Consequences of employees' perception towards their jobs: evidence from the leather industry of Bangladesh

Md Aktar Kamal ^a* , Rakib Hasan Anik^b

^a*Assistant Professor; Department of Management Studies, Bangladesh University of Professionals, Bangladesh. Corresponding author's email address:

^b Department of Management Studies, Bangladesh University of Professionals, Bangladesh

Keywords: Job satisfaction, Retention, health and safety, Salary and benefit, Supervisor's behavior, Work and family life

ARTICLE HISTORY: Received:12-Aug-2019, Accepted: 06-Nov-2019, Online available:20-Nov-2019

Contribution/ Originality

This is first study that specifically focused on the leather industry of Bangladesh and provides empirical evidence of how job satisfaction and retention of employees are associated with employee's perception towards the job. Moreover, the current study contributes in the existing literature with a multi-dimensional analysis of employee's perception and behavior.

1. INTRODUCTION

'Job satisfaction' has become a buzzing and interesting phrase to ponder in today's workplace situations, and to be more precise, it can be defined in various separate ways, based on different concepts and perspectives and could naturally and straightforwardly be linked with the employee's causal sentiments and overall feelings of self-esteem. Some employees consider 'job satisfaction' as to the extent to how much gratified one individual feels towards his/her job, or in simple words the extent of his/her likeliness in work. But academics and professionals developed this concept in a more complex expressive statement wherein they put forward their view points about the multidimensional psychological reaction of one's occupation.

According to Locke (1976), "Job Satisfaction is a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences". On the other hand, Dessler (2001) and Davis and Newstrom (2003) define 'job satisfaction' as a "set of suitable or uncomplimentary emotional state of the employees to perceive their work and that regulate the possibility of their key temperament to achieve higher enactment". Therefore, the definition of 'job satisfaction' clearly indicates the individual's common approach and general attitude towards his or her job (Robbins, 1998). It can also be obviously understood that in the standings of its connection with other key aspects, such as general comfort in job, pressure at workplace, mechanism of work, home-work at crossing point, and working surroundings, 'job satisfaction' provides a significant impact, as well.

In the leather industry of Bangladesh, regular workforces are interestingly diverse in terms of not only in demographic structures, but also in their working outlines, operative organizational associations, or in grossing and various other significant inclination factors towards job satisfaction. Although money, trust, respect, healthy environment, health and security measures, individual growth and collective benefits, etc. are considered to be the most/vital factors to ensure job-satisfaction among the workers. But surprisingly, most of the leather companies of Bangladesh are not apparently concerned about these factors and almost everyone shows the tendency of treating the workers only with minimum wages. In order to find themselves content with their jobs, the employees will have to be pleased and fully satisfied with their work and may cause lesser hindrances and non-dreaded apprehensions accordingly. Their efforts will be diverted towards much higher levels than those done at regular times and in return, productivity will increase gradually. The workers who are not satisfied with their own tasks will not be enthusiastic, sincere and eager towards any job given to them, and will be more susceptible to ignore and avoid their responsibilities.

Besides the above flaws and drawbacks, such workers would be seen with greater levels of absenteeism at work and even while being present at work, they will be least bothered to show their responsibilities and would apparently appear very little worried about business matters, which will obviously and undoubtedly disturb the activities of the organizations, quite adversely. On the contrary, those workers who are extremely satisfied and pleased with their work have an outstanding and welcoming affinity for confirmative and useful support from their coworkers and workmates. This sort of collaboration brings in compassionate culture and rationale conditions within the organization. Hence, job satisfaction also prompts safety and higher workstation outlooks with lesser pessimism and helps in the smooth functioning of the companies. As an established fact, it can be determined that pacified workers are more likely to do better than the displeased workers. Accordingly, from the root level workers to the topmost executive personnel within the leather companies, it is essentially necessary to make sure that their job-satisfaction would ultimately assist to escalate the performance of leather industries.

1.1. Significance

Since Bangladesh is on the road to prepare in reaching the next upper stage of economic advancement, successive attempts are underway. In order to achieve adequate results, intellectual policymakers are making attempts to raise the status of Bangladesh internationally and provide competitive activities and confirm superior economic measures, through the creation of more prolific jobs, higher productive output as well as, acquire greater average incomes. To attain such achievable target Bangladesh urgently needs to expand and upgrade its export sectors from export compositions towards huge volumes, higher values, and in lofted range. Though ready-made garments (RMG) industry of Bangladesh delivered a much-needed momentum over the last three decades, it is still far behind than most of other Asian competitors.

In the year 2017, export earnings of Bangladesh were only $35 billion, which are comparatively quite smaller in comparison with countries like Philippines, Indonesia, and even Vietnam. Bangladesh desperately needs to expand its value, range and volume of export earnings and at the same time, try to make simultaneous attempts towards greater export response from non-RMG sectors. When Bangladesh thinks of considering an increase in export growth through the expansion of diversified export sectors of the leather and leather goods industry, it apparently holds a greater promise, which stands as the second export earner of Bangladesh. In the year 2017, the total export value of Bangladesh from leather and leather goods was $1.2 billion which was 3.35% of its total exports, whereas in 2016, the total employment in this sector was 129,000.

The leather exports sector shows a strong backward linkage in terms of using raw material, mostly from local sources. The estimated domestic value addition was as high as 80% to 95%. However, the export policy of 2015-18 aimed to take target-oriented steps to raise export earnings to $60 billion by 2021, out of which nearly $5 billion was expected from the export of leather and leather goods. The global experience showed that successful garment manufacturing countries tended to find it easier to develop specialization expertise in leather products and footwear industries. The leather sector should therefore be assumed a natural driver of export diversification in Bangladesh and the employees therein play very significant and vital roles to achieve the desired targets. Hence, while measuring the employees' perceptions toward their jobs provide and show the right and viable directions to policymakers for feasible plans and guide investors for adequate investments for the improvement of this industry.

2. LITERATURE REVIEW

Job satisfaction is directly associated with productivity and employee well-being (Miller and Ross, 2002). Maslow (1954) explained that human desires from a five processes of hierarchy lying by physiological necessities, security, becomingness, esteem or admiration, and self-actualization. Herzberg et al. (1959) explain the relationship between motivation and job satisfaction in the workstation. He described that job satisfaction and job dissatisfaction are caused by several factors - which are identified as hygiene factors and motivation factors. Motivating issues are those parts of the work that makes persons want to execute his task, and offer people with contentment, as an accomplishment in work, acknowledgment and advancement opportunities. On the other hand, Hygiene factors deal with the working atmosphere such as salary, company rules regulation, managerial practices, and other working surroundings. Hygiene factors cause dissatisfaction among personals in an organization. For removing dissatisfaction in the workplace, these hygiene aspects need to be eliminated. A study found that if one person thinks there is discrimination between two groups or persons, the individual is expected to be unhappy because input and output ratio will not be equal (Adams, 1965; Walster et al. 1973; Huseman et al. 1987). Job satisfaction is measured by an incongruity between what an individual seeks a job and what has been in a job (Hackman and Oldham, 1976). Staw et al. (1986) identified four factors self-esteem, locus of control, self-efficacy and neuroticism and they have a significant impact on job satisfaction based on their level of degree. Higgins (1987) discussed the source of dejection and anxiety. A person who is not able to complete his duties feels regret and anxiety about not acting well. They also feel depression because of not be able to reach their expectations and objectives. Anxiety and agitation are the key answers when a person fails to attain the requirement or obligation. This notion also clarifies that if the accomplishment of the duties is achieved then the recompense can be admiration, endorsement, or love. Lawson (1987) described the result of instigators on job contentment. He statuses intrinsic persuaders' helps in attaining job satisfaction and the study articulates that stress is one of the main reasons which cause dissatisfaction hence it needs to be given proper attention to lessen the intensity of employee dissatisfaction. The superintendent is the one who has a key influence on job gratification. The director supports raising the happiness level by presenting more essential motivators like exciting work and job enlargement to the juniors and he can deliver the most concrete assistance to the employees. Melvin (1993) identified that the working environment and the surrounding design of a company act as a very significant part of job contentment. In a similar period job satisfaction also plays a vital role in worker's high job engrossment. A decent environment look of the organization assists to resolve the clashes and misunderstanding. Lise and Timothy (2004) conferred that job satisfaction is related to the employee's attitude toward his work. When an individual has a predilection towards his job the contentment level rises thereby escalating the organization overall enactment as well as. In the opposite word, dissatisfaction has an impact on performance which slows down the organization's efficiency. Kumari and Pandey (2011) founded that job satisfaction level was verified in terms of job uncertainty. Sophisticated performance score was found when the work uncertainty handled by the personals is fewer and vice-e-versa. Job performance and satisfaction have no connection when the work ambivalence rises towards the task. Ramayah (2011) assesses by counting the Malaysian background whether mentoring hints to job satisfaction. His conclusions reveal that job mentoring was connected to all the magnitude of job satisfaction. Scopes of job satisfaction premeditated here was colleagues, bosses, and promotion and the job itself. Counselor plays a vital part in an advanced level of developing and it unswervingly results in progressive employee outcomes. But spiritual mentoring doesn't ensure a noteworthy correlation among three issues of job satisfaction. Singh and Jain (2013) explained the work atmosphere is the crucial factor in job contentment. Good work setting and decent working surroundings help to have job satisfaction in the meantime it aids in aggregating worker's job performance, productivity, customer fulfillment as well as minimizing retention. Abbas et al. (2014) Our clearly found and supported the proclamation that when personnel observe politics in their workplace, it decreases their contentment and enactment and escalated the possibility that they might be leaving the company. These results provide enough support for the hint of alleged politics being harmful to anticipate results at the workplace. Their results show a positive sign towards the psychological capital which may have a positive impact on preferred results such as job performance and job contentment, but not having any intention to resign. Saleem (2015) investigated the effect of leadership culture on job contentment and to understand if it mediates the apparent organizational politics or not. Research outcome exposed that transformational guidance has an affirmative influence on job contentment and transactional guidance has an undesirable impact on job contentment. Results also propose that apparent organizational politics moderately arbitrate the connection between both headship styles and job contentment. Vratskikh et al. (2016) argued that the emotional intelligence of employees is positively associated with job performance and job satisfaction. Kampkotter (2017) focused on the response of personnel to their performance evaluations and found that measuring feedback without incentive for their effort is negatively related to job satisfaction.

2.1. Work and family life

Work-life and family life two are the key most important factors in terms of considering job satisfaction of the professionals' employees in the organization and when these two are in perfect balance, it works as a primary source of employee satisfaction (Valcour, 2007). Work-life means the surroundings of the work station and the overall social environment; family life is the after-work quality time employees spend with their family members and balancing these two should be ensured through the flexibility offered by organization because of its own interest as dissatisfied employees can never be utilized his full potentials and decrease the total organization performance (Clark, 2001). For some reason, if balancing work life and family life doesn't happen then it leads towards frustration, guilt and inadequacy among the employees where a good balance between them can make employees highly motivated and to do properly their assigned job (Hill et al., 2001).

2.2. Health and safety

Modern organizations are now emphasizing more on workplace safety and employees' health issues to minimize workplace casualties and accidents as they want to build an employee-friendly image of the organization towards its stakeholders and sometimes forced by the regulators to do it (Sheeran and Silverman, 2003). Employers need to provide training and proper information to their workers regarding the safety measures and the possible risks related to their job which the main objective is to make them prepare if any kind of hazardous situation arises (Hammer et al., 2019). Manual handling related jobs like lifting, lowering, carrying and pulling is one of the main reasons for injuries; then comes the physical hours, shift work and working a long time in front of computers which are issues that can compromise the health concerns of the employees. Ventilation of the workplace, lighting, washing, toilet and the temperature of the factory or workplace all are safety issues and any breach of the security can cause harm for the employees in the organization (Vickers et al., 2005).

2.3. Salary and benefit

Employees in the organization get compensation according to their contribution to the company and that comes in the form of salaries or wages. Other benefits include bonuses, different allowance, vacation, employee stock ownership plan and insurance policy (Udin and Yuniawan, 2018). Compensation and benefits plan vary from organization to organization depending on the company's own culture and characteristics; sometimes government or industry wage board determines the minimum wage and benefit for the employees that all organization needs to follow (Park, 2018). Benefits can be tangible or intangible that hinge on the role played by the employee and the type of work carried out by that person (Udin and Yuniawan, 2018). These benefits are also dissimilar for a different level of employees working in the same organization, the lower level employees enjoy less benefit compare to its upper level though they do the labor work and spent more time in the organization (Bryant and Allen, 2013).

2.4. Supervisor's behavior

The immediate supervisor of employees plays the main role of how the workers are treated in the organization as most of the time employees report to him or interact with him an official matter. The qualified and respected boss is found to be an important factor that can motivate the employees to do their assigned job and if employees get rough behavior from the supervisor, it creates a bad impression over the employees especially for the newly recruited people (Mitchell and Ambrose, 2007). Each employee in a company always relies on his supervisor for the direction of his work; they expect him to be friendly and easy-going when they ask for something. Now the supervisor reports to another supervisor so it is a chain that has a ripple effect. If someone gets good behavior from his supervisor then he is likely to do the same towards his subordinate when he becomes the boss (Duffy and Ferrier, 2003). In a modern organizational structure, the relationship between manager and subordinate are given more emphasize and try to build informal relation outside office premises like attending family occasions and events that are found to be effective in terms doing official works as well as (Yang and Caughlin, 2017).

2.5. Employee satisfaction and retention

There are several factors like organizational leadership, benefits from the management and workplace environment that determines the satisfaction level of an employee in the organization and the importance of each factor varies from person to person. Some may prefer the social value over the monetary benefit of getting from the organization and some may give priority on the flexibility of the work schedule despite having some less salary from others (Rust et al., 1996). Now, keeping people satisfied in the organization is very much necessary as it directly impacts the performance of an individual and the overall organization. When the employees are not satisfied, they try to switch the job and that increase the retention rate of the workers which is not good for the organization because hiring new people means incurring more cost and also have training and development cost; where the satisfied existing employees can serve the company for a long time (Terera and Ngirande, 2014). Retention is the result of lack satisfaction among the employees and organizations need to ensure satisfaction by providing extra facilities like higher salaries, flexible reporting and good supervision for their own benefit (Brown and Yoshioka, 2003).

2.6. Hypotheses development

2.6.1. Work and family life and employee satisfaction and retention

Balancing work-life and family life is tough for the lower-level employees in the organization as they do all the hard work all day, sometimes need to do the overtime and most of them don't have any family life due to tremendous work pressure. The executive is also facing the same problem because they have to look after a lot of work and travel frequently to check the overall activities. But, in modern time some organizations are giving extra holiday, parental leave or sick leave that helps to balance the family problem along with work life (Greenhaus et al., 2003). If the balance between these two disrupted, then it directly impacts the satisfaction of the employees. They feel frustrated and try to find the solution to it if they fail to balance then they become depressed. The retention rate increases because employees try to get a job that has less pressure and to bring stability in life. Especially qualified and trained employees with high self-esteem always try to balance work and family life or they switch the job (Valcour, 2007). Hypothesis 1: Work and family life is positively related to job satisfaction and employee retention.

2.6.2. Workplace safety and job satisfaction and retention

Workplace safety is a vital issue, especially for the labor and health risk-oriented jobs as regulators and the buyers of the product, are concerned about this nowadays and it is related to employee satisfaction as well as (Ayim, 2005). People working in factories are becoming more health-conscious than previous; they are trained and knowledgeable about the importance of health and safety issues because risky environment harms their body in the long run and makes them unfit for the heavy job before their old ages. When people getting the feeling of doing a job in a risky environment, they become demotivated which has an impact on their performance as well as (Song et al., 2007). The study found that the retention rate is high in risky jobs because people try to change their job for a safer environment that has adequate facilities of safety materials and that can be a different organization of the same industry (Barling et al., 2003).

Hypothesis 2: Workplace health and safety is positively related to job satisfaction and employee retention.

2.6.3. Salary and benefit and job satisfaction and retention

Monetary benefit getting the employees is one of the key motivations for the employees in the organization and that is positively related to the job satisfaction level of workers. People doing hard and lengthy job but getting less money make a person highly dissatisfied and encourage them to switch the job for better pay (Huo et al., 2018). Some persons have the only motivation for their work and that is money, they don't care about environment or social aspects if they are getting handsome amount of money and other benefits like bonuses, divided, equity share these are the additional benefits given by the company that helps to get a bunch of highly satisfied people (Tang, 1995). People are ready to do overtime if the payment given for overtime is high. Now the satisfaction of the employees depends if employees get the feeling of having a high salary than other companies comparatively. When the salary is not high enough, people try to develop another skill and change the job that increases the retention rate due to dissatisfaction among employees (Li-Ping et al., 2004).

Hypothesis 3: Salary and benefits are positively related to job satisfaction and employee retention.

2.6.4. Supervisor's behavior and satisfaction and retention

The social value created in the organization is directly related to the behavior employees are getting from their supervisors. Supervisors are the guide for the workers and they continuously take orders from them, now if the behavior people are getting from their supervisor is not respectable then it makes the employees dissatisfied (Griffin et al., 2001). Workers in the organization highly depend on their supervisor, they need to report to him and for any kind of benefits, salary, promotion or leave, and employees need to get the permission of him. So, the friendly and trained supervisor can be motivated by his subordinates and guide them in the right direction by minimizing their job-related frustration (O'Driscoll and Beehr 1994). The organization who fails to appoint a good supervisor for its workers are likely to find high retention rate because continuous clash and conflict between them hamper the overall performance and people get motivated to switch their job that's why supervision of employees is important for the employee satisfaction and retention (Ashraf, 2019).

Hypothesis 4: Supervisor's behavior is positively related to job satisfaction and employee retention.

2.7. Objectives of the study

• To know employees' perception toward incentive and benefits plan of the company in the leather industry
• To identify employee's opinion regarding the behavior of supervisor and health and safety conditions in selected industry.
• To measure the family and working life of employees.
• To analyze the overall satisfaction level and intention to leave the organization.

3. RESEARCH METHODS

3.1. Research design

A survey method has been used to examine the employee's perceptions toward their job in the leather industry of Bangladesh.

3.2. Sampling and sample size

A convenient sampling method has been applied to collect the data. The researcher tried and attempted to collect data from 500 workers employed in the leather industry of Bangladesh, but the researcher abled to reach only 384 respondents. For determining the sample size, the rule of thumb which indicates more than 30 and less than 500 samples have been applied (Roscoe, 1975; Sekaran and Bougie, 2010).

3.3. The survey instrument and data collection

The researcher has gone through a comprehensive literature review to identify the level of job satisfaction of workers in the leather industry of Bangladesh. A self-administered close-ended questionnaire has been used. A five-point Likert-type scale with responses ranging from (1) 'strongly agree' to (5) 'strongly disagree' was used to measure the respondents' views on all variables. The questionnaire is composed of five components where work and family life, salary and benefit, supervisor's behavior and health and safety are used as independent variables and job satisfaction and employee retention used as the dependent variables. Both primary and secondary data have been used in this study. For primary data face-to-face interview method has been used.

3.4 Data analysis

All collected raw data has been reviewed, edited and entered the Statistical Package for the Social Sciences (SPSS) software to carry out descriptive statistical analysis. For analyzing research mode this study used the Smart PLS M3.0 software. Based on two-stage analytical procedures researchers investigate the measurement model and the structural model. In order to investigate the significance of the path coefficient and the loading, a bootstrapping method (1000 re-sample) has been used for this study.

4. RESULTS

4.1. Measurement model

Discriminant validity also used to measure the level of other reflections on some other construct. Discriminant validity can be reflected by low correlations between construct measure and interest measure (Cheung and Lee, 2010). Fornell and Larcker (1981) recommended that if the square root of the AVE exceeded the inter-correlations of the construct with the other constructs, discriminant validity is satisfied. Table 2 exhibited satisfactory discriminant validity as all the square root of AVE is higher than other inter-correlations.

Moreover, Stone-Geisser Q2 has been measured to assess the predictive relevance model. According to Chin (2010), the redundancy in Q2 must be higher than zero. The current study fulfilled these criteria for the entire latent construct. Table 3 shows that the value of Q2 ranged from 0.407 to 0.775 which is higher than zero.

Table 1: Results of the measurement model

Figure 1: Measured model

Table 2: Discriminant validity

Table 3: Construct cross validated communality

4.2. Structural model

Structural model is developed to assess the hypothetical relationship among the variables where exogenous latent variable salary and benefit, work and family life, supervisor's behavior and health and safety have influence on endogenous variable job satisfaction and job retention. Table 4 and figure 2 shows the path where salary and benefit as well as health and safety have significant influence on job satisfaction and job retention as p-value is less than 0.00. Whereas supervisor's behavior and work and family life do not have statistically significant influence on job satisfaction and employee retention.

Table 4: Path coefficient

Figure 2: Structural model

5. DISCUSSIONS

The aim of this study was to measure the factors affecting health and safety measures, working conditions and family life, salary and benefits, and supervisor's behavior within the leather industries of Bangladesh along with the impact of these factors on job satisfaction and employee retention. The study found some similarities and some dissimilarity as well, already seen in previous studies. The current study recommends that the image of the institutions, employment facilities provided to the spouses, possibilities to receive assistance from co-workers when necessary, and flexible work schedules are important determinants for working conditions and status of family life in the organization. However, this study provided no support to the concept that working conditions and family life are positively related to job satisfaction and employee retention. According to the findings of the study medical facilities, first aid medical support, enough working space, cleanliness, ventilation, and job security were available, which are considered to be very important factors to ensure health and safety conditions in the workplace. This study also proved that workplace health and safety are positively related to job satisfaction and employee retention.

This study concluded to show that salary (wages) when compared to the amount of work performed, timely payment, increment policy, paid vacations or sick leaves, in-time bonuses are obviously the important factors that affect employees' motivation. The current study recommends that salary (wages) and benefits have a statistically significant influence on job satisfaction and employee retention.

It has been further revealed in the study that supervisor cares for career advancement of workers, by offering training opportunities. The supervisor's trust in fellow co-workers is seen as of immediate interest, providing adequate time to listen to their complaints and grievances, besides sharing sufficient and useful information related to work, are of course, the crucial factors to determine the employees' motivation towards the leather industry of Bangladesh. The current study showed no significant relationship of the supervisor's behavior with job satisfaction and employee retention.

6. POLICY IMPLICATIONS

On the whole, the study provides very interesting and informative findings whereas some possible and rational outcomes have also been explored. Firstly, this study provided empirical evidence of the employees' perception towards their job assignments in the leather industry of Bangladesh. Secondly, the present study suggested feasible and adequate advice to almost all the stakeholders, like policymakers, entrepreneurs, investors, etc. to focus sternly on the key factors that had been affecting the attitude of employees in the leather industry of Bangladesh. Finally, it could be assured that the investigations, estimations, and findings of this study would assist researchers in future in the leather industry of Bangladesh in particular, and other global leather industries, in general.

7. LIMITATIONS AND FUTURE RESEARCH

This study is not free from some limitations. Firstly, this study is based on only one industry and the study area is limited within Dhaka and Savar. Secondly, the current study administers data from only 384 respondents. So, further study can be done by taking data from wide-area and taking respondents from other industries. More studies might be conducted by taking a lesson from a developed country.

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