Antecedents of employees loyalty to the organization through the mediating role of job satisfaction

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LE ANH HUNG ANTECEDENTS OF EMPLOYEES' LOYALTY TO THE ORGANIZATION THROUGH THE MEDIATING ROLE OF JOB SATISFACTION ID: 22120125 MASTER OF BUSINESS (Honours) SUPERVISOR: DR PHAM QUOC HUNG Ho Chi Minh City - Year 2015 i Acknowledgements Firstly, I would like to express deep gratitude to my supervisor who has given me great supervision and advice in this process His feedback and guidance as well as knowledge in this field were very valuable and useful throughout the all process of research Secondly, I have a high grateful to all respondents who spent their valuable time to answer my questionnaire Especially, I feel many thanks by my support of friend who delivered my questionnaires to others and helped me collect data as well as assisted many sources for my task Thirdly, I express my gratitude to my colleague at AMECO Ltd, they assumed my work when I must have finished every stage of this research At last, my sincere thanks owe to my family who supported me both of physical and mental conditions to complete this study July 01, 2015 Le Anh Hung ii ABSTRACT Labor force is a vital factor to contribute the successful of organization But retention of loyalty employees are challenging The purpose of the study is to determine the factors impact on the employee loyalty The research model included dependent variable "employee loyalty" and mediator variable "employee satisfaction" as well as four independent variables, namely: relationship with immediate supervisor, supportive management style, training and honest communication It means that the study carried out to know how the impact of independent variables on employee loyalty and employee satisfaction Secondly, this study is also find out how the relationship between employee satisfaction and employee loyalty The research used the quantitative approach to collect data Data was collected from 350 employees who worked for five companies at Ho Chi Minh city, Dong Nai province, Vung Tau and Binh Duong Province In data analysis, the result showed that independent variables has impact on dependent variable For example: relationship with immediate supervisor, training and honest communication had impact on employee satisfaction Secondly, relationship with immediate supervisor, training and honest communication had impact on employee loyalty That is a pity, there was not relationship between employee satisfaction and employee loyalty Moreover, the research had some of hypothesis that satisfied So, the model research had some change Based on the research result, it will suggest manager understand the relationship between employer and employee, deeply KEYWORDS: Relationship with immediate supervisor, supportive management style, training and honest communication, employee satisfaction and employee loyalty iii Contents Acknowledgements i ABSTRACT ii LIST OF TABLES v LIST OF FIGURES v LIST OF ABBRVATION vii CHAPTER 1: INTRODUCTION 1.1 Background 1.2 Statement of the problem 1.3 Research objectives 1.5 The Scope and Limitation 1.6 Chapter Layout 1.7 Chapter summary CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENTS 2.1 Theoretical background 2.1.1 Employee Loyalty 2.1.2 Employee satisfaction 2.1.3.Factors affecting both employee satisfaction and employee loyalty 10 2.1.4.Impact of Employee satisfaction toward loyalty 15 2.2 Research Model 16 2.3 Chapter summary 18 CHAPTER 3: RESEARCH METHODOLOGY 19 3.1 Research method and procedure 19 3.2 Measurement scales 21 3.2.1 Employee Loyalty 21 3.2.2 Employee Satisfaction 21 3.2.3 Relationship with immediate supervisor 22 3.2.4 Training 23 3.2.5 Supportive management style 24 iv 3.2.6 Honest communication 25 3.3 Main survey 26 3.4 Sampling 27 3.5.Data analysis method 27 3.6.Chapter summary 29 CHAPTER 4: DATA ANALYSIS 29 4.1 Descriptive Analysis 30 4.2 Scale measurement 31 4.3 Correlations coefficient 34 4.4 Confirmatory Factor Analysis (CFA) 35 4.5 Multiple Regression Analysis 37 4.6 Chapter Summary 41 CHAPTER 5: DISCUSSION 42 5.1 Conclusion 42 5.2 Contributions and implications 43 5.3 Limitations 44 5.4 Recommendations for the future research 44 References 45 APPENDICES 53 Appendix 1: English Questionnaire 53 Appendix 2: Vietnamese Questionnaire 54 Appendix 3: Result of the descriptive analysis 55 Appendix 4: Result of the reliability test 58 Appendix 5: Pearson correlation Coefficient 60 Appendix 6: Result of CFA 61 Appendix 7: Result of multiple regression analysis 68 v LIST OF TABLES Table 4.1.1: Gender of respondent .24 Table 3.1: Scales items for employee loyalty .32 Table 3.2: Scales items for employee satisfaction 33 Table 3.3: Scales items for relationship with immediate supervisor 33 Table 3.4: Scales items for training 34 Table 3.5: Scales items for supportive management style 35 Table 3.6: Scales items for honest communication .36 Table 3.7: Main measure of CFA 39 Table 4.1: Characteristic of Sample .42 Table 4.2: Result of reliability test .44 Table 4.3: Pearson correlation Coefficient 45 Table 4.4: Validity and Reliability 47 Table 4.5: Model Summaryb 48 Table 6: ANOVAa .48 Table 4.7: Coefficientsa 49 Table 4.8: Model Summaryb 50 Table 4.9: ANOVAa 50 Table 4.10: Coefficientsa .51 vi LIST OF FIGURES Figure 2.1: Research Model 29 Figure 3.1: The research process 31 Figure 4.1: Amos Model 46 vii LIST OF ABBRVATION WTO : WORRLD TRADE ORGANNIZATION APEC : ASIA-PACIFIC ECONOMIC COOPERATION AFTA : ASEAN FREE TRADE AREA ASEM : THE ASIA-EUROPE MEETING VAM : VIET NAM ASSOCIATION OF MECHANICAL INDUSTRY CFA : CONFIRMATORY FACTOR ANALYSIS CHAPTER 1: INTRODUCTION 1.1 Background In the 21 century, the countries undergo many huge problems in the world One of them was financial issue Caudron (as cited in Kelli, 2001) agreed that there have been many companies that are downsizing due to slow periods in recent years Viet Nam is also affected more or less Simultaneously ,Viet Nam is affected by financial crisis storm and Economic recession from 2008 It took many people to lose job, companies were bankruptcy In 2012, there were 54.261 dissolution enterprises (Xuan Than, 2013), it increased 60.737 by 2013 ( Thanh Trung, 2014) It jumped 67.823 enterprise in 2014 (Trung Ninh, 2014) Viet Nam Joins the WTO and APEC which made trade more dynamic Thus, it excited domestic firms more and more interested Enterprise want to improve their competitiveness in order to occupy the market Enterprise should update many things to respond real situation For example management systems, business strategy, human resource management, financial management, internal controls Tran Van Hung (2011a) stated that Conditions created a competitive advantage that was investment and development of human resources with high quality Thereby, this study only focused on human resource management field Human management is an important aspect of organizational processes A well-managed business organization normally considers the employees as the primary source of productivity gains These organizations consider employees rather than capital as the core foundation of the business and contributors to develop firm To ensure the achievement of firm goals, the organization creates an atmosphere of commitment and cooperation for its employees through policies that facilitate employee satisfaction Satisfaction of human resource finds close links to highly motivated employees Motivating employees and developing loyalty or commitment to increase productivity and reduce turnover rates Frederick F (2001) referred that "Loyalty is the key to success in today's economy"(p 01).Loyalty will be defined as the tendency of an employee to continue working for the same employer Nighat Naeem (2013) stated that" Employee satisfaction is one of the main and important issues of all time Employees are the key player in organization so their commitment with organization is very important"(p 01) To get more achieving in the world market and domestic market is becoming an difficult more than it has been ever Hence, maintaining the stable labor force is very important of enterprise which is also unvalued asset."Employees are more loyal and productive when they are satisfied" ( Hunter & Tietyen, as cited in Bulent Aydin & Adnan Cevlan, 2008, p.4) The purpose of this study is to examine the relationship between employee loyalty and employee satisfaction The study also find out the impact of other factor toward employee loyalty with employee satisfaction Such as relationship with immediately supervisor, training program, supportive management style and honest communication The research only discover in Engineering company because there are following reason Firstly, mechanical engineering is one in eight key industry at Vietnam Engineering industrial is a brand of economic that has particularly important position for the development of the economy because it is a produce industry which creates machinery and equipment supply for the other industry In fact, the world does not has any country to implement the successful of industrialization and modernization process so that does not has a strong mechanical industry, the development of mechanical industry is both foundation and driving for the development of the different professions in society, it also has a positive impact on the services sector through the development of the distribution network Secondly, researcher want to interest in mechanical engineering Because researcher passion this field so long 57 Education level chart Experience level chart 58 Appendix 4: Result of the reliability test Item statistics of satisfaction Item Statistics Mean SF1 SF2 SF3 2.25 2.32 2.17 Std Deviation 701 720 645 N 307 307 307 Item statistics relationship with immediate supervisor Item Statistics RWIS1 RWIS2 RWIS3 RWIS4 Mean 2.08 2.31 2.26 2.29 Std Deviation 844 770 730 790 N 307 307 307 307 Item statistics training Item Statistics TRA1 TRA2 TRA3 TRA4 TRA5 TRA6 TRA7 TRA8 TRA9 TRA10 TRA11 Mean 2.17 2.34 2.15 2.26 2.32 2.21 2.30 2.24 2.10 2.19 2.33 Std Deviation 914 912 909 937 841 902 879 817 906 781 800 N 307 307 307 307 307 307 307 307 307 307 307 59 Item statistics supportive management style Item Statistics SMS1 SMS2 SMS3 SMS4 Mean 2.26 2.26 2.31 2.25 Std Deviation 785 816 828 744 N 307 307 307 307 Item statistics honest communication Item Statistics HC1 HC2 HC3 HC4 Mean 2.35 2.25 2.22 2.29 Std Deviation 804 782 838 781 N 307 307 307 307 Item statistics loyalty Item Statistics LOY1 LOY2 LOY3 LOY4 Mean 2.13 2.10 1.97 1.99 Std Deviation 923 924 828 871 N 307 307 307 307 60 Appendix 5: Pearson correlation Coefficient Correlations SF1 SF1 SF2 SF3 RWIS1 RWIS2 RWIS3 RWIS4 TRA1 TRA2 TRA3 TRA4 TRA5 TRA6 TRA7 TRA8 TRA9 TRA10 TRA11 SMS1 SMS2 SMS3 SMS4 HC1 HC2 Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N SF2 307 ** 577 000 307 ** 324 000 307 ** 508 000 307 ** 356 000 307 ** 407 000 307 ** 370 000 307 ** 406 000 307 ** 332 000 307 417** 000 307 413** 000 307 401** 000 307 364** 000 307 401** 000 307 327** 000 307 342** 000 307 314** 000 307 346** 000 307 374** 000 307 397** 000 307 476** 000 307 418** 000 307 370** 000 307 308** 000 307 SF3 ** 577 000 307 307 ** 355 000 307 ** 529 000 307 ** 416 000 307 ** 413 000 307 ** 379 000 307 ** 526 000 307 ** 414 000 307 446** 000 307 386** 000 307 443** 000 307 429** 000 307 354** 000 307 469** 000 307 408** 000 307 359** 000 307 407** 000 307 374** 000 307 424** 000 307 457** 000 307 432** 000 307 423** 000 307 405** 000 307 RWIS1 RWIS2 RWIS3 RWIS4 ** 324 000 307 ** 355 000 307 307 ** 306 000 307 ** 328 000 307 ** 406 000 307 ** 289 000 307 ** 394 000 307 ** 359 000 307 363** 000 307 382** 000 307 389** 000 307 371** 000 307 337** 000 307 307** 000 307 313** 000 307 392** 000 307 367** 000 307 391** 000 307 319** 000 307 329** 000 307 287** 000 307 365** 000 307 292** 000 307 ** 508 000 307 ** 529 000 307 ** 306 000 307 307 ** 535 000 307 ** 603 000 307 ** 540 000 307 ** 550 000 307 ** 322 000 307 500** 000 307 342** 000 307 416** 000 307 471** 000 307 378** 000 307 394** 000 307 524** 000 307 385** 000 307 426** 000 307 448** 000 307 478** 000 307 474** 000 307 443** 000 307 509** 000 307 475** 000 307 ** 356 000 307 ** 416 000 307 ** 328 000 307 ** 535 000 307 307 ** 542 000 307 ** 488 000 307 ** 355 000 307 ** 317 000 307 358** 000 307 338** 000 307 419** 000 307 375** 000 307 369** 000 307 421** 000 307 430** 000 307 382** 000 307 312** 000 307 376** 000 307 416** 000 307 427** 000 307 385** 000 307 437** 000 307 442** 000 307 ** 407 000 307 ** 413 000 307 ** 406 000 307 ** 603 000 307 ** 542 000 307 307 ** 567 000 307 ** 441 000 307 ** 344 000 307 443** 000 307 375** 000 307 467** 000 307 392** 000 307 428** 000 307 415** 000 307 362** 000 307 437** 000 307 395** 000 307 498** 000 307 444** 000 307 459** 000 307 392** 000 307 452** 000 307 390** 000 307 ** 370 000 307 ** 379 000 307 ** 289 000 307 ** 540 000 307 ** 488 000 307 ** 567 000 307 307 ** 461 000 307 ** 447 000 307 431** 000 307 505** 000 307 390** 000 307 414** 000 307 347** 000 307 440** 000 307 345** 000 307 412** 000 307 414** 000 307 455** 000 307 461** 000 307 452** 000 307 408** 000 307 532** 000 307 414** 000 307 TRA1 TRA2 ** 406 000 307 ** 526 000 307 ** 394 000 307 ** 550 000 307 ** 355 000 307 ** 441 000 307 ** 461 000 307 307 ** 604 000 307 735** 000 307 566** 000 307 592** 000 307 617** 000 307 533** 000 307 443** 000 307 500** 000 307 417** 000 307 557** 000 307 425** 000 307 429** 000 307 468** 000 307 456** 000 307 456** 000 307 388** 000 307 TRA3 ** 332 000 307 ** 414 000 307 ** 359 000 307 ** 322 000 307 ** 317 000 307 ** 344 000 307 ** 447 000 307 ** 604 000 307 307 617** 000 307 671** 000 307 518** 000 307 525** 000 307 478** 000 307 418** 000 307 360** 000 307 371** 000 307 475** 000 307 413** 000 307 338** 000 307 388** 000 307 325** 000 307 393** 000 307 332** 000 307 TRA4 ** 417 000 307 ** 446 000 307 ** 363 000 307 ** 500 000 307 ** 358 000 307 ** 443 000 307 ** 431 000 307 ** 735 000 307 ** 617 000 307 307 610** 000 307 652** 000 307 646** 000 307 557** 000 307 409** 000 307 573** 000 307 407** 000 307 512** 000 307 385** 000 307 413** 000 307 441** 000 307 448** 000 307 478** 000 307 416** 000 307 TRA5 ** 413 000 307 ** 386 000 307 ** 382 000 307 ** 342 000 307 ** 338 000 307 ** 375 000 307 ** 505 000 307 ** 566 000 307 ** 671 000 307 610** 000 307 307 606** 000 307 615** 000 307 604** 000 307 521** 000 307 502** 000 307 462** 000 307 532** 000 307 518** 000 307 424** 000 307 506** 000 307 448** 000 307 527** 000 307 466** 000 307 TRA6 ** 401 000 307 ** 443 000 307 ** 389 000 307 ** 416 000 307 ** 419 000 307 ** 467 000 307 ** 390 000 307 ** 592 000 307 ** 518 000 307 652** 000 307 606** 000 307 307 669** 000 307 707** 000 307 574** 000 307 509** 000 307 498** 000 307 588** 000 307 416** 000 307 445** 000 307 500** 000 307 470** 000 307 513** 000 307 452** 000 307 TRA7 ** 364 000 307 ** 429 000 307 ** 371 000 307 ** 471 000 307 ** 375 000 307 ** 392 000 307 ** 414 000 307 ** 617 000 307 ** 525 000 307 646** 000 307 615** 000 307 669** 000 307 307 637** 000 307 529** 000 307 578** 000 307 570** 000 307 555** 000 307 509** 000 307 408** 000 307 510** 000 307 448** 000 307 560** 000 307 486** 000 307 TRA8 ** 401 000 307 ** 354 000 307 ** 337 000 307 ** 378 000 307 ** 369 000 307 ** 428 000 307 ** 347 000 307 ** 533 000 307 ** 478 000 307 557** 000 307 604** 000 307 707** 000 307 637** 000 307 307 564** 000 307 612** 000 307 519** 000 307 640** 000 307 451** 000 307 473** 000 307 481** 000 307 446** 000 307 522** 000 307 453** 000 307 TRA9 ** 327 000 307 ** 469 000 307 ** 307 000 307 ** 394 000 307 ** 421 000 307 ** 415 000 307 ** 440 000 307 ** 443 000 307 ** 418 000 307 409** 000 307 521** 000 307 574** 000 307 529** 000 307 564** 000 307 307 511** 000 307 581** 000 307 488** 000 307 474** 000 307 468** 000 307 453** 000 307 461** 000 307 549** 000 307 464** 000 307 TRA10 ** 342 000 307 ** 408 000 307 ** 313 000 307 ** 524 000 307 ** 430 000 307 ** 362 000 307 ** 345 000 307 ** 500 000 307 ** 360 000 307 ** 573 000 307 502** 000 307 509** 000 307 578** 000 307 612** 000 307 511** 000 307 307 557** 000 307 555** 000 307 456** 000 307 478** 000 307 565** 000 307 488** 000 307 514** 000 307 487** 000 307 ** 314 000 307 ** 359 000 307 ** 392 000 307 ** 385 000 307 ** 382 000 307 ** 437 000 307 ** 412 000 307 ** 417 000 307 ** 371 000 307 407** 000 307 462** 000 307 498** 000 307 570** 000 307 519** 000 307 581** 000 307 557** 000 307 307 582** 000 307 594** 000 307 487** 000 307 592** 000 307 416** 000 307 563** 000 307 470** 000 307 TRA11 ** 346 000 307 ** 407 000 307 ** 367 000 307 ** 426 000 307 ** 312 000 307 ** 395 000 307 ** 414 000 307 ** 557 000 307 ** 475 000 307 512** 000 307 532** 000 307 588** 000 307 555** 000 307 640** 000 307 488** 000 307 555** 000 307 582** 000 307 307 510** 000 307 563** 000 307 520** 000 307 511** 000 307 538** 000 307 543** 000 307 SMS1 ** 374 000 307 ** 374 000 307 ** 391 000 307 ** 448 000 307 ** 376 000 307 ** 498 000 307 ** 455 000 307 ** 425 000 307 ** 413 000 307 385** 000 307 518** 000 307 416** 000 307 509** 000 307 451** 000 307 474** 000 307 456** 000 307 594** 000 307 510** 000 307 307 572** 000 307 660** 000 307 545** 000 307 593** 000 307 481** 000 307 SMS2 ** 397 000 307 ** 424 000 307 ** 319 000 307 ** 478 000 307 ** 416 000 307 ** 444 000 307 ** 461 000 307 ** 429 000 307 ** 338 000 307 413** 000 307 424** 000 307 445** 000 307 408** 000 307 473** 000 307 468** 000 307 478** 000 307 487** 000 307 563** 000 307 572** 000 307 307 646** 000 307 662** 000 307 567** 000 307 507** 000 307 SMS3 ** 476 000 307 ** 457 000 307 ** 329 000 307 ** 474 000 307 ** 427 000 307 ** 459 000 307 ** 452 000 307 ** 468 000 307 ** 388 000 307 441** 000 307 506** 000 307 500** 000 307 510** 000 307 481** 000 307 453** 000 307 565** 000 307 592** 000 307 520** 000 307 660** 000 307 646** 000 307 307 622** 000 307 626** 000 307 485** 000 307 SMS4 ** 418 000 307 ** 432 000 307 ** 287 000 307 ** 443 000 307 ** 385 000 307 ** 392 000 307 ** 408 000 307 ** 456 000 307 ** 325 000 307 ** 448 000 307 448** 000 307 470** 000 307 448** 000 307 446** 000 307 461** 000 307 488** 000 307 416** 000 307 511** 000 307 545** 000 307 662** 000 307 622** 000 307 307 571** 000 307 630** 000 307 HC1 HC2 ** 370 000 307 ** 423 000 307 ** 365 000 307 ** 509 000 307 ** 437 000 307 ** 452 000 307 ** 532 000 307 ** 456 000 307 ** 393 000 307 478** 000 307 527** 000 307 513** 000 307 560** 000 307 522** 000 307 549** 000 307 514** 000 307 563** 000 307 538** 000 307 593** 000 307 567** 000 307 626** 000 307 571** 000 307 307 574** 000 307 HC3 ** 308 000 307 ** 405 000 307 ** 292 000 307 ** 475 000 307 ** 442 000 307 ** 390 000 307 ** 414 000 307 ** 388 000 307 ** 332 000 307 ** 416 000 307 466** 000 307 452** 000 307 486** 000 307 453** 000 307 464** 000 307 487** 000 307 470** 000 307 543** 000 307 481** 000 307 507** 000 307 485** 000 307 630** 000 307 574** 000 307 307 HC4 ** 321 000 307 ** 413 000 307 ** 305 000 307 ** 423 000 307 ** 390 000 307 ** 407 000 307 ** 427 000 307 ** 393 000 307 ** 398 000 307 ** 505 000 307 560** 000 307 540** 000 307 495** 000 307 469** 000 307 542** 000 307 497** 000 307 471** 000 307 466** 000 307 549** 000 307 493** 000 307 545** 000 307 515** 000 307 647** 000 307 579** 000 307 LOY1 ** 290 000 307 ** 348 000 307 ** 344 000 307 ** 362 000 307 ** 292 000 307 ** 315 000 307 ** 333 000 307 ** 411 000 307 ** 410 000 307 ** 413 000 307 493** 000 307 399** 000 307 391** 000 307 469** 000 307 444** 000 307 519** 000 307 432** 000 307 528** 000 307 471** 000 307 501** 000 307 457** 000 307 502** 000 307 527** 000 307 568** 000 307 LOY2 ** 363 000 307 ** 404 000 307 ** 281 000 307 ** 482 000 307 ** 343 000 307 ** 391 000 307 ** 392 000 307 ** 438 000 307 ** 321 000 307 452** 000 307 430** 000 307 401** 000 307 516** 000 307 431** 000 307 500** 000 307 575** 000 307 424** 000 307 442** 000 307 459** 000 307 501** 000 307 519** 000 307 500** 000 307 533** 000 307 530** 000 307 LOY3 ** 340 000 307 ** 479 000 307 ** 225 000 307 ** 501 000 307 ** 417 000 307 ** 355 000 307 ** 401 000 307 ** 549 000 307 ** 376 000 307 543** 000 307 394** 000 307 461** 000 307 508** 000 307 411** 000 307 488** 000 307 473** 000 307 351** 000 307 478** 000 307 357** 000 307 469** 000 307 481** 000 307 488** 000 307 500** 000 307 532** 000 307 LOY4 ** 333 000 307 ** 447 000 307 ** 308 000 307 ** 461 000 307 ** 320 000 307 ** 357 000 307 ** 321 000 307 ** 425 000 307 ** 284 000 307 426** 000 307 312** 000 307 387** 000 307 488** 000 307 370** 000 307 468** 000 307 518** 000 307 412** 000 307 423** 000 307 377** 000 307 441** 000 307 493** 000 307 478** 000 307 505** 000 307 479** 000 307 ** 343 000 307 ** 424 000 307 ** 266 000 307 ** 477 000 307 ** 337 000 307 ** 442 000 307 ** 357 000 307 ** 438 000 307 ** 327 000 307 461** 000 307 429** 000 307 398** 000 307 511** 000 307 381** 000 307 515** 000 307 499** 000 307 432** 000 307 405** 000 307 406** 000 307 442** 000 307 427** 000 307 439** 000 307 516** 000 307 528** 000 307 HC3 HC4 LOY1 LOY2 LOY3 LOY4 Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N ** 321 000 307 ** 290 000 307 ** 363 000 307 ** 340 000 307 ** 333 000 307 ** 343 000 307 ** 413 000 307 ** 348 000 307 ** 404 000 307 ** 479 000 307 ** 447 000 307 ** 424 000 307 ** 305 000 307 ** 344 000 307 ** 281 000 307 ** 225 000 307 ** 308 000 307 ** 266 000 307 ** 423 000 307 ** 362 000 307 ** 482 000 307 ** 501 000 307 ** 461 000 307 ** 477 000 307 ** 390 000 307 ** 292 000 307 ** 343 000 307 ** 417 000 307 ** 320 000 307 ** 337 000 307 ** 407 000 307 ** 315 000 307 ** 391 000 307 ** 355 000 307 ** 357 000 307 ** 442 000 307 ** 427 000 307 ** 333 000 307 ** 392 000 307 ** 401 000 307 ** 321 000 307 ** 357 000 307 ** 393 000 307 ** 411 000 307 ** 438 000 307 ** 549 000 307 ** 425 000 307 ** 438 000 307 ** 398 000 307 ** 410 000 307 ** 321 000 307 ** 376 000 307 ** 284 000 307 ** 327 000 307 ** 505 000 307 ** 413 000 307 ** 452 000 307 ** 543 000 307 ** 426 000 307 ** 461 000 307 ** 560 000 307 ** 493 000 307 ** 430 000 307 ** 394 000 307 ** 312 000 307 ** 429 000 307 ** 540 000 307 ** 399 000 307 ** 401 000 307 ** 461 000 307 ** 387 000 307 ** 398 000 307 ** 495 000 307 ** 391 000 307 ** 516 000 307 ** 508 000 307 ** 488 000 307 ** 511 000 307 ** 469 000 307 ** 469 000 307 ** 431 000 307 ** 411 000 307 ** 370 000 307 ** 381 000 307 ** 542 000 307 ** 444 000 307 ** 500 000 307 ** 488 000 307 ** 468 000 307 ** 515 000 307 ** 497 000 307 ** 519 000 307 ** 575 000 307 ** 473 000 307 ** 518 000 307 ** 499 000 307 ** 471 000 307 ** 432 000 307 ** 424 000 307 ** 351 000 307 ** 412 000 307 ** 432 000 307 ** 466 000 307 ** 528 000 307 ** 442 000 307 ** 478 000 307 ** 423 000 307 ** 405 000 307 ** 549 000 307 ** 471 000 307 ** 459 000 307 ** 357 000 307 ** 377 000 307 ** 406 000 307 ** 493 000 307 ** 501 000 307 ** 501 000 307 ** 469 000 307 ** 441 000 307 ** 442 000 307 ** 545 000 307 ** 457 000 307 ** 519 000 307 ** 481 000 307 ** 493 000 307 ** 427 000 307 ** 515 000 307 ** 502 000 307 ** 500 000 307 ** 488 000 307 ** 478 000 307 ** 439 000 307 ** 647 000 307 ** 527 000 307 ** 533 000 307 ** 500 000 307 ** 505 000 307 ** 516 000 307 ** 579 000 307 ** 568 000 307 ** 530 000 307 ** 532 000 307 ** 479 000 307 ** 528 000 307 307 ** 606 000 307 ** 592 000 307 ** 500 000 307 ** 493 000 307 ** 510 000 307 ** 606 000 307 307 ** 533 000 307 ** 468 000 307 ** 441 000 307 ** 505 000 307 ** 592 000 307 ** 533 000 307 307 ** 644 000 307 ** 646 000 307 ** 669 000 307 ** 500 000 307 ** 468 000 307 ** 644 000 307 307 ** 661 000 307 ** 692 000 307 ** 493 000 307 ** 441 000 307 ** 646 000 307 ** 661 000 307 307 ** 811 000 307 ** 510 000 307 ** 505 000 307 ** 669 000 307 ** 692 000 307 ** 811 000 307 307 61 Appendix 6: Result of CFA Standardized Regression Weights: (Group number - Default model) RWIS4 RWIS3 RWIS2 RWIS1 SMS4 SMS3 SMS2 SMS1 HC4 HC3 HC2 HC1 TRA11 TRA10 TRA9 TRA8 TRA7 TRA6 TRA5 TRA4 TRA3 TRA2 TRA1 SF2 SF1 LOY4 LOY2 LOY1 SF3 < < < < < < < < < < < < < < < < < < < < < < < < < < < < < - RWIS RWIS RWIS RWIS SMS SMS SMS SMS HC HC HC HC TRA TRA TRA TRA TRA TRA TRA TRA TRA TRA TRA SF SF LOY LOY LOY SF Estimate 713 768 681 785 777 823 788 751 711 792 741 805 750 686 728 701 797 798 804 751 744 637 727 758 720 823 815 810 510 62 CMIN Model Default model Saturated model Independence model NPAR 80 435 29 CMIN 868.034 000 6260.522 DF 355 406 P 000 CMIN/DF 2.445 000 15.420 RMR, GFI Model Default model Saturated model Independence model RMR 032 000 313 GFI 844 1.000 141 AGFI 809 PGFI 689 080 132 Baseline Comparisons Default model Saturated model Independence model NFI Delta1 861 1.000 000 Model Default model Independence model RMSEA 069 217 Model RFI rho1 841 000 IFI Delta2 913 1.000 000 TLI rho2 900 000 CFI 912 1.000 000 RMSEA LO 90 063 212 HI 90 075 222 PCLOSE 000 000 63 Regression Weights: (Group number - Default model) RWIS4 RWIS3 RWIS2 RWIS1 SMS4 SMS3 SMS2 SMS1 HC4 HC3 HC2 HC1 TRA11 TRA10 TRA9 TRA8 TRA7 TRA6 TRA5 TRA4 TRA3 TRA2 TRA1 SF2 SF1 LOY4 LOY2 LOY1 SF3 < < < < < < < < < < < < < < < < < < < < < < < < < < < < < - RWIS RWIS RWIS RWIS SMS SMS SMS SMS HC HC HC HC TRA TRA TRA TRA TRA TRA TRA TRA TRA TRA TRA SF SF LOY LOY LOY SF Estimate S.E C.R P Label 1.000 996 081 12.310 *** par_1 931 085 10.984 *** par_2 1.173 093 12.610 *** par_3 1.000 1.176 077 15.244 *** par_4 1.108 077 14.478 *** par_5 1.005 073 13.744 *** par_6 1.000 1.195 091 13.122 *** par_7 1.043 085 12.328 *** par_8 1.166 087 13.337 *** par_9 1.000 889 072 12.277 *** par_10 1.099 083 13.167 *** par_11 955 076 12.523 *** par_12 1.168 081 14.461 *** par_13 1.201 083 14.490 *** par_14 1.128 077 14.621 *** par_15 1.173 087 13.516 *** par_16 1.128 084 13.369 *** par_17 968 086 11.256 *** par_18 1.105 085 13.064 *** par_19 1.000 924 082 11.291 *** par_20 1.000 1.050 067 15.710 *** par_21 1.037 066 15.626 *** par_22 603 074 8.116 *** par_45 64 Covariances : (Group number - Default model) RWIS RWIS RWIS RWIS RWIS SMS HC TRA TRA SMS SMS SMS HC HC SF E7 E8 E19 E16 E1 E1 E13 < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > TRA SMS HC SF LOY TRA TRA SF LOY HC SF LOY SF LOY LOY E5 E6 E21 E14 E13 E5 E26 Estimate S.E .244 032 242 031 233 031 243 031 273 036 276 033 278 034 241 031 313 038 280 033 233 030 294 036 202 028 328 039 255 035 153 026 164 029 080 017 077 019 094 021 073 019 082 022 C.R 7.720 7.825 7.561 7.773 7.563 8.442 8.283 7.834 8.250 8.452 7.835 8.126 7.143 8.442 7.369 6.005 5.707 4.677 4.115 4.470 3.829 3.707 P *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Label par_23 par_24 par_25 par_26 par_27 par_28 par_29 par_30 par_31 par_32 par_33 par_34 par_35 par_36 par_37 par_38 par_39 par_40 par_41 par_42 par_43 par_44 65 Correlations: (Group number - Default model) RWIS RWIS RWIS RWIS RWIS SMS HC TRA TRA SMS SMS SMS HC HC SF E7 E8 E19 E16 E1 E1 E13 < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > TRA SMS HC SF LOY TRA TRA SF LOY HC SF LOY SF LOY LOY E5 E6 E21 E14 E13 E5 E26 Estimate 724 743 746 792 679 795 838 739 731 871 738 710 670 827 654 405 379 325 267 293 225 246 66 Variances: (Group number - Default model) RWIS SMS HC TRA SF LOY E4 E3 E2 E1 E19 E18 E17 E16 E23 E22 E21 E20 E15 E14 E13 E12 E11 E10 E9 E8 E7 E6 E5 E25 E24 E28 E27 E26 E29 Estimate S.E C.R P Label 316 046 6.819 *** par_46 335 043 7.858 *** par_47 308 044 6.928 *** par_48 359 047 7.565 *** par_49 297 042 7.014 *** par_50 512 061 8.414 *** par_51 305 029 10.503 *** par_52 218 022 9.749 *** par_53 318 029 10.822 *** par_54 270 029 9.395 *** par_55 219 021 10.318 *** par_56 221 023 9.521 *** par_57 252 025 10.163 *** par_58 261 025 10.624 *** par_59 301 027 11.099 *** par_60 261 026 10.227 *** par_61 275 025 10.850 *** par_62 226 023 10.003 *** par_63 279 025 11.325 *** par_64 319 027 11.648 *** par_65 384 033 11.483 *** par_66 338 029 11.585 *** par_67 281 026 10.954 *** par_68 295 027 10.940 *** par_69 249 023 10.876 *** par_70 382 034 11.306 *** par_71 368 033 11.326 *** par_72 492 042 11.785 *** par_73 390 034 11.496 *** par_74 220 026 8.457 *** par_75 236 025 9.317 *** par_76 244 027 8.923 *** par_77 286 031 9.138 *** par_78 289 031 9.214 *** par_79 306 027 11.424 *** par_80 67 Squared Multiple Correlations: (Group number - Default model) SF3 LOY1 LOY2 LOY4 SF1 SF2 TRA1 TRA2 TRA3 TRA4 TRA5 TRA6 TRA7 TRA8 TRA9 TRA10 TRA11 HC1 HC2 HC3 HC4 SMS1 SMS2 SMS3 SMS4 RWIS1 RWIS2 RWIS3 RWIS4 Estimate 260 656 664 677 518 574 529 406 553 564 647 637 635 491 530 471 562 649 549 627 506 565 621 678 604 617 463 590 509 68 Appendix 7: Result of multiple regression analysis Coefficient Correlationsa Coefficient Correlationsa Model Correlations Covariances HC RWIS HC 1.000 -.119 RWIS -.119 1.000 TRA -.383 -.287 SMS -.439 -.243 TRA SMS HC RWIS -.383 -.439 002 000 -.287 -.243 000 001 1.000 -.251 000 000 -.251 1.000 -.001 000 TRA SMS 000 -.001 000 000 000 000 000 002 a Dependent Variable: SF Residuals Statisticsa Residuals Statisticsa Minimum Maximum Predicted Value Residual Std Predicted Value Std Residual 4.33 -3.989 -2.119 -3.431 a Dependent Variable: SF 10.65 4.645 3.433 3.996 Mean 6.74 000 000 000 Std Deviation 1.138 1.155 1.000 993 N 307 307 307 307 69 Coefficient Correlationsa Coefficient Correlationsa Model SF Correlations Covariances HC RWIS SMS TRA SF HC RWIS SMS 1.000 033 -.292 -.154 033 1.000 -.123 -.439 -.292 -.123 1.000 -.185 -.154 -.439 -.185 1.000 -.275 -.378 -.184 -.196 TRA SF HC -.275 006 000 -.378 000 004 -.184 -.001 000 -.196 -.001 -.002 1.000 000 000 RWIS SMS TRA -.001 -.001 000 000 -.002 000 003 -.001 000 -.001 003 000 000 000 000 a Dependent Variable: LOY Residuals Statisticsa Residuals Statisticsa Predicted Value Residual Std Predicted Value Std Residual Minimum Maximum 2.34 12.45 -4.315 5.208 -2.166 3.483 -2.683 3.238 a Dependent Variable: LOY Mean Std Deviation 6.21 1.791 000 1.595 000 1.000 000 992 N 307 307 307 307 ... factor to contribute the successful of organization But retention of loyalty employees are challenging The purpose of the study is to determine the factors impact on the employee loyalty The. .. knowledge and skills or to modify the attitudes and behaviors of employees in order to 11 make them consistent with the goals of the organization and the requirements of the job Employee training... business organization normally considers the employees as the primary source of productivity gains These organizations consider employees rather than capital as the core foundation of the business
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