Causal Relationship of Organizational Loyalty of Gen Y Telecommunication Engineers in Thai Telecommunication Public Enterprise
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Published:
Nov 29, 2018
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Abstract
This research aims to validate factors affecting to organizational loyalty and analyze of telecommunication engineers in Thai Telecommunication Public Enterprise. Research sample consisted of 527 Gen Y telecom engineers using the multi-stage sampling method. The data were analyzed by 6-item Likert scale with Cronbach’s alpha coefficient between 0.83 to 0.95. The second order confirmatory factor analysis result revealed that the adjusted causal model was consistent with the empirical data with x2
= 112.94, df = 94, p-value = 0.089 (x2/df = 1.201), GFI = 0.94, AGFI = 0.94, CFI = 1.00, SRMR = 0.021 and RMSEA = 0.020, all factor loading indicated the positive values with statistically significant at level 0.01. For the individual-level factors, the findings showed that both job satisfaction and psychological empowerment affected directly to organizational loyalty. Psychological empowerment also affected indirectly to organizational loyalty.For the organizational-level factors, the results indicated that perceived
organizational support and human resource management practices influenced directly to organizational loyalty whereas the supervisory trust did not influence both directly and indirectly to organizational loyalty.
Article Details
How to Cite
Orawongsuphathat, chawal, & Pimthong, S. (2018). Causal Relationship of Organizational Loyalty of Gen Y Telecommunication Engineers in Thai Telecommunication Public Enterprise. University of the Thai Chamber of Commerce Journal Humanities and Social Sciences, 38(3), 29–47. Retrieved from https://so06.tci-thaijo.org/index.php/utccjournalhs/article/view/157967
Section
Research Articles
ลิขสิทธิ์ของบทความ
ผลงานที่ได้รับการตีพิมพ์ถือเป็นลิขสิทธิ์ของมหาวิทยาลัยหอการค้าไทย ห้ามมิให้นำเนื้อหา ทัศนะ หรือข้อคิดเห็นใด ๆ ของผลงานไปทำซ้ำ ดัดแปลง หรือเผยแพร่ ไม่ว่าทั้งหมดหรือบางส่วนโดยไม่ได้รับอนุญาตเป็นลายลักษณ์อักษรจากมหาวิทยาลัยหอการค้าไทยก่อน
References
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Butz, R., Dietz, J., & Konovsky, M. (2001). Top management and immediate supervisors as distinct targets of trust. Paper presented at the Society for Industrial and Organizational Psychology Conference, San Diego, CA. n.p.
Colakoglu, U., Culha, O., & Atay, H. (2010). The effects of perceived organizational support on employees’ affective outcomes: Evidence from the hotel industry. Tourism and Hospitality Management, 16(2), 125-150.
Conway, N., & Briner, R. B. (2005). Understanding psychological contracts at work: A critical evaluation of theory and research. Oxford, United Kingdom: Oxford University Press.
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Dickson, E. K., & Lorenz, A. (2009). Psychological empowerment and job satisfaction of temporary and part-time nonstandard workers: A preliminary investigation. Institute of Behavioral and Applied Management, 14, 243-254.
Dirks, K. T., & Ferrin, D. L. (2002). Trust in leadership: meta-analytic findings and implications for research and practice. Journal of Applied Psychology, 87(4), 611–628.
Domínguez-Falcón, C., Martín-Santana, J. D., & DeSaá-Pérez, P. (2016). Human resources management and performance in the hotel industry: The role of the commitment and satisfaction of managers versus supervisors. International Journal of Contemporary Hospitality Management, 28(3), 490-515.
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Eketu, C. A., & Ogbu, E. F. (2015). Promoting employee loyalty through organizational learning: A study of selected hospitality firms in Port Harcourt, Nigeria. ISOR Journal of Business and Management, 17(11), 39-44.
Gilleta, N., Gagnéb, M., Sauvagèrea, S., & Fouquereaua, E. (2013). The role of supervisor autonomy support, organizational support, and autonomous and controlled motivation in predicting employees' satisfaction and turnover intentions. European Journal of Work and Organizational Psychology, 22(4), 450-460.
Gould-Williams, J. (2003). The importance of HR practices and workplace trust in achieving superior performance: a study of public-sector organizations. International Journal of Human Resource Management, 14(1), 28-54.
Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates of employee turnover: Update, moderator tests, and research implication for the next millennium. Journal of Management, 26(3), 463-488.
Guest, D., & Conway, N. (1999). Peering into the black hole: The downside of the new employment relations in the UK. British Journal of Industrial Relations, 37(3), 367-389.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2009). Multivariate data analysis: A global perspective (6th ed.). Upper Saddle River, NJ: Pearson Education.
Hom, P. W., & Kinicki, A. J. (2001). Toward a greater understanding of hoe dissatisfaction drives employee turnover. Academy of Management Journal, 44(5), 975-987.
House, R., Rousseau, D. M., & Thomas–Hunt, M. (1995). The meso paradigm: A framework for the integration of micro and macro organizational behavior. In L.L. Cummings & B.M. Staw (Eds.), Research in organizational behavior (pp. 71–114). Greenwich, CT: JAI Press.
Jawahar, I. M., & Hemmasi, P. (2006). Perceived organizational support for women's advancement and turnover intentions: The mediating role of job and employer satisfaction. Women In Management Review, 21(8), 643–666.
Jedsadaluck, W. (2010). The relationship between distributive and procedural justice and organizational citizenship behavior and In-role performance: The mediating effect of perceived organizational support. Silpakorn University Journal, 30(2), 6-81. (in Thai).
Jose, G., & Mampilly, S. R. (2014). Psychological empowerment as a predictor of employee engagement: An empirical attestation. Global Business Review, 15(1), 93–104.
Jun, M., Cai, S., & Shin, H. (2006). TQM practices in maquiladora: Antecedents of employee satisfaction and loyalty. Journal of Operations Management, 24, 791-812.
Junlakanit, N. (2017). "HR 4.0" Engaging Gen X-Y-Z employee. Retrieved June 16, 2017, from https://www.prachachat.net/ news_detail.php?newsid=1497496767 (in Thai).
Keawkhuntod, U. (2007). Trust in leader, trust in organization and organizational loyalty toward of behavior and performance efficiency of Net BKK Company Limited staffs (Unpublished master’s . individual study). Srinakarinwirote University, Bangkok, Thailand. (in Thai).
Khajehpour, N., Baharlou, M., Montakhab-Yeganeh, M., & Hashemei, S. E. (2016). The mediating role of psychological empowerment and organizational justice in the relationship of servant leadership with job satisfaction, organizational citizenship behavior and organizational commitment. International Journal of Behavioral Science, 10(3), 99-105.
Khany, R., & Tazik, K. (2016). On the relationship between psychological empowerment, trust, and Iranian EFL teachers’ job satisfaction: The case of secondary school teachers. Journal of Career Assessment, 24(1), 112-129.
Khuong, M. N., & Tien, B. D. (2013). Factors influencing employee loyalty directly and indirectly through job satisfaction- A study of banking sector in Ho Chi Minh City. International Journal of Current Research and Academic Review, 1(4), 81-95.
Kline, R. (2011). Principle and practices of structural equation model (3rd ed.). New York: Guilford Press.
Kongkrapun, M. (2011). A study of personal relationship perception, the perception of organizational support through organizational commitment and satisfaction toward job performance in role performance (Unpublished master’s thesis). Silpakorn University, Nakornpathom, Thailand. (in Thai).
Kwon, K., Bae, J., & Lawler, J. J. (2010). High commitment HR practices and top performers: Impacts on organizational commitment. Management International Review, 50, 57-80.
Latorre, F., Guest, D., Ramos, J., & Gracia, F. J. (2016). High commitment HR practices, the employment relationship and job performance: A test of a mediation model. European Management Journal, 34, 328-337.
Li-Chaoping, & Tian-Bao, S-K. (2006). Transformational leadership and employee work attitudes: The mediating effects of multidimensional psychological empowerment. Acta Psychological Sinica, 38(2), 297–307.
Mak, B. L., & Sockel, H. (2001). A confirmatory factor analysis of IS employee motivation and satisfaction. Information & Management, 38, 265–276.
Martensen, A., & Grønholdt, L. (2006). Internal marketing: A study of employee loyalty, its determinants and consequences. Innovative Marketing, 2(4), 92-116.
Matzler, K., & Renzl. B. (2006). The relationship between interpersonal trust, employee satisfaction, and employee loyalty. Total Quality Management, 17(10), 1261–1271.
Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709-734.
Muad-ead, W. (2007). Causal relationship model of factors that impact to organizational citizenship behavior of teachers in Nakornnayok Basic Educational Office (Unpublished master’s thesis). Srinakarinwirote University, Bangkok,Thailand. (in Thai).
Mustapha, M., & Daud, N. (2012). Perceived performance appraisal effectiveness, career commitment and turnover intention of knowledge workers. International Journal of Business and Social Science, 3(19), 157-165.
Petrescu, A. I., & Simmons, R. (2008). Human resources management practices and worker’s job satisfaction. International Journal of Manpower, 29(7), 651-657.
Pimthong, S. (2004). Antecedent factors correlated with the organizational retention of the university academic staffs. Bangkok, Thailand: Srinakarinwirote University. (in Thai).
Price Waterhouse Cooper. (2013). PwC’s NextGen: A global generationalstudy in 2013 evolving talent strategy to match the new workforce reality. Retrieved April 25, 2017, from https://www.pwc.com/gx/en/hr-management-services/pdf/pwc-nextgen-study-2013.pdf
Rajput, S., Singhal, M., & Tiwari, S. (2016). Job satisfaction and employee loyalty: A study of academicians. Asian Journal of Management, 7(2), 1-5.
Reichheld, F. F. (2006). The ultimate question: Driving good profits and true growth. Boston, MA: Harvard Business School Press.
Rinwong, S. (2015). White collar crisis. Retrieved June 30, 2017, from https://www.bangkokbiznews.com/news/detail/629230 (in Thai).
Saif, N. I., & Saleh, A. S. (2013). Psychological empowerment and job satisfaction in Jordanian hospitals. International Journal of Humanities and Social Science, 3(16), 250-257.
Turkyilmaz, A., Akman, G., Ozkan, C., & Pastuszak, Z. (2011). Empirical study of public sector employee loyalty and satisfaction. Industrial Management & Data Systems, 111(5), 675-696.
Waiwong, B. (2010). Satisfaction of employees toward their loyalty to the organization of convenience store employee. Pathumthani University Academic Journal, 2(3), 104-121. (in Thai).
Wang, G., & Lee, P. (2009). Psychological empowerment and job satisfaction: An analysis of interactive effects. Group & Organization Management, 34(3), 271- 296.
Werbel, J. D., & Henriques, P. L. (2009). Different views of trust and relational leadership: supervisor and subordinate perspectives. Journal of Managerial Psychology, 24(8), 780-796.
Witthawatolarn, S. (2007). Gen Y. Bangkok, Thailand: Bangkok Business Biz Book. (in Thai).
Woranankul, W. (2016). A study of organizational trust, supervisory trust and work motivation affecting employees’ loyalty in the Pathumwan district area, Bangkok (Unpublished master’s independent Study). Bangkok University, Bangkok, Thailand. (in Thai).
Yang, K. (2006). Trust in citizens, trust in institutions, and propensity to trust. Administration & Society, 38(5), 573-595.
Adecco Consulting. (2017). Thailand salary guide 2017. Bangkok, Thailand: Author.
Allen, D. G., Shore, L. M., & Griffeth, R. W. (2003). The role of perceived organizational support and supportive human resource practices in the turnover process. Journal of Management, 29(1), 99–118.
Bravo-Yáñez, C., & Jiménez-Figueroa, A. (2011). Psychological well-being, perceived organizational support and job satisfaction amongst Chilean prison employees. Rev Esp Sanid Penit, 13, 31-39.
Butz, R., Dietz, J., & Konovsky, M. (2001). Top management and immediate supervisors as distinct targets of trust. Paper presented at the Society for Industrial and Organizational Psychology Conference, San Diego, CA. n.p.
Colakoglu, U., Culha, O., & Atay, H. (2010). The effects of perceived organizational support on employees’ affective outcomes: Evidence from the hotel industry. Tourism and Hospitality Management, 16(2), 125-150.
Conway, N., & Briner, R. B. (2005). Understanding psychological contracts at work: A critical evaluation of theory and research. Oxford, United Kingdom: Oxford University Press.
Deloitte. (2016). The 2016 Deloitte Millennial Survey: Winning over the next generation of leaders. Retrieved May 4, 2017, from https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-millenial-survey-2016-exec-summary.pdf
Dhammasaccakarn, W. (2002). Leader empowerment behavior in Tumbol Administration Organization: Its measure and consequences (Unpublished doctoral dissertation). Srinakarinwirote University, Bangkok,Thailand. (in Thai).
Diamantopoulos, A., & Siguaw J. A. (2000). Introducing LISREL. London, United Kingdom: Sage.
Dickson, E. K., & Lorenz, A. (2009). Psychological empowerment and job satisfaction of temporary and part-time nonstandard workers: A preliminary investigation. Institute of Behavioral and Applied Management, 14, 243-254.
Dirks, K. T., & Ferrin, D. L. (2002). Trust in leadership: meta-analytic findings and implications for research and practice. Journal of Applied Psychology, 87(4), 611–628.
Domínguez-Falcón, C., Martín-Santana, J. D., & DeSaá-Pérez, P. (2016). Human resources management and performance in the hotel industry: The role of the commitment and satisfaction of managers versus supervisors. International Journal of Contemporary Hospitality Management, 28(3), 490-515.
Duangkam, J. (2008). Organizational loyalty of engineers in hard disk drive industry: A case study of Western Digital (Thailand) Company Limited (Unpublished master’s individual study). King Mongkut University of Thonburi, Bangkok, Thailand. (in Thai).
Eketu, C. A., & Ogbu, E. F. (2015). Promoting employee loyalty through organizational learning: A study of selected hospitality firms in Port Harcourt, Nigeria. ISOR Journal of Business and Management, 17(11), 39-44.
Gilleta, N., Gagnéb, M., Sauvagèrea, S., & Fouquereaua, E. (2013). The role of supervisor autonomy support, organizational support, and autonomous and controlled motivation in predicting employees' satisfaction and turnover intentions. European Journal of Work and Organizational Psychology, 22(4), 450-460.
Gould-Williams, J. (2003). The importance of HR practices and workplace trust in achieving superior performance: a study of public-sector organizations. International Journal of Human Resource Management, 14(1), 28-54.
Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates of employee turnover: Update, moderator tests, and research implication for the next millennium. Journal of Management, 26(3), 463-488.
Guest, D., & Conway, N. (1999). Peering into the black hole: The downside of the new employment relations in the UK. British Journal of Industrial Relations, 37(3), 367-389.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2009). Multivariate data analysis: A global perspective (6th ed.). Upper Saddle River, NJ: Pearson Education.
Hom, P. W., & Kinicki, A. J. (2001). Toward a greater understanding of hoe dissatisfaction drives employee turnover. Academy of Management Journal, 44(5), 975-987.
House, R., Rousseau, D. M., & Thomas–Hunt, M. (1995). The meso paradigm: A framework for the integration of micro and macro organizational behavior. In L.L. Cummings & B.M. Staw (Eds.), Research in organizational behavior (pp. 71–114). Greenwich, CT: JAI Press.
Jawahar, I. M., & Hemmasi, P. (2006). Perceived organizational support for women's advancement and turnover intentions: The mediating role of job and employer satisfaction. Women In Management Review, 21(8), 643–666.
Jedsadaluck, W. (2010). The relationship between distributive and procedural justice and organizational citizenship behavior and In-role performance: The mediating effect of perceived organizational support. Silpakorn University Journal, 30(2), 6-81. (in Thai).
Jose, G., & Mampilly, S. R. (2014). Psychological empowerment as a predictor of employee engagement: An empirical attestation. Global Business Review, 15(1), 93–104.
Jun, M., Cai, S., & Shin, H. (2006). TQM practices in maquiladora: Antecedents of employee satisfaction and loyalty. Journal of Operations Management, 24, 791-812.
Junlakanit, N. (2017). "HR 4.0" Engaging Gen X-Y-Z employee. Retrieved June 16, 2017, from https://www.prachachat.net/ news_detail.php?newsid=1497496767 (in Thai).
Keawkhuntod, U. (2007). Trust in leader, trust in organization and organizational loyalty toward of behavior and performance efficiency of Net BKK Company Limited staffs (Unpublished master’s . individual study). Srinakarinwirote University, Bangkok, Thailand. (in Thai).
Khajehpour, N., Baharlou, M., Montakhab-Yeganeh, M., & Hashemei, S. E. (2016). The mediating role of psychological empowerment and organizational justice in the relationship of servant leadership with job satisfaction, organizational citizenship behavior and organizational commitment. International Journal of Behavioral Science, 10(3), 99-105.
Khany, R., & Tazik, K. (2016). On the relationship between psychological empowerment, trust, and Iranian EFL teachers’ job satisfaction: The case of secondary school teachers. Journal of Career Assessment, 24(1), 112-129.
Khuong, M. N., & Tien, B. D. (2013). Factors influencing employee loyalty directly and indirectly through job satisfaction- A study of banking sector in Ho Chi Minh City. International Journal of Current Research and Academic Review, 1(4), 81-95.
Kline, R. (2011). Principle and practices of structural equation model (3rd ed.). New York: Guilford Press.
Kongkrapun, M. (2011). A study of personal relationship perception, the perception of organizational support through organizational commitment and satisfaction toward job performance in role performance (Unpublished master’s thesis). Silpakorn University, Nakornpathom, Thailand. (in Thai).
Kwon, K., Bae, J., & Lawler, J. J. (2010). High commitment HR practices and top performers: Impacts on organizational commitment. Management International Review, 50, 57-80.
Latorre, F., Guest, D., Ramos, J., & Gracia, F. J. (2016). High commitment HR practices, the employment relationship and job performance: A test of a mediation model. European Management Journal, 34, 328-337.
Li-Chaoping, & Tian-Bao, S-K. (2006). Transformational leadership and employee work attitudes: The mediating effects of multidimensional psychological empowerment. Acta Psychological Sinica, 38(2), 297–307.
Mak, B. L., & Sockel, H. (2001). A confirmatory factor analysis of IS employee motivation and satisfaction. Information & Management, 38, 265–276.
Martensen, A., & Grønholdt, L. (2006). Internal marketing: A study of employee loyalty, its determinants and consequences. Innovative Marketing, 2(4), 92-116.
Matzler, K., & Renzl. B. (2006). The relationship between interpersonal trust, employee satisfaction, and employee loyalty. Total Quality Management, 17(10), 1261–1271.
Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709-734.
Muad-ead, W. (2007). Causal relationship model of factors that impact to organizational citizenship behavior of teachers in Nakornnayok Basic Educational Office (Unpublished master’s thesis). Srinakarinwirote University, Bangkok,Thailand. (in Thai).
Mustapha, M., & Daud, N. (2012). Perceived performance appraisal effectiveness, career commitment and turnover intention of knowledge workers. International Journal of Business and Social Science, 3(19), 157-165.
Petrescu, A. I., & Simmons, R. (2008). Human resources management practices and worker’s job satisfaction. International Journal of Manpower, 29(7), 651-657.
Pimthong, S. (2004). Antecedent factors correlated with the organizational retention of the university academic staffs. Bangkok, Thailand: Srinakarinwirote University. (in Thai).
Price Waterhouse Cooper. (2013). PwC’s NextGen: A global generationalstudy in 2013 evolving talent strategy to match the new workforce reality. Retrieved April 25, 2017, from https://www.pwc.com/gx/en/hr-management-services/pdf/pwc-nextgen-study-2013.pdf
Rajput, S., Singhal, M., & Tiwari, S. (2016). Job satisfaction and employee loyalty: A study of academicians. Asian Journal of Management, 7(2), 1-5.
Reichheld, F. F. (2006). The ultimate question: Driving good profits and true growth. Boston, MA: Harvard Business School Press.
Rinwong, S. (2015). White collar crisis. Retrieved June 30, 2017, from https://www.bangkokbiznews.com/news/detail/629230 (in Thai).
Saif, N. I., & Saleh, A. S. (2013). Psychological empowerment and job satisfaction in Jordanian hospitals. International Journal of Humanities and Social Science, 3(16), 250-257.
Turkyilmaz, A., Akman, G., Ozkan, C., & Pastuszak, Z. (2011). Empirical study of public sector employee loyalty and satisfaction. Industrial Management & Data Systems, 111(5), 675-696.
Waiwong, B. (2010). Satisfaction of employees toward their loyalty to the organization of convenience store employee. Pathumthani University Academic Journal, 2(3), 104-121. (in Thai).
Wang, G., & Lee, P. (2009). Psychological empowerment and job satisfaction: An analysis of interactive effects. Group & Organization Management, 34(3), 271- 296.
Werbel, J. D., & Henriques, P. L. (2009). Different views of trust and relational leadership: supervisor and subordinate perspectives. Journal of Managerial Psychology, 24(8), 780-796.
Witthawatolarn, S. (2007). Gen Y. Bangkok, Thailand: Bangkok Business Biz Book. (in Thai).
Woranankul, W. (2016). A study of organizational trust, supervisory trust and work motivation affecting employees’ loyalty in the Pathumwan district area, Bangkok (Unpublished master’s independent Study). Bangkok University, Bangkok, Thailand. (in Thai).
Yang, K. (2006). Trust in citizens, trust in institutions, and propensity to trust. Administration & Society, 38(5), 573-595.