factor and structural factor are 0.750, 0.598
and 0.698 respectively. Log log model is the best fitted model than linear models. In terms of this model,
environmental, psychological and structural factor explain around 93% of total variation for employee
satisfaction.
Keywords: Employee satisfaction, Public Health Service Organizations, Eastern Province, Sri Lanka.
1. Introduction
Eastern Province (EP) of Sri Lanka consists of three cardinal districts such as Ampara, Batticaloa and
Trincomalee. Public health service organisations (PHSO) are all sorts of government medical institutions (GMIs)
that are government hospitals (GHs). Heathfield (2012) defines employee satisfaction is one way to assess
whether employees are happy at work. Employee satisfaction is often measured by surveys. Employee
satisfaction is important to employers. He stated that factors contributing to employee satisfaction include
treating employees with respect, providing regular employee recognition, empowering employees, offering
above industry-average benefits and compensation, providing employee perks and company activities, and
positive management within a success framework of goals, measurements, and expectations. Job satisfaction
experienced by employees will include the people to give their best to the organization (Velnampy,
2008). Employee satisfaction is the satisfaction of hospital employees or health personnel (HP) or health staff
(HS). Hospital employees can be satisfied by way of environmental, psychological and social needs. The
population of Sri Lanka in 2003 was estimated at 19.25 million. The annual population growth rate was reduced
to its current 1.3% level with an increase in Life Expectancy at birth. Sri Lanka is aging rapidly (Department of
Census & Statistics, 2001). It is projected that by 2020, 20% of Sri Lanka’s population will be 60 years of age or
over, while the proportion in the young age group is decreasing. Hospital employees should be satisfied for
making performance of PHSOs in Sri Lanka. Sri Lanka’s progress in health and social development can be seen
in the vital health outcomes. The Infant Mortality Rate (IMR) has declined steadily since the beginning of the
last century (11.2 per 1,000 live births – 2003) while the Maternal Mortality Ratio (MMR) steadily declined until
1992 but remained stagnant thereafter (47 per 100,000 live births – 2001). However, there was significant district
variation in IMR and MMR. Batticaloa and Trincomalee of Eastern Province were among the top ten in maternal
deaths in Island. Batticaloa, Trincomalee and Ampara of Eastern Province had 116.1, 60.3 and 31.8 maternal
deaths per 100, 000 live births during the past (World Health Organization, 2006). In order to control these

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European Journal of Business and Management

www.iiste.org

ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.21, 2013

health and social conditions, performance of hospitals should be increased. When hospital staff are satisfied it is
possible to get high performance of government hospitals.
2. Statement of Problem
Research problem is stated by empirical review of literatures. Previous studies related to employee satisfaction
were reviewed. Choi, Flynn and Aiken (2012) studied about nursing practice environment and registered nurses’
job satisfaction in nursing homes. They concluded that a supportive practice environment is significantly
associated with higher job satisfaction among RNs working in nursing homes. Unlike other nursing home
characteristics, specific dimensions of the nursing practice environment should be modified through
administrative actions to enhance RN job satisfaction. Grissom, Nicholson-Crotty and Keiser (2012) studied
about whether boss's gender is important for explaining job satisfaction and employee turnover in the public
sector. They also found important effects of gender support which appear to be driven by lower satisfaction and
greater turnover among male teachers with female principals. Wickramasinghe and Wickramasinghe (2012)
studied the effects of perceived organisational support on participation in decision making (PDM), affective
commitment and job satisfaction in lean production in Sri Lanka. It was found that POS moderates the
relationship between PDM and affective commitment, and PDM and job satisfaction. Samaranayake and
Gamage (2012) studied about employee perception towards electronic monitoring at work place and its impact
on job satisfaction of software professionals in Sri Lanka. The findings of this research suggested that IT security
policy making in the software development organizations in Sri Lanka and in similar economics, with a special
emphasis on the job satisfaction of their employees, which is the most valuable asset of the organization. These
studies have been carried out in different contexts, in different countries and in different periods. Findings of
these studies are also different. Factors identified these studies also different. Therefore this study is undertaken
in the performance of public health service organization specially, in government hospitals in Eastern Province
of Sri Lanka during the period of 2011 to 2014.
2.1 Research questions and objectives
Empirical review of literatures of previous studies confirms that research issue exists on determinants of
employee satisfaction in public health service organization i.e. government hospitals. This main research issue is
cascaded into three sub research questions. They are; first is what factors influence employee satisfaction in
public health service organizations. Second is whether these items & factors are reliable and valid?. Third is it
possible to create a mathematical equation model. These three research questions are converted into research
objectives. They are; first is to determine factors affecting employee satisfaction in PHSOs. Second is to know
the reliability and validity of items & factors. Third is to create a mathematical equation model.
3. Significances of the research
This study signifies in various ways. First, Employee satisfaction is important to employees for organizations for
several reasons. First, employee satisfaction plays vital role in health organizations. Second, it creates employee
satisfaction and loyal customers. For instance, Costen and Salazar (2011) studied the impact of training and
development on employee job satisfaction, loyalty, and intent to stay in the lodging industry in the United States.
They concluded that opportunity for new skills is important to employees for satisfying them in their job.
Satisfaction leads to loyalty for organizations. Third, it provides job enrichment, employee satisfaction,
motivation, job involvement and increased performance. Fourth, it promotes job characteristics, satisfaction and
motivation. Fifth, employee satisfaction generates committed employees and reduced employee turnover. For
example, Previous studies of employee satisfaction are reviewed. Han and Jekel (2011) concluded that nurse
managers can try to cultivate a good relationship with the nurses for enhancing nurses’ job satisfaction and in
turn lower their turnover intentions. Employees are satisfied they are in turn contribute to the higher performance
of government hospitals. Government hospitals may in turn render better services to patients continuously. Sixth,
there are few articles in employee satisfaction specially in government hospitals in Sri Lanka. This research is in
the context of employee satisfaction in Government Medical Institutes in Eastern Province of Sri Lanka. Thus,
this research fills the literature gap.
4. Review of Literature
Previous studies of employee satisfaction are reviewed. Han and Jekel (2011) studied the mediating role of job
satisfaction between leader-member exchange and turnover intentions. This is a cross-sectional survey study.
Data were collected in a US hospital. Results showed that higher leader-member exchange was associated with
lower turnover intentions (β = −0.41, P < 0.001). Leader-member exchange was positively related to one’s job
satisfaction (β = 0.50, P < 0.001). Job satisfaction was negatively related to turnover intentions (β = −0.64, P <
0.001). When leader-member exchange and job satisfaction were both controlled for, the link between leadermember exchange and turnover intentions was no longer significant (β = −0.12, P > 0.05). It was concluded that
job satisfaction mediates the link between leader-member exchange and turnover intentions. Hann, Reeves and

63
European Journal of Business and Management

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ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.21, 2013

Sibbald (2011) studied the relationships between job satisfaction, intentions to leave family practice and actually
leaving among family physicians in England. A national survey of family physicians working in the national
health service (NHS) of England in 2001 revealed that 1/10 under 50 years of age were intending to leave direct
patient care within 5 years, and that the principal predictor of their intention to leave was job satisfaction. Results
revealed that of the 1174 family physicians studied, 194 (16.5%) had left direct patient care within 5 years.
Multivariate regression showed that job satisfaction predicted a physician’s intention to leave direct patient care
and that intention to leave predicted actually leaving. Logically, job satisfaction should then have predicted
actual leaving. However, their findings suggest that this is only partly true. It is concluded that although higher
levels of job ‘dissatisfaction’ were associated with an increased likelihood of leaving, higher levels of job
‘satisfaction’ did not prevent leaving. Wickramasinghe and Gamage (2011) studied about high-involvement
work practices, quality results, and the role of HR function. It was an exploratory study of manufacturing firms
in Sri Lanka. Correlation and regression were used for the data analysis. Findings showed that team work,
communication, performance evaluation, empowerment, rewards and recognition, and skill development
practices significantly positively correlate with quality results. Sledge, Miles, Maartje and Sambeek (2011)
studied about a comparison of employee job satisfaction in the service industry in the United States. This
research incorporates Hackman and Oldham’s Job Diagnostic Survey and Hofstede’s dimensions of culture in a
study of employees in the global services industry. The job diagnostic survey (JDS) is an instrument designed to
measure variables such as objective job characteristics, particularly the degree to which jobs are designed so that
they enhance work motivation and job satisfaction; personnel affective reactions of individuals to their jobs and
work setting; the readiness of individuals to respond positively to "enriched" jobs--jobs with high potential for
generating internal work motivation. Hofstede five dimensions are power distance, uncertainty avoidance,
masculinity vs. femininity, individualism vs. collectivism and long vs. short term orientation. Literature review
identified factors for performance of public health service organization. Factors for employee satisfaction in
public health service organizations environmental, psychological and structural factors. Velnampy(2006) in his
study revealed that incentives have a significant effect on employees’motivation.
5. Conceptual model
A conceptual model has been created by researcher using identified factors for hospital employee satisfaction.
This model can be justified by several reasons. This model is a result of detailed and thorough literature review.
Factors and measures have been taken from well- known, widely used and generally accepted models. Employee
satisfaction is based on content and process theories of motivation. This conceptual model is shown in figure 1.

Figure 1: Conceptual model for performance of public health service organisation

6. Operationalisation of study
Operationalisation for employee satisfaction in public health service organizations is shown in table 1.

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European Journal of Business and Management

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ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.21, 2013

Table 1: Operationalisation for employee satisfaction
Concept

Factors
Environmental
factors

Employee
satisfaction

Psychological factors
Structural factors

Measures
Early opportunity to job, work environment,
working environment, social environment and
participative environment
Positive attitude, negative attitude, assertiveness,
agreeableness and workload
Work autonomy, work stress, supervisory/ career
support, job
security,
realization
(selfactualisation),
pay,
promotional
chances,
distributive justice and flexi-time

Number
measures
05

of

05
09

(Source: Literature review)
7. Methodology
Data collection is made using secondary source and primary source. Secondary source was used for literature
review. Primary data have been collected using questionnaire.
7.1 Data collection
Data are collected in both secondary and primary sources. Literature review was carried out using secondary data
collection. Researcher collected 41 from employee satisfaction in public health service organisations’
performance. Secondary source of data collection was made to collect articles. Collected articles were from full
text journal articles (indexed & refereed), extended abstracts & abstracts (indexed & refereed), books (reviewed)
and Internet access. Corporate performance articles were from during the period of 2012 to 1996. Data have been
collected from primary source using questionnaire as an instrument. Questionnaire was prepared in English
language first. Then, it is translated into Tamil. Research translated questionnaire from English version to Tamil
version on his own with the assistance of the supervisor. Pilot study has been conducted to test the questionnaire
in selected government hospitals in Addalaichenai Divisional Secretariat, Ampara District, Eastern Province of
Sri Lanka.
7.2 Sampling units (SUs)
Primary sampling units (PSUs) are all government hospital units in all three Districts of Eastern Province. There
65 government hospitals in Eastern Province. Ampara, Batticaloa and Trincomalee districts consist of 29, 18 and
18 government hospitals respectively. Sample size has been determined using the sample size formula. Primary
sampling units (PSUs) are research sites i.e. government hospitals where research is carried out. Researcher
wished to know how many government hospitals have to be taken from these 65 government hospitals as
primary sampling units. He estimated mean number of government hospital units more precisely so that the
estimate will be within ± 2 government hospitals of mean number of true population of government hospitals.
The following formula is used to calculate sample size of government hospital units.
n = σ2 * z2 ………………………………………………………………………….formula (1)
2
D (Source: Malhorta, 2006). Where; σ2 = variance of the population number of hospitals. z2 = z value
associated with 95 % of the confidence level. Associated z value is 1.96. Of the 65 government hospitals, 39
government hospitals have to be taken as sample size for the study in Eastern Province. 17, 11 and 11
government hospitals have to be taken in Ampara district, Batticaloa district and Trincomalee district of Eastern
Province respectively. Pilot study should be undertaken with a limited sample size. Since this is a pilot study
researcher selected only 3 government hospitals in Addalaichenai Divisional Secretariat of Ampara District.
Secondary sampling units are government hospital staff/ health employees who are working in these 3
government hospitals. There are 31420 health personnel in all three districts of Eastern Province. Ampara
district, Batticaloa district and Trincomalee district consist of 19194, 7535 and 4691 hospital staff respectively.
Researcher wanted to estimate mean number of health personnel more precisely so that the estimate will be
within ± 275 health personnel of mean number of true population of hospital health personnel. The following
formula is used to calculate sample size of hospital health personnel.
n = σ2 * z2 …………………………………………………………………………formula (2)
Where: σ2 = variance of the population number of health personnel. z2 = z value associated
D2
with 95 % of the confidence level. Associated z value is 1.96. Of the 31420 health personnel, 3000 hospital
health personnel have to be taken as sample size of SSUs of government hospital employees for the study. 1832,
720 and 448 hospital employees have to be taken as sample size in Ampara district, Batticaloa district and
Trincomalee district of Eastern Province respectively. Pilot study should be undertaken with a limited sample

65
European Journal of Business and Management

www.iiste.org

ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.21, 2013

size. Since this is a pilot study researcher selected only 100 hospital employees out of 3 selected government
hospitals in Addalaichenai Divisional Secretariat of Ampara District.
7.3 Data source, period and analysis
Primary source of data collection have been made to collect questionnaires from hospital employees. A
questionnaire has been prepared using identified measures above. Questionnaire consists of two sections such as
personal & demographic variables of employees and employee satisfaction in PHSOs. Instrument- questionnaire
is scaled in 5 point likert- scale. Employee satisfaction in public health service organizations are scaled in
agreement scale ranging from 5 to 1. Collected questionnaires have been cross checked and used as input for
processing in SPSS. Data have been collected during the period of first quarter of 2013. Collected questionnaires
have been analysed by a factor analysis and regression analysis.
8. Results and discussion of findings
8.1 Reliability and validity
Cronbach alpha is most widely used method for checking the reliability of scale. It may be mentioned that its
value varies from 0 to 1 but, satisfactory value is required to be more than 0.6 for the scale to be reliable
(Malhorta, 2002; Cronbach, 1951). In this study, researcher use Cronbach alpha scale as a measure of reliability.
Environmental factor is comprised of opportunity to job, work environment, working environment, social
environment and participative environment. Cronbach alphas for these social and participative environments
were also high. But, these two were not taken into grant due to communality value of less than 0.6. Values of
Cronbach alpha for opportunity to job, work environment and working environment are 0.961. Psychological
factor is composed of positive attitude, negative attitude, assertiveness, agreeableness and workload. Cronbach
alpha for these 11 items is 0.807. Structural factor is composed of work autonomy, job stress, supervisory or
career support, job security, realization or self-actualisation, distributive justice, promotional chances, pay and
flexi-time. Cronbach alphas for Job stress and supervisory or career support were also high. But, these two were
not taken into grant due to communality value of less than 0.6. Cronbach alpha for these 7 items is 0.928.
Reliability statistics are shown in table 2.

Factors
Environment
Psychology

Table 2: Reliability statistics
Value of Cronbach's Alpha
N of items
0.807
5
.807

5

Learning and growth

N of items
3
5

7
.651
9
8.2 Communalities and testing the sufficiency of sample size
Researcher tested collected data for appropriateness for factor analysis. Appropriateness of factor analysis is
dependent upon the sample size. In this connection, MacCallum, Windaman, Zhang and Hong (1999) have
shown that the minimum sample size depends upon other aspects of the design of the study. According to
them, as communalities become lower the importance of sample size increases. They have advocated that if all
communalities are above 0.6 relatively small samples (less than 100) may be perfectly appropriate. In this
regard, communalities for opportunity to job (0.896), work environment (0.956) and working environment
(0.946) are more than 0.6. Since communalities for social and participative environments were less than 0.6
therefore, these two were not taken into grant. Communalities for positive attitude (.845), negative attitude
(.936), assertiveness (.946), agreeableness (.852) and workload (.912) are greater than o.6. Communalities for
work autonomy (.925), job security (.633), realisation or self-actualisation (.848), distributive justice (.862),
promotional chances (.945), pay (.845) and flexi-time (.959) are greater than o.6. Communalities are shown in
table 3.

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European Journal of Business and Management

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ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.21, 2013

Environmental
factor

Values of
Communality
(Extraction)

opportunity to job
work environment
working
environment

0.896
0.956

Table 3: Communalities
Psychological
Values of
factor
Communality
(Extraction)
Positive attitude
.845
Negative attitude
Assertiveness

0.946

.936
.946

Agreeableness

.852

Workload

.912

Structural
factor

Values of
Communality
(Extraction)

Work
autonomy
Job security
Realisation or
selfactualisation
Distributive
justice
Promotional
chances
Pay
Flexi-time

.925
.633
.848
.862
.945
.845
.959

Measure of Keyzer-Meyer-Oklin (KMO) is another method for to show the appropriateness of data for factor
analysis. KMO statistics varies between 0 and 1. Keyzer (1974) recommended that values greater than 0.5 are
acceptable; between 0.5 to 0.7 are moderate; between 0.7 to 0.8 are good; between 0.8 to 0.9 are superior (Field,
2000). Bartlet’s test of sphericity is the final statistical test applied in this study for verifying its appropriateness
(Bartlet, 1950). In this study, values of KMO for 3 items of environmental factor, 5 items of psychological
factors and 7 items of structural factor are 0.750, 0.598 and 0.698. These values indicate sample taken to process
factor analysis is statistically significant. In addition to KMO, Chi- square value for environmental factor,
psychological factors and structural factor is 375, 405 and 836 with significance value of 0.000. These values
confirm test is statistically significant when significance value is less than significance level. Significance value
is 0.000 at 5% level of significance. These values indicate that data are statistically significant for factor analysis.
Values of KMO and Bartlet test of Sphericity are shown in table 4.

Environmental
factor
Kaiser-MeyerOlkin
Measure of
Sampling
Adequacy.

Bartlett's Test
of Sphericity

.750

Approx.
ChiSquare
Df
Sig.

Table 4: KMO & Bartlett’s Test of Sphericity
Psychological
Structural
factor
factor
KaiserKaiserMeyer-Olkin
MeyerMeasure of
Olkin
.598
Sampling
Measure
Adequacy.
of
Sampling
Adequacy.
Bartlett's Test Approx.
Bartlett's
375.500 of Sphericity
Chi405.796 Test of
Square
Sphericity
3
Df
10
.000
Sig.
.000

.698

Approx.
ChiSquare
Df
Sig.

836.238
21
.000

8.3 Factor Analysis
After examining the reliability of the scale and test appropriateness of data as above, researcher carry out factor
analysis to know factors affecting corporate performance of Public Health Service Organisations in Eastern
Province of Sri Lanka and to select an appropriate regression model for Public Health Service Organisations in
Eastern Province of Sri Lanka. For achieving these objectives, researcher employs principal component analysis
(PCA) that is followed by the varimax rotation. Varimax rotation is mostly used in factor analysis (Hema and
Anura, 1993). From table, it can be seen that environmental factor has two components. These components are
extracted from the analysis with an eigen value greater than 1 (Tabachnick and Field, 1996). In this study, these
two components of environmental factor explain 98% of the total variation. Two components of psychological
factor explain 89%. Two components of structural factor explain 85%. Variation is shown in table 5.

67
European Journal of Business and Management

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ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.21, 2013

Environmental factor
% of
Compo
Tot Varia Cumula
nent
al
nce
tive %
2.7 93.24
93.243
1
97
3
2
.15
5.135
98.378
4
(Source: Survey data)

Table 5: total variation
Psychological factor
% of
Compo
Tot Varia Cumula
nent
al
nce
tive %
1
2.8 57.69
57.690
84
0
2
1.6 32.13
89.825
07
5

Structural factor
% of
Compo
Tot Varia Cumula
nent
al
nce
tive %
1
4.1 59.45
59.457
62
7
2
1.8 26.50
85.964
55
7

8.4 Model selection
Gujarati, Porter and Gunasker (2012) stated that Variation Inflation Factor (VIF) should be less than 10 and
Durbin Watson (DW) should be between (dL ≤ d ≥ du) i.e. 1.020 to 1.920 for a model selection. In this study,
Log Log model has less than 10 for VIF and 2.28 for DW. Thereby, researcher selects this model as the best
fitted model for his study. Results are shown in table 6.

Models

EMPLOYEE SATISFACTION
LOG = 2.01 + 0.0337
ENVIRONMENTAL FACTOR
- 0.00058 PSYCHOLOGICAL
FACTOR + 0.0654
STRUCTURAL FACTOR
EMPLOYEE SATISFACTION
= - 0.0448 - 0.00654
ENVIRONMENTAL FACTOR
- 0.0192
LOG
PSYCHOLOGICAL FACTOR
LOG + 0.0172 STRUCTURAL
FACTOR LOG
EMPLOYEE SATISFACTION
LOG = - 0.00036 + 0.0784
ENVIRONMENTAL FACTOR
LOG + 0.294 PSYCHOLOGICAL
FACTOR LOG + 0.482
STRUCTURAL FACTOR LOG
(Source: Survey data)

Table 6: Selection of model
Type of
R2%
F
P
the
statistics
model
Log
96.6%
902.89
0.000
Linear

Values
of VIF

DW

6.584,
4.088
&
11.392

0.246174

Linear
Log
model

100%

86869.46

0.000

6.943,
3.660
&
11.141

0.337085

Log
Log
model

92.8%

412.98

0.000

1.060,
1.233
&
1.215

2.28215

Selected
model

√

9. Conclusions
First objective is to determine factors affecting employee satisfaction in PHSOs. Environmental, psychological
and structural factors have been factors have been identified as determinants of employee satisfaction in public
health service organizations. Second objective is to know the reliability and validity of items & factors. In this
study, researcher use Cronbach alpha scale as a measure of reliability. Environmental factor is comprised of
opportunity to job, work environment, working environment, social environment and participative environment.
Values of Cronbach alpha for opportunity to job, work environment and working environment are 0.961.
Cronbach alphas for these social and participative environments were also high. But, these two were not taken
into grant due to communality value of less than 0.6. Psychological factor is composed of positive attitude,
negative attitude, assertiveness, agreeableness and workload. Cronbach alpha for these 11 items is 0.807.
Structural factor is composed of work autonomy, job stress, supervisory or career support, job security,
realization or self-actualisation, distributive justice, promotional chances, pay and flexi-time. Cronbach alphas
for Job stress and supervisory or career support were also high. But, these two were not taken into grant due to

68
European Journal of Business and Management

www.iiste.org

ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.21, 2013

communality value of less than 0.6. Cronbach alpha for these 7 items is 0.928. KMO is used to know the
statistical validity of factors. In this study, values of KMO for 3 items of environmental factor, 5 items of
psychological factors and 7 items of structural factor are 0.750, 0.598 and 0.698. These values indicate sample
taken to process factor analysis is statistically significant. Content validity and convergent validity are higher.
Discriminant validity are lower statistically. Third objective is to know the best fitted model. Log log model is
the best fitted model than linear models. In terms of this model, environmental, psychological and structural
factor explain around 93% of total variation for employee satisfaction.
10. Limitations and avenues for future research
This research is based a pilot study that depended on small number of sample size. This study could be expanded
to a larger sample size that covers Eastern Province.
11. Value addition
This study fills the literature gap. In Sri Lanka, previous studies related to corporate performance in both health
service organizations and in non- health service organizations are poor. Limited number of researches are found
in Public Health Service Organisations in foreign and Sri Lanka. This literature gap motivated researcher to
research PHSOs in Sri Lanka. A conceptual model has been created using identified factors for public health
service organization.
12. Acknowledgement
I acknowledge to Prof. Thirunavukkarasu Velnampy, Dean/ Faculty of Management Studies & Commerce,
University of Jaffna, Sri Lanka for the first instance for his valuable supervision and guidance during my study.
Many of the Senior Academics of from Department of Management, Faculty of Management and Commerce,
South Eastern University of Sri Lanka not only encouraged me to pursue Ph. D. but also to write and publish
research articles in Management field. I thank them all. South Eastern University of Sri Lanka funded me
partially for reading my Ph. D. This is both self- funded and partially institutionally funded Ph. D. This research
study is part of my Ph. D. I acknowledge that the article is my original contribution and has not been plagiarized/
copied from any source/ individual. I have properly cited and referred all citations and references in my research
paper. Further, I have been duly acknowledged at the appropriate places to the best of my knowledge.
13. References
•

Bartlet, M. S. (1950), “Test of significance in factor analysis”, British Journal of statistical psychology, Vol.
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•
•
•

•
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Choi, J., Linda Flynn and Linda H. Aiken (2012), “Nursing Practice Environment and Registered Nurses’
Job Satisfaction in Nursing Homes”, The Gerontologist 52 (4): 484-492.
Costen, W. M. & John Salazar (2011), “The Impact of Training and Development on Employee Job
Satisfaction, Loyalty, and Intent to Stay in the Lodging Industry”, Journal of Human Resources in
Hospitality & Tourism, Volume 10, Issue 3, pages 273-284.
Cronbach, L. J. (1951), “Coefficient Alpha and the Internet Structure of the Tests, Psychometrika”, Vol. 6
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Department of Census & Statistics (2001), “Population characteristics: Census of population and housing”,
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Determinants of employee satisfaction (es) in public health service organizations (phso) in eastern province of sri lanka a pilot study

  • 1. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.21, 2013 Determinants of Employee Satisfaction (ES) in Public Health Service Organizations (PHSO) in Eastern Province of Sri Lanka: A Pilot Study Ismail, M. B. M., Ph. D. Research Scholar, Faculty of Graduate Studies, University of Jaffna, Sri Lanka, mbmismail1974@gmail.com, 0094 77 69 444 77. Prof.(Dr). Velnampy, T., Dean/ Faculty of Management Studies & Commerce, University of Jaffna, Sri Lanka, tvnampy@yahoo.co.in, 0094 777 44 83 52 Abstract Employee satisfaction in public health service organizations is meeting the expectations of employees with respect to psychological, structural and environmental factors. Many authors have studied employee satisfaction in different context in different organizations. This study tries to determine factors affecting employee satisfaction in PHSOs; to know the reliability and validity of items & factors and to create a mathematical equation model. Data are collected in both secondary and primary sources. Researcher collected 41 from employee satisfaction in public health service organisations’ performance during the period of 2012 to 1996. Primary data have been collected using questionnaire. Since this is a pilot study researcher selected only 100 hospital employees out of 3 selected government hospitals in Addalaichenai Divisional Secretariat of Ampara District. Collected questionnaires have been analysed by a factor analysis and regression analysis. Results found that environmental, psychological and structural factors have been factors have been identified as determinants of employee satisfaction in public health service organizations. Values of Cronbach alpha for items in environmental factor, psychological factor and structural factor are 0.961, 0.807 and 0.928. It shows the existence of high reliability among items of these factors. KMO is used to know the statistical validity of factors. In this study, values of KMO environmental factor, psychological factor and structural factor are 0.750, 0.598 and 0.698 respectively. Log log model is the best fitted model than linear models. In terms of this model, environmental, psychological and structural factor explain around 93% of total variation for employee satisfaction. Keywords: Employee satisfaction, Public Health Service Organizations, Eastern Province, Sri Lanka. 1. Introduction Eastern Province (EP) of Sri Lanka consists of three cardinal districts such as Ampara, Batticaloa and Trincomalee. Public health service organisations (PHSO) are all sorts of government medical institutions (GMIs) that are government hospitals (GHs). Heathfield (2012) defines employee satisfaction is one way to assess whether employees are happy at work. Employee satisfaction is often measured by surveys. Employee satisfaction is important to employers. He stated that factors contributing to employee satisfaction include treating employees with respect, providing regular employee recognition, empowering employees, offering above industry-average benefits and compensation, providing employee perks and company activities, and positive management within a success framework of goals, measurements, and expectations. Job satisfaction experienced by employees will include the people to give their best to the organization (Velnampy, 2008). Employee satisfaction is the satisfaction of hospital employees or health personnel (HP) or health staff (HS). Hospital employees can be satisfied by way of environmental, psychological and social needs. The population of Sri Lanka in 2003 was estimated at 19.25 million. The annual population growth rate was reduced to its current 1.3% level with an increase in Life Expectancy at birth. Sri Lanka is aging rapidly (Department of Census & Statistics, 2001). It is projected that by 2020, 20% of Sri Lanka’s population will be 60 years of age or over, while the proportion in the young age group is decreasing. Hospital employees should be satisfied for making performance of PHSOs in Sri Lanka. Sri Lanka’s progress in health and social development can be seen in the vital health outcomes. The Infant Mortality Rate (IMR) has declined steadily since the beginning of the last century (11.2 per 1,000 live births – 2003) while the Maternal Mortality Ratio (MMR) steadily declined until 1992 but remained stagnant thereafter (47 per 100,000 live births – 2001). However, there was significant district variation in IMR and MMR. Batticaloa and Trincomalee of Eastern Province were among the top ten in maternal deaths in Island. Batticaloa, Trincomalee and Ampara of Eastern Province had 116.1, 60.3 and 31.8 maternal deaths per 100, 000 live births during the past (World Health Organization, 2006). In order to control these 62
  • 2. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.21, 2013 health and social conditions, performance of hospitals should be increased. When hospital staff are satisfied it is possible to get high performance of government hospitals. 2. Statement of Problem Research problem is stated by empirical review of literatures. Previous studies related to employee satisfaction were reviewed. Choi, Flynn and Aiken (2012) studied about nursing practice environment and registered nurses’ job satisfaction in nursing homes. They concluded that a supportive practice environment is significantly associated with higher job satisfaction among RNs working in nursing homes. Unlike other nursing home characteristics, specific dimensions of the nursing practice environment should be modified through administrative actions to enhance RN job satisfaction. Grissom, Nicholson-Crotty and Keiser (2012) studied about whether boss's gender is important for explaining job satisfaction and employee turnover in the public sector. They also found important effects of gender support which appear to be driven by lower satisfaction and greater turnover among male teachers with female principals. Wickramasinghe and Wickramasinghe (2012) studied the effects of perceived organisational support on participation in decision making (PDM), affective commitment and job satisfaction in lean production in Sri Lanka. It was found that POS moderates the relationship between PDM and affective commitment, and PDM and job satisfaction. Samaranayake and Gamage (2012) studied about employee perception towards electronic monitoring at work place and its impact on job satisfaction of software professionals in Sri Lanka. The findings of this research suggested that IT security policy making in the software development organizations in Sri Lanka and in similar economics, with a special emphasis on the job satisfaction of their employees, which is the most valuable asset of the organization. These studies have been carried out in different contexts, in different countries and in different periods. Findings of these studies are also different. Factors identified these studies also different. Therefore this study is undertaken in the performance of public health service organization specially, in government hospitals in Eastern Province of Sri Lanka during the period of 2011 to 2014. 2.1 Research questions and objectives Empirical review of literatures of previous studies confirms that research issue exists on determinants of employee satisfaction in public health service organization i.e. government hospitals. This main research issue is cascaded into three sub research questions. They are; first is what factors influence employee satisfaction in public health service organizations. Second is whether these items & factors are reliable and valid?. Third is it possible to create a mathematical equation model. These three research questions are converted into research objectives. They are; first is to determine factors affecting employee satisfaction in PHSOs. Second is to know the reliability and validity of items & factors. Third is to create a mathematical equation model. 3. Significances of the research This study signifies in various ways. First, Employee satisfaction is important to employees for organizations for several reasons. First, employee satisfaction plays vital role in health organizations. Second, it creates employee satisfaction and loyal customers. For instance, Costen and Salazar (2011) studied the impact of training and development on employee job satisfaction, loyalty, and intent to stay in the lodging industry in the United States. They concluded that opportunity for new skills is important to employees for satisfying them in their job. Satisfaction leads to loyalty for organizations. Third, it provides job enrichment, employee satisfaction, motivation, job involvement and increased performance. Fourth, it promotes job characteristics, satisfaction and motivation. Fifth, employee satisfaction generates committed employees and reduced employee turnover. For example, Previous studies of employee satisfaction are reviewed. Han and Jekel (2011) concluded that nurse managers can try to cultivate a good relationship with the nurses for enhancing nurses’ job satisfaction and in turn lower their turnover intentions. Employees are satisfied they are in turn contribute to the higher performance of government hospitals. Government hospitals may in turn render better services to patients continuously. Sixth, there are few articles in employee satisfaction specially in government hospitals in Sri Lanka. This research is in the context of employee satisfaction in Government Medical Institutes in Eastern Province of Sri Lanka. Thus, this research fills the literature gap. 4. Review of Literature Previous studies of employee satisfaction are reviewed. Han and Jekel (2011) studied the mediating role of job satisfaction between leader-member exchange and turnover intentions. This is a cross-sectional survey study. Data were collected in a US hospital. Results showed that higher leader-member exchange was associated with lower turnover intentions (β = −0.41, P < 0.001). Leader-member exchange was positively related to one’s job satisfaction (β = 0.50, P < 0.001). Job satisfaction was negatively related to turnover intentions (β = −0.64, P < 0.001). When leader-member exchange and job satisfaction were both controlled for, the link between leadermember exchange and turnover intentions was no longer significant (β = −0.12, P > 0.05). It was concluded that job satisfaction mediates the link between leader-member exchange and turnover intentions. Hann, Reeves and 63
  • 3. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.21, 2013 Sibbald (2011) studied the relationships between job satisfaction, intentions to leave family practice and actually leaving among family physicians in England. A national survey of family physicians working in the national health service (NHS) of England in 2001 revealed that 1/10 under 50 years of age were intending to leave direct patient care within 5 years, and that the principal predictor of their intention to leave was job satisfaction. Results revealed that of the 1174 family physicians studied, 194 (16.5%) had left direct patient care within 5 years. Multivariate regression showed that job satisfaction predicted a physician’s intention to leave direct patient care and that intention to leave predicted actually leaving. Logically, job satisfaction should then have predicted actual leaving. However, their findings suggest that this is only partly true. It is concluded that although higher levels of job ‘dissatisfaction’ were associated with an increased likelihood of leaving, higher levels of job ‘satisfaction’ did not prevent leaving. Wickramasinghe and Gamage (2011) studied about high-involvement work practices, quality results, and the role of HR function. It was an exploratory study of manufacturing firms in Sri Lanka. Correlation and regression were used for the data analysis. Findings showed that team work, communication, performance evaluation, empowerment, rewards and recognition, and skill development practices significantly positively correlate with quality results. Sledge, Miles, Maartje and Sambeek (2011) studied about a comparison of employee job satisfaction in the service industry in the United States. This research incorporates Hackman and Oldham’s Job Diagnostic Survey and Hofstede’s dimensions of culture in a study of employees in the global services industry. The job diagnostic survey (JDS) is an instrument designed to measure variables such as objective job characteristics, particularly the degree to which jobs are designed so that they enhance work motivation and job satisfaction; personnel affective reactions of individuals to their jobs and work setting; the readiness of individuals to respond positively to "enriched" jobs--jobs with high potential for generating internal work motivation. Hofstede five dimensions are power distance, uncertainty avoidance, masculinity vs. femininity, individualism vs. collectivism and long vs. short term orientation. Literature review identified factors for performance of public health service organization. Factors for employee satisfaction in public health service organizations environmental, psychological and structural factors. Velnampy(2006) in his study revealed that incentives have a significant effect on employees’motivation. 5. Conceptual model A conceptual model has been created by researcher using identified factors for hospital employee satisfaction. This model can be justified by several reasons. This model is a result of detailed and thorough literature review. Factors and measures have been taken from well- known, widely used and generally accepted models. Employee satisfaction is based on content and process theories of motivation. This conceptual model is shown in figure 1. Figure 1: Conceptual model for performance of public health service organisation 6. Operationalisation of study Operationalisation for employee satisfaction in public health service organizations is shown in table 1. 64
  • 4. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.21, 2013 Table 1: Operationalisation for employee satisfaction Concept Factors Environmental factors Employee satisfaction Psychological factors Structural factors Measures Early opportunity to job, work environment, working environment, social environment and participative environment Positive attitude, negative attitude, assertiveness, agreeableness and workload Work autonomy, work stress, supervisory/ career support, job security, realization (selfactualisation), pay, promotional chances, distributive justice and flexi-time Number measures 05 of 05 09 (Source: Literature review) 7. Methodology Data collection is made using secondary source and primary source. Secondary source was used for literature review. Primary data have been collected using questionnaire. 7.1 Data collection Data are collected in both secondary and primary sources. Literature review was carried out using secondary data collection. Researcher collected 41 from employee satisfaction in public health service organisations’ performance. Secondary source of data collection was made to collect articles. Collected articles were from full text journal articles (indexed & refereed), extended abstracts & abstracts (indexed & refereed), books (reviewed) and Internet access. Corporate performance articles were from during the period of 2012 to 1996. Data have been collected from primary source using questionnaire as an instrument. Questionnaire was prepared in English language first. Then, it is translated into Tamil. Research translated questionnaire from English version to Tamil version on his own with the assistance of the supervisor. Pilot study has been conducted to test the questionnaire in selected government hospitals in Addalaichenai Divisional Secretariat, Ampara District, Eastern Province of Sri Lanka. 7.2 Sampling units (SUs) Primary sampling units (PSUs) are all government hospital units in all three Districts of Eastern Province. There 65 government hospitals in Eastern Province. Ampara, Batticaloa and Trincomalee districts consist of 29, 18 and 18 government hospitals respectively. Sample size has been determined using the sample size formula. Primary sampling units (PSUs) are research sites i.e. government hospitals where research is carried out. Researcher wished to know how many government hospitals have to be taken from these 65 government hospitals as primary sampling units. He estimated mean number of government hospital units more precisely so that the estimate will be within ± 2 government hospitals of mean number of true population of government hospitals. The following formula is used to calculate sample size of government hospital units. n = σ2 * z2 ………………………………………………………………………….formula (1) 2 D (Source: Malhorta, 2006). Where; σ2 = variance of the population number of hospitals. z2 = z value associated with 95 % of the confidence level. Associated z value is 1.96. Of the 65 government hospitals, 39 government hospitals have to be taken as sample size for the study in Eastern Province. 17, 11 and 11 government hospitals have to be taken in Ampara district, Batticaloa district and Trincomalee district of Eastern Province respectively. Pilot study should be undertaken with a limited sample size. Since this is a pilot study researcher selected only 3 government hospitals in Addalaichenai Divisional Secretariat of Ampara District. Secondary sampling units are government hospital staff/ health employees who are working in these 3 government hospitals. There are 31420 health personnel in all three districts of Eastern Province. Ampara district, Batticaloa district and Trincomalee district consist of 19194, 7535 and 4691 hospital staff respectively. Researcher wanted to estimate mean number of health personnel more precisely so that the estimate will be within ± 275 health personnel of mean number of true population of hospital health personnel. The following formula is used to calculate sample size of hospital health personnel. n = σ2 * z2 …………………………………………………………………………formula (2) Where: σ2 = variance of the population number of health personnel. z2 = z value associated D2 with 95 % of the confidence level. Associated z value is 1.96. Of the 31420 health personnel, 3000 hospital health personnel have to be taken as sample size of SSUs of government hospital employees for the study. 1832, 720 and 448 hospital employees have to be taken as sample size in Ampara district, Batticaloa district and Trincomalee district of Eastern Province respectively. Pilot study should be undertaken with a limited sample 65
  • 5. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.21, 2013 size. Since this is a pilot study researcher selected only 100 hospital employees out of 3 selected government hospitals in Addalaichenai Divisional Secretariat of Ampara District. 7.3 Data source, period and analysis Primary source of data collection have been made to collect questionnaires from hospital employees. A questionnaire has been prepared using identified measures above. Questionnaire consists of two sections such as personal & demographic variables of employees and employee satisfaction in PHSOs. Instrument- questionnaire is scaled in 5 point likert- scale. Employee satisfaction in public health service organizations are scaled in agreement scale ranging from 5 to 1. Collected questionnaires have been cross checked and used as input for processing in SPSS. Data have been collected during the period of first quarter of 2013. Collected questionnaires have been analysed by a factor analysis and regression analysis. 8. Results and discussion of findings 8.1 Reliability and validity Cronbach alpha is most widely used method for checking the reliability of scale. It may be mentioned that its value varies from 0 to 1 but, satisfactory value is required to be more than 0.6 for the scale to be reliable (Malhorta, 2002; Cronbach, 1951). In this study, researcher use Cronbach alpha scale as a measure of reliability. Environmental factor is comprised of opportunity to job, work environment, working environment, social environment and participative environment. Cronbach alphas for these social and participative environments were also high. But, these two were not taken into grant due to communality value of less than 0.6. Values of Cronbach alpha for opportunity to job, work environment and working environment are 0.961. Psychological factor is composed of positive attitude, negative attitude, assertiveness, agreeableness and workload. Cronbach alpha for these 11 items is 0.807. Structural factor is composed of work autonomy, job stress, supervisory or career support, job security, realization or self-actualisation, distributive justice, promotional chances, pay and flexi-time. Cronbach alphas for Job stress and supervisory or career support were also high. But, these two were not taken into grant due to communality value of less than 0.6. Cronbach alpha for these 7 items is 0.928. Reliability statistics are shown in table 2. Factors Environment Psychology Table 2: Reliability statistics Value of Cronbach's Alpha N of items 0.807 5 .807 5 Learning and growth N of items 3 5 7 .651 9 8.2 Communalities and testing the sufficiency of sample size Researcher tested collected data for appropriateness for factor analysis. Appropriateness of factor analysis is dependent upon the sample size. In this connection, MacCallum, Windaman, Zhang and Hong (1999) have shown that the minimum sample size depends upon other aspects of the design of the study. According to them, as communalities become lower the importance of sample size increases. They have advocated that if all communalities are above 0.6 relatively small samples (less than 100) may be perfectly appropriate. In this regard, communalities for opportunity to job (0.896), work environment (0.956) and working environment (0.946) are more than 0.6. Since communalities for social and participative environments were less than 0.6 therefore, these two were not taken into grant. Communalities for positive attitude (.845), negative attitude (.936), assertiveness (.946), agreeableness (.852) and workload (.912) are greater than o.6. Communalities for work autonomy (.925), job security (.633), realisation or self-actualisation (.848), distributive justice (.862), promotional chances (.945), pay (.845) and flexi-time (.959) are greater than o.6. Communalities are shown in table 3. 66
  • 6. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.21, 2013 Environmental factor Values of Communality (Extraction) opportunity to job work environment working environment 0.896 0.956 Table 3: Communalities Psychological Values of factor Communality (Extraction) Positive attitude .845 Negative attitude Assertiveness 0.946 .936 .946 Agreeableness .852 Workload .912 Structural factor Values of Communality (Extraction) Work autonomy Job security Realisation or selfactualisation Distributive justice Promotional chances Pay Flexi-time .925 .633 .848 .862 .945 .845 .959 Measure of Keyzer-Meyer-Oklin (KMO) is another method for to show the appropriateness of data for factor analysis. KMO statistics varies between 0 and 1. Keyzer (1974) recommended that values greater than 0.5 are acceptable; between 0.5 to 0.7 are moderate; between 0.7 to 0.8 are good; between 0.8 to 0.9 are superior (Field, 2000). Bartlet’s test of sphericity is the final statistical test applied in this study for verifying its appropriateness (Bartlet, 1950). In this study, values of KMO for 3 items of environmental factor, 5 items of psychological factors and 7 items of structural factor are 0.750, 0.598 and 0.698. These values indicate sample taken to process factor analysis is statistically significant. In addition to KMO, Chi- square value for environmental factor, psychological factors and structural factor is 375, 405 and 836 with significance value of 0.000. These values confirm test is statistically significant when significance value is less than significance level. Significance value is 0.000 at 5% level of significance. These values indicate that data are statistically significant for factor analysis. Values of KMO and Bartlet test of Sphericity are shown in table 4. Environmental factor Kaiser-MeyerOlkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity .750 Approx. ChiSquare Df Sig. Table 4: KMO & Bartlett’s Test of Sphericity Psychological Structural factor factor KaiserKaiserMeyer-Olkin MeyerMeasure of Olkin .598 Sampling Measure Adequacy. of Sampling Adequacy. Bartlett's Test Approx. Bartlett's 375.500 of Sphericity Chi405.796 Test of Square Sphericity 3 Df 10 .000 Sig. .000 .698 Approx. ChiSquare Df Sig. 836.238 21 .000 8.3 Factor Analysis After examining the reliability of the scale and test appropriateness of data as above, researcher carry out factor analysis to know factors affecting corporate performance of Public Health Service Organisations in Eastern Province of Sri Lanka and to select an appropriate regression model for Public Health Service Organisations in Eastern Province of Sri Lanka. For achieving these objectives, researcher employs principal component analysis (PCA) that is followed by the varimax rotation. Varimax rotation is mostly used in factor analysis (Hema and Anura, 1993). From table, it can be seen that environmental factor has two components. These components are extracted from the analysis with an eigen value greater than 1 (Tabachnick and Field, 1996). In this study, these two components of environmental factor explain 98% of the total variation. Two components of psychological factor explain 89%. Two components of structural factor explain 85%. Variation is shown in table 5. 67
  • 7. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.21, 2013 Environmental factor % of Compo Tot Varia Cumula nent al nce tive % 2.7 93.24 93.243 1 97 3 2 .15 5.135 98.378 4 (Source: Survey data) Table 5: total variation Psychological factor % of Compo Tot Varia Cumula nent al nce tive % 1 2.8 57.69 57.690 84 0 2 1.6 32.13 89.825 07 5 Structural factor % of Compo Tot Varia Cumula nent al nce tive % 1 4.1 59.45 59.457 62 7 2 1.8 26.50 85.964 55 7 8.4 Model selection Gujarati, Porter and Gunasker (2012) stated that Variation Inflation Factor (VIF) should be less than 10 and Durbin Watson (DW) should be between (dL ≤ d ≥ du) i.e. 1.020 to 1.920 for a model selection. In this study, Log Log model has less than 10 for VIF and 2.28 for DW. Thereby, researcher selects this model as the best fitted model for his study. Results are shown in table 6. Models EMPLOYEE SATISFACTION LOG = 2.01 + 0.0337 ENVIRONMENTAL FACTOR - 0.00058 PSYCHOLOGICAL FACTOR + 0.0654 STRUCTURAL FACTOR EMPLOYEE SATISFACTION = - 0.0448 - 0.00654 ENVIRONMENTAL FACTOR - 0.0192 LOG PSYCHOLOGICAL FACTOR LOG + 0.0172 STRUCTURAL FACTOR LOG EMPLOYEE SATISFACTION LOG = - 0.00036 + 0.0784 ENVIRONMENTAL FACTOR LOG + 0.294 PSYCHOLOGICAL FACTOR LOG + 0.482 STRUCTURAL FACTOR LOG (Source: Survey data) Table 6: Selection of model Type of R2% F P the statistics model Log 96.6% 902.89 0.000 Linear Values of VIF DW 6.584, 4.088 & 11.392 0.246174 Linear Log model 100% 86869.46 0.000 6.943, 3.660 & 11.141 0.337085 Log Log model 92.8% 412.98 0.000 1.060, 1.233 & 1.215 2.28215 Selected model √ 9. Conclusions First objective is to determine factors affecting employee satisfaction in PHSOs. Environmental, psychological and structural factors have been factors have been identified as determinants of employee satisfaction in public health service organizations. Second objective is to know the reliability and validity of items & factors. In this study, researcher use Cronbach alpha scale as a measure of reliability. Environmental factor is comprised of opportunity to job, work environment, working environment, social environment and participative environment. Values of Cronbach alpha for opportunity to job, work environment and working environment are 0.961. Cronbach alphas for these social and participative environments were also high. But, these two were not taken into grant due to communality value of less than 0.6. Psychological factor is composed of positive attitude, negative attitude, assertiveness, agreeableness and workload. Cronbach alpha for these 11 items is 0.807. Structural factor is composed of work autonomy, job stress, supervisory or career support, job security, realization or self-actualisation, distributive justice, promotional chances, pay and flexi-time. Cronbach alphas for Job stress and supervisory or career support were also high. But, these two were not taken into grant due to 68
  • 8. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.21, 2013 communality value of less than 0.6. Cronbach alpha for these 7 items is 0.928. KMO is used to know the statistical validity of factors. In this study, values of KMO for 3 items of environmental factor, 5 items of psychological factors and 7 items of structural factor are 0.750, 0.598 and 0.698. These values indicate sample taken to process factor analysis is statistically significant. Content validity and convergent validity are higher. Discriminant validity are lower statistically. Third objective is to know the best fitted model. Log log model is the best fitted model than linear models. In terms of this model, environmental, psychological and structural factor explain around 93% of total variation for employee satisfaction. 10. Limitations and avenues for future research This research is based a pilot study that depended on small number of sample size. This study could be expanded to a larger sample size that covers Eastern Province. 11. Value addition This study fills the literature gap. In Sri Lanka, previous studies related to corporate performance in both health service organizations and in non- health service organizations are poor. Limited number of researches are found in Public Health Service Organisations in foreign and Sri Lanka. This literature gap motivated researcher to research PHSOs in Sri Lanka. A conceptual model has been created using identified factors for public health service organization. 12. Acknowledgement I acknowledge to Prof. Thirunavukkarasu Velnampy, Dean/ Faculty of Management Studies & Commerce, University of Jaffna, Sri Lanka for the first instance for his valuable supervision and guidance during my study. Many of the Senior Academics of from Department of Management, Faculty of Management and Commerce, South Eastern University of Sri Lanka not only encouraged me to pursue Ph. D. but also to write and publish research articles in Management field. I thank them all. South Eastern University of Sri Lanka funded me partially for reading my Ph. D. This is both self- funded and partially institutionally funded Ph. D. This research study is part of my Ph. D. I acknowledge that the article is my original contribution and has not been plagiarized/ copied from any source/ individual. I have properly cited and referred all citations and references in my research paper. Further, I have been duly acknowledged at the appropriate places to the best of my knowledge. 13. References • Bartlet, M. S. (1950), “Test of significance in factor analysis”, British Journal of statistical psychology, Vol. 3, pp. 77 - 85 • • • • • • • • • Cattell, R. B. (1966), “The Scree Test For The Number Of Factors”, Multivariate Behavioral Research, Vol.1, Iss.2, pp. 245-276 Choi, J., Linda Flynn and Linda H. Aiken (2012), “Nursing Practice Environment and Registered Nurses’ Job Satisfaction in Nursing Homes”, The Gerontologist 52 (4): 484-492. Costen, W. M. & John Salazar (2011), “The Impact of Training and Development on Employee Job Satisfaction, Loyalty, and Intent to Stay in the Lodging Industry”, Journal of Human Resources in Hospitality & Tourism, Volume 10, Issue 3, pages 273-284. Cronbach, L. J. (1951), “Coefficient Alpha and the Internet Structure of the Tests, Psychometrika”, Vol. 6 No. 3, pp. 297 – 334. Department of Census & Statistics (2001), “Population characteristics: Census of population and housing”, : Department of Census & Statistics, Sri Lanka. Field, A. (2000), “Discovering statistics using SPSS for windows”, London, Sage Publication Grissom, J. A., Jill Nicholson-Crotty and Lael Keiser (2012), “Does My Boss's Gender Matter? Explaining Job Satisfaction and Employee Turnover in the Public Sector”, Journal of Public Administration Resource Theory (4): 649-673. Gujarati, D. N., Porter, D. C. and Gunasker, S. (2012), Basic Econometrics, 5th edition, Tata McGraw Hill Education Private Limited, New Delhi. Han, G. and Mark Jekel (2011), “The mediating role of job satisfaction between leader-member exchange and turnover intentions”, Journal of Nursing Management, Volume 19, Issue 1, pages 41–49. 69
  • 9. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5, No.21, 2013 • • • • • • • • • Hann, M., David Reeves and Bonnie Sibbald (2011), “Relationships between job satisfaction, intentions to leave family practice and actually leaving among family physicians in England”, European Journal of Public Health (2011) 21 (4): 499-503. Heathfield, S. M. (2012), “employee satisfaction- defnition”, Human resource guide, Accessed from http://www.humanresources.about.com, Accessed 05. 09. 2012. Hema, W. and Anura, D. Z. (1993), “A factor analytical study of the determinants of success in Manufacturing SMEs”, School of Accounting and Finance, University of Wollongong, Australia. Retrieved August, 28. 2008. Accessed from: http://www.app.lese.edu.au. Ismail.M.B.M, and Velnampy.T.(2013), Determinants of Corporate Performance (CP) in Public Health Service Organizations (PHSO) in Eastern Province of Sri Lanka: A Use of Balanced Score Card (BSC), Industrial Engineering Letters,Vol.3, No.8,p.1-9. Kaizer, H. F. (1974), “An Index of factorial simplicity”, Psychometrica, Vol. 39, pp. 31 – 36 MacCallum, R. C., Windaman, K. F., Zhang, S. and Hong, S. (1999), “Sample size factor analysis”, Psychological Methods, Vol. 4 pp. 84 - 99 Malhorta, N. K. (2002), “Marketing Research: An Applied Orientation”, 3rd edition, New Delhi, India, Pearson Education Asia. Malhorta, N. K. (2006), “Marketing Research; An Applied Orientation”, 5th edition, Prentice Hall of India (Pvt.) limited, New Delhi, India. Samaranayake, V. and Chandana Gamage (2012), “Employee perception towards electronic monitoring at work place and its impact on job satisfaction of software professionals in Sri Lanka”, Telematics and • Informatics, Volume 29, Issue 2, May 2012, Pages 233–244. Sledge, S., Angela K. Miles, Maartje F. van Sambeek, (2011) "A Comparison of Employee Job Satisfaction in the Service Industry: Do Cultural and Spirituality Influences Matter?" Journal of Management Policy and Practice, Vol. 12, Iss. 4, pp. 126 – 145 • Tabachnick, B. G. and Field, L. S. (1996), “Using multivariate statistics”, New York, Hcorper Collins. • Velnampy.T.(2008), Job attitude and employees performance of public sector organizations in Jaffna district, Sri Lanka,GITAM Journal of Management,Vol.6,issue,2,pp 66-73. • • • • Velnampy.(2006), A study on incentives and work motivation of public sector organizations in Sri Lanka,Journal of annamalai Business review. Wickramasinghe, V. and Anuradha Gamage, (2011) "High-involvement work practices, quality results, and the role of HR function: An exploratory study of manufacturing firms in Sri Lanka", The TQM Journal, Vol. 23 Iss: 5, pp.516 – 530 Wickramasinghe, D. and Wickramasinghe, V. (2012) "Effects of perceived organisational support on participation in decision making, affective commitment and job satisfaction in lean production in Sri Lanka", Journal of Manufacturing Technology Management, Vol. 23 Iss: 2, pp.157 – 177 World Health Organization (2006), WHO country Cooperation Strategy 2006 - 2011, Democratic Socialist Republic of Sri Lanka, pp. 06, 06 – 07, 12. 70
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