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The Moderating Effect of HRM Perceptions and Job Design on the Impact of
Perceived Over-qualification on Job Satisfaction and Turnover Intentions
Farah Arnaoot
Olivia Conforti
Ashley Mayhew
University of Toronto
Table of Contents
Table of Contents.................................................................................................................................. 2
Introduction .......................................................................................................................................... 4
Significance of Over-qualification in the 21st Century ..........................................................5
Purpose of this Study.......................................................................................................................... 6
Definitions of Key Variables.............................................................................................................7
Literature Review ............................................................................................................................. 10
Perceived Over-qualification.................................................................................................................. 10
The Relationship Between Perceived Over-qualification and Job Satisfaction and Turnover
Intentions...................................................................................................................................................... 11
The Moderating Effects of Motivating Potential of Jobs and Human Resource Management
on the Relationship Between Over-qualification and Job Satisfaction and Turnover
Intentions...................................................................................................................................................... 13
Human Resource Management Practices as a Moderating Variable .........................................14
Job Design as a Moderating Variable (MPS).......................................................................................15
Method................................................................................................................................................... 17
Measures............................................................................................................................................... 18
Results................................................................................................................................................... 20
Descriptive Statistics and Preliminary Analyses..............................................................................20
Hypothesis Testing..................................................................................................................................... 21
Discussion............................................................................................................................................ 27
Conclusion ........................................................................................................................................... 29
2
ABSTRACT
The present study examines the moderating role of Human Resource Management
(HRM) practices and job design on the relationship between perceived over-qualification
and job satisfaction and turnover intentions. The survey results used to test the
hypotheses were collected from an organization in the United Kingdom (n=806). The
results indicated that perceived over-qualification was negatively related to job
satisfaction and positively related to turnover intentions. The results also showed that
perceptions of HRM practices and job design moderated the impact of perceived over-
qualification on both job satisfaction and turnover intentions. The theoretical and
practical implications of the findings are discussed.
3
Introduction
Previous studies have established that employees who are able to fully utilize
their skills and abilities at work experience a sense of accomplishment, pride, work
engagement and wellbeing (e.g., Hakanen, Bakker & Demerouti, 2005; Humphrys &
O’Brien, 1986; Warr, 1987). However, salient factors in today’s economic and social
environment, including recessionary economic conditions and the rising number of
graduates from post-secondary institutions, have produced a situation in which
approximately one-quarter of employees are over-qualified for their jobs (Quintini,
2011).
Over-qualification refers to a situation in which an “individual has surplus skills,
knowledge, education, experience, and other qualifications that are not required by or
utilized on the job” (Erdogan, Bauer, Peiro, & Truxillo, 2011, p. 217). A wide body of
research suggests that over-qualification leads to negative job attitudes (Johnson,
Morrow & Johnson, 2002; Battu, Belfield, & Sloane 2000; Verhaest & Omey, 2006);
worse health outcomes (Johnson & Johnson, 1997); higher turnover intentions
(Maynard, Joseph, & Maynard, 2006); low self-esteem (Prause & Dooley, 1997); and
depression (Dooley, Prause, & Ham-Rowbottom, 2000). These consequences can
result in high costs for organizations. It is therefore important to understand the factors
that may alleviate the negative consequences of over-qualification on employees.
Although over-qualification has been shown to lead to a number of negative
outcomes, it has been recognized that these effects can be reduced or even reversed if
over-qualified employees are adequately managed (Luksyte & Spitzmueller, 2011).
4
Researchers have built on this idea to propose that when excess human capital is
appropriately managed and utilized, it can correspond to positive outcomes. Two
potential ways of doing this are by improving HRM Practices and increasing the
complexity of job designs.
This study will examine whether perceptions of HRM practices and job design,
measured by the motivating potential of jobs, moderate the relationship between
perceived over-qualification and job satisfaction as well as turnover intentions. The
moderators being examined are relevant to consider today, given that many
organizations have spent a considerable amount of money moving towards more
sophisticated HRM practices and more complicated job designs in hope of improving
the work experience of employees. Moreover, there has been a major focus on the
positive effects of HRM practices and motivational job designs, suggesting that they
could be potential solutions for the negative effects of over-qualification. Examining the
moderating effect of HRM practices and job design will indicate to organizations
whether these two factors can alleviate the negative effect of over-qualification on job
satisfaction and turnover intentions.
Significance of Over-qualification in the 21st
Century
Approximately one-quarter of the workforce has educational qualifications that
exceed the requirements of their job and this number is rising (Quintini, 2011). This rise
is attributed to three phenomena in today’s global economy. First, the increase in
educational attainment in many countries has been greater than the increase in
educational requirements of jobs (Erdogan et al., 2011). Second, there is a growing
trend towards non-standard work arrangements coupled with the increasing use of
5
layoffs as a flexibility strategy, which has forced individuals to accept jobs that do not
fully utilize their skills (Maynard et al., 2006). Third, unemployment rates are on the rise,
making it more difficult to find a job and forcing individuals to accept jobs with
qualifications below their own (Erdogan et al., 2011).
The increase in the level of over-qualification worldwide is significant because it
has produced negative outcomes that affect individuals, organizations, and society as a
whole (Maynard et al., 2006). Empirical evidence in past literature shows that the
current discrepancy between individual qualifications and the qualifications needed by
the labour market hinders economic competitiveness and growth, increases
unemployment, undermines social inclusion, and generates significant economic and
social costs (Groot & Maassen van den Brink, 2000). Several research studies have
identified a negative link between perceived over-qualification and various attitudes
including job satisfaction (Johnson & Johnson, 1997, 2000; Berg, 1970) and a positive
link with turnover intentions (Berg, 1970; Maynard et al., 2006). Low job satisfaction and
high turnover intentions are a growing concern for organizations due to their direct
impact on performance and productivity. These concerns are justified by studies
reporting that the negative effects of over-qualification are linked to actual turnover and
lower performance (Maynard et al., 2006). Identifying factors that moderate the negative
effects of perceived over-qualification could help organizations discover solutions to the
issues reported.
Purpose of this Study
The purpose of the present study is to determine whether HRM practices and job
design, measured by the motivating potential of jobs, affect how an employee will
6
respond to perceived over-qualification. This is important from both a theoretical and
practical perspective. Theoretically, it contributes to a wide range of research from fields
such as economics (Battu, Belfield, & Sloane, 1999), education (Maynard & Joseph,
2008), community psychology (Dooley & Catalano, 2003), and industrial–organizational
(I–O) psychology (Bashshur, Hernández, & Peiró, 2011; Erdogan & Bauer, 2009), which
have tended to focus on the direct effects of over-qualification on employee outcomes.
Past research in these areas have only begun to identify factors that may
mitigate the negative consequences of over-qualification, and none have examined the
possibility of HRM practices and MPS as moderators. HRM practices and job design are
important to consider when studying perceived over-qualification as they introduce new
constructs to the literature and describe organizational conditions under which the
negative outcomes of over-qualification will manifest (Whetten, 1989). The exploration
of these variables as potential moderators will provide information that can be
harnessed by HRM practitioners to strategically respond to over-qualification.
From a practical perspective, the findings from this study will be useful for HRM
practitioners to consider. Understanding organizational conditions under which the
negative consequences of over-qualification are ameliorated will provide insight into
how to redesign jobs and improve HRM practices to mitigate the negative
consequences of over-qualification. Organizations can use these findings to create
conditions under which they can retain and increase the job satisfaction of employees
who feel over-qualified.
Definitions of Key Variables
The following variables are defined based on past literature and items available in the
7
survey data used for this study.
Perceived Over-qualification: Over-qualification is a situation in which an employee
has surplus skills, knowledge, abilities, education, experience, and other qualifications
that are not required by or utilized on the job (Erdogan et al., 2011). Over-qualification
can be viewed objectively by comparing employees’ educational qualifications with job
requirements, or subjectively by asking employees about their perceptions of over-
qualification (Maynard et al., 2006). Given the nature of the dataset that will be used in
this study, and in accordance with prior research (Johnson & Johnson, 1996; Erdogan
et al., 2011; Maynard et al., 2006) this study will take a subjective approach when
defining over-qualification. Such measures provide a more holistic picture of over-
qualification and reflect reality as experienced by the individual (Erdogan et al., 2011).
Job Satisfaction: Job satisfaction is a self-assessed attitudinal variable describing the
level of satisfaction one associates to their job. This variable captures how people feel
about their jobs. It is the extent to which employees like (satisfaction) or dislike
(dissatisfaction) their jobs (Spector, 1997).
Turnover Intentions: Turnover intentions refer to an employee’s intent to exit the firm
for which they work. This construct measures the employee’s self-reported intent to
leave the firm in the future (Boroff & Lewin, 1997).
Human Resource Management Practices (HRM): Human Resource Management
(HRM) refers to the policies and practices involved with carrying out the human
resource aspects of a business. HRM practices have traditionally been classified as
‘hard’ or ‘soft’ (Davies & Gould-Williams, 2005). Unlike the ‘hard’ approach, which
focuses on increasing efficiency and decreasing labour costs in a more controlling way,
8
a ‘soft’ or ‘high commitment’ approach seeks to achieve organizational goals by
establishing mutual interests. Such approaches enhance performance by empowering,
developing, and trusting workers (Davies & Gould-Williams, 2005). Individuals can
interpret HRM practices in various ways, thus it is important to consider subjective views
of HRM practices rather than relying on the actual policies themselves (Davies & Gould-
Williams, 2005). In turn, this study defines HRM based on employee perceptions of
various HRM processes in their organization.
Job Design: In this study, job design is defined as the motivating potential of a job,
which is measured by a Motivating Potential Score (MPS). MPS is a construct created
by Hackman and Oldham (1974) as part of their job characteristics model. The model
identifies five core job dimensions, which have been shown to lead to beneficial
outcomes. The five core dimensions are skill variety, task identity, task significance,
autonomy, and feedback. The first three dimensions (Skill Variety, Task Identity, and
Task Significance) trigger the psychological state of experienced meaningfulness of
work; while autonomy triggers experienced responsibility for outcomes of the work; and
feedback triggers knowledge of the actual results of the work activities. These three
psychological states are the causal core of the model. According to the model, the
overall potential of a job to internally motivate employees should be highest when each
psychological state is triggered. The Motivating Potential Score (MPS) measures the
degree to which the above conditions are met and is computed by combining the scores
of jobs on the five dimensions (Hackman & Oldham, 1976).
9
Literature Review
Perceived Over-qualification
Feldman (1996) conceptualized over-qualification as a dimension of the broader
classification of underemployment. He argued that underemployment is comprised of
five dimensions: more education than required by the job, more skills or experience than
required by the job, involuntary employment in a field outside of area of education,
involuntary employment in part-time, temporary, or intermittent work, and low pay,
relative to either a previous job or to others with similar educational backgrounds
(Feldman, 1996). The first two dimensions of this underemployment construct are often
collectively referred to as over-qualification (Maynard et al., 2006). Over-qualification
has been explored a great deal in literature and has been recognized as a type of
directional misfit between the job and the person, such that one’s knowledge, skills, and
abilities exceed the demands of their job (Liu & Wang, 2012).
When interpreting research in this area, the method of defining and measuring
over-qualification is of critical importance (Erdogan et al., 2011). Over-qualification has
been defined both as an objective condition of the job environment and as a subjective
condition of the workers’ perceptions. The construct can thus be measured subjectively
or objectively. Objective measures, which classify over-qualified workers as those who
possess education beyond the job requirements, have been more typically used in
economics studies (Rubb, 2003; Sicherman, 1991). Such measures focus on a limited
number of skills required by the job and are worse predictors of employee attitudes and
behaviors (Erdogan et al., 2011). Subjective measures, on the other hand, have been
more commonly used in psychological studies, and classify over-qualification based on
10
employees’ beliefs and perceptions of the match between their qualifications, skills
and/or abilities and that required of their job. Subjective measures reflect the real
experience of individuals, providing a more complete picture of over-qualification
(Erdogan et al., 2011). Furthermore, as pointed out by Maynard and Feldman (2011),
there is evidence that attitudinal, emotional, and behavioral consequences of over-
qualification are best predicted by subjective experiences rather than objective
measures. In turn, this study will adopt a subjective view of over-qualification.
The Relationship Between Perceived Over-qualification and Job
Satisfaction and Turnover Intentions
Perceived over-qualification has been identified in many studies as a source of
personal frustration and dissatisfaction (Johnson & Johnson, 1996). Research evidence
has consistently shown that over-qualification is negatively related to a variety of
individual outcomes including job satisfaction (Johnson & Johnson, 1997, 2000; Berg,
1970), organizational commitment (Maynard et al., 2006), job involvement (Kalleberg &
Sorensen, 1973), and productivity (Burris, 1983b; Feldman, 1990, 1996; Berg, 1970). Of
the most common findings in literature is that workers who feel over-qualified are less
satisfied with their job and have higher intentions to quit, relative to workers who do not
feel over-qualified (Liu & Wang, 2012). Maynard et al. (2006) proved these findings
among a group of college employees and alumni. McKee-Ryan, Virick, Prussia, & Lily
(2009) also confirmed these results among 149 laid-off technical employees over the
course of one year. Numerous other researchers reported similar findings in various
settings (Berg, 1970; Kraimer, Shaffer, & Bolino, 2009). Given the consistency of
research exploring these relationships, this study will focus specifically on the link
between perceived over-qualification and job satisfaction as well as perceived over-
11
qualification and turnover intentions.
There are multiple explanations that have been proposed for the link between
perceived over-qualification and job satisfaction/turnover intentions. The most cited
theoretical framework that best captures the subjective experience of over-qualification
is relative deprivation theory (Erdogan & Bauer, 2009). This framework proposes that
when individuals are unable to get an outcome they feel entitled to, they will feel
deprived. Based on this theory, individuals compare their current work situation with
their preferred employment based on some type of standard that differs from person to
person (Crosby, 1976). The feeling of being deprived in comparison to one’s referent
standard causes employees to be less satisfied with their jobs, less committed to the
organization, and more likely to quit (McKee-Ryan et al., 2009). Perceived over-
qualification is likely to trigger feelings of relative deprivation because as individuals
acquire more education and build their skills, knowledge, and abilities, they develop
higher expectations about the type of job they deserve (Vaisey, 2006). Thus, when
employees find themselves in a job below their expectations, they are likely to
experience a sense of status deprivation due to the discrepancy between expectations
and reality, leading to low job satisfaction and high turnover intentions. Researchers
have reported that feelings of deprivation often leave over-qualified employees feeling
disillusioned with the job, frustrated with the lack of career opportunities, and unfulfilled
because they are not getting something that they feel they deserve (Erdogan et al.,
2011). Relative deprivation has been most useful for explaining the individual reaction
that many workers have when they feel over-qualified. This theory has been applied to
more fully capture the subjective experience of over-qualified workers, which is the
12
focus of this study. This lends support to the first two hypotheses:
 Hypothesis 1: Perceived over-qualification is negatively related to job
satisfaction.
 Hypothesis 2: Perceived over-qualification is positively related to turnover
intentions.
The Moderating Effects of Motivating Potential of Jobs and Human
Resource Management on the Relationship Between Over-qualification
and Job Satisfaction and Turnover Intentions
Erdogen and Bauer (2009) stated, “An important gap in the [over-qualification]
literature is identifying theoretically derived variables that might mitigate the potentially
negative effects of over-qualification” (p.557). Moderators are key factors to
understanding when over-qualification will lead to positive, negative, or mixed
outcomes, and this is an area ripe for research (Erdogan et al., 2011). Only a handful of
studies have identified such variables that significantly moderate the negative effects of
over-qualification. For instance, studies have identified mitigating factors such as marital
status (Dooley, Prause, and Ham-Rowbottom, 2000), gender, prior self-esteem (Dooley
& Prause, 1997), and availability of emotional support (Johnson & Johnson, 1997) that
moderate the link between over-qualification and outcomes such as depression,
perceived well-being, and future self-esteem. As pointed out by Erdogan et al. (2011),
there are conditions under which organizations can retain their over-qualified employees
by providing an environment where they will be more satisfied and choose to stay. For
example, research has identified that empowerment workplace practices can mitigate
the negative impact of perceived over-qualification on job satisfaction and turnover of
employees working at Turkish retail establishments (Erdogan & Bauer, 2009).
To date, no research has examined whether perceptions of HRM practices in an
13
organization or job design, namely the motivating potential of jobs, moderate the
relationship between perceived over-qualification and job satisfaction/turnover
intentions. This study will bridge this gap by examining the moderating effect of these
two variables.
Human Resource Management Practices as a Moderating Variable
It has been recognized that characteristics of the work environment that indicate
to employees that they are valued and respected by their organization may alleviate the
sense of deprivation experienced by those who feel over-qualified (Erdogan & Bauer,
2009). Employee perceptions of how committed an organization is to them can be
largely shaped by an organization’s HRM practices (Davies & Gould-Williams, 2005).
Thus, the first moderator proposed in this study on the relationship between perceived
over-qualification and job satisfaction/turnover intentions is HRM practices.
Although this prediction has not been tested before, various researchers have
documented how positive perceptions of HRM practices can have positive effects on
various employee behaviors such as job commitment (Cropanzo, Rupp, & Byrne, 2003),
job satisfaction (Širca, Babnik, & Breznik, 2012), and intent to quit (Allen et al., 2003;
Kuvaas, 2007). Davies and Gould-Williams (2005) anticipated that where employees
trust managers and perceive that managerial actions are based on commitment and
support, employees respond with desired behaviors (Cropanzano et al., 2003).
Since high commitment HRM practices signal managers’ commitment and trust,
such practices may convey to over-qualified employees that their organization truly
cares about them and is willing to support them, giving them a reason to feel less
deprived and thus be more satisfied with their job and less likely to want to quit. HRM
14
practices could also signal to employees that they are able to progress up the
organizational ladder, giving them a reason to feel less deprived about their feelings of
being over-qualified. It follows from this that the negative impact of perceived over-
qualification on job satisfaction and turnover intentions should be alleviated for
employees who hold positive perceptions of their organization’s HRM practices.
 Hypothesis 3: HRM practices will moderate the negative relationship between
over-qualification and job satisfaction such that the relationship will be weaker
when HRM perceptions are high.
 Hypothesis 4: HRM practices will moderate the positive relationship between
over-qualification and turnover intentions such that the relationship will be
weaker when HRM perceptions are high.
Job Design as a Moderating Variable (MPS)
The second moderator under consideration is job design, measured by the
motivating potential of jobs (Hackman & Oldham, 1976). Job redesign is becoming a
prominent strategy for attempting to improve the quality of work experience for
employees. This study proposes that the sense of deprivation experienced by those
who feel over-qualified may be lessened through various job characteristics that
increase the motivational potential of jobs. Although no empirical work has tested this
hypothesis before, the positive effects of motivational job designs have been
documented in literature (Hackman & Oldham, 1974). Moreover, concepts relating to
job design such as job enrichment (Khan & Morrow, 1991) and empowerment (Erdogan
et al., 2009) have been identified as successful ways of dealing with perceived over-
qualification. Research also shows that perceived control over a situation, which is one
of the dimensions of having a motivational job, is an effective way to deal with feelings
of being relatively deprived (Erdogan & Bauer, 2009).
15
According to the job characteristics model, five job characteristics have the
potential to intrinsically motivate employees: skill variety, task identity, task significant,
autonomy, and feedback present in a job (Hackman & Oldham, 1974). These job
dimensions prompt three psychological states: experienced meaningfulness of the work,
experienced responsibility for outcomes of the work, and knowledge of the actual results
of the work activities (Hackman & Oldham, 1974). These psychological states are the
causal core of the model that lead to a number of beneficial personal outcomes and
work outcomes. The overall Motivating Potential Score (MPS) of a job is calculated by
combining the five job dimensions (Hackman & Oldham, 1976). MPS is highest when all
three psychological states are present.
When employees exhibit high levels of MPS, they feel that their job is
meaningful, that they have an impact on the work environment by being responsible for
the outcomes of their work, and that they have knowledge of the actual results of their
work activities. This signals to employees that their judgment and competence is trusted
by the organization, which may suggest high status and decrease the sense of
deprivation experienced by over-qualified employees (Erdogan & Bauer, 2009). As a
result, high levels of MPS are likely to make over-qualified employees more satisfied
with their job, and less likely to express intentions of quitting. It follows that the negative
impact of perceived over-qualification on job satisfaction and turnover intentions should
be ameliorated for employees who exhibit high levels of MPS.
 Hypothesis 5: MPS will moderate the negative relationship between over-
qualification and job satisfaction such that the relationship will be weaker
when MPS is high
 Hypothesis 6: MPS will moderate the positive relationship between over-
qualification and turnover intentions such that the relationship will be weaker
16
when MPS is high
Method
The data for this study was sourced from a survey conducted in one of UK’s
largest mutual businesses, owned by over six million consumers. The organization
operates 4,800 retail-trading outlets and employs more than 100,000 people. It is
among UK’s biggest food retailers, leading convenience store operators and a major
financial services provider. Among its other businesses are one of the top funeral
services provider and one of Britain’s largest farming operations. These diverse
businesses allow the organization to offer an incredibly wide range of careers — from
qualified pharmacists to electrical and clothing departments. The Human Resource
department has an influential role vis-a-vis the organization and its employees who are
in a wide spectrum of roles. The HR department includes HR professionals and
Business Partners, as well as Pensions Officers, Employee Relations Solicitors, Project
Managers and Team Leaders (Co-operative Group Limited, n.d.).
Electronic surveys were sent to 1,155 employees of the organization. The
respondents were encouraged to participate in the survey within two weeks and were
given time to complete the survey at work. Eight hundred and thirty five surveys were
completed. Twenty-nine respondents were excluded due to absent data. Hence, the
response rate was approximately 70%. Of the 806 remaining participants, 44.4% were
male; the mean age of participants was 40.38 (SD=10.14), and the average tenure
reported was 10.51 years. Approximately 95% of the sample worked full-time and the
average hours worked per week was 42.8. Tests were conducted to determine whether
there were significant differences between the 29 excluded and 806 included
17
employees in terms of gender, age, and tenure. All tests were not significant.
Measures
Scale reliabilities are found in Table 1 (shown below in the Results section). All of the
scales yielded Cronbach alpha coefficients greater than .70. Participants rated each
statement on a 7-point Likert scale ranging from 1 (strongly disagree) to 7 (strongly
agree). Items making up a scale were combined and averaged to yield an overall score
for each scale.
 Perceived Over-qualification: Perceived over-qualification was measured
based on the mismatch scale developed by Johnson and Johnson (1996), which
consists of four items. Johnson and Johnson (1996) adapted the perceived over-
qualification measures of Khan and Morrow (1991) to contain two subscales:
mismatch and no-grow. The mismatch subscale taps perceptions of surplus
education, experience, and talent, whereas the no-grow subscale assesses the
employee’s perception of opportunities for learning, growth, and change in her
job (Maynard, et al., 2006). Although both sets of perceptions are potentially
valuable for predicting job attitudes and other outcomes, Maynard et al. (2006)
argue that only the mismatch subscale represents over-qualification, as it is
currently understood. A sample item for this scale is, “my formal education over-
qualifies me for my present job”.
 Job Satisfaction. Job satisfaction was assessed using the three-item scale of
Overall Job Satisfaction developed by Cammann, Fichman, Jenkins, and Klesh
(1979). This scale assesses the organizational member’s overall affective
responses to their jobs. A sample item of the scale is, “In general, I like working
18
here.”
 Turnover Intentions: Turnover Intentions was assessed using the 2-item scale
developed by Boroff and Lewin (1997). This construct measures the
respondent’s self reported intent to leave the firm in the future. A sample item for
this scale is, “During the next year, I will probably look for a new job outside my
current employer.”
 Job Design: Job design was measured using the Motivating Potential Score
(MPS) of jobs, which was assessed using the 23-item scale, developed by
Hackman and Oldham (1974). Items can be categorized into 5 job
characteristics: Skill variety (5 items; e.g., “The demands of my job are highly
routine and predictable”), task identity (4 items; e.g., “My job provides me with
the chance to finish completely any work I start”), task significance (4 items; e.g.,
“Many people are affected by the job I do”), autonomy (4 items, e.g., “My job
gives me considerable freedom in doing the work”), and feedback from the job (6
items; e.g., “My job provides few clues about whether I’m performing
adequately”).
 HRM Practices: HRM Practices were assessed using the 9-item scale
developed by Davies and Gould-Williams (2005). A sample item is, “I have the
opportunities I want to be promoted.”
 Control Variables: Age and gender were used as control variables in all
analyses. It has become widely accepted that men and women vary in their
levels of both job satisfaction and turnover intentions. Bender, Donohue, and
Heywood (2005) reported that overall, women have higher job satisfaction than
19
men. Another study that used data from two British nationally representative
surveys also showed that women in both full-time and part-time employment
present significantly higher levels of job satisfaction (Zou, 2007). Studies have
also shown differences between men and women in terms of turnover intentions.
As pointed out by Ucho, Mkavga, and Onyishi (2012), numerous studies suggest
that women report higher levels of turnover intentions. Similarly, age has also
been linked to job satisfaction and turnover intentions. Based on previous studies
(e.g., Hulin & Smith, 1965; Hunt & Saul, 1975), it is generally believed that job
satisfaction increases linearly with age. Results of an extensive study done by
Bernal, Snyder, and McDaniel (1998) indicated a significant positive linear age-
job satisfaction relationship. Finally, Werbel and Bedeian (1989) showed that age
is negatively related with intentions to quit. Due to the link between age/gender
and the dependent variables of job satisfaction and turnover intentions, age and
gender were used as control variables in all analyses.
Results
Descriptive Statistics and Preliminary Analyses
SPSS was used to calculate the descriptive statistics and to test the hypotheses.
Table 1 presents scale reliabilities, means, standard deviations, and correlations
amongst the variables. Correlations coefficients revealed relationships in expected
directions, with job satisfaction and turnover intentions exhibiting a relatively high
negative correlation compared to other relationships. This is reasonable given that
people who express higher intentions to leave their job are likely not to be satisfied with
some aspect of their job and thus exhibit low job satisfaction. Job satisfaction also had a
20
high positive correlation with both HRM practices and MPS. Of the control variables,
only age yielded a significant correlation with all of the variables, while gender was only
significantly correlated to over-qualification and HRM practices. Unlike past research
has shown, there was no significant relationship between gender and job satisfaction or
between gender and turnover intentions.
Table 1: Descriptive Statistics and Correlations for all Key Variables
Bivariate Correlations of Variables
Variables α
Mea
n SD 1 2 3 4 5 6
1 Age n/a 40.3
8
10.1
4
1 .
137*
.
132*
.
410*
-.14
9*
.
188*2 Gender n/a n/a n/a -.08
*
1 .029 .
177*
-.03
8
.039
3 Over-
qualification
.77 3.81 1.29 -.08
*
-.12*
*4 Turnover
Intentions
.93 2.30 1.58 -.17
**
-.02 .
30**5 Job
Satisfaction
.84 5.80 1.19 .10* .05 -.33*
*
-.69*
*6 MPS .87 5.34 .75 .
13**
-.01 -.38*
*
-.44*
*
.
62**7 HR Practices .89 4.87 1.22 .10* .08* -.40*
*
-.55*
*
.
62**
.61**
• * Denotes significant at p<.05
• ** Denotes significant at p<.01
• MPS: Motivating Potential Score
Hypothesis Testing
To test the first 2 hypotheses, hierarchical regression was used. To test the latter
four hypotheses, moderated hierarchical regression was employed. Simple slopes
analyses were done for each of the moderating relationships (Aiken and West, 1991).
Hypothesis 1 predicted that over-qualification was positively related to turnover
intentions. The results of a multiple regression analysis indicated that the model was
21
significant (F=19.27, p<.05, R2
=.08) and after controlling for age and gender, over-
qualification was significantly and positively related to turnover intentions (β=.23,
SE=.06, t=6.07, p<.01). Hypothesis 1 was supported.
Hypothesis 2 predicted that over-qualification was negatively related to job
satisfaction. The results of a multiple regression analysis indicated that the model was
significant (F=29.00, p<.05, R2
=.11) and after controlling for age and gender, over-
qualification was significantly and negatively related to job satisfaction (β=-.33. SE=.04,
t=-8.89, p<.01). Hypothesis 2 was supported.
Hierarchical moderated regressions were used to test the remaining hypotheses.
Variables entered into moderated regressions were standardized (Aiken & West, 1991).
Simple slopes analyses were conducted to assess the significance of the slopes at high
(one standard deviation above the mean) and low (one standard deviation below the
mean) levels of the moderator (Aiken & West, 1991). Table 2 in the appendix represents
the results for the Hierarchical Regression of Over-qualification and HRM Practices on
Turnover Intentions and Job Satisfaction (results for the moderating effect of HRM
Practices on both dependent variables). In model one and two, over-qualification was
regressed on gender and age only. Model three shows the results of the main effect
model (gender, age, over-qualification, and HRM Practices), while Model 4 shows the
moderated regression model (gender, age, over-qualification, HRM Practices, and the
interaction between over-qualification and HRM practices) on both turnover intentions
and job satisfaction. Table 3 in the appendix similarly summarizes the moderating role
of MPS on the relationship between over-qualification and turnover intentions as well as
over-qualification and job satisfaction. The results of each of the hypotheses are
22
discussed below.
The third hypothesis predicted that HRM Practices would moderate the positive
relationship between over-qualification and turnover intentions such that the relationship
will be weaker when MPS is high. The interaction between over-qualification and HRM
Practices was significant (β=-.11, SE=.05, p<.01). The relationship is plotted in Figure 1.
Figure 1:
Figure 1 reveals that when perceptions of HRM practices are low, there is a clear
positive relationship between perceived over-qualification and turnover intentions, as
expected. At low levels of HRM, turnover intentions are higher overall than at high levels
of HRM. Conversely, when perceptions of HRM are high, the slope appears nearly flat,
indicating that there is no longer a clear relationship between over-qualification and
turnover intentions. Simple slopes analysis confirmed these observations and revealed
that the slope of the line for those who have relatively low perceptions of their
organization's HRM practices is significantly different from zero and positive (t=3.55, p
<.05). On the other hand, the slope is not significantly different from zero for those who
have relatively better appraisals of the HRM practices in the organization (t=-.84,
23
p=.40). This suggests that perceptions of HRM practices moderate the positive
relationship between over-qualification and turnover intentions such that the relationship
is no longer significant when HRM perceptions are high. Hypothesis 3 was supported.
The fourth hypothesis predicted that MPS would moderate the positive
relationship between over-qualification and turnover intentions such that the relationship
will be weaker when MPS is high. The interaction between over-qualification and MPS
was significant (β=-.08, SE=.05, p<.05). The relationship is plotted in Figure 2.
Figure 2:
Figure 2 shows that for employees who report low MPS, over-qualification
appears to be positively related to turnover intentions. Moreover, over-qualified
employees that exhibit low MPS are more likely overall to express turnover intentions
than those with high MPS. On the other hand, it appears that for those who reported
high MPS there was no relationship between over-qualification and turnover intentions.
Simple slopes analyses confirmed these observations and revealed that the relationship
between over-qualification and turnover intentions was positive significant for those
reporting low levels of MPS (t=3.28, p<.05), but not high levels of MPS (t=.67, p=.50). In
24
other words, the slope of the line was significantly different from zero for those with low
levels of MPS, but not significantly different from zero for those at high levels of MPS.
This suggests that levels of MPS moderate the positive relationship between over-
qualification and turnover intentions such that the relationship is no longer significant
when MPS is high. Hypothesis 4 was supported.
The fifth hypothesis predicted that perceptions of HRM Practices moderate the
negative relationship between over-qualification and job satisfaction such that the
relationship will be weaker when HRM perceptions are high. The interaction between
over-qualification and HRM Practices was significant (β=.07, SE=.04, p<.05). The
relationship is plotted in Figure 3.
Figure 3:
Figure 3 shows that when perceptions of HRM Practices are low, there is a clear
negative relationship between over-qualification and job satisfaction. Moreover, overall
job satisfaction is lower when perceptions of HRM practices are low relative to when
they are high. When perceptions of HRM are high, the relationship between over-
qualification and job satisfaction appears significantly weaker. Simple slopes analyses
25
confirmed these observations and revealed that the relationship between over-
qualification and job satisfaction was negative and significant for those who have
relatively negative perceptions of their organization's HRM practices (t=-4.34, p<.05),
but the relationship is no longer significant for those who have relatively better
perceptions of their organization's HRM practices (t=-1.70, p =.09). This suggests that
perceptions of HRM practices moderate the negative relationship between over-
qualification and job satisfaction such that the relationship is no longer significant when
perceptions of HRM practices are high. Hypothesis 5 was partially supported.
The sixth hypothesis predicted that MPS would moderate the negative
relationship between over-qualification and job satisfaction such that the relationship will
be weaker when HRM perceptions are high. The interaction between over-qualification
and MPS was significant (β=-.08, SE=.03, p<.05). The relationship is plotted in Figure 4.
Figure 4:
Figuret 4 shows that when MPS levels are low, there is a clear negative
relationship between over-qualification and job satisfaction. Moreover, overall levels of
job satisfaction are lower at low levels of MPS. On the other hand, when MPS levels are
26
high, there appears to no longer be a clear relationship between over-qualification and
job satisfaction. The results of a simple slopes analysis confirmed these observations
and revealed that the relationship between over-qualification and job satisfaction was
significant and negative at low levels of MPS (t=-4.32, p<.05), but not at high levels of
MPS (t=-1.19, p=.23). This suggests that MPS moderates the realtionship between
perceived over-qualification and job satisfaction such that the relationship is no longer
significant at high levels of MPS. Hypothesis 6 was supported.
Discussion
This study makes a contribution to the small but growing literature that examines
moderators of the relationship between over-qualification and its outcomes and provides
insight into how organizations can benefit from employing workers who perceive
themselves as being over-qualified (Erdogan & Bauer, 2009). The results provide
evidence that perceptions of over-qualification affect both job satisfaction and turnover
intentions and that these consequences are moderated by perceptions of HRM
practices and job design, measured by the motivating potential of jobs. The finding of
significant interaction effects between perceived over-qualification and MPS and
perceived over-qualification and HRM practices on both job satisfaction and turnover
intentions suggests that job design and HRM practices influence the way employees
respond to feelings of over-qualification. High levels of MPS and positive perceptions of
HRM practices both nullified the relationships between perceived over-qualification, job
satisfaction, and turnover intentions. These findings suggest that employees who feel
over-qualified only experience low job satisfaction and high turnover intentions when
MPS is low or when perceptions of HRM practices are low. This implies that if
27
organizations wish to increase the job satisfaction and decrease the turnover intentions
of employees who feel over-qualified, they must improve their HRM practices and
increase the complexity of jobs to make them more motivational.
Limitations
There are several potential limitations of this study. First, since all variables in the
study, namely perceived over-qualification, turnover intentions, job satisfaction, MPS,
and HRM practices were measured from the same source in a single survey, the study
suffers from potential common method bias. A second potential limitation of the study is
the use of a subjective measure for over-qualification. As proposed by Erdogan et al.
(2011), such measures may lack a standard referent, which detracts from their
theoretical and empirical precision.
Implications for Future Research
Although it is clear that perceived over-qualification could have important effects
on both individuals and organizations, an issue that remains unclear is what factors
affect a person’s perception of over-qualification (Erdogan et al., 2011). Moreover,
although past studies go a long way in unearthing factors that may temper the
relationship between over-qualification and employee outcomes, they have focused
exclusively on personal and organizational level moderators, ignoring the potential
impact of macro level moderators. This is partly because of their reliance on individual
country data. This has prevented researchers from exploring the effect of cross-country
variation in economic, social, and institutional factors. To date, no body of research has
examined whether macro-level factors, such as national institutions, labour market
regulatory framework, economic cycles, and cultural or societal norms, moderate the
28
relationship between over-qualification and outcomes. Examining moderators at this
level is important, given that previous studies have highlighted the significant variation in
over-qualification levels across countries. Moreover, the differences in labour laws,
economic conditions, and education systems across countries draws attention to the
importance of understanding how macro factors moderate the negative consequences
of over-qualification on employee job attitudes and wellbeing (Erdogan et al., 2011).
Identifying national contextual moderators will provide information that can be
harnessed by global organizations to strategically respond to over-qualification in
various countries (Erdogan et al., 2011). Although no empirical work has tested macro
moderators before, many macro factors have been shown to influence the level and
effect of over-qualification (Erdogan & Bauer, 2009).
Future studies in this area should explore the factors that influence a person’s
perception of over-qualification. Future studies should also exploit the cross-country
variation of macro factors and identify their potential moderating influence in the
relationship between over-qualification and workplace outcomes. This will bridge
research located in the fields of labour economics, management, and psychology to
provide insight into how organizations can organize work given national contextual
factors to mitigate the negative consequences of over-qualification. Exploring macro
level moderators will also shed light on the economic and institutional factors that can
lessen the negative effects of over-qualification.
Conclusion
Over-qualification is a psychological variable that is salient to both employees
and job applicants and can have important effects on employee attitudes and behaviors
29
as well as on recruitment policies of employers (Edrogan et al., 2011). It is likely that the
issue of over-qualification will remain relevant in the coming years given that it has been
on the rise, affecting a number of different populations, ranging from immigrants, to
reemployed employees following a layoff, to temporary workers, to employees working
in declining industries to older workers, young workers, and employees with disabilities
(Erdogan et al., 2011).
This study provides empirical evidence for the notion that the negative
consequences of perceived over-qualification can be avoided. The present study
examined the moderating role of perceptions of HRM practices and job design on the
relationship between over-qualification and job satisfaction/turnover intentions. The
results of the study showed that perceived over-qualification resulted in lower job
satisfaction and higher turnover intentions. These findings are consistent with those of
previous studies indicating that over-qualification causes personal frustration and
dissatisfaction with one’s job (Johnson & Johnson, 1996). The results also indicated that
HRM and job design both moderated the negative effects of over-qualification such that
those who felt over-qualified only experience low job satisfaction and high turnover
intentions at low levels of MPS and relatively negative perceptions of their
organization’s HRM practices.
30
Appendix
Table 2:
Hierarchical Moderated Regression of over-qualification and HRM Practices on Turnover Intentions and Job Satisfaction
Turnover Intentions Job Satisfaction
β(SE β(SE) β(SE) β(SE) β(SE) β(SE) β(SE) β(SE)
Model 1 Gender -.02(.12) .04(.09)
Age -.17(.01)** .10(.00)*
Model 2 Gender .00(.12) .00(.08)
Age -.15(.01)** .07(.00)
Over-qualification .23(.06)** -.33(.04)**
Model 3 Gender .04(.10) -.04(.07)
Age -.11(.01)** .03(.00)
Over-qualification .06(.05) -.13(.04)**
HRM Practices -.45(.06)** .56(.04)**
Model 4 Gender .04(.10) -.04(.07)
Age -.11(.01)** .02(.00)
Over-qualification .07(.05)* -.14(.04)**
HRM Practices -.46(.06)** .54(.04)**
Over-qualificationxHRM -.11(.05)** .07(.04)*
F 9.95** 19.27** 16.34** 55.31** 3.54* 29.00** 103.12** 84.00**
Adjusted
R2
(change)
.03** .08** .28** .29** .01* .11** .27** .01*
Note: *p <.05, **p<.01
Note: Standardized regression coefficients are presented, along with the standard error
Note: Adjusted R2
(change) indicates whether R2
was significantly improved from previous step
Table 3:
Hierarchical Moderated Regression of over-qualification and MPS on Turnover Intentions and Job Satisfaction
Turnover Intentions Job Satisfaction
β(SE) β(SE) β(SE) β(SE) β(SE) β(SE) β(SE) β(SE)
Model 1 Gender -.02(.12) .04(.01)
Age -.17(.01)** .10(.00)*
Model 2 Gender .00(.12) .00(.08)
Age -.15(.01)** .07(.00)
Over-qualification .23(.06)** -.33(.04)**
Model 3 Gender -.01(.11) .04(.07)
Age -.11(.01)** .01(.00)
Over-qualification .10(.06)* -.12(.04)**
MPS -.37(.06)** .57(.04)**
Model 4 Gender -.01(.11) .04(.07)
Age -.11(.01)** .01(.00)
Over-qualification .10(.06)** -.12(.04)**
MPS -.35(.06)** .56(.04)**
Over-qualificationxMPS -.08(.05)* .08(.03)*
F 9.95** 19.27** 39.82** 32.92** 3.54* 29.00** 108.07** 88.45**
Adjusted R2
(change)
.03** .08** .19** .19* .01* .11** .39** .39*
Note: *p <.05, **p<.01
Note: Standardized regression coefficients are presented, along with the standard error
Note: Adjusted R2
(change) indicates whether R2
was significantly improved from previous step
32
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The Moderating Effect of HRM and Job Design on Over-qualification

  • 1. 1 August 30th 13 08Fall The Moderating Effect of HRM Perceptions and Job Design on the Impact of Perceived Over-qualification on Job Satisfaction and Turnover Intentions Farah Arnaoot Olivia Conforti Ashley Mayhew University of Toronto
  • 2. Table of Contents Table of Contents.................................................................................................................................. 2 Introduction .......................................................................................................................................... 4 Significance of Over-qualification in the 21st Century ..........................................................5 Purpose of this Study.......................................................................................................................... 6 Definitions of Key Variables.............................................................................................................7 Literature Review ............................................................................................................................. 10 Perceived Over-qualification.................................................................................................................. 10 The Relationship Between Perceived Over-qualification and Job Satisfaction and Turnover Intentions...................................................................................................................................................... 11 The Moderating Effects of Motivating Potential of Jobs and Human Resource Management on the Relationship Between Over-qualification and Job Satisfaction and Turnover Intentions...................................................................................................................................................... 13 Human Resource Management Practices as a Moderating Variable .........................................14 Job Design as a Moderating Variable (MPS).......................................................................................15 Method................................................................................................................................................... 17 Measures............................................................................................................................................... 18 Results................................................................................................................................................... 20 Descriptive Statistics and Preliminary Analyses..............................................................................20 Hypothesis Testing..................................................................................................................................... 21 Discussion............................................................................................................................................ 27 Conclusion ........................................................................................................................................... 29 2
  • 3. ABSTRACT The present study examines the moderating role of Human Resource Management (HRM) practices and job design on the relationship between perceived over-qualification and job satisfaction and turnover intentions. The survey results used to test the hypotheses were collected from an organization in the United Kingdom (n=806). The results indicated that perceived over-qualification was negatively related to job satisfaction and positively related to turnover intentions. The results also showed that perceptions of HRM practices and job design moderated the impact of perceived over- qualification on both job satisfaction and turnover intentions. The theoretical and practical implications of the findings are discussed. 3
  • 4. Introduction Previous studies have established that employees who are able to fully utilize their skills and abilities at work experience a sense of accomplishment, pride, work engagement and wellbeing (e.g., Hakanen, Bakker & Demerouti, 2005; Humphrys & O’Brien, 1986; Warr, 1987). However, salient factors in today’s economic and social environment, including recessionary economic conditions and the rising number of graduates from post-secondary institutions, have produced a situation in which approximately one-quarter of employees are over-qualified for their jobs (Quintini, 2011). Over-qualification refers to a situation in which an “individual has surplus skills, knowledge, education, experience, and other qualifications that are not required by or utilized on the job” (Erdogan, Bauer, Peiro, & Truxillo, 2011, p. 217). A wide body of research suggests that over-qualification leads to negative job attitudes (Johnson, Morrow & Johnson, 2002; Battu, Belfield, & Sloane 2000; Verhaest & Omey, 2006); worse health outcomes (Johnson & Johnson, 1997); higher turnover intentions (Maynard, Joseph, & Maynard, 2006); low self-esteem (Prause & Dooley, 1997); and depression (Dooley, Prause, & Ham-Rowbottom, 2000). These consequences can result in high costs for organizations. It is therefore important to understand the factors that may alleviate the negative consequences of over-qualification on employees. Although over-qualification has been shown to lead to a number of negative outcomes, it has been recognized that these effects can be reduced or even reversed if over-qualified employees are adequately managed (Luksyte & Spitzmueller, 2011). 4
  • 5. Researchers have built on this idea to propose that when excess human capital is appropriately managed and utilized, it can correspond to positive outcomes. Two potential ways of doing this are by improving HRM Practices and increasing the complexity of job designs. This study will examine whether perceptions of HRM practices and job design, measured by the motivating potential of jobs, moderate the relationship between perceived over-qualification and job satisfaction as well as turnover intentions. The moderators being examined are relevant to consider today, given that many organizations have spent a considerable amount of money moving towards more sophisticated HRM practices and more complicated job designs in hope of improving the work experience of employees. Moreover, there has been a major focus on the positive effects of HRM practices and motivational job designs, suggesting that they could be potential solutions for the negative effects of over-qualification. Examining the moderating effect of HRM practices and job design will indicate to organizations whether these two factors can alleviate the negative effect of over-qualification on job satisfaction and turnover intentions. Significance of Over-qualification in the 21st Century Approximately one-quarter of the workforce has educational qualifications that exceed the requirements of their job and this number is rising (Quintini, 2011). This rise is attributed to three phenomena in today’s global economy. First, the increase in educational attainment in many countries has been greater than the increase in educational requirements of jobs (Erdogan et al., 2011). Second, there is a growing trend towards non-standard work arrangements coupled with the increasing use of 5
  • 6. layoffs as a flexibility strategy, which has forced individuals to accept jobs that do not fully utilize their skills (Maynard et al., 2006). Third, unemployment rates are on the rise, making it more difficult to find a job and forcing individuals to accept jobs with qualifications below their own (Erdogan et al., 2011). The increase in the level of over-qualification worldwide is significant because it has produced negative outcomes that affect individuals, organizations, and society as a whole (Maynard et al., 2006). Empirical evidence in past literature shows that the current discrepancy between individual qualifications and the qualifications needed by the labour market hinders economic competitiveness and growth, increases unemployment, undermines social inclusion, and generates significant economic and social costs (Groot & Maassen van den Brink, 2000). Several research studies have identified a negative link between perceived over-qualification and various attitudes including job satisfaction (Johnson & Johnson, 1997, 2000; Berg, 1970) and a positive link with turnover intentions (Berg, 1970; Maynard et al., 2006). Low job satisfaction and high turnover intentions are a growing concern for organizations due to their direct impact on performance and productivity. These concerns are justified by studies reporting that the negative effects of over-qualification are linked to actual turnover and lower performance (Maynard et al., 2006). Identifying factors that moderate the negative effects of perceived over-qualification could help organizations discover solutions to the issues reported. Purpose of this Study The purpose of the present study is to determine whether HRM practices and job design, measured by the motivating potential of jobs, affect how an employee will 6
  • 7. respond to perceived over-qualification. This is important from both a theoretical and practical perspective. Theoretically, it contributes to a wide range of research from fields such as economics (Battu, Belfield, & Sloane, 1999), education (Maynard & Joseph, 2008), community psychology (Dooley & Catalano, 2003), and industrial–organizational (I–O) psychology (Bashshur, Hernández, & Peiró, 2011; Erdogan & Bauer, 2009), which have tended to focus on the direct effects of over-qualification on employee outcomes. Past research in these areas have only begun to identify factors that may mitigate the negative consequences of over-qualification, and none have examined the possibility of HRM practices and MPS as moderators. HRM practices and job design are important to consider when studying perceived over-qualification as they introduce new constructs to the literature and describe organizational conditions under which the negative outcomes of over-qualification will manifest (Whetten, 1989). The exploration of these variables as potential moderators will provide information that can be harnessed by HRM practitioners to strategically respond to over-qualification. From a practical perspective, the findings from this study will be useful for HRM practitioners to consider. Understanding organizational conditions under which the negative consequences of over-qualification are ameliorated will provide insight into how to redesign jobs and improve HRM practices to mitigate the negative consequences of over-qualification. Organizations can use these findings to create conditions under which they can retain and increase the job satisfaction of employees who feel over-qualified. Definitions of Key Variables The following variables are defined based on past literature and items available in the 7
  • 8. survey data used for this study. Perceived Over-qualification: Over-qualification is a situation in which an employee has surplus skills, knowledge, abilities, education, experience, and other qualifications that are not required by or utilized on the job (Erdogan et al., 2011). Over-qualification can be viewed objectively by comparing employees’ educational qualifications with job requirements, or subjectively by asking employees about their perceptions of over- qualification (Maynard et al., 2006). Given the nature of the dataset that will be used in this study, and in accordance with prior research (Johnson & Johnson, 1996; Erdogan et al., 2011; Maynard et al., 2006) this study will take a subjective approach when defining over-qualification. Such measures provide a more holistic picture of over- qualification and reflect reality as experienced by the individual (Erdogan et al., 2011). Job Satisfaction: Job satisfaction is a self-assessed attitudinal variable describing the level of satisfaction one associates to their job. This variable captures how people feel about their jobs. It is the extent to which employees like (satisfaction) or dislike (dissatisfaction) their jobs (Spector, 1997). Turnover Intentions: Turnover intentions refer to an employee’s intent to exit the firm for which they work. This construct measures the employee’s self-reported intent to leave the firm in the future (Boroff & Lewin, 1997). Human Resource Management Practices (HRM): Human Resource Management (HRM) refers to the policies and practices involved with carrying out the human resource aspects of a business. HRM practices have traditionally been classified as ‘hard’ or ‘soft’ (Davies & Gould-Williams, 2005). Unlike the ‘hard’ approach, which focuses on increasing efficiency and decreasing labour costs in a more controlling way, 8
  • 9. a ‘soft’ or ‘high commitment’ approach seeks to achieve organizational goals by establishing mutual interests. Such approaches enhance performance by empowering, developing, and trusting workers (Davies & Gould-Williams, 2005). Individuals can interpret HRM practices in various ways, thus it is important to consider subjective views of HRM practices rather than relying on the actual policies themselves (Davies & Gould- Williams, 2005). In turn, this study defines HRM based on employee perceptions of various HRM processes in their organization. Job Design: In this study, job design is defined as the motivating potential of a job, which is measured by a Motivating Potential Score (MPS). MPS is a construct created by Hackman and Oldham (1974) as part of their job characteristics model. The model identifies five core job dimensions, which have been shown to lead to beneficial outcomes. The five core dimensions are skill variety, task identity, task significance, autonomy, and feedback. The first three dimensions (Skill Variety, Task Identity, and Task Significance) trigger the psychological state of experienced meaningfulness of work; while autonomy triggers experienced responsibility for outcomes of the work; and feedback triggers knowledge of the actual results of the work activities. These three psychological states are the causal core of the model. According to the model, the overall potential of a job to internally motivate employees should be highest when each psychological state is triggered. The Motivating Potential Score (MPS) measures the degree to which the above conditions are met and is computed by combining the scores of jobs on the five dimensions (Hackman & Oldham, 1976). 9
  • 10. Literature Review Perceived Over-qualification Feldman (1996) conceptualized over-qualification as a dimension of the broader classification of underemployment. He argued that underemployment is comprised of five dimensions: more education than required by the job, more skills or experience than required by the job, involuntary employment in a field outside of area of education, involuntary employment in part-time, temporary, or intermittent work, and low pay, relative to either a previous job or to others with similar educational backgrounds (Feldman, 1996). The first two dimensions of this underemployment construct are often collectively referred to as over-qualification (Maynard et al., 2006). Over-qualification has been explored a great deal in literature and has been recognized as a type of directional misfit between the job and the person, such that one’s knowledge, skills, and abilities exceed the demands of their job (Liu & Wang, 2012). When interpreting research in this area, the method of defining and measuring over-qualification is of critical importance (Erdogan et al., 2011). Over-qualification has been defined both as an objective condition of the job environment and as a subjective condition of the workers’ perceptions. The construct can thus be measured subjectively or objectively. Objective measures, which classify over-qualified workers as those who possess education beyond the job requirements, have been more typically used in economics studies (Rubb, 2003; Sicherman, 1991). Such measures focus on a limited number of skills required by the job and are worse predictors of employee attitudes and behaviors (Erdogan et al., 2011). Subjective measures, on the other hand, have been more commonly used in psychological studies, and classify over-qualification based on 10
  • 11. employees’ beliefs and perceptions of the match between their qualifications, skills and/or abilities and that required of their job. Subjective measures reflect the real experience of individuals, providing a more complete picture of over-qualification (Erdogan et al., 2011). Furthermore, as pointed out by Maynard and Feldman (2011), there is evidence that attitudinal, emotional, and behavioral consequences of over- qualification are best predicted by subjective experiences rather than objective measures. In turn, this study will adopt a subjective view of over-qualification. The Relationship Between Perceived Over-qualification and Job Satisfaction and Turnover Intentions Perceived over-qualification has been identified in many studies as a source of personal frustration and dissatisfaction (Johnson & Johnson, 1996). Research evidence has consistently shown that over-qualification is negatively related to a variety of individual outcomes including job satisfaction (Johnson & Johnson, 1997, 2000; Berg, 1970), organizational commitment (Maynard et al., 2006), job involvement (Kalleberg & Sorensen, 1973), and productivity (Burris, 1983b; Feldman, 1990, 1996; Berg, 1970). Of the most common findings in literature is that workers who feel over-qualified are less satisfied with their job and have higher intentions to quit, relative to workers who do not feel over-qualified (Liu & Wang, 2012). Maynard et al. (2006) proved these findings among a group of college employees and alumni. McKee-Ryan, Virick, Prussia, & Lily (2009) also confirmed these results among 149 laid-off technical employees over the course of one year. Numerous other researchers reported similar findings in various settings (Berg, 1970; Kraimer, Shaffer, & Bolino, 2009). Given the consistency of research exploring these relationships, this study will focus specifically on the link between perceived over-qualification and job satisfaction as well as perceived over- 11
  • 12. qualification and turnover intentions. There are multiple explanations that have been proposed for the link between perceived over-qualification and job satisfaction/turnover intentions. The most cited theoretical framework that best captures the subjective experience of over-qualification is relative deprivation theory (Erdogan & Bauer, 2009). This framework proposes that when individuals are unable to get an outcome they feel entitled to, they will feel deprived. Based on this theory, individuals compare their current work situation with their preferred employment based on some type of standard that differs from person to person (Crosby, 1976). The feeling of being deprived in comparison to one’s referent standard causes employees to be less satisfied with their jobs, less committed to the organization, and more likely to quit (McKee-Ryan et al., 2009). Perceived over- qualification is likely to trigger feelings of relative deprivation because as individuals acquire more education and build their skills, knowledge, and abilities, they develop higher expectations about the type of job they deserve (Vaisey, 2006). Thus, when employees find themselves in a job below their expectations, they are likely to experience a sense of status deprivation due to the discrepancy between expectations and reality, leading to low job satisfaction and high turnover intentions. Researchers have reported that feelings of deprivation often leave over-qualified employees feeling disillusioned with the job, frustrated with the lack of career opportunities, and unfulfilled because they are not getting something that they feel they deserve (Erdogan et al., 2011). Relative deprivation has been most useful for explaining the individual reaction that many workers have when they feel over-qualified. This theory has been applied to more fully capture the subjective experience of over-qualified workers, which is the 12
  • 13. focus of this study. This lends support to the first two hypotheses:  Hypothesis 1: Perceived over-qualification is negatively related to job satisfaction.  Hypothesis 2: Perceived over-qualification is positively related to turnover intentions. The Moderating Effects of Motivating Potential of Jobs and Human Resource Management on the Relationship Between Over-qualification and Job Satisfaction and Turnover Intentions Erdogen and Bauer (2009) stated, “An important gap in the [over-qualification] literature is identifying theoretically derived variables that might mitigate the potentially negative effects of over-qualification” (p.557). Moderators are key factors to understanding when over-qualification will lead to positive, negative, or mixed outcomes, and this is an area ripe for research (Erdogan et al., 2011). Only a handful of studies have identified such variables that significantly moderate the negative effects of over-qualification. For instance, studies have identified mitigating factors such as marital status (Dooley, Prause, and Ham-Rowbottom, 2000), gender, prior self-esteem (Dooley & Prause, 1997), and availability of emotional support (Johnson & Johnson, 1997) that moderate the link between over-qualification and outcomes such as depression, perceived well-being, and future self-esteem. As pointed out by Erdogan et al. (2011), there are conditions under which organizations can retain their over-qualified employees by providing an environment where they will be more satisfied and choose to stay. For example, research has identified that empowerment workplace practices can mitigate the negative impact of perceived over-qualification on job satisfaction and turnover of employees working at Turkish retail establishments (Erdogan & Bauer, 2009). To date, no research has examined whether perceptions of HRM practices in an 13
  • 14. organization or job design, namely the motivating potential of jobs, moderate the relationship between perceived over-qualification and job satisfaction/turnover intentions. This study will bridge this gap by examining the moderating effect of these two variables. Human Resource Management Practices as a Moderating Variable It has been recognized that characteristics of the work environment that indicate to employees that they are valued and respected by their organization may alleviate the sense of deprivation experienced by those who feel over-qualified (Erdogan & Bauer, 2009). Employee perceptions of how committed an organization is to them can be largely shaped by an organization’s HRM practices (Davies & Gould-Williams, 2005). Thus, the first moderator proposed in this study on the relationship between perceived over-qualification and job satisfaction/turnover intentions is HRM practices. Although this prediction has not been tested before, various researchers have documented how positive perceptions of HRM practices can have positive effects on various employee behaviors such as job commitment (Cropanzo, Rupp, & Byrne, 2003), job satisfaction (Širca, Babnik, & Breznik, 2012), and intent to quit (Allen et al., 2003; Kuvaas, 2007). Davies and Gould-Williams (2005) anticipated that where employees trust managers and perceive that managerial actions are based on commitment and support, employees respond with desired behaviors (Cropanzano et al., 2003). Since high commitment HRM practices signal managers’ commitment and trust, such practices may convey to over-qualified employees that their organization truly cares about them and is willing to support them, giving them a reason to feel less deprived and thus be more satisfied with their job and less likely to want to quit. HRM 14
  • 15. practices could also signal to employees that they are able to progress up the organizational ladder, giving them a reason to feel less deprived about their feelings of being over-qualified. It follows from this that the negative impact of perceived over- qualification on job satisfaction and turnover intentions should be alleviated for employees who hold positive perceptions of their organization’s HRM practices.  Hypothesis 3: HRM practices will moderate the negative relationship between over-qualification and job satisfaction such that the relationship will be weaker when HRM perceptions are high.  Hypothesis 4: HRM practices will moderate the positive relationship between over-qualification and turnover intentions such that the relationship will be weaker when HRM perceptions are high. Job Design as a Moderating Variable (MPS) The second moderator under consideration is job design, measured by the motivating potential of jobs (Hackman & Oldham, 1976). Job redesign is becoming a prominent strategy for attempting to improve the quality of work experience for employees. This study proposes that the sense of deprivation experienced by those who feel over-qualified may be lessened through various job characteristics that increase the motivational potential of jobs. Although no empirical work has tested this hypothesis before, the positive effects of motivational job designs have been documented in literature (Hackman & Oldham, 1974). Moreover, concepts relating to job design such as job enrichment (Khan & Morrow, 1991) and empowerment (Erdogan et al., 2009) have been identified as successful ways of dealing with perceived over- qualification. Research also shows that perceived control over a situation, which is one of the dimensions of having a motivational job, is an effective way to deal with feelings of being relatively deprived (Erdogan & Bauer, 2009). 15
  • 16. According to the job characteristics model, five job characteristics have the potential to intrinsically motivate employees: skill variety, task identity, task significant, autonomy, and feedback present in a job (Hackman & Oldham, 1974). These job dimensions prompt three psychological states: experienced meaningfulness of the work, experienced responsibility for outcomes of the work, and knowledge of the actual results of the work activities (Hackman & Oldham, 1974). These psychological states are the causal core of the model that lead to a number of beneficial personal outcomes and work outcomes. The overall Motivating Potential Score (MPS) of a job is calculated by combining the five job dimensions (Hackman & Oldham, 1976). MPS is highest when all three psychological states are present. When employees exhibit high levels of MPS, they feel that their job is meaningful, that they have an impact on the work environment by being responsible for the outcomes of their work, and that they have knowledge of the actual results of their work activities. This signals to employees that their judgment and competence is trusted by the organization, which may suggest high status and decrease the sense of deprivation experienced by over-qualified employees (Erdogan & Bauer, 2009). As a result, high levels of MPS are likely to make over-qualified employees more satisfied with their job, and less likely to express intentions of quitting. It follows that the negative impact of perceived over-qualification on job satisfaction and turnover intentions should be ameliorated for employees who exhibit high levels of MPS.  Hypothesis 5: MPS will moderate the negative relationship between over- qualification and job satisfaction such that the relationship will be weaker when MPS is high  Hypothesis 6: MPS will moderate the positive relationship between over- qualification and turnover intentions such that the relationship will be weaker 16
  • 17. when MPS is high Method The data for this study was sourced from a survey conducted in one of UK’s largest mutual businesses, owned by over six million consumers. The organization operates 4,800 retail-trading outlets and employs more than 100,000 people. It is among UK’s biggest food retailers, leading convenience store operators and a major financial services provider. Among its other businesses are one of the top funeral services provider and one of Britain’s largest farming operations. These diverse businesses allow the organization to offer an incredibly wide range of careers — from qualified pharmacists to electrical and clothing departments. The Human Resource department has an influential role vis-a-vis the organization and its employees who are in a wide spectrum of roles. The HR department includes HR professionals and Business Partners, as well as Pensions Officers, Employee Relations Solicitors, Project Managers and Team Leaders (Co-operative Group Limited, n.d.). Electronic surveys were sent to 1,155 employees of the organization. The respondents were encouraged to participate in the survey within two weeks and were given time to complete the survey at work. Eight hundred and thirty five surveys were completed. Twenty-nine respondents were excluded due to absent data. Hence, the response rate was approximately 70%. Of the 806 remaining participants, 44.4% were male; the mean age of participants was 40.38 (SD=10.14), and the average tenure reported was 10.51 years. Approximately 95% of the sample worked full-time and the average hours worked per week was 42.8. Tests were conducted to determine whether there were significant differences between the 29 excluded and 806 included 17
  • 18. employees in terms of gender, age, and tenure. All tests were not significant. Measures Scale reliabilities are found in Table 1 (shown below in the Results section). All of the scales yielded Cronbach alpha coefficients greater than .70. Participants rated each statement on a 7-point Likert scale ranging from 1 (strongly disagree) to 7 (strongly agree). Items making up a scale were combined and averaged to yield an overall score for each scale.  Perceived Over-qualification: Perceived over-qualification was measured based on the mismatch scale developed by Johnson and Johnson (1996), which consists of four items. Johnson and Johnson (1996) adapted the perceived over- qualification measures of Khan and Morrow (1991) to contain two subscales: mismatch and no-grow. The mismatch subscale taps perceptions of surplus education, experience, and talent, whereas the no-grow subscale assesses the employee’s perception of opportunities for learning, growth, and change in her job (Maynard, et al., 2006). Although both sets of perceptions are potentially valuable for predicting job attitudes and other outcomes, Maynard et al. (2006) argue that only the mismatch subscale represents over-qualification, as it is currently understood. A sample item for this scale is, “my formal education over- qualifies me for my present job”.  Job Satisfaction. Job satisfaction was assessed using the three-item scale of Overall Job Satisfaction developed by Cammann, Fichman, Jenkins, and Klesh (1979). This scale assesses the organizational member’s overall affective responses to their jobs. A sample item of the scale is, “In general, I like working 18
  • 19. here.”  Turnover Intentions: Turnover Intentions was assessed using the 2-item scale developed by Boroff and Lewin (1997). This construct measures the respondent’s self reported intent to leave the firm in the future. A sample item for this scale is, “During the next year, I will probably look for a new job outside my current employer.”  Job Design: Job design was measured using the Motivating Potential Score (MPS) of jobs, which was assessed using the 23-item scale, developed by Hackman and Oldham (1974). Items can be categorized into 5 job characteristics: Skill variety (5 items; e.g., “The demands of my job are highly routine and predictable”), task identity (4 items; e.g., “My job provides me with the chance to finish completely any work I start”), task significance (4 items; e.g., “Many people are affected by the job I do”), autonomy (4 items, e.g., “My job gives me considerable freedom in doing the work”), and feedback from the job (6 items; e.g., “My job provides few clues about whether I’m performing adequately”).  HRM Practices: HRM Practices were assessed using the 9-item scale developed by Davies and Gould-Williams (2005). A sample item is, “I have the opportunities I want to be promoted.”  Control Variables: Age and gender were used as control variables in all analyses. It has become widely accepted that men and women vary in their levels of both job satisfaction and turnover intentions. Bender, Donohue, and Heywood (2005) reported that overall, women have higher job satisfaction than 19
  • 20. men. Another study that used data from two British nationally representative surveys also showed that women in both full-time and part-time employment present significantly higher levels of job satisfaction (Zou, 2007). Studies have also shown differences between men and women in terms of turnover intentions. As pointed out by Ucho, Mkavga, and Onyishi (2012), numerous studies suggest that women report higher levels of turnover intentions. Similarly, age has also been linked to job satisfaction and turnover intentions. Based on previous studies (e.g., Hulin & Smith, 1965; Hunt & Saul, 1975), it is generally believed that job satisfaction increases linearly with age. Results of an extensive study done by Bernal, Snyder, and McDaniel (1998) indicated a significant positive linear age- job satisfaction relationship. Finally, Werbel and Bedeian (1989) showed that age is negatively related with intentions to quit. Due to the link between age/gender and the dependent variables of job satisfaction and turnover intentions, age and gender were used as control variables in all analyses. Results Descriptive Statistics and Preliminary Analyses SPSS was used to calculate the descriptive statistics and to test the hypotheses. Table 1 presents scale reliabilities, means, standard deviations, and correlations amongst the variables. Correlations coefficients revealed relationships in expected directions, with job satisfaction and turnover intentions exhibiting a relatively high negative correlation compared to other relationships. This is reasonable given that people who express higher intentions to leave their job are likely not to be satisfied with some aspect of their job and thus exhibit low job satisfaction. Job satisfaction also had a 20
  • 21. high positive correlation with both HRM practices and MPS. Of the control variables, only age yielded a significant correlation with all of the variables, while gender was only significantly correlated to over-qualification and HRM practices. Unlike past research has shown, there was no significant relationship between gender and job satisfaction or between gender and turnover intentions. Table 1: Descriptive Statistics and Correlations for all Key Variables Bivariate Correlations of Variables Variables α Mea n SD 1 2 3 4 5 6 1 Age n/a 40.3 8 10.1 4 1 . 137* . 132* . 410* -.14 9* . 188*2 Gender n/a n/a n/a -.08 * 1 .029 . 177* -.03 8 .039 3 Over- qualification .77 3.81 1.29 -.08 * -.12* *4 Turnover Intentions .93 2.30 1.58 -.17 ** -.02 . 30**5 Job Satisfaction .84 5.80 1.19 .10* .05 -.33* * -.69* *6 MPS .87 5.34 .75 . 13** -.01 -.38* * -.44* * . 62**7 HR Practices .89 4.87 1.22 .10* .08* -.40* * -.55* * . 62** .61** • * Denotes significant at p<.05 • ** Denotes significant at p<.01 • MPS: Motivating Potential Score Hypothesis Testing To test the first 2 hypotheses, hierarchical regression was used. To test the latter four hypotheses, moderated hierarchical regression was employed. Simple slopes analyses were done for each of the moderating relationships (Aiken and West, 1991). Hypothesis 1 predicted that over-qualification was positively related to turnover intentions. The results of a multiple regression analysis indicated that the model was 21
  • 22. significant (F=19.27, p<.05, R2 =.08) and after controlling for age and gender, over- qualification was significantly and positively related to turnover intentions (β=.23, SE=.06, t=6.07, p<.01). Hypothesis 1 was supported. Hypothesis 2 predicted that over-qualification was negatively related to job satisfaction. The results of a multiple regression analysis indicated that the model was significant (F=29.00, p<.05, R2 =.11) and after controlling for age and gender, over- qualification was significantly and negatively related to job satisfaction (β=-.33. SE=.04, t=-8.89, p<.01). Hypothesis 2 was supported. Hierarchical moderated regressions were used to test the remaining hypotheses. Variables entered into moderated regressions were standardized (Aiken & West, 1991). Simple slopes analyses were conducted to assess the significance of the slopes at high (one standard deviation above the mean) and low (one standard deviation below the mean) levels of the moderator (Aiken & West, 1991). Table 2 in the appendix represents the results for the Hierarchical Regression of Over-qualification and HRM Practices on Turnover Intentions and Job Satisfaction (results for the moderating effect of HRM Practices on both dependent variables). In model one and two, over-qualification was regressed on gender and age only. Model three shows the results of the main effect model (gender, age, over-qualification, and HRM Practices), while Model 4 shows the moderated regression model (gender, age, over-qualification, HRM Practices, and the interaction between over-qualification and HRM practices) on both turnover intentions and job satisfaction. Table 3 in the appendix similarly summarizes the moderating role of MPS on the relationship between over-qualification and turnover intentions as well as over-qualification and job satisfaction. The results of each of the hypotheses are 22
  • 23. discussed below. The third hypothesis predicted that HRM Practices would moderate the positive relationship between over-qualification and turnover intentions such that the relationship will be weaker when MPS is high. The interaction between over-qualification and HRM Practices was significant (β=-.11, SE=.05, p<.01). The relationship is plotted in Figure 1. Figure 1: Figure 1 reveals that when perceptions of HRM practices are low, there is a clear positive relationship between perceived over-qualification and turnover intentions, as expected. At low levels of HRM, turnover intentions are higher overall than at high levels of HRM. Conversely, when perceptions of HRM are high, the slope appears nearly flat, indicating that there is no longer a clear relationship between over-qualification and turnover intentions. Simple slopes analysis confirmed these observations and revealed that the slope of the line for those who have relatively low perceptions of their organization's HRM practices is significantly different from zero and positive (t=3.55, p <.05). On the other hand, the slope is not significantly different from zero for those who have relatively better appraisals of the HRM practices in the organization (t=-.84, 23
  • 24. p=.40). This suggests that perceptions of HRM practices moderate the positive relationship between over-qualification and turnover intentions such that the relationship is no longer significant when HRM perceptions are high. Hypothesis 3 was supported. The fourth hypothesis predicted that MPS would moderate the positive relationship between over-qualification and turnover intentions such that the relationship will be weaker when MPS is high. The interaction between over-qualification and MPS was significant (β=-.08, SE=.05, p<.05). The relationship is plotted in Figure 2. Figure 2: Figure 2 shows that for employees who report low MPS, over-qualification appears to be positively related to turnover intentions. Moreover, over-qualified employees that exhibit low MPS are more likely overall to express turnover intentions than those with high MPS. On the other hand, it appears that for those who reported high MPS there was no relationship between over-qualification and turnover intentions. Simple slopes analyses confirmed these observations and revealed that the relationship between over-qualification and turnover intentions was positive significant for those reporting low levels of MPS (t=3.28, p<.05), but not high levels of MPS (t=.67, p=.50). In 24
  • 25. other words, the slope of the line was significantly different from zero for those with low levels of MPS, but not significantly different from zero for those at high levels of MPS. This suggests that levels of MPS moderate the positive relationship between over- qualification and turnover intentions such that the relationship is no longer significant when MPS is high. Hypothesis 4 was supported. The fifth hypothesis predicted that perceptions of HRM Practices moderate the negative relationship between over-qualification and job satisfaction such that the relationship will be weaker when HRM perceptions are high. The interaction between over-qualification and HRM Practices was significant (β=.07, SE=.04, p<.05). The relationship is plotted in Figure 3. Figure 3: Figure 3 shows that when perceptions of HRM Practices are low, there is a clear negative relationship between over-qualification and job satisfaction. Moreover, overall job satisfaction is lower when perceptions of HRM practices are low relative to when they are high. When perceptions of HRM are high, the relationship between over- qualification and job satisfaction appears significantly weaker. Simple slopes analyses 25
  • 26. confirmed these observations and revealed that the relationship between over- qualification and job satisfaction was negative and significant for those who have relatively negative perceptions of their organization's HRM practices (t=-4.34, p<.05), but the relationship is no longer significant for those who have relatively better perceptions of their organization's HRM practices (t=-1.70, p =.09). This suggests that perceptions of HRM practices moderate the negative relationship between over- qualification and job satisfaction such that the relationship is no longer significant when perceptions of HRM practices are high. Hypothesis 5 was partially supported. The sixth hypothesis predicted that MPS would moderate the negative relationship between over-qualification and job satisfaction such that the relationship will be weaker when HRM perceptions are high. The interaction between over-qualification and MPS was significant (β=-.08, SE=.03, p<.05). The relationship is plotted in Figure 4. Figure 4: Figuret 4 shows that when MPS levels are low, there is a clear negative relationship between over-qualification and job satisfaction. Moreover, overall levels of job satisfaction are lower at low levels of MPS. On the other hand, when MPS levels are 26
  • 27. high, there appears to no longer be a clear relationship between over-qualification and job satisfaction. The results of a simple slopes analysis confirmed these observations and revealed that the relationship between over-qualification and job satisfaction was significant and negative at low levels of MPS (t=-4.32, p<.05), but not at high levels of MPS (t=-1.19, p=.23). This suggests that MPS moderates the realtionship between perceived over-qualification and job satisfaction such that the relationship is no longer significant at high levels of MPS. Hypothesis 6 was supported. Discussion This study makes a contribution to the small but growing literature that examines moderators of the relationship between over-qualification and its outcomes and provides insight into how organizations can benefit from employing workers who perceive themselves as being over-qualified (Erdogan & Bauer, 2009). The results provide evidence that perceptions of over-qualification affect both job satisfaction and turnover intentions and that these consequences are moderated by perceptions of HRM practices and job design, measured by the motivating potential of jobs. The finding of significant interaction effects between perceived over-qualification and MPS and perceived over-qualification and HRM practices on both job satisfaction and turnover intentions suggests that job design and HRM practices influence the way employees respond to feelings of over-qualification. High levels of MPS and positive perceptions of HRM practices both nullified the relationships between perceived over-qualification, job satisfaction, and turnover intentions. These findings suggest that employees who feel over-qualified only experience low job satisfaction and high turnover intentions when MPS is low or when perceptions of HRM practices are low. This implies that if 27
  • 28. organizations wish to increase the job satisfaction and decrease the turnover intentions of employees who feel over-qualified, they must improve their HRM practices and increase the complexity of jobs to make them more motivational. Limitations There are several potential limitations of this study. First, since all variables in the study, namely perceived over-qualification, turnover intentions, job satisfaction, MPS, and HRM practices were measured from the same source in a single survey, the study suffers from potential common method bias. A second potential limitation of the study is the use of a subjective measure for over-qualification. As proposed by Erdogan et al. (2011), such measures may lack a standard referent, which detracts from their theoretical and empirical precision. Implications for Future Research Although it is clear that perceived over-qualification could have important effects on both individuals and organizations, an issue that remains unclear is what factors affect a person’s perception of over-qualification (Erdogan et al., 2011). Moreover, although past studies go a long way in unearthing factors that may temper the relationship between over-qualification and employee outcomes, they have focused exclusively on personal and organizational level moderators, ignoring the potential impact of macro level moderators. This is partly because of their reliance on individual country data. This has prevented researchers from exploring the effect of cross-country variation in economic, social, and institutional factors. To date, no body of research has examined whether macro-level factors, such as national institutions, labour market regulatory framework, economic cycles, and cultural or societal norms, moderate the 28
  • 29. relationship between over-qualification and outcomes. Examining moderators at this level is important, given that previous studies have highlighted the significant variation in over-qualification levels across countries. Moreover, the differences in labour laws, economic conditions, and education systems across countries draws attention to the importance of understanding how macro factors moderate the negative consequences of over-qualification on employee job attitudes and wellbeing (Erdogan et al., 2011). Identifying national contextual moderators will provide information that can be harnessed by global organizations to strategically respond to over-qualification in various countries (Erdogan et al., 2011). Although no empirical work has tested macro moderators before, many macro factors have been shown to influence the level and effect of over-qualification (Erdogan & Bauer, 2009). Future studies in this area should explore the factors that influence a person’s perception of over-qualification. Future studies should also exploit the cross-country variation of macro factors and identify their potential moderating influence in the relationship between over-qualification and workplace outcomes. This will bridge research located in the fields of labour economics, management, and psychology to provide insight into how organizations can organize work given national contextual factors to mitigate the negative consequences of over-qualification. Exploring macro level moderators will also shed light on the economic and institutional factors that can lessen the negative effects of over-qualification. Conclusion Over-qualification is a psychological variable that is salient to both employees and job applicants and can have important effects on employee attitudes and behaviors 29
  • 30. as well as on recruitment policies of employers (Edrogan et al., 2011). It is likely that the issue of over-qualification will remain relevant in the coming years given that it has been on the rise, affecting a number of different populations, ranging from immigrants, to reemployed employees following a layoff, to temporary workers, to employees working in declining industries to older workers, young workers, and employees with disabilities (Erdogan et al., 2011). This study provides empirical evidence for the notion that the negative consequences of perceived over-qualification can be avoided. The present study examined the moderating role of perceptions of HRM practices and job design on the relationship between over-qualification and job satisfaction/turnover intentions. The results of the study showed that perceived over-qualification resulted in lower job satisfaction and higher turnover intentions. These findings are consistent with those of previous studies indicating that over-qualification causes personal frustration and dissatisfaction with one’s job (Johnson & Johnson, 1996). The results also indicated that HRM and job design both moderated the negative effects of over-qualification such that those who felt over-qualified only experience low job satisfaction and high turnover intentions at low levels of MPS and relatively negative perceptions of their organization’s HRM practices. 30
  • 31. Appendix Table 2: Hierarchical Moderated Regression of over-qualification and HRM Practices on Turnover Intentions and Job Satisfaction Turnover Intentions Job Satisfaction β(SE β(SE) β(SE) β(SE) β(SE) β(SE) β(SE) β(SE) Model 1 Gender -.02(.12) .04(.09) Age -.17(.01)** .10(.00)* Model 2 Gender .00(.12) .00(.08) Age -.15(.01)** .07(.00) Over-qualification .23(.06)** -.33(.04)** Model 3 Gender .04(.10) -.04(.07) Age -.11(.01)** .03(.00) Over-qualification .06(.05) -.13(.04)** HRM Practices -.45(.06)** .56(.04)** Model 4 Gender .04(.10) -.04(.07) Age -.11(.01)** .02(.00) Over-qualification .07(.05)* -.14(.04)** HRM Practices -.46(.06)** .54(.04)** Over-qualificationxHRM -.11(.05)** .07(.04)* F 9.95** 19.27** 16.34** 55.31** 3.54* 29.00** 103.12** 84.00** Adjusted R2 (change) .03** .08** .28** .29** .01* .11** .27** .01* Note: *p <.05, **p<.01 Note: Standardized regression coefficients are presented, along with the standard error Note: Adjusted R2 (change) indicates whether R2 was significantly improved from previous step
  • 32. Table 3: Hierarchical Moderated Regression of over-qualification and MPS on Turnover Intentions and Job Satisfaction Turnover Intentions Job Satisfaction β(SE) β(SE) β(SE) β(SE) β(SE) β(SE) β(SE) β(SE) Model 1 Gender -.02(.12) .04(.01) Age -.17(.01)** .10(.00)* Model 2 Gender .00(.12) .00(.08) Age -.15(.01)** .07(.00) Over-qualification .23(.06)** -.33(.04)** Model 3 Gender -.01(.11) .04(.07) Age -.11(.01)** .01(.00) Over-qualification .10(.06)* -.12(.04)** MPS -.37(.06)** .57(.04)** Model 4 Gender -.01(.11) .04(.07) Age -.11(.01)** .01(.00) Over-qualification .10(.06)** -.12(.04)** MPS -.35(.06)** .56(.04)** Over-qualificationxMPS -.08(.05)* .08(.03)* F 9.95** 19.27** 39.82** 32.92** 3.54* 29.00** 108.07** 88.45** Adjusted R2 (change) .03** .08** .19** .19* .01* .11** .39** .39* Note: *p <.05, **p<.01 Note: Standardized regression coefficients are presented, along with the standard error Note: Adjusted R2 (change) indicates whether R2 was significantly improved from previous step 32
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