How to Raise Job Satisfaction of Artisan Employees through Organizational Identity

The Case of Diamond Mine Companies in Lesotho


Thesis (M.A.), 2018

132 Pages, Grade: 3.6


Excerpt


TABLE OF CONTENTS

ACKNOWLEDGEMENT

ABSTRACT

ABBREVIATIONS

LIST OF FIGURES

LIST OF TABLES

CHAPTER1. INTRODUCTION
1.1 BACKGROUND AND SIGNIFICANCE OF THE RESEARCH
1.1.1 Background of the Research 10
1.1.2 Significance of the Research 12
1.2 PROBLEM STATEMENT OF THE RESEARCH
1.3 RESEARCH OBJECTIVES
1.3.1 Main Research Objectives 13
1.3.2 Specific Objective of the Study 13
1.4 RESEARCH QUESTIONS
1.5 RESEARCH METHODS
1.6 SCOPE OF THE STUDY
1.7 RESEARCH INNOVATION
1.8 CONCEPTUAL DEFINITIONS
1.9 STRUCTURE OF THE RESEARCH

CHAPTER2. LITERATURE REVIEW
2.1 INTRODUCTION
2.2 ORGANIZATIONAL IDENTITY
2.2.1 Measurements of Organizational Identity 24
2.2.2 Factors Influencing Organizational Identity 27
2.3 JOB SATISFACTION
2.3.1 Determinants of Employees Job Satisfaction 33
2.4 RELATIONSHIP BETWEEN ORGANIZATIONAL IDENTITY AND JOB SATISFACTION
2.5 SUMMARY

CHAPTER 3. RESEARCH METHODOLOGY
3.1 INTRODUCTION
3.2 RESEARCH AREA
3.3 RESEARCH DESIGN
3.4 THEORETICAL FRAMEWORK AND HYPOTHESIS DEVELOPMENT
3.4.1 Dependent Variable 41
3.4.2 Independent Variables 41 For Referencing: Mats’ela M.D, (2018), “How to Raise Job Satisfaction of Artisan Employees through Organizational Identity: The Case of Lesotho Diamond Industry”
3.4.3 Control Variables 41
3.4.4 Research Hypothesis 41
3.4.5 Conceptual Research Framework 44
3.5 POPULATION AND SAMPLE SIZE OF THE STUDY
3.6 SOURCES OF DATA
3.7 DATA COLLECTION METHODS
3.8 MEASUREMENT OF VARIABLES
3.8.1 Measurement of Dependent Variable 50
3.8.2 Measurement of independent Variable 51
3.9 DATA ANALYSIS TECHNIQUES

CHAPTER4. DATA ANALYSIS AND PRESENTATION OF FINDINGS
4.1 INTRODUCTION
4.2 DEMOGRAPHIC DATA ANALYSIS
4.2.1 Age of Respondents 57
4.2.2 Nationality of Respondents 58
4.2.3 Job Designation and level of education of Respondents 59
4.2.4 Length of work of Respondents with the organization 59
4.2.5 Respondents demographic Parameters and their means, standard deviation scores 61
4.3 ANALYSIS OF GENERAL INFORMATION
4.3.1 Factors influencing Job Satisfaction of Artisan employees 62
4.3.2 Factors contributing to strong organizational identity 62
4.4 VALIDITY AND RELIABILITY ANALYSIS
4.4.1 Validity Analysis 64
4.4.2 Reliability Analysis 71
4.5 DESCRIPTIVE STATISTIC ANALYSIS
4.6 RAMSEY REST TEST ANALYSIS
4.7 HYPOTHESIS TESTING
4.7.1 Correlation Analysis 75
4.7.2 Regression Analysis 76
4.8 PRESENTATION OF THE FINDINGS
4.9 DISCUSSION OF FINDINGS
4.9.1 The Distinctiveness of Organizational Identity and Employee Job Satisfaction 79
4.9.2 The Continuity of Organizational Identity and Employee Job Satisfaction 80
4.9.3 The Centrality of organizational Identity and Employee Job Satisfaction 81
4.9.4 To Identify Which Organizational Identity Attributes significantly and positively affect Employee Job
Satisfaction 82
4.9.5 To identify factors leading to strong organizational identity 83
4.9.6 To identify factors affecting employee job satisfaction 83
4.10 SUMMARY OF THE FINDINGS

CHAPTER5. CONCLUSION AND RECOMMENDATIONS
5.1 CONCLUSION
5.2 RECOMMENDATIONS
5.2.1 Recommendations to Lesotho Diamond Companies’Management 86
5.2.2 Recommendations to Government of Lesotho 88
5.3 RESEARCH LIMITATIONS
5.4 AREAS FOR FURTHER RESEARCH

REFERENCES

APPENDICES

APPENDIX A. QUESTIONNAIRE

ACKNOWLEDGEMENT

The completion of this thesis would not have been possible without the support of the following valuable people, to whom I would like to pass my great gratitude. First and foremost, I would like to thank Touch-road Investment Company together with the Government of Lesotho through the National Manpower Development Secretariat (NMDS) for their financial support to my study, I therefore, thank you for your support.

The second person I would like to thank is my supervisor Professor Lin Yun, thank you for guidance and patience. Your positivity provided inspiration and served as a constant reminder to me to move forward. To my beloved wife and my lovely children, thank you so much for your support and valuable inspiration through this journey of research and study. To my only best two teammates, if it was not because of your patience, I could not have managed to carry this load, thank you so much for sleepless nights and for sticking to our motto (THINK) till the end of the journey. I truly appreciate the time you invested in my work and I value and respect your contributions and dedication to advancing knowledge. I was fortunate to have a great team like you guys.

While there are too many to mention, I want to thank Professor, Justin Liu, my research methodology lecturer for being my eye opener in relation to research formation, I appreciate your dedication to ensuring a valuable learning experience on research writing. I would like to acknowledge and thank the management of college of Economics and Management of Zhejiang Normal University, 2016-IMBA program, whose commitment to a strong program prepared me well for undertaking this journey.

I would also like to thank my employer, the Government of Lesotho through the Ministry of Development Planning under the Department of Policy and Strategic Planning (PSP) for supporting me through this toughest journey. Finally, I would like to thank Diamond Mine Companies for allowing me to collect data from them. Many of the research results speak to the values and integrity of this company and I was honoured to be granted an opportunity to interact with its employees.

How to Raise Job Satisfaction of Artisan Employees through Organizational Identity:

The Case of Diamond Mine Companies in Lesotho

Abstract

The success and growth of any organization depend largely on its employee behavior, which is influenced by the strength of the organizational identity and employee job satisfaction. Organizational identity answers the question of “who are we as an organization?” It refers to as a set of features that organizational members believe to be central, distinctive, and enduring about the organization while employee job satisfaction refers to positive feelings and attitudes employees have towards their work. This thesis, therefore, focuses on the relationship between the three organizational identity features and employee job satisfaction among the artisan employees at the Lesotho Diamond Mine Companies. This study started by introducing the purpose of study, research question and the need for the study was given. The results of this study were obtained through the use of a questionnaire that was distributed to Lesotho Diamond Mine Companies artisan employees who included management, supervisors and operators. The target respondents were all artisan employees (Welders & Boiler-makers, Electrical engineers, Fitters and Mechanical engineers). Before conducting data analysis, reliability analysis and validity analysis, which include item analysis and factor analysis, were conducted in order to eliminate irrelevant items, check the validity of the selected items as well as internal consistency of the selected items.

The study generated 85.8 percent response rate from 106 respondents. The findings revealed that the distinctiveness of organizational identity, the continuity of organizational identity and the centrality of organizational identity positively and significantly influence employee job satisfaction as indicated by their positive coefficients, large t-statistics and small p-values. The results of the regression analysis show that the distinctiveness of organizational identity has a positive and significant effect on employee job satisfaction (β1=0.421, t-statistic=5.642, p-value=0.000). They also indicated that the continuity of organizational identity positively and significantly influences employee job satisfaction (β2=0.356, t-statistic=4.123, p-value=0.000). Finally, they revealed that the centrality of organizational identity has a positive and significant effect on employee job satisfaction (β3=0.675, t-statistic=5.281, p-value=0.000. These results, therefore, lead to the acceptance of all three hypotheses in favor of the alternative hypotheses. Thus, it was concluded that organizational identity has a positive and significant relationship employee job satisfaction.

Based on the research findings, it is recommended that management of the Lesotho Diamond Mine Companies should put more focus on these three organizational identity features as they will assist in enhancing employee job satisfaction hence reduced employee turnover intention. This will also help to retain and attract artisan employees in the Lesotho Diamond Companies in order to solve the problem of artisan employees’ shortage which is said to be the major hindrance of sustainable growth of the Lesotho diamond industry. According to Abman et al, (2017), for employees to be highly committed, organizational managers should provide an improvement, suitable career path, fair pay, and fairness in the distribution of rewards, autonomy at work, professional identity and suitable image for the job. This was also proved by a research conducted by Mael & Ashforth, (1992), who indicated that organizational identity is important for employees when making decisions about identifying with the organization. A proper understanding of the management of the three organizational identity features would help the organization to positively influence its employee job satisfaction which will lead to reduced employee turnover intention.

Key words: Organizational Identity, Organizational Commitment, OrganizationalIdentification, Organizational Culture, Job Satisfaction

Abbreviations

1. CHE - Council of Higher Education

2. DPSP-Department of Policy and Strategic Planning

3. EFA-Exploratory factor analysis

4. GDP-Gross Domestic Product

5. GMs-Gem Diamonds

6. HRM-Human Resource Management

7. JCM-Job Characteristics Model

8. JSAE- Job Satisfaction of Artisan Employees

9. JSS-Job Satisfaction Scale

10. KMO-Kaiser Meyer Olkin

11. LDMC-Letšeng Diamond Mine Company

12. MoDP-Ministry of Development Planning

13. MoLE-Ministry of Labour and Employment

14. MoM-Ministry of Mining

15. MRA-Multiple Regression Analysis

16. NMDS-National Manpower development Secretariat

17. NSDP-National Strategic Development Plan

18. OCOCL-Centrality of organizational identity measured by Organizational Culture

19. OCOCM-Continuity of organizational identity measured by Organizational Commitment

20. OCQ-Organizational Commitment Questionnaire

21. OCQ-Organizational Culture Questionnaire

22. ODOID-Distinctiveness of organizational identity measured by Organizational Identification

23. OI-Organizational Identity

24. OIQ-Organizational Identification Questionnaire

25. PFA-Principal Components Factor Analysis

26. PSP-Policy and Strategic Planning

27. VIF-Variance Inflation Factor

List of Figures

Figure1. The Logical Framework of Inductive Approach

Figure2. Research Structure

Figure3. Structure of Organizational Identity Attributes

Figure4. Organizational Identity Dynamics Model by Hatch &Schultz’s (2000)

Figure5. Herzberg’s Description of Job Satisfaction and Job Dissatisfaction

Figure6. Maslow’s Five-level hierarchy

Figure7. Job characteristics model (Robbins & Judge 2007)

Figure8. Research Framework

Figure9. Respondents Age

Figure10. Respondents Nationality

Figure11. Respondents Job Designation

Figure12. Respondents Educational Level

Figure13. Respondents Number of Years Working with Lesotho Diamond Companies

List of Tables

Table1. Herzberg’s motivation-hygiene theory

Table2. Sample Size Distribution

Table3. Layout of the Questionnaire

Table4. Definition of Job Satisfaction Items Variables

Table5.Definition of Distinctiveness of organizational identity

Table6.Definition of Continuity of organizational identity

Table7. Definition of Centrality of organizational identity using Organizational culture

Table8. Respondent’ demographic data and their means and standard deviation scores

Table9. Reliability Analysis results for Pilot Study

Table10. Values of Cronbach’s Alpha used to test Reliability

Table11. Item Analysis results for Organizational Identity

Table12. Item Analysis Results for Job satisfaction

Table13. KMO and Bartlett’s Test Results

Table14. Eigen-values Results

Table15. Components matrix after rotation

Table16. Summary of Reliability Analysis results

Table17. Reliability Analysis Results

Table18. Descriptive Statistic Analysis

Table19. Ramsey Reset Test

Table20. Pearson Correlation Coefficient Analysis Results

Table21. Regression Analysis Results

Table22. Order of significance and Impact of OI attributes on JSAE

CHAPTER1. INTRODUCTION

1.1 Background and Significance of the Research

1.1.1 Background of the Research

In today’s competitive business environment, technically skilled employees have become the most indispensable determinants and factors that lead to the success and growth of any organization. A good management of these employees will help the organizations to gain sustainable competitive advantages which in return results in attainment of organizational objectives. The technical, skilled employees consist of two types, namely hard and soft skills. For the purpose of this study the focus was based on employees who possess hard skills. These employees are the ones that have acquired skills in welding, electrical engineering, fitting, boiler- making and mechanical engineering, from college, university, technical school or have acquired their skills on the job. Therefore, these employees will be called artisan employees for the whole of this study. Artisan employees are said to have the skills and knowledge needed to operate and maintain complex diamond mines properties.

It is of great benefit for organizations’ managers to properly manage these valuable assets. Artisan employees’ retention is the major concern for Lesotho Diamond Companies due to employee turnover and prolongs unfilled positions requiring artisan employees. This shortage frustrates this companies’ management as a result of investing time, money and effort on employees during the employment process only to leave a short time later. The shortage of artisan employees and low employee commitment are the results of employee dissatisfaction and weak organizational identity in the Lesotho Diamond Mine Companies.

Therefore, good management of these talent employees is an important aspect of organizational processes which results in an increased organizational performance, increased employee retention and attraction. A well-managed and successful organization is normally the one that considers its employees as the primary source of productivity and comparative advantage gains. This organization considers both talent employees and capital as the core foundation of the business and contributors of organizational development. To ensure the achievement of organizational goals, there is a need for an organization to create an atmosphere of its employees’ commitment and cooperation through organizational policies and regulations that facilitate artisan employee job satisfaction. Highly motivated employees become loyal and committed to their organizations resulting in high productivity and reduced employee turnover (Mosammod and Kabir, 2011).

It is crucial for organizational managers know the factors that affect employee job satisfaction because satisfied employees normally perform their work effectively and efficiently. They also become committed to their jobs and identify themselves with the organization. Satisfied employees consider the organization’s successes and failures as their successes and failures. The knowledge and understanding of the factors that influence employee job satisfaction will help the management of the Lesotho Diamond Companies come out with strategies to mitigate the shortage of artisan employees (Ismail, 2012). This is because the successes and growth of Lesotho diamond industry depend on artisan employees’ organizational commitments because the entire operation of the company depends on these employees’ efforts. Moreover, the committed employees are the ones who are satisfied with their work and identify themselves with their organizational membership. These employees internalize their organizations’ attributes as their own attributes (Yonetim, 2015).

Therefore, in order to meet the fluctuating organizations’ product demands in the global competitive market, it is critical for diamond mine companies’ management to utilize their organizational identity in order to increase job satisfaction of its employees (Ivancevich, 2014). Organizational identity can be used as a strategy to retain and attract artisan employees’ which will in turn result in decreased artisan employee turnover and reduced shortage of artisan employees. Organizational identity influences the way the organizational management deals with the organization’s problems and conflicts, establish competitive advantage, strategies and set organizational goals.

This study, therefore, used Lesotho Diamond Companies as a case study due to the fact that it is a major driver of Lesotho’s economic growth and development within the diamond mining industry. The company’s contribution to gross domestic product (GDP) is around 9%, employed 1500 employees, of which 1,350 employees are local people. The growth of diamond industry has significantly contributed to the increase in the diamond industry’s share of GDP from 0.2% in 2000 to 8.5% in 2016. Diamond industry has also been pivotal in increasing Lesotho’s export earnings resulting in an increased gross foreign reserve as its diamonds are traded in the international markets. The industry accounts for 70% of the Lesotho’s corporate tax revenue and 60% of its foreign exchange earnings.

The rationale for choosing a Diamond industry as the study area is that, it has been experiencing a shortage of artisan employees as a result of artisan employees’ turnovers and prolongs unfilled artisan employees’ positions. Therefore, the decrease in industry’s profitability results in a decline in production, which reduces the mining sector share of GDP and total export earnings. In response to this, the diamond companies led by Letšeng Diamonds embarked on an intensive exercise focusing on a global search for qualified and experienced Basotho citizens who have skills on welding, electrical engineering, fitting, boiler-making and mechanical engineering and other mining related skills, who are willing to work in Lesotho. The outcome of the study was that there is a limited pool of available skilled Basotho people and they are not willing to work in Lesotho’s diamond mining industry (Council of Higher Education, 2016).

The focus of this study was to determine which among the three organizational identity features (centrality, distinctiveness and continuity) has a significant and positive effect on employees’ job satisfaction. These features were defined by Albert and Whetten (1985) as: (1) what employee perceived to be central, that is the centrality of organizational identity. The centrality of organizational identity is representing those features that are essential to the existence of an organization. This means those features, beliefs and norms that cannot change without triggering a substantial redefinition of the nature of the organization; (2) what employee perceived to be distinctive, that is distinctive of organizational identity. The Distinctiveness of organizational identity represents those features that differentiate the organization from other organizations, so that it can be distinguished from other organizations with similar features. This shows that, these features are used to assess the difference between an organization and its competitors and; (3) what employee perceived to be continued/enduring, that is the continuity of organizational identity which represents those features that exhibit some degree of sameness or continuously over time about the organization (Albert and Whetten, 1985).

Therefore, finding and understanding how organizational identity can influence employee job satisfaction will help the Diamond Mine Companies to establish better ways to strategically utilize their organizational identity in order to increase levels of job satisfaction of its artisan employees. This will lead to an increased artisan employees’ propensity to stay and ultimately reduced shortage of artisan employees.

1.1.2 Significance of the Research

The study will help the management of the Diamonds Mine Companies together with those of mining sector in understanding the impact of organizational identity features on employee job satisfaction and employees’ propensity to stay. Understanding the importance of strong organizational identity in increasing employee job satisfaction and reducing turnover will help managers to develop strategies that improve companies’ identity. The findings of this research will, first of all, inform the management on how organizational identity can be used as organizational strategy in reducing artisan employees’ shortage.

In addition, the research will provide valuable information to the management in understanding the factors that affect artisan employee job satisfaction together with those that lead to strong organizational identity. Employee job satisfaction is perceived to be an important driver of employees’ organizational identity which in turn leads to low employee turnover. It is of utmost important that the management knows and understands these factors. This will assist the management in creating a conducive working environment for these talent employees in order to increase their level of job satisfaction hence high employees’ propensity to stay.

Knowing which organizational identity features significantly and positively impacts on artisan employee job satisfaction, it will make it easy for diamond Companies management to make informed decisions pertaining to compensation, supervision, working conditions and personal growth for the benefit of the artisan employees, as well as the organization. The findings of the research will definitely contribute to the body of knowledge, especially regarding raising job satisfaction of artisan employees within the mining industry in Lesotho.

Researcher, therefore, hopes that this study will provide the management of the Lesotho Diamond Companies with organizational identity factors that significantly contribute to the reduction of artisan employees’ shortage. It is important to retain and attract valuable employees and minimize the turnover hence shortage. In order to face global artisan employee’s shortage, the company’s concern should be more towards raising job satisfaction of its existing employees which will help in retaining and attracting new employees.

The study will also contribute to the literature related to the relationship between organizational identity features and artisan employees’ job satisfaction. The findings of this study will also enhance knowledge on the importance of organizational identity features in organizational life and their impact on employee job satisfaction within the diamond industry. This will also provide a knowledge base for a number of academicians and researchers who are interested in organizational behavior and employee job satisfaction.

1.2 Problem Statement of the Research

The diamond industry is one of the main economic growth and development drivers in Lesotho and thus, the interest in studying this industry is very important. Therefore, this industry needs to be managed in the manner that both organizations and employees are benefiting. The organizations with the shortage of capital may resort to borrowing money from financial providers. However, if this shortage is on technical, skilled workers, it cannot be solved by borrowing hence little chance of survival in such organization. Therefore, for the purpose of this study, the Lesotho Diamond Industry was selected as a case study due to its massive contribution to the Lesotho’s economic growth (with approximately 9%) and employment opportunities. In addition to this, Diamond Industry is the largest taxpayer and contributor of foreign earnings in Lesotho. The company is also the largest employer of around 2,500 employees, of which 90% are local employees. Despite the industry’s massive contribution to Lesotho economic growth, it is faced with the problem of artisan employees’ shortage due to employee turnover and prolongs unfilled positions requiring artisan employees. This shortage is negatively affecting the industry’s ability to operate profitably and continuously contributing efficiently to the Lesotho’s revenue and employment creation.

The risk imposed by this shortage within the Lesotho diamond industry was also highlighted by Letšeng Diamond Mine Company Chairman Clifford Elphick, who is also the chief executive of Gem Diamonds during the launch of the Letšeng Diamond Discovery Centre in Maseru. He stated that the key risk to a sustainable Lesotho diamond industry and, a major hindrance to the growth of the diamond mining sector are due to lack of technical skills (both hard and soft skills) available in the Lesotho labour market to operate complex diamond mine machinery confidently and effectively. The success and growth of any company largely depend on its ability to attract and retain suitably qualified and experienced employees (LesothoTimes, 2016).

This study, therefore, drew inspiration from several discussions concerning the shortage of artisan employees facing diamond mining industry in Lesotho. This shortage of artisan employees is identified as the main problem hindering both success and growth of the Lesotho Diamond Industry. It is, therefore, negatively affecting the industry in terms of replacement and disrupted work (Lesotho Mining and Mineral Policy, 2016), (National Strategic Development Plan, 2013).

In attempting to solve this problem, the aim of this study is to determine the relationship between organizational identity and job satisfaction of artisan employees and identify which, among three organizational identity features has a significant positive relationship with job satisfaction. It is important to note that an improvement in these features will lead not only to reduced shortage of artisan employees, but also to an increased organizational life and employee’s propensity to stay which in turn would make a significant impact on the growth and development of the organization. This analysis also helped to identify factors that affect job satisfaction of artisan employees and influence strong organizational identity in order to assist the organization to retain and attract these valuable resources. Therefore, finding and understanding the factors that lead to both strong organizational identity and high level of job satisfaction of artisan employees will help Lesotho Diamond Mine Companies management to establish better ways to strategically utilize its organizational identity to increase its artisan employee job satisfaction. This will ultimately lead to an increased artisan employee job satisfaction and reduced artisan employees’ shortage.

1.3 Research Objectives

1.3.1 Main Research Objectives

The main objective of this study is to determine the relationship between organizational identity and employee job satisfaction. This study would further identify which, among the three organizational identity features (centrality, distinctiveness and continuity) is the most driver of job satisfaction of artisan employees. In addition, the outcome of this study will also provide a room for a better understanding of the factors which are positively and negatively affecting both artisan employee job satisfaction and organizational identity in the Lesotho Diamond Mine Companies.

1.3.2 Specific Objective of the Study

There are several researches on employee job satisfaction done by other researchers which have identified factors affecting employee job satisfaction. However, none of these studies looked into the relationship between organizational identity features and job satisfaction of which is the focus of this study. In this study, researchers have identified factors that affect artisan employee job satisfaction and organizational identity in addition to the ones from previous researches. Therefore, from the main research objective, the following specific objectives have been derived:

Objective 1: To determine the relationship between organizational identity and artisan employee job satisfaction

Objective 2: To identify which, among three organizational identity features, significantly and positively impact on job satisfaction of artisan employees in the Lesotho Diamond Companies.

Objective 3: To identify the factors that influence strong organizational identity

Objective 4: To identify the factors that affect artisan employees’ job satisfaction

The attainment of these objectives will help researchers provide a theoretical overview on relationship between organizational identity features and employee job satisfaction. Finally, taking into consideration on job satisfaction and organizational identity literature, this study, before highlighting the recommendations, will conclude by stating which feature of organizational identity significantly and positively affect artisan employees’ job satisfaction within Lesotho Diamond Industry (Xingwana, 2012).

1.4 Research Questions

Based on both research objectives and problem statement, the research addressed the following three research questions:

Question 1: What is the relationship between organizational identity and artisan employees’ job satisfaction?

Question 2: Which among three organizational identity features is the most driver of job satisfaction?

Question 3: What are the factors influencing a strong organizational identity? Question 4: What are the factors affecting artisan employees’ job satisfaction?

1.5 Research Methods

When conducting a research, it is crucial for a researcher to identify the direction of logic, which is guided by either of the two research approaches: deduction and induction. The difference between the two approaches is that an induction approach generalizes the findings from the observation while deduction tests the theories with the results from the observations. Based on these distinctions, this research adopted an inductive research approach which has the advantage of using actual data rather than being merely derived from logical assumptions from literature. According to this approach, researchers begin with specific observation, which are used to produce generalized theories and conclusions drawn from the research. The reasons for employing inductive approach were because it is the most appropriate approach for newly collected data and small sample size (Khalid et al, 2012).

The inductive approach also helps to establish a clear link between the research objectives and the research findings derived from the raw data. When applying this approach, researchers began with specific observation, which in turn were used to produce generalized theories and conclusions based on research results. Even though the inductive approach is most appropriate for a small number of observations, its main weakness is to produce generalized theories and conclusions based on this limited information, thereby the reliability of research results being under question (Creswell, 2014), (Langos, 2014).

Abbildung in dieser Leseprobe nicht enthalten

Figure 1. The Logical framework of an Inductive Research Method to be employed; Source: ( Creswell, 2014 ).

1.6 Scope of the Study

The scope of this research was based on organizational identity and job satisfaction of artisan employees: The case of Lesotho diamond Industry in Lesotho. Lesotho Diamond Industry is located in the mountainous Districts of Lesotho. The companies’ headquarters are based in the capital city of Lesotho in Maseru district.

Diamond Industry is a major force in Lesotho’s economy, employing about 1,500 workers, 90% of them are local employees. The industry contributes 70% of Lesotho’s corporate tax revenue and 60% of foreign exchange earnings. The rationale for using this company as a case study was due to its massive contribution to Lesotho’s economic growth and development. The study population included 106 artisans which consist of welders, boiler-makers, electrical engineers, fitters and mechanical engineers. Data collection was done within a period of one week starting from 19th September 2017 to 24th September 2017. Before, distributing the questionnaire, the researcher assured the respondents about confidentiality with the aim of increasing the response rate and honesty in responding to the questionnaire and they were also given two days to answer and hand back the questionnaire to the researcher at the agreed time and place. It was not possible to cover all technical, skilled employees due to time constraint that is why this study only focused on the artisans.

1.7 Research Innovation

This study showed the importance of organizational identity with three features in raising job satisfaction of artisan employees. It also showed how organizational identity can be used as technical employees’ attraction and retention strategy. There are several studies conducted on the relationships between organizational identification, culture, image, and Commitment in relation to job satisfaction.

However, none of them has realized the importance of organizational identity as a strategy that organizations can use to overcome the problem of employee turnover and shortage. The uniqueness of this study is that it strives towards utilization of three organizational identity features in increasing job satisfaction of artisan employees. This study will also help diamond mining companies realize the importance of strong organizational identity in retaining and attracting of artisan employees.

1.8 Conceptual definitions

This section presents key terms and their definitions used in this study.

a. Organizational Identity signifies the internal perception. It has three features which are: (1) central attributes representing those features that are fundamental to the organization; (2) continuity attributes representing those features that are continuing over time and (3) distinctive attributes representing those features that are uniquely described (Albert and Whetten, 1985).
b. Organizational Identification: Organizational Identification represents the oneness between employees and organizations they belong to (Ashforth and Mael, 1992), (Ismail, 2012), (Albert and Whetten, 1985).
c. Organizational Commitment shows the psychological bond which unit employee to the organization. It consists of three-components which highlight: (1) Affective commitment which reflects the employees’ emotional attachment to an organization when identify themselves with an organization and enjoy the membership; (2) Continuance commitment which reflects the employees’ perceived costs-benefit evaluation of maintaining organizational membership; and (3) Normative commitment which reflects the employees’ feelings of obligation to remain with the organization (Ismail, 2012), (AL-Mugatti et al, 2016).
d. Organizational Culture is defined as common expectations and standards as well as the values, beliefs, norms and knowledge that both organizational members and outsiders hold central and that bind organizational groups. This shows that organizational culture represents the set of shared understanding of the organization’s mission by its employees and outsiders; organizational values which guide decision-making and activities carried out at three levels of organization and norms that control organization members’ interactions with each other and with outsiders (He and Bown, 2013), (Tastan, 2012).
e. Organizational Image: Organizational image is defined as the actual perspectives that internal members believe outsiders view their organization (Hatch and Schultz, 2000). The perception of an organization’s identity from the outsiders is captured by the notion of an organizational image, which is the externally produced symbols and interpretations made by outsiders about the company (Karim et al, 2002), (Azadehdel et al, 2013).
f. Job Satisfaction refers to the employees’ positive feelings and attitudes towards their jobs and other related job components such as better working environment, working conditions, compensation and relationship with their supervisors and co-workers. This definition shows that employees’ job satisfaction signifies how individual employees feel about their job and organization they work for. Therefore, for the purpose of this study, employees’ job satisfaction means a positive feelings and attitudes in which employees perceive about the job-related variables such as work itself, job security, compensation, working environment and conditions, employees-supervisor relationship as well as employees’ relationship with co-workers (Abraham, 2012), (Ahmed et al, 2011), (Aziri, 2011).
g. Artisan Employees: Artisan employees are the employees working in the following positions: Welders, Electrical engineers, Fitters, Boiler-makers and Mechanical engineers in the diamond industry. These employees acquired their skills from college, university, technical school or have acquired their skills on the job.

1.9 Structure of the Research

This study is structured into the following order: This research comprises of five chapters. Chapter 1 provides an introduction to the thesis and highlights the background and significance, research problem statement and structure, research method which shows the method followed by this research, what data was collected and the data collection instrument used to gather data, why particular technique of data analysis is suitable for research problem. Chapter 2 presents a literature review which contains a detailed section with an outline of previous literature and theories concerning organizational identity and job satisfaction, and the relation between the two concepts. This review provides definitions of important terms, the conceptual literature and the empirical literature consisting of studies made prior which are similar to the proposed research. This chapter also presents drivers and determinants of these two concepts. It also provides the study variables and their measurements. Chapter 3 explores research methodology which entails the study design, sampling procedure, data collation and method, types of data, data analysis and techniques, criteria for evaluating the instrument, descriptive statistics analysis and regression analysis.

This chapter outlines how the research was conducted that is qualitatively and quantitatively. Chapter 4 presents the data analysis and presentation of findings which are relevant to the study questions and hypothesis from the questionnaire. The Econometric data analysis tool (E-views 9.5) was widely used to provide descriptive and inferential analyses for the study. Chapter 5 contains a conclusion, recommendations and limitations of the research. These limitations will lead to suggestions for future research in this specific research field of organizational identity and job satisfaction.

Abbildung in dieser Leseprobe nicht enthalten

Figure 2. Structure of Research

CHAPTER2. LITERATURE REVIEW

2.1 Introduction

This chapter reviews the literature on organizational identity and goes further to discuss the organizational variables. It also provides the definitions of organizational identity and its three features as proposed by Albert and Whetten, (1985). The empirical studies on the relationship between organizational identity and employee job satisfaction will also be looked at. This will be followed by the review of literature on job satisfaction and its measurements. It will also look into the drivers and measurements of organizational identity and job satisfaction which affect employees in their daily work. Moreover, the researcher developed the research framework which links dependent variable with independent variables (the centrality of organizational identity, the distinctiveness of organizational identity and the continuity of organizational identity) (Albert and Whetten, 1985).

There are three sections in this chapter. The first section covers organizational identity and its related organizational variables such as organizational identification, organizational commitment, organizational culture and organizational image. The second section covers literature on job satisfaction and the factors that affect employee job satisfaction. The chapter ends with a summary of all subsections covered under both organizational identity and job satisfaction. It will also provide a brief introduction of chapter three. This will be followed by a theoretical framework which will provide the link between organizational identity features and employee job satisfaction in the form of econometric model.

2.2 Organizational Identity

Organizational identity has captured the interest of human resource management and organizational behavior scholars. Organizational identity is a strategic tool used to understanding the purpose and mission of the organization in the short-term. Organizational identity describes to the outsiders, “who are we?”, “what we want to become?” and “what we do?” as an organization. It serves organizational employees ‘retention strategy. It consists of two sides which are an external and internal perspective. From the external perspective side, there are competitive pressures and the desire for organizations to be recognized and supported. This side represents the interactions between an organization and its members and how members’ expectations about the actions of the organization are met which in turn influence their attitudes towards the organization (Dowling and Moran, 2012). From an internal perspective, organizational identity is viewed way organizational members to understand and define their roles in the organization. For the purpose of this research, the focus is on the internal aspects of organizational identity because our interest is in an employee organizational identity. Understanding the factors that lead to strong organizational identity, is crucial for managers to manage the organization’s capabilities and resources, frame organization’s strategic actions as well as an organizational problem solving. The knowledge of these factors will also help in increasing employees’ identification with the organization. Organizational identity helps the organizational manager to: (1) explain the purpose of the organization to employees; (2) improve organizational decision-making process; (3) facilitate their employees’ loyalty, and (4) be recognized by outsiders. It describes the employees’ organizational identification. This means that employees’ self-image is derived from the organizations they choose to identify themselves with (He and Bown, 2013), (Mosammod and Kabir, 2011). Therefore, the growth and success of an organization fully depend on its technical employees’ commitment which in turn, influenced by the strength of the organizational identity.

Organizational identity was originally introduced by Albert and Whetten (1985), on the base of Social Identity Theory in social psychology. In this concept, they reaffirmed that organizational identity symbolizes the internal environment, that is, employees’ view of the organization. They conceptualized the organizational identity as what employee perceived to be central, distinctive and continuing about the organization. They further highlighted that organizational the distinctiveness of organizational identity motivates employees to maintain consistency between their self- perceptions and the characteristics of the organization. This means that when employees identify themselves with their organization, their perceived self-worth resembles what they feel is central, enduring, and distinctive about the organization. In addition, they further indicated that organizational identity is the boundary between the claims made by internal members and the one granted by outsiders. This definition means that organizational identity symbolizes the degree to which employees identify themselves with the organization as a result of having the same attributes that they believe define the organization (Ashforth and Mael, 1992,1989), (Glynn, 2013), (Albert and Whetten, 1985).

In addition, Gallup, (2013) and Gioia et al, (2013), emphasized that organizations with a strong organizational identity have strong central values, more distinctive compare to other organizations with similar characteristics and the longer the identity remains the same over time. Employees’ beliefs about the distinctiveness, the centrality and the continuity of the organization are important in improving their organizational identification (Gallup, 2014), (Gioia et al, 2013).

For the purpose of this study, organizational identity represents what employees perceived to be the central attributes about the organization, distinctive attributes about the organization in the eyes of its employees and unique from other competing organizations’ eyes and continuing about the organization over time. These three features of organizational identity suggest that support the notion that organizations with a strong organizational identity have central attributes, are distinctive from other organizations and remain the same for long periods (Oliver, 2003), (Witting, 2006).

In support of Albert and Whetten, (1985), Ashforth & Mael, (1992) stressed the importance of organizational identity in strengthening the employees’ identification with the organization. They stated that a strong organizational identity shows that a large part of the organization’s characteristics are similar to the one’s for employees’ personal characteristics. This combination, in turn, creates a strong employees’ organizational identification and then produces a psychological connection between the organization’s successes and failures together with the individual employees’ value of self-worth (Ashforth and Mael, 1992,1989). Organizational identity scholars generally agree to use the term “organizational identity” referring to (internal members)’ employees’ perceptions, and “organizational image” to refer to (external members) stakeholders’ perceptions about the central, distinctive and continuity of the organization (Ravasi, 2016). For the purpose of this study, the focus would be on internal members’ perceptions about the central, distinctive and continuity of the organization that is organizational identity.

Organizational identity can be used as a strategic lens influencing how organizations’ problems are resolved, decision-making processes are done, employees’ confidence for proactive behavior is built, institutional legitimacy necessary to attract talent employees is implemented and organizational goals are communicated to its employees. Organizational identity as strategy helps organization to answer the question of, ‘where we want to go and how do we reach there as organization?’ This question adds to the question of, “who we are and what we are as organization?” which seek to be answered by organizational identity. This, therefore, shows that organizational identity link employees with the organization in which they work for (Golmohammadi et al, 2016), (He and Bown, 2013), (Robbins, 2009), (Michal et al, 2011).

In support of this, Akbari et al (2014), indicated that understanding, developing, and strengthening the organizational identity is crucial for organizational managers in increasing employee’s identification with an organization which will help to reduce employee turnover. This will result to an increased employees’ positive organizational behavior consistent with the purposes of that organization, and ultimately help them achieve the organization’s intended purposes (Akbari et al, 2014).

According to Albert et al, (2000) and Albert & Whetten, (1985), organizational identity is required for organization to perform effectively and efficiently at all levels that is from individual, group, and organizational levels. A strong organizational identity is an advantage to the organization to attract and retain talent employees (Alby et al, 2011), (Albert & Whetten, 1985). Based on the fact that an organization functions at the three levels as mentioned above, it is, therefore, concluded that personal identity symbolizes the distinctiveness and incomparability of the employee which is shaped by his beliefs, attitude, behavior, values, traditions, principles, character, personality, self-concept, and group membership. The team level representing group identity which refers to the question of, “who we are as a group”. Lastly, at the organizational level, organizational identity signifies people’s view of the organization in relation to its mission and vision. This view of the organization, points to people’s relationship with the organization within the internal environment (Bueno et al, 2015), (Gioia et al, 2013), (Maritz and Jarne, 2014), (Sato, 2014).

In review of organizational identity literature, He and Brown (2013), identified four elements of organizational identity; namely functionalist, social constructionist, psychodynamic and postmodern. Under functionalist perspective,they highlighted that organizational identity is viewed as being tangible such as organizations’ logos and documents and official stories. On the other hand, under the social constructionist perspective, they stated that organizational identity is as socially constructed with shared understandings. In social constructionist perspective, they saw organizational identity as more organically evolved and less seen as under the thumb of executive decision-making. Under psycho-dynamic perspective, they considered organizational identity as something unknowable and that conscious efforts at defining identity of the organization, whether collective or individual, will lack certain unconscious process and as such makes definitions of organizational identity illusionary. Finally, under postmodern perspective, they regarded organizational identity as a myth or an illusion (He and Brown, 2013), (Oliver, 2003).

In addition to He and Brown in organizational literature, Gioia et al. (2013) also identified three additional perspectives which present organizational identity in different lights; social actor perspective, institutional perspective and population ecologist’s perspective. They indicated that under social actor perspective, an organization is seen as an entity that makes assertions about itself, and its role in society. In the institutional perspective, they considered organizations as being strongly influenced by institutional forces and as such propose more isomorphic tendencies among organizational identities. Finally, under population ecology perspective, they viewed organizational identity as something wholly defined by outsiders. In their view, an organization does not have an identity, but the identity can only be what outsiders or members believe it to be (Dowling and Moron, 2012), (Gioia et al, 2013).

In organizational identity theory, Albert and Whetten (1985) highlighted the importance of the continuity and distinctiveness of organizational identity in distinguishing one organization from its competing organizations. They hypothesize that the continuity of organizational identity provides an organization with a sense of belonging offering stability to its employees. In distinctiveness of organizational identity on the other hand, they emphasized the importance of the uniqueness of the organization compared to other organizations with similar characteristics. They further highlighted that this theory shows how employees are attached to their organizations and how they share a limited number of organizational identity attributes. They indicated that organizational identity consists of two components, namely: purpose and philosophy of the organization. It defines the importance of the organization’s existence and therefore reveals the real meaning underlying the work of the organization. The purpose also provides the linkages between organizational work and employees. It also informs culture and the road map that articulates for every employee in the organization, “how we do things around here.” This also helps to define organization’s identity and enhances the ability to adapt to environmental change. It also provides focus and allows for better allocation of resources. The purpose produces an organizational culture of the organization (Aguinis, 2012), (Gallup, 2014), (Hansen and Margolis, 2002), (Albert and Whetten, 1985).

They emphasized that the organizational purpose alone is not necessarily unique, but when combined with the philosophy yields the distinctive and enduring essence of the organizational identity. They, therefore, defined philosophy of the organization as the central character of the organization. In addition, they stated that employees believe that organizational philosophy is the source of the organization’s uniqueness and this attribute combined together with the organizational purpose is what loyal employees are typically connected to. These two components of organizational identity combined together defined centrality of organizational identity, distinctiveness of organizational identity and continuity of organizational identity (Hansen and Margolis, 2002).

The figure 3 below illustrates the relationship between organizational purpose and philosophy.

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Figure 3: Structure of Organizational Attributes (Albert and Whetten, 1985).

Social Identity Theory emphases the importance of organizational identity features and employees’ self-confidence in relation to organizational identity. The theory shows that the existence of consistency between employees’ self-perception and the attributes of employees’ organizational work, the stronger that employees identify themselves with the image and values of the organization they work for. It also highlights that employees seek to emphasize their own distinctiveness by attaching to organizations that they perceive as compatible and complimentary to their self-perceptions. It advocates that the existence of a strong bond between employees and their organization motivates them to strive hard to achieve organizational outcomes. Social identity theory proposes that an employee can acquire a more positive social identity through an association with workplaces that have positive identities. It also suggests that the individual identity is defined by the organization or work group to which they belong and how the individual identifies themselves with the organization. This provides the answer to the question of “who am I?” (Boutwell, 2003), (Lin, 2004).

Organizational members assess the attractiveness of an organization’s image based upon how well the image preserves the continuity of their self-concept, provides distinctiveness, and enhances self-esteem. The more an organization enhances its members’ self-concepts, the stronger the employees’ organizational identification becomes because the members define themselves with the characteristics indicative of the organization. A strong employee’ self-concept and organizational identity leads to more engaged and committed employees. Social identity theory construction enables employees to relate to one’s environment through an intricately intertwined process that includes one’s immediate environment, organization, and society at large (Cetin et al, 2016), (Moksness, 2014). The organizational identity helps organization’s managers to efficiently and effectively manage their employees in order to achieve organizational performance and implement both organizational short and long-term strategies. Therefore, organizational identity is an important subject which has a great potential to help organizations to increase levels of employees’ job satisfaction which in turn will result to the attraction and retention of artisan employees. This will result to a decrease employee turnover and reduced artisan employees’ shortage (Phillips and Ravasi, 2011).

Hatch and Schultz (2002), emphasized that employees’ beliefs about organizational identity features; distinctive, central, and enduring serve as a powerful organizational image that influences the degree in which employees identify themselves with their organization. Thus, this means that employees who believe their organization has a distinctive culture, strategy or structure of distinctive characteristics as compared to other organizations with similar characteristics, are easily identified with an organization’s image and values. They further indicated that organizational identity is needed for employee recruitment and organizational change efforts. Thinking about an organization’s identity before taking any actions will definitely help in organizational processes. This can also be proved by alumni who perceived their university or college as distinctive in attitudes, values and practices always identify with the university or college. As a result of the above information, I conclude that a strong organizational identity positively influences employees’ organizational identification (Hatch and Schultz, 2002).

According Hatch and Schultz (2000) dynamic model, the relationship between organizational identity, culture, and image, employees express their understandings of the organizational culture through organizational identity, which in turn, affects the perception of others outside the organization about the organization. The outsiders ’perception about organizations, in turn, affects the organizational identity, which again is reflected in the central elements of the organizational culture (Hatch and Schultz, 2000), (Davoodalmousavi, 2013). The Hatch and Schultz (2000) dynamic model is presented in figure 5 below.

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Figure 4: Hatch and Schultz’s model, (Griffith Cameron, 2016).

2.2.1 Measurements of Organizational Identity

As stated in the introduction of this chapter, organizational identity is considered as one of the drivers of organizational life. Organization development scholars, organizational change researchers, and industrial psychologists also supported the notion that organizational identity is the driver of organizational growth and success (Stinglhamber and Eisenberger, 2011). Albert and Whetten (1985), defined organizational identity as what organizational members perceived to be central, distinctive and enduring characteristics of the organization. They further stated that central represents the organization’s core attributes while distinctiveness represents those attributes which distinguish the organization from its competitors that is “organization maintains identity through interaction with other organizations by a process called interorganizational comparison over time”. Lastly, they understood these enduring characteristics as residing in the organization’s continuity over time (Gioia 1998), (Corley et al. 2006).

For the purpose of this study three organizational identity features were used to measure organizational identity. These features of organizational identity are the ones that organizational members perceive to be distinctive, continuity and central about their organization (Albert and Whetten, 1985).

2.2.1.1 The Distinctiveness of Organizational Identity

The distinctiveness of organizational identity shows the comparisons that distinguish one’s organization from another. It consists of the characteristics that differentiate an organization from other organizations in the same industry. The importance of the distinctiveness of organizational identity is employee self-classification (Albert and Whetten, 1985). The attractiveness and distinctiveness of the organizational identity, shows the extent to which employees identify with their organization. According Rindova and Schultz, (1998), the perceived consistency between the self-identity and the distinctiveness of organizational identity determines employee organizational identification. It is important for an organization to have an identity which will help its employees identify themselves with; this is what is referred to as organizational identification. This, therefore, shows that organizational identity (what the organization is) and organizational identification (organizational members’ association with the organization). Organizational identification as defined by Albert & Whetten, (1985) is a powerful cognitive scheme that has both positive and negative impacts in rapidly changing environments. They further stated that employees will dedicate themselves to the preservation of the organization’s image in order to maintain cognitive harmony (Albert and Whetten, 1985).

Dutton & Dukerich, (1991), stated that the distinctiveness of the organizational identity was firstly derived from its distinctive images and symbols and secondly from the “construed external image“, that is, what employee perceives outsiders think about their organization. This shows that if an employee’ identity has the same characteristics as the one he/she perceives to be distinctive about the organization, the end result will be a strong organizational identification. As a result of this, employees will identify themselves with the organization (Dutton et al, 1994). When an organization has a distinctive identity, it will be easier to increase its employees’ self-classification as one of the distinctiveness of organizational identity. Employees feel proud to belong to an organization which has socially valued and distinctive characteristics. Employees’ beliefs about the distinctive characters of the organization help in influencing the degree to which employees identify themselves with the organization. This shows that the distinctiveness of organizational identity taps into individual employee’s need to be unique and attain this through memberships in a distinctive organization. When an organization becomes ‘‘infused with distinctive value”, its distinctive features generate strong loyalties among its employees. In their empirical study, Mael and Ashforth (1992) discovered that the university with distinctive attitudes, values and practices leads to alumni who have high levels of organizational identification (Mael and Ashforth, 1992).

Employee organizational identification originates from loyalty and helps to develop positive beliefs, attitudes and emotions towards the organization. These beliefs, attitudes, and emotions are unveiled behaviourally within the realm of the organization through the level of employees’ work commitment.

This creates a loyalty to the organization which results from a psychological internalization of organizational identity and self-concept. Employees internalize the values of their organization by identifying themselves with that organization, thus creating the employees’ organizational identification (Boutwell, 2003). This psychological tie is the result of the employees’ adoption of organizations’ characteristics as their own. Thus, employees’ organizational identification symbolizes an employee’s sense of belonging, loyalty and shared characteristics with the organization. The belongings and loyalty occur when an employee feels that the organization considers both himself and tasks assigned to him equally important. Organizational identification also shows that employees internalize their organizations’ values and goals, that is they consider organizational values and goals as their values and goals. A strong organizational identification leads to behavioural attitudes in employees’ organizational commitment, organizational endurance longevity and loyalty (Basim and Ufuk, 2015), (Karanika et al, 2015).

2.2.1.2 The Continuity of Organizational Identity

The continuity of organizational identity shows those characteristics of the organization which are persistent or have continuity over-time. This means that there is “some degree of sameness” or “continuity” within the organization (Albert and Whetten, 1985). Thus, the changes are acceptable as long as they are not characterized by discontinuity in the organization. However, Albert and Whetten (1985) asserted that for this criterion, an organizational identity could change as long as it had continuity. The centrality of organizational identity refers to the core characteristics of the organization, that is, the characteristics shared by all members (Corley et al, 2006). The continuity of organizational identity has potential to assist organizations in maintaining the continuous appearance and permanent presence in the face of variability. According to Albert and Whetten, (1985), continuity of organizational identity shows how organizational identity has to be maintained and changed.

Previous research indicates that stakeholders develop persistent notions of what their company is, which are difficult to change. Internal stakeholders, such as managers and employees, can become strongly attached to activities that define the company because such activities are the basis for their expertise, and, thus, their jobs depend on them and because belonging to the organization has become an important nexus through which they identify themselves with the organizational identity (Dutton and Dukerich 1991), (Bhattacharya and Sen 2003), (Tripsas 2009). As a result of this personal identity, employees become more committed to their organization. Employees’ organizational commitment represents the degree in which employees identify with the organization they work for and are willing to stay in that organization. In other words, it measures employees’ willingness to continue working with that organization. It reflects the employees’ belief in the mission and goals of the organization, willingness to apply more efforts in order to achieve organizational goals and intentions to continue working in the organization. According to Allen and Meyer (1990), employees’ organizational commitment is characterized by:

(1) affective (emotional attachment to their organization and its goals), This type of attachment is an emotional attachment, based on which highly committed employees specify their identity by the organization, participate in the organization and enjoys membership in the organization. Employees with high affective attachment to the organization have strong motivation to contribute to the organization goals because they see them as theirs (Allen and Meyer, 1990); (2) Continuance (employees’ commitment based on their perception of the costs they may incur when leaving the organization). According to this definition, employees remain in the organization not due to moral force feelings. It describes employees’ commitment related to the potential costs an employee fear to incur when leaving an organization and (3) Normative (an employees’ feelings to stay in the organization because of moral force). In other words, employees stay in the organization because they have a sense of duty that they should not leave the organization. It is based on the organization’s investment in an employee who then feels a ‘moral’ obligation to stay with the organization, based on employee’s social or cultural norms and believes that one should be loyal to one’s organization. It describes the pressure on an individual employee to stay with an organization as a result of the organization’s norms. Without employees’ organizational commitment, even the most organized strategic plans would not be useful and effectively implemented (Abman et al, 2017).

Based on the definition of employee organizational commitment, continuity of organizational identity helps organizations in building the strength their employees’ organizational identity in favour of mutual trust, understanding the organization’s goals and values, and a strong desire to achieve organizational goals. One of the distinctive features of an organization over other organizations is having loyal and committed employees. Employees’ commitment increases organizational performance and ultimately leads to reduced employee turnover (Ahmed et al, 2011), (Susanty et al, 2013).

2.2.1.3 The Centrality of Organizational Identity

The centrality of organizational identity represents those features that are deemed to be core features of the organization. These core features are the values that constitute what the organization stands for. They are the heartbeat of the organization and also the foundation for employees’ identification with the organization. Thus, the core values guide all of the organization’s actions and decisions regarding organizational culture, that is, “how we do thing in this organization” (Lencioni, 2002), (Manohar and Pandit, 2013), (Lencioni, 2002). Organizational culture refers to a combination of shared meanings, beliefs, assumptions, understandings, norms, values and knowledge about the organization. Organizational culture defines the organizational life and also shapes employee’s behaviour by providing them with a unique identity. Organizational culture helps organization to shape its employee’s behaviour by instilling loyalty and establishing parameters for acceptable behaviour. It is an integral part of organizational identity and reflects the fundamental values important to the organization. Therefore, what is claimed central about the organization is determined by its core values. It has an important implication for the retention of employees because it is the most important factor that determines how well employees fit in the organization. This shows that employees who fit well with their organization’s culture are less likely to stay with the organization and are generally more satisfied with the conditions of their employment (Elliot and Tranmer, n.d), (Stinglhamber and Eisenberger, 2011), (Hartnell et al, 2011), (Hatch, 2013).

According to Albert & Whetten (1985 and Hatch and Schultz (2002), organizational identity and organizational culture are two concepts which are closely related. Organizational culture presents the organizations’ goals, values, and norms, while organizational identity shows the extent to which individuals are committed to the organizational culture. They do this by internalizing the goals and values of their organization as part of their self-concept. Organizational culture answers the question “how we do things?” while organizational identity answers the question “who we are and what are we?” (Cheboi, 2014), (Colman Helene, 2008), (Hatch and Schultz, 2000), (Albert and Whetten, 1985).

Albert and Whetten (1985) consider the centrality organizational identity as the core values of the organization and it is used by top management as their own frame of reference by which they project images, make decisions, participate in dialogues, develop processes, and make investments, model behaviours. The centrality of organizational identity assists employees on how to internalize organizational core values. It provides guidance to organizational management on how to manage the direction and persistence of organizational behaviour. The centrality of organizational identity helps the organization to align its actions to their core values. Many researches have proved that sustainable and successful companies are the ones that consider their core values as guiding tool for decision-making (Manohar & Pandit, 2013).

2.2.2 Factors Influencing Organizational Identity

As indicated by Albert and Whetten, (1985) when defining organizational identity, they stated that it is important for organizations not only to have a unique identity, but also a continuing identity which shows the organization’s survival over time. For organizational identity to be continuous, there are some variables that serve as determinants of strong organizational identity and these are perceived organizational support, Organizational Engagement, Satisfaction of needs, Perceived fairness, Perceived organizational prestige and Organizational communication.

2.2.2.1 Perceived organizational support

According to Eisenberger et al (1986), perceived organizational support strengthened employees believe about their organizational value’s contributions to their well-being. This makes them feel being cared and supported by their organization. This also increases employees’ attachment to the organization and identifies with their organization (Edwards and Peccei, 2010), (Eisenberger et al, 1986).

2.2.2.2 Organizational engagement

Employee engagement shows the extent in which employees are committed to their organizational work with the aim to achieve the mission and vision of the organization. This is measured in terms of employees’ active participation in organizational activities. The concept of organizational engagement has three main elements which are as follows: influence, interaction and sharing information with employees. In addition to the above definition of organizational engagement, engaged care about the growth of the company and are willing to work beyond expected in order to achieve the organizational outcomes. Engaged employees feel a strong emotional attachment to their organization, which results in higher retention levels, attraction of skilled workers and ultimately higher productivity levels (Angela, 2014).

Employees who are engaged in their organization have autonomy over work, they are considered to have high organizational involvement, since they are given the ability to influence how they do their work, the pace of their work, the order in which they perform tasks and when they conduct their work (Adham Ayman, 2014), (Timming, 2011). Therefore, it is concluded that there is a relationship between perceived organizational support and organizational engagement.

2.2.2.3 Satisfaction of needs

Functionalists argue that people who are members of social institutions have physiological needs which must be met. These needs are the basis of Maslow’s hierarchy of needs which include employees’ survival needs such as shelter and food, etc. Employees experience more job satisfaction and consequently satisfaction with the organization if and when their goals and physiological needs are fulfilled. This suggests that the needs of employees, as members of organizations, must be met if job satisfaction and satisfaction with the organization is to be experienced. This further implies that employees will identify more with the organization if they have more positive influence on the identity of the organization when their needs are satisfied (Backer, 2011).

2.2.2.4 Perceived fairness

The perception of fairness serves as a key catalyst in motivating employees to identify themselves with their organization. Organizational members will have a positive influence on the identity of their organization if perceived fairness is evident in the employer-employee relationship. If perceived fairness is not evident in the employer-employee relationship, employees will show a negative influence on organizational identity (Peer and Gamliel, 2010).

2.2.2.5 Perceived organizational prestige

Perceived organizational prestige as defined by Mael and Ashforth (1992) shows the extent to which employees regard their organization in absolute and comparative terms. In support of Mael and Ashforth (1992), Smidts et al. (2001) defined perceived organizational prestige as how believe outsiders view their organization. This signifies organizational members enjoy the glory as well by identifying themselves with the good reputation of the organization and this pushes them to identify themselves more with the organization and its goals. When organizational members identify themselves with the organization’s reputation, the ideals that the organization stands to become their own ideals (Ashforth and Mael, 1989, 1992), (Smidts et al, 2001), (Witting Marjon, 2006).

2.2.2.6 Organizational communication

A clear communication mechanism between the employer and employees serves as catalyst for the promotion of a strong organizational identity. According to Backers, (2010), if and when employers have open organizational communication with employees, this will serve as an effective means of conveying essential information to their employees, which will foster more employee’ organization identification, thereby exerting a positive influence on organizational identity. Various types of communication such as horizontal and vertical communication are essential to ensure a positive, strong and enduring organizational identity (Backer, 2011).

2.3 Job Satisfaction

Job satisfaction is one of the important attitudes that influence employee’s behavior in the workplace. This brings to human resource management and organizational behavior researchers to develop an interest in studying the impact of job satisfaction and understanding its consequences for employees at work place. Job satisfaction is defined as positive feelings and attitudes that employees have about their jobs and the organizations in which they perform these jobs. It shows the extent to which employees feel about their work and organization. Job satisfaction is defined as the positive feelings that transpire as a result of the fulfillment of employees’ needs which are divided into two dimensions: (1) intrinsic needs and (2) extrinsic needs and its strength depend on the degree of meeting individual employees’ expectations. These feelings control and drive the employees’ behavior and work attitude, which in turn have an effect on the organizational outcomes (Bruch and Cole, 2006). It is an employee’s affective reaction to a job, based on a comparison between actual outcomes and desired outcomes. Job satisfaction is characterized by two elements which are intrinsic and extrinsic job satisfaction. Intrinsic job satisfaction represents those job elements derived from internally mediated rewards, such as the job itself, opportunities for personal growth and accomplishment while extrinsic job satisfaction represents those job elements resulting from externally mediated rewards such as satisfaction with pay and benefits, company policies, support, supervision, co-worker’s relationships, job security and chances for promotion (Hettiararchchi and Jayarathna, 2014), (Ismail, 2012).

Ahmed et al, (2011) supports this view by defining job satisfaction as the basic thing that shows the path towards recognition, salary, promotion, and the achievement of the goals that fulfill employees’ desires. They indicated that employees have different behaviors about their job such as the different kinds of work they perform, supervision and their salaries (Ahmed et al, 2011). The study of employee job satisfaction is a topic of wide interest to organizational management scholars. Employee job satisfaction is affected by many factors such as workload, incentives, and job security, relationships with supervisors and co-employees; as well as organizational variable such as culture. These factors are divided into two dimensions: First dimension is an extrinsic satisfaction which refers to employee satisfaction that have little to do with the job tasks or content of the work itself, such as pay, working conditions and co-employee’s relationship. The second dimension is an intrinsic satisfaction which refers to employee satisfaction that does with the job tasks themselves, such as skill variety, skill utilization, job autonomy (Gozukara, 2016).

In addition, there are quite a number of theories which tried to outline and explain the factors affecting employee job satisfaction or dissatisfaction. For instance, Frederick Herzberg (1959) and his colleagues introduced job satisfaction theory known as the motivation-hygiene theory, also called the two-factor theory. In this theory, they suggested that employee job satisfaction is influenced by two factors which are hygiene and motivating factors.

Table 1. Herzberg’s Motivation-Hygiene Theory (Frederick Herzberg, 1959)

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They also suggested that employee job satisfaction is the result of motivating factors while employee job dissatisfaction is the product of non-existence of hygiene factors in the employees’ working environment. They stated that for employees to be satisfied there is a need for improvement in hygiene factors together with motivating factors. Herzberg's theory advocates that satisfied employees tend to be more productive, creative and committed to the job (Dennis and Dugguh, 2014), (Khan et al, 2017), (Kuoppala, 2013).

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Figure 5: Herzberg’s Description of Job Satisfaction and Job Dissatisfaction

Based on the above, we therefore conclude that, Herzberg’s theory of job satisfaction provides the factors that affect employee job satisfaction and the combination of these factors can result to either satisfaction or dissatisfaction. Employee job satisfaction and dissatisfaction not only depend on the nature of the job, but also depend on the employee expectation of the job (Susanty et al, (2013).

Locke’s value theory (1969), also indicated that the different factors impact differently on employee job satisfaction. The theory emphases the need for an organization to know the value placed on each factor and the significant shift caused by that factor in employee job satisfaction. This theory also advocates that there is a need for balance in value placed on all the factors affecting employee job satisfaction. Locke’s theory is therefore defined job satisfaction as the pleasurable emotional state resulted from the appraisal of employees’ job performance due to attainment of their tasks while job dissatisfaction is defined as the unpleasable emotional state resulting employees’ job appraisal due to attainment of their values. Job satisfaction is the result of employees’ perception

regarding certain aspects of the job and the relationship between their expectations and reality, they faced when doing the job (Kuoppala, 2013). The overall employee job satisfaction is associated with different factors of job satisfaction which includes, among others nature of the job, working environment, salary and incentives linked job, promotional methods & performance appraisal, relationship with co-workers & managers, and grievance handling (Chahal et al, (2013).

Moreover, Abraham Maslow (1970) in Maritz and Jarne, 2014, on his theory known a Maslow's Theory of Needs, in support of Locke’s theory, shows that employee job satisfaction correlates with increased employees’ job performance, positive work values, and high levels of employee motivation and decreased employee turnover. He stated that within every individual there is a hierarchy of five levels of needs which ranges from lower level to higher level needs (Maritz and Jarne, 2014). These levels are presented in figure 7 below.

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Figure 6: Maslow’s Five-level hierarchy (Backer, (2011) .

Maslow’s five level hierarch postulates that employees are never satisfied since their expectations are not always merged with the organization’s expectations. When employees’ expectations are met, their level of job satisfaction increases and ultimately organizational performance increases too. This is because satisfied employee strives to achieve organizational goals. Based on Maslow’s theory of needs, employees’ needs shall never be satisfied since after satisfying physiological needs they seek to satisfy another level of needs until they reach to self- actualization needs (Ismail, 2012).

Hackman and Oldman developed the job characteristics model (JCM) based on Herzberg’s Motivation-Hygiene Theory. The JCM outlines five core job characteristics, namely skill variety, task identity, task significance, autonomy, and feedback. These characteristics, then affect three critical psychological states which in turn results in personal and organizational outcomes (Zeeshan et al, n.d).

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Picture 7. Job characteristics model, (Loi et al, 2014).

According to the JCM any job can be described in terms of these five core job dimensions: skill variety, task identity, task significance, autonomy, and feedback. The first three dimensions, skill variety, task identity, and task identity, determine if the work is meaningful. If these three characteristics exist in a job, it can be predicted that employees will view their jobs as achievement, recognizable and worthwhile. Autonomy gives the employees a feeling of empowerment and personal responsibility for the results, and feedback lets the employees know how effectively they are performing.

In addition, this theory indicated that there are three critical psychological states which can be expected to occur when the job is designed such a way that it increases the presence of the five core job dimensions mentioned above: experienced meaningfulness of the work, experienced responsibility for work outcomes and knowledge of results of work activities. Hackman and Oldman also stated that the existence of these three critical psychological states would collectively promote increased work motivation and job satisfaction (Kuoppala, 2013).

Therefore, job satisfaction is one of the main factors in relation to the growth and competitive advantage of the organization. The satisfied employees strive to achieve the organizational outcome. If employees show a positive attitude towards their work it means that they are highly satisfied with their job. This shows that job satisfaction positively affects employees’ productivity and contributes to employees ‘turnover (Kuoppala, 2013), (Prasetio et al, 2017), (Subelo et al, 2013).

The level of job satisfaction determines the emotional and mental state of employees. The behavior of employees depends on their level of job satisfaction which has effects on the functioning and activities of the organization's business. Therefore, high levels of job satisfaction results in positive behavior which in return will lead to growth and profitability of the organization.

Job satisfaction can serve an operational strategy for the organization to retain its current employees and attract new employees from the labour market. Through job satisfaction organization can be regarded as a home for talent employees’ due to the way the current employees identify themselves with the organizational image, commitment and values (Borges, 2012), (Emerson, 2013), (Robbins, 2009).

Job satisfaction is an essential component in the success and growth of an organization. This implies that for the organizations to successfully improve their performance, employees’ level of job satisfaction is critical for the achievement of organizational goals. When employees are not satisfied the organizations are likely to suffer the problem of employee turnover, which will ultimately lead to a shortage of talent employees. This shows that satisfied employees are not only beneficial to organizational performance, but also acts as the organizational branding (Davoodalmousavi, 2013), (Ismail, 2012).

2.3.1 Determinants of Employees Job Satisfaction

According to the literature on the job satisfaction there are many factors influencing job satisfaction. These factors are divided into three categories, namely: the demographic data which includes age, gender, educational level, work experience and nationality; the intrinsic factors which include job security, recognition, the work itself, an employee’s possibility for growth; and the extrinsic factors that include company policy, employee-supervisor relationship, work conditions, co-worker relationship and compensation. Both the intrinsic factors and extrinsic factors are the products of Two Factor Theory developed by Herzberg, (1960) (Shurbagi and Ibrahim, 2012). However, for the purpose of this study only the following factors will be studied: job security, compensation, possibility for personal growth, employee-supervisor relationship, working conditions and work-itself.

2.3.1.1 Job Security

This aspect covers those features of job satisfaction which provide an employee with security of permanent employment at the organization. An organization with high level of job security easily retains talent employees. This was supported by an empirical study conducted by Guest (2004), who found out that employee’s job satisfaction and commitment are adversely affected by both low job security and poor working conditions. In addition to Guest findings, Hamed et al, (2012) in their study also discovered that job security significantly related to employees’ organizational commitment and performance (Guest, 2004), (Hamed et al, 2012), (Mosammod and Kabir, 2011), (Mullins, 2010), (Musum , Azad, Behl , 2015). We therefore concluded that job security increases employees’ commitment in work organization. In other words, employees who feel job insecurity are less committed to the organization they are working for and have a high propensity to leave the organization.

2.3.1.2 Employee Compensation

This aspect of job satisfaction includes every type of rewards given to employees in either in exchange for performing organizational tasks. This has two types which are monetary (Wages, salaries, bonus, commissions, benefits, etc.) and non-monetary (promotion, praise, skills development etc.). Employees’ compensation is one of the job elements which increase job satisfaction and employees’ performance. The compensation is a very valuable tool for employee retention and turnover. It also contributes to employees’ organizational commitment which in return enhances employees’ attraction and retention. Appropriate payment is a very far-reaching and impactful driver of how satisfied employees are. It is important that employers work towards making sure that their employees are being compensated fairly for the amount of work they have done. Employees should also be assured that they are being compensated fairly alongside employees with comparable education and experience at similar companies (Gozukara, 2016).

Fair compensation contributes to employee job satisfaction which in turn leads to increased employee and organizational performance. It indicates the caring of organizational managers in employees’ well-being. Therefore, organizations with good and fair compensation system are likely to experience highly motivated and satisfied employees who consider the success and failure of the organization as their own. It is crucial for organization’s managers to gauge the levels of employees’ job satisfaction within their workforce and specifically identify positive and negative issues (Gozukara, 2016), (Ivancevich, 2014).

2.3.1.3 Employee Possibility for Growth

This aspect of job satisfaction includes all aspects of the job which individual employee sees as potential for personal growth both economically and professionally. An employee seeks fair promotion policies. It provides opportunities for employee’s personal growth, more responsibility and increased social status. The desire for promotion is generally strong among employees as it involves a change in job content, pay, responsibility, independence and status, etc. Employees take promotion as the ultimate achievement in their career and when it is realized, they feel extremely satisfied. Employees’ opportunities for growth are likely to exert an influence on their job satisfaction. Employees are more satisfied when they feel they are rewarded fairly for the work they do (Gozukara, 2016).

2.3.1.4 Employee-supervisor Relationship

This aspect is the most important factor in enhancing the level of employee job satisfaction. This is because the supervisor interacts with employees in their daily work in an organization. Thus, it shows that bad supervisors’ behavior negatively hinders organizational performance as a result of unsatisfied employees (Aydogdu and Asikgil, 2011). Supervisors are the one who provides employees with advice, guidance and also assist in problem solving. Hence, it is the responsibility of supervisors to provide employees with good working environment (Saba and Ma, 2015).

Accordingly, the supervisor-related factors such as giving employees autonomy considerably affects how employees evaluate their job since autonomy at work causes employees to feel a sense of pride in terms of their jobs (Gozukara, 2016). Employee supervision, as a factor, generally influences employees’ job satisfaction. This, therefore, requires companies to act on the key drivers refocusing of employees’ attention on performing at their best while also boosting their level of job satisfaction (Ismail, 2012). The good working relationship between supervisor and subordinates provides a healthy organizational environment which helps the organization to achieve its desired goals and mission thereby increasing job satisfaction. The expectation is that the leaders must show support for teamwork, good co-workers’ relationships. They must also promote positive emotions in the workplace as it has a potential to increase employees’ work effectiveness and ultimately improve job satisfaction (Olu-Abiodun and Oluwatosin, 2017).

2.3.1.5 Working condition

This aspect of job satisfaction includes those physical aspects of working environment which are not necessarily a part of the work. Working conditions that are compatible with an employees’ physical comfort contribute to employees’ effectiveness and efficiency in performing their job which in turn leads to employee job satisfaction. The absence of good working conditions inversely impacts on employees’ job satisfaction and well-being. The second driver of employee job satisfaction is for the employee feeling valued as a person, not a number. All employees, regardless of their level of education need to feel that their employer takes interest in their well-being and personal growth. An organization which value its employees as an important asset, is likely to have employees who apply an extra effort in attaining organizational goals and ultimately remain loyal to the organization (Aydogdu and Asikgil, 2011), (Gozukara, 2016), (Ismail, 2012).

Working conditions are one of the hygiene factors which are associated with employee job dissatisfaction. Conducive and friendly working environments contribute to employees’ organizational commitment and organizational identification. Maintaining good working conditions will significantly impact on job satisfaction. This will also make them consider the company’s successes and failures as their successes and failures.

2.3.1.5 Work itself

This aspect of job satisfaction shows the nature of the work performed by employees and how significantly impacts on their level of job satisfaction. Employees derive satisfaction from work that is interesting, challenging and job that provides them with status. The work itself plays a major role in determining the employee’s level of job satisfaction. The job content has two aspects. One is the “job scope” that involves the amount of responsibility, work pace and the feedback provided. The higher the level of these factors, is the higher the job scope and thus higher the level of job satisfaction. Lack of autonomy and freedom over work methods and work pace result to job dissatisfaction. It is not very motivating for the employees to have their every step and every action determined by their supervisor. Therefore, the role of ambiguity and conflict have to be avoided because employees feel very unhappy if they do not know exactly what their task is and what is expected of them. Autonomy gives employees an opportunity to use their own skills and knowledge to plan how work is done and problems solved. This will make an employee to find this job interesting and challenging which will result to high level of job satisfaction (Aguinis, 2012), (Aydogdu and Asikgil, 2011), (Ismail, 2012).

2.4 Relationship between Organizational Identity and Job Satisfaction

Job satisfaction is one of the most important human resource management outcomes which results from a performance-based compensation. Different organizations have different strategies used to raise employees’ satisfaction from their jobs. Job satisfaction is the product of the positive feelings of employees towards their jobs. When employees are happy with their jobs, it shows that those jobs satisfy their needs and wants hence high level of job satisfaction. However, unsatisfied employees have negative feelings towards their jobs which signified the low level of job satisfaction. The satisfied employees identify themselves with the organizational image and values. This, therefore, makes it easy for them to consider organizational successes and failures as their own (Belies et al, 2015), (Shmailan, 2016).

It is well-known that organizations’ successes and growth are achieved through the help of their talent employees and therefore employees who identify themselves with the organization are said to be the satisfied employees. Furthermore, the realization of the organizations’ goals depends largely on the behavior of their employees. Organizational identity is, therefore, the foundation for employee identification with the organization which in turn, affects employee job satisfaction (Albert and Whetten, 1985). As a result of this, it can be concluded that organizational identity has a considerable impact on organizational behavior at individual, team, and organizational levels. It is, therefore, important for the managers to note that employees’ job satisfaction is influenced by the strength of organizational identity which is determined by employees’ identification with the organization.

In organizational identification process, for employees to determine their organization’s identity, they decide what they believe to be central, distinctive and continuity characteristics about their organization. If these characteristics are similar to employees’ characteristics, they will identify themselves with membership in the organization which in turn enhances their level of job satisfaction. Employees, who identify themselves with the organization, apply more effort in achieving organization’s outcomes. The stronger the organizational identity, the stronger employee identification with the organization becomes and the higher employee level of job satisfaction towards the organization becomes. Therefore, a stronger organizational identity develops a conducive working environment for employees, which results to employees identify with the organization and become more committed to the organizational work, thereby leading to an increased employees’ level of job satisfaction (Mdletye et al, 2014). Moreover, Albert and Whetten (1985) also indicated that an organization with strong organizational identity, supported by a vibrant organizational values, mission, vision, and goals, has a significant impact on employees’ job satisfaction. They further highlighted that strong organizational identity positively and significantly enhance employees’ organizational identification which results in employee job satisfaction. This ultimately makes easy for organizations to effectively and efficiently achieve its goals and gain comparative advantages (Albert and Whetten, 1985).

Empirical studies conducted by Ashforth and Mael (1989, 1992) and Mael (2001) also supported the notion that a strong organizational identity can benefit employees at the personal level with increased feelings of self-concept and a sense of personal worth and leads to strong organizational commitment and longevity of employment (Ashforth and Mael, 1989,1992), (Asiedu, 2015), (Mael, 2001). This means that employees who affiliate with the organization show cooperative behavior beyond their own organizational role. In addition, employees identify themselves with the organization and imagine their identity within the organizational framework and also consider organizational successes and failures as their own successes and failures (Belies et al, 2015), (Henning and Westfall, 2013). Organizations which provide a good working environment in which employees can express themselves with, strive for both individual and organizational success which in return makes it easy for employees to identify themselves with the organization. The degree of organizational identification may change due to the duration and character of the interaction between employee and the organization. In other words, the more employees interact with and spend time at an organization, the more likely to identify with an organization. In support of this, Basim & Basak, (2015) and Oktug, (2013) indicated that employees, whose identification with the organization is stronger than others, may be satisfied with their jobs despite several negative environmental effects and managerial issues such as mismanagement, scarcity of resources and low wages. The reason for this is that, the distinctiveness of organizational identity fosters employees’ feeling of being “one with the organization under all circumstances. As a result, employees may ignore such negative factors and tend to be satisfied with their jobs due to strong organizational identity (Belies et al, 2015), (Oktuğ, 2013).

The research on the relation between organizational culture and job satisfaction by Belias et al, (2015), indicated that a productive working environment promotes the construction of a specific organizational culture and the experience of employees’ job satisfaction. Furthermore, they highlighted that job satisfaction increases as employees’ progress to higher job levels. They also found out that there is a correlation between the centrality of organizational identity and job satisfaction for employees in certain job positions, as well as a relation between employee job satisfaction and employee turnover (Borges, 2012).

Therefore, this shows that employee job satisfaction and organizational identity are the most important factors in shaping employees’ intentions to stay or leave the organization. Both seem to have direct effects on employee turnover. With reference to the study of the relationship between job satisfaction and organizational commitment, Ismail, (2012), found that there is no significant relationship between organizational commitment and job satisfaction. He emphasized that regardless of whether employees are committed or not committed to their current job, which does not affect their level of job satisfaction (Ismail, 2012).

In support of Ismail, Salman et al, (2014), said that there is a positive and significant correlation between the impact of organizational culture on employee job satisfaction as well as on employee retention. They emphasized that the centrality of organizational identity significantly influences the employee job satisfaction. They further indicated that positive organizational culture enhances employee’s commitment, job satisfaction and decrease employee turnover, automatically the organizational performance increase. It is therefore clear, as evidenced by the results of Ismail and salman et al, that a strong organizational culture is very helpful for the new employees to adopt the organizational culture and internalize the values and norms of the organization as his own (AL- Mugatti et al, 2016), (Salman et al, 2014).

The high correlation between organizational commitment and job satisfaction was also proven by Tai et al (1998) in Susanty et al, (2013). They indicated that job satisfaction is a significant predictor of organizational commitment and also, organizational commitment is a significant predictor of job satisfaction of employees. They further emphasized that organizational commitment is the most influencing factor of both an intrinsic and extrinsic job satisfaction (Susanty et al, 2013).

Moreover, a study conducted by Silva, (2006) indicated that the relationship between organizational commitment and job satisfaction can occur in both directions, that is committed employees tend to be satisfied employees. Job satisfaction is so important in the sense that its absence often leads to reduced organizational commitment. This was also supported by empirical study conducted by Chien, (2011) on the relationship between corporate social responsibility and organizational commitment. Chien emphasized that poor organizational image has a negative impact on an employee self-concept which in turn leads to lower employees’ organizational commitment hence a decrease in employees’ job satisfaction (Chien, 2011). An empirical study conducted by Yucel, (2012), revealed that job satisfaction is positively impacting on affective commitment, continuance commitment, and normative commitment. Another important result of Yucel’s findings was that there is a negative relationship between job satisfaction and employee turnover intention. In other words, it was proved in this study that job satisfaction is one of the most important antecedents of organizational commitment and turnover intention of employees (Yucel, 2012).

In addition, Sinem and Asikgil, (2011) and Ariani and Tarigan, (2015), emphasized the importance of job satisfaction and organizational commitment in organizational effectiveness, productivity and job performance and their impact on employee turnover intention. They found that there is a significant and positive relationship between job satisfaction and organizational commitment. They indicated that there is a significant and positive relationship between affective commitment and job satisfaction which is the result of an increase in factors that generate employee job satisfaction which results to an increase in affective organizational commitment. They further highlighted that there is a significant and positive relationship between continuance commitment and job satisfaction which due to an increase in factors that generate job satisfaction which then leads to an increase in continuance organizational commitment. Finally, they indicated that there is a significant and positive relationship between normative commitment and job satisfaction as a result of internal factors like, autonomy, job-variety, work-experience, which help to increase employees’ commitment which is based on a feeling of obligation with the organization and a strong belief about being a member of the organization than the external factors like pay, promotion, supervision or working condition (Ashforth and Mael, 1992), (Aziri, 2011). The findings above indicate that an increase in the level of employees’ job satisfaction will result to an increase employees’ commitment, hence a decrease in employee turnover.

The study conducted by Sugreen, (2010), on the relationship between organizational identity and organizational performance, showed that there is a significant relationship between organizational identity and organizational performance. In this study, Sugreen discovered that a strong, positive and enduring organization identity is a critical requirement for the growth and success of any organizations. Mullins and Ackerman, (2010) also supported Surgeen’s findings, indicating that organizational identity influences many factors that account for the success and growth of organizations, including the changes in organizational management (Ackerman, 2010), (Moksness, 2014), (Mullins, 2010).

Therefore, the more the relationship between organizational variables and employee job satisfaction is uncovered, the more employees’ satisfaction and ultimately reduced employee turnover and shortage. Successful organizations depend on their employees’ commitment to meet their objectives. In order for organizations to achieve their strategic goals and keep their competitive advantage, their employees must perform at high levels (Shmailan, 2016). Job satisfaction is said to have a positive relationship with affective and normative commitment, but with a stronger relationship with affective commitment than with continuance commitment. This shows that there is an interrelationship between organizational commitment and job satisfaction (Abman et al, 2017), (Ismail, 2012). A strong relationship between organizational culture and job satisfaction shows a strong organizational identity. If the association between organizational culture and job satisfaction is low, it represents a weak culture of the organization hence weak organizational identity.

Organizational culture and organizational identity is according to Hatch and Schultz (2002) closely connected, where it can be difficult to see where one ends and the other begins. As argued by Hatch and Schultz, (2002) organizational identity when compared to culture is more textual, explicit and instrumental where organizational culture is more contextual, tacit and emergent (Davoodalmousavi, 2013), (Hatch, 2013), (Maritz and Jarne, 2014). The argument presented above shows that organizational identity relates to employees’ job satisfaction through employees’ organizational identification, organizational commitment and organizational culture. The argument also suggests that the strong organizational identity influences employees’ organizational identification which in turn leads to high level of employee job satisfaction. This implies that a strong organizational identity relates to strong employee behaviors regarding the success and growth of their organization.

It is therefore concluded that a strong organizational identity has a positive influence on job satisfaction of employees while a weak organizational identity applies a negative influence on employee job satisfaction. This, therefore, proves that the stronger the organizational identity, the higher the level of job satisfaction of employees’ regarding the organization. In conclusion, organizational identity can help to fuel employee job satisfaction which then reduces in employee turnover.

2.5 Summary

This chapter provided both theoretical and empirical frameworks for the study in the light of developments in the conceptualization and operationalization of the organizational identity and job satisfaction. The focus was more on literature that was answering the three research questions which show the significant relationship between organizational identity and job satisfaction. The chapter started with a review of the literature relevant to defining the concepts of organizational identity and job satisfaction.

The second part started with a review of the definitions and determinants developed to capture both organizational identity and job satisfaction. When conceptualizing both organizational identity and job satisfaction, the chapter provided a conceptual framework for both concepts at different levels. Having reviewed the both theoretical and empirical literature within the two concepts, the researcher adopted the following definitions: Organizational identity is defined as what internal members claimed to be central, distinctive and enduring about the organization (He and Bown, 2013). Job satisfaction is defined as a collection of positive feelings and attitudes with which employees perceive about the various job-related variables (Abraham, 2012), (Aisjah et al, 2013).

Moreover, this chapter identified the factors of both organizational identity and job satisfaction, emphasizing the role that each driver plays in building each concept. The chapter also reviewed measurement scales of both organizational identity and job satisfaction and three features (central, continuity and distinctive) highlighted by Albert and Whetten (1985) when defining organizational identity. This chapter highlighted the relationship between organizational identity and job satisfaction in light of three organizational variables: organizational identification, organizational commitment and organizational culture. Finally, this chapter concludes by presenting a research framework which consists of three variables, namely dependent variable, independent variable and control variable. The next chapter presents a research methodology which covers the following: study area, research design, the population of the study, the sample size, sources of data, instruments for data collection and method, data analysis.

CHAPTER 3. RESEARCH METHODOLOGY

3.1 Introduction

As per the title of this chapter named, it outlines the research methodology adopted to achieve the research objectives. Research methodology presents steps followed in attempting to find answers and solutions to a research problem (Creswell, 2014). The chapter specified in more details the study area, research design, population of the study, sampling size, sources of data, data collection methods, questionnaire design, measurement of variables and data analysis procedures and techniques.

3.2 Research Area

Based on both theoretical and empirical literature on organizational identity and job satisfaction, this study focused on determining how job satisfaction of artisan employees can be raised through organizational identity.

The unit of analysis for this research was on the individual level, focusing on artisan employees, which includes the following: Welders, Electrical engineers, Fitters, Boilermakers, Mechanical and electrical engineers, from the Lesotho Diamond Industry. The findings of this study were generalized to the entire Lesotho diamond mining industry. The study was conducted at the Diamond Mines Sites. The sampling frame was restricted to artisans who included management, supervisors and operators.

3.3 Research Design

After examining the research objectives and discovering that there is lack of previous study focusing on the relationship between three organizational identity features (centrality, distinctiveness and continuity) and employee job satisfaction, this study adopted research explanatory descriptive research design because it allows the researcher to quantify the problem in order to generate numerical data to be used for statistical analysis. It is also appropriate for quantifying attitudes, opinions, behaviours, and other defined variables and generalizes results to a larger sample population. Quantitative Research uses measurable data to formulate facts and uncover patterns in research (Creswell, 2014).

This study also used both qualitative and quantitative research approaches to collect using semi-structured questionnaires. The objective of the study was to determine the relationship between organizational identity and job satisfaction. This study is a quantitative in nature by using the survey method to examine the relationship between independent and dependent variables. The findings and conclusion of the research depended on the full utilization of both job satisfaction and organizational identity data collected and analysed by econometric data analysis software called Eviews 9.5.

3.4 Theoretical Framework and Hypothesis Development

Based on the literature review for both job satisfaction and organizational identity, the researchers found a need to study the relationship between job satisfaction and organizational identity among artisan employees within the diamond industry in Lesotho, the case of the Lesotho Diamond Industry. The conceptual framework below would offer the conceptual foundation to examine and explore more to the study in verifying the relationship between job satisfaction and organizational identity features. Figure 8 presents the relationship between The Distinctiveness of organizational identity, The Continuity of organizational identity and The Centrality of organizational identity with employee job satisfaction. There are number of variables in a research study among which a researcher may want to study relationships, such as: Independent variable(s), Dependent variables(s), Moderating variable(s), Mediating variable(s) and Control variable(s) (Khalid et al, 2012). However, for the purpose of this study on three variables would be studied that is dependent variable(s), independent variable(s) and control variable(s). Independent variables (distinctiveness of organizational identity, continuity of organizational identity and centrality of organizational identity) in this case are the predictor variables which are supposed to be the cause of change in our dependent variable (job satisfaction). The control variables are the variables that are not important to the study, but they were used to improve the results of the study.

3.4.1 Dependent Variable

The dependent variable for this study consists of one variable which is Job Satisfaction. It was measured by Employee Compensation, Work Environment, Employee possibility of growth, Job Security and Work Itself.

3.4.2 Independent Variables

The independent variable for this study consists of one variable which is organizational identity with three features: the distinctiveness of organizational identity, the continuity of organizational identity and the centrality of organizational identity. These three features of organizational identity were measured by an organizational identification scale which includes invested self-concept, integrated goals & values and co-workers’ relationship; organizational commitment scale which includes employees’ attachment, employee job performance and employees’ commitment and organizational culture scale which includes mmanagement knowledge, communication, loyalty, teamwork and job controls.

3.4.3 Control Variables

The control variable for this study consists of three variables which are employees’ educational level, employees’ nationality and employees work experience with the Lesotho Diamond Mine Companies.

3.4.4 Research Hypothesis

3.4.4.1 The Distinctiveness of Organizational Identity and Employee Job Satisfaction

Organizational identity represents the set of beliefs employees consider to be core, strongly binding and distinguishing about the organization while job satisfaction represents the positive feeling of collection in individual level that one holds towards his or her job. The attainment of organizational goals depends on its employees as organizational members. This proves that employees are the heart of an organization (Jamshidi and Keshavarz, 2017).

Based on the literature, job satisfaction refers to employees’ positive feelings toward their jobs. Employees, who believe their organization has uniqueness or distinctive character when compared to other organizations, identify themselves with the organization, hence satisfied with their jobs. Therefore the more the relationship between the distinctiveness of organizational identity and job satisfaction is uncovered, the more employee job satisfaction and both employee turnover intention and shortage will be reduced. This can be considered as an affective and cognitive bond between the organization and the individual, where the individual’s identity includes membership in the organization, thereby leading to a range of desirable attitudes and behaviours at work. Despite the scarcity of research linking the two aspects, existing empirical findings indicate that there is a positive relationship between distinctiveness of organizational identity and job satisfaction, the uniqueness of organization’s character leads to improved employee job satisfaction (Van Dick et al, 2004 in Van and Lessing, 2003). The stronger an individual’s identification with their organization the more likely it is that they will act in accordance with the organization’s goals and expectations (Dutton et al, 1994) and will be willing to stay with the organization (Reade, 2001). Additionally, because the wellbeing of the organization is in the interest of the individual employee, lack of identification with the organization or work group may lead to discrepancies in goals and motivation, leading to reduced motivation and job satisfaction. In other words, employees who identify themselves with the organization are likely to have a high level of job satisfaction. An employee who considers the fate of the organization as their own tends to ignore negative environmental effects and managerial issues, such as mismanagement, economic recessions, and scarcity of resources or temporary low wages. They do this due to their attachment to the organization as a result of strong organizational identification which makes employee feel oneness with the organization in all circumstances (Oktuğ, 2013). An empirical study conducted by Ming et al. (2014), Feater and Rauter (2004), Özel (2014) and Tüzün (2009), discovered that there is a significant and positive relationship between the distinctiveness of organizational identity and job satisfaction. Consistent with the literature above, it is concluded that the bond between the organization and employee influences employees’ attitude towards their job which leads to increased level of job satisfaction. Thus, our first hypothesis is:

Hypothesis 1 (H1): The distinctiveness of organizational identity is positively and significantly related to artisan employee job satisfaction.

3.4.4.2 The Continuity of Organizational Identity and Employee Job Satisfaction

The continuity of organizational identity represents the degree to which the employees perceived to be enduring features (degree of continuity or sameness over time) about the organization in which they work, how committed they are in the organization and whether they are ready to leave it. Even though, few researchers studied the relationship between organizational identity and job satisfaction, some studies have indicated that there is a positive and significant relationship between continuity of organizational commitment and job satisfaction. The continuity of organizational identity helps in framing the attitude of employees, not only toward their own job, but also towards the organization itself. An organization with enduring character is likely to have employees who identify with the organization and committed to their work which in turn lead to high level of job satisfaction and reduced employee’s propensity to leave.

The continuity of organizational identity influences employees’ knowledge, attitude and behaviour regarding the organizational goals. On the organizational level, the centrality of organizational identity shows the enduring values which are said to be the core of a shared organizational features. This is the result of an improved the organizational effectiveness and performance and this will help in framing mechanism for organizational decision making (Albert and Whetten, 1985), (Barney and Stewart, 2000). These effects help the organization in achieving its objectives. According to Barney and Stewart (2000), the centrality of organizational identity presents how an organization’s strategic action should be implemented. This will eventually lead to more committed employees, which ultimately result in high levels of employee job satisfaction. On the individual level, the centrality of organizational identity influences the premises which underlie employees’ choices regarding strategic, organizational and operational issues (Dutton and Duckerich, 1991). An employee who has a strong psychological bond with his/her organization, confidently talk about the organization as the right place to work and therefore be become more committed to his/her work in order to achieve organizational objectives. This shows that the continuity of organizational identity has an ability to influence an employee’s attitude towards their job and ultimately job satisfaction, by strengthening their work engagement. Subsequently, our second hypothesis is:

Hypothesis 2 (H2): The continuity of organizational identity has a positive and significant relationship artisan employee job satisfaction.

3.4.4.3 The Centrality of Organizational Identity and Employee Job satisfaction

The centrality of organizational identity represents things that employees perceive, feel and think and is accepted as a common perception of values and explicit features of an organization. In other words, it shows those features that are central (the essence of the organization) about the organization. According to Robbins and Coulter, (2005), organizational culture is defined as the beliefs, shared values or perceptions that employees have within an organizational unit. Daft (2005) also stated that organizational culture is a set of key values, assumption, understanding and norm that members of an organization share also with new members. Rad et al. (2006) suggested that several factors have an impact on employee job satisfaction. They also showed that there is a positive relationship between employee satisfaction and organizational culture. Lund (2003) conducted an empirical survey to examine the impact of organizational culture on job satisfaction in marketing professional area in a cross-section of firms. The results showed that job satisfaction level varied in different organizational culture typologies. Several studies stated that organizational identity has a powerful influence on job satisfaction which in turn reduces turnover intention. Therefore, organizational identity and job satisfaction are the important factors by which a company can use to reduce turnover rates (Chatman and Jehn, 1994), (Gray et al, and 2003), (Nasirpour et al, and 2010), (De et al, 2009). Thus, according to Chang and Lee (2007), the higher the employees’ perception about core values of the organization, the higher the level of employee job satisfaction. It is therefore suggested that a positive and strong psychological bond between employees and the organization, leads to internalization of its goals and aims which later results in higher employee level of job satisfaction. According to the above observations, our final hypothesis is:

Hypothesis 3 (H3): The centrality of organizational identity is positively and significantly related to an artisan employee job satisfaction.

The descriptions of the hypotheses above will be treated as valid unless the actual behavior of findings opposes the stated assumptions and are rejected. Therefore, based on the above hypotheses, the researcher will find out how employee job satisfaction can be raised through the use of organizational identity features in order to retain and attract artisan employees in the Lesotho Diamond Industry.

3.4.5 Conceptual Research Framework

This section presents a research framework which shows the linkages between independent variables (Distinctiveness of organizational identity, Continuity of organizational identity and Centrality of organizational identity) which are the features of organizational identity and dependent variable (job satisfaction of artisan employees) at Lesotho Diamond Mine Companies. The conceptual framework in figure 8 describes the nature of the hypotheses of this study. According to the framework the independent variable is organizational identity with three sub-variables named distinctiveness of organizational identity, continuity of organizational identity and centrality of organizational identity. The dependent variable is employee job satisfaction while control variables are derived from the demographic data which includes employees’ nationality, educational level and work experience within the organization. The relationship between these three independent variables, three control variables and employee job satisfaction are presented in Figure 8 below.

Abbildung in dieser Leseprobe nicht enthalten

Figure 8: Research Framework Model

3.5 Population and Sample Size of the Study

Population is defined as all members who meet the particular criterion specified for the study investigation. In this study, the population of interest is all artisan employees, and executive managers within the Lesotho Diamond Mine Companies. A population may be homogeneous or heterogeneous. It is said to be homogenous when its every element is similar to each other in all aspects. In other words, every element has all the characteristics that meet the described criteria of the target (Ariani and Wahyu, 2015), (Creswell, 2014).

A population is said to be heterogeneous when its elements are not similar to each other in all aspects. That is one characteristic variable is not the same among all the elements while they meet the rest of the criteria that defines the target population. Therefore, the target population under this study was homogeneous since it is composed of people who work at the same company (Ariani and Wahyu, 2015). For the purpose of this study, socioeconomic, religious and gender were not important in determining their effects on our results. However, age, nationality, job designation, educational level as well as a number of years the respondents worked for the organization should be assessed to check their effects on our results in order to inform the policy makers. The target population was 106 artisan employees from the Diamond Mine Companies. The research included all the 106 artisan employees.

A sample is a subset of the study population, which includes an extraction of a sample size of a population. A sample is defined as a group of relatively smaller number of people selected from a population for investigation purpose. The purposeful sampling method was used to select a sample of the research under discussion. According to this method, which belongs to the category of non-probability sampling techniques, sample size is selected on the basis of respondents’ knowledge, relationships and expertise regarding a research subject (Langos, 2014).

The respondents in this study were selected based on their relationship with the research problem, sufficient and relevant work experience in the field of diamond mining industry and number of years working with the Lesotho Diamond Companies. The sample size should be as large as possible, in general the larger the sample the more representative and the more generalizable the results of the study are likely to be (Ariani and Wahyu, 2015). According Gay and Diehl, (1992), the minimum and acceptable sample size for descriptive research is 10% of the study population (Gay and Diehl, 1992).

Table 2 presents the sampling frame which consists of all artisan employees in the Lesotho Diamond Companies. The sample of the study was drawn from three levels; managers, supervisors and operators. The sample frame provides the demographic composition of the respondents. The population was categorized into three groups which include managers, Supervisors and Operators.

Table 2: Sampling Framework

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The results from the table 2 above indicates that out of 106 artisans only 91 artisans representing 85.85%, which is more than 10% of the total population as hypothesized by Gay and Diehl, (1992), completed the questionnaires and would therefore represent the study population very well, twelve (n=12) respondents representing 13.19% of total population, were managers, fourteen (n=14) of total population respondents representing 13.21% of total population, were supervisors and Sixty-five (n= 65) respondents representing 61.32% of total population, were operators.

3.6 Sources of data

In order to achieve the purpose of the study and answer the research questions, the researcher adopted the two types of data which are primary and secondary data. The rationale for using secondary data was to incorporate and embed the findings of the current study into the body of employees’ job satisfaction and organizational identity that is relevant to the research problem being addressed. In order to achieve this, literature review on both organizational identity and job satisfaction was conducted thoroughly.

Secondary data is information which is already available because it has been collected, analyzed and interpreted by someone else for the purpose other than the current study. It is collected from relevant documentaries as well as company publications. Therefore, to gather these various data sources such as books, journal articles and the Internet were utilized. Primary data is information collected for the first time by the researcher. It is defined as a data gathered and assembled specifically for the current study (Aydogdu and Asikgil, 2011). The purpose for collecting these data was to gather a recent data on the research problem and be in a position to get more explanation of the research questions directly from the target population in the Lesotho Diamond Companies.

3.7 Data Collection Methods

For the purpose of this study, the researcher wanted to know how job satisfaction of artisan employees can be raised with the help of organizational identity. Therefore, in order for the researchers to gain knowledge of these concepts and their relationships, there was a need for a suitable data collection tool to be used to capture variations in answers that reflect individual employee feelings. In order to investigate the relationship between the three organizational identity features and employee job satisfaction, semi-structured questionnaire was chosen as the suitable instrument for the collection of statistical data and for the empirical testing. The method of data collection was supported by open-ended questions.

A questionnaire consisted of 33 questions relating to participants’ Demographic information (gender, age, nationality, marital status, educational level, job description, and work experiences), general information (Job satisfaction and Organizational identity) covered in section A, organizational identity covered in: Section B representing distinctiveness of organizational identity measured by organizational identification consists of 8 items, Section C representing continuity of organizational identity measured by organizational commitment consists of 3 items, Section D representing centrality of organizational identity measured by organizational culture consists of 9 items and Job satisfaction consists of 5 items covered in section E.

This questionnaire was adapted from Ismail, (2013) research titled: Organizational Commitment and Job Satisfaction among Staff of Higher Learning Education Institutions in Kelantan and consisted of 34 items with sample size of 300 employees (Teachers) (Ismail, 2012). The organizational identity and job satisfaction variables included 58 items which were measured using a 7-point Likert scale rating instrument. General information was measured using open-ended questions. The open-ended questions were meant to enable employees offer their own lines of opinions on aspects of job satisfaction and organizational identity and also to offset any common method bias since the questionnaire was left with them to complete.

Employees’ Job Satisfaction is our dependent variable which was measured by a 15 items index called Minnesota Satisfaction Questionnaire (MSQ) short-form, developed by Weiss, et al (1967) with an estimated Cronbach’s alpha 0.86. The variables used to measure job satisfaction are: Employee Compensation; Employee Immediate Supervisor; Employee possibility of growth; Job Security and Working Conditions.

The independent variables are centrality of organizational identity, distinctiveness of organizational identity and continuity of organizational identity which was measured by organizational culture, organizational identification and organizational commitment respectively. According to Albert and Whetten (1985), the stronger an organizational identity, the more central the organizational values are, the more distinctive the organization is from other organizations, and the longer the identity remains the same (Witting, 2006). Our independent variables were measured by a 43-item index called Organizational Culture Questionnaire (OCQ) developed by Harrison, R. (1993). Organizational Identification Questionnaire (OIQ) developed by Cheney, (1983) (Ashforth and Mael, 1992) and Organizational Commitment Questionnaire (OCQ) developed by Meyer et al (1993) (Kreiner and Ashforth, 2004).

Primary data in this study was collected with the help of a survey questionnaire. The design of the questionnaire required respondents to answer all questions and limit to only one choice (one answer) per each question (Subelo et al, 2013). The scale of measurement used was ordinal, where 7- Likert scale (1-strongly disagree 2-moderately disagree 3-slightly disagree 4-neither disagree nor agree 5-slightly agree 6-moderately agree 7-strongly agree) was used. A Likert scale is the method used to assign quantitative value to qualitative data in order to make it agreeable to statistical analysis. Thus, a numeric value was assigned to each item and the overall mean all the responses were computed at the end of the survey. The lower the score reflected the lowest employees’ organizational identity and job satisfaction. A score of 1 to 3 indicates low level of employees’ organizational identity; 5 to 7 indicates high employees’ organizational identity. The score of 4 indicates undecided. The same thing is applied to employee job satisfaction a score of 1 to 3 indicates low level of employee of job satisfaction5 to 7 indicates high employee job satisfaction. The 7-point Likert scales was used due to its tendency to produce better distributions of data when using a sample size less than 100.

On the other hand, secondary data was obtained from diamond Mine Companies reports and website and government of Lesotho’s report together with its website. The main prerequisite of data collection for this study was to investigate, analyse, evaluate and provide useful insight into key aspects related to organizational identity and job satisfaction of artisan employees and to provide useful strategies to raise job satisfaction of artisan employees in diamond mining companies. This information enabled the researcher to identify the factors that affect artisan employee job satisfaction; artisan employee turnover; areas with shortage of artisan employees and influence strong organizational identity in order to arrive at meaningful judgements and conclusions with respect of retaining and attracting artisans in the Lesotho Diamond Mine Companies.

3.8 Measurement of Variables

In order to ensure that there is effectiveness and efficiency in conducting the research, the researcher outlined the detailed procedures of collecting data needed to solve the research problem. The descriptive, explanatory research was primarily used to obtain the information need for the purpose of the study. The questionnaire was divided into five sections including measurement scales designed to assess the constructs of this study together with respondents’ demographic information. A questionnaire was designed to measure and identify demographic information, levels of job satisfaction of artisan employees, and organizational identity in the Lesotho Diamond Companies.

Section A of the questionnaire presents the respondents’ demographic data which include age, nationality, job description, educational levels and number of years working with this organization. Whereas section B, C, D and E of the questionnaire are part of the instrument used to obtain the information on organizational identity and job satisfaction. Section B seeks to measure the distinctiveness of organizational identity was measured by organizational Identification Questionnaire, 15-items scale developed by Mael and Ashforth, (1992) (Mael and Ashforth, 1992). These items covered the following aspects: Invested Self Concept, Integrated Goals & Values and Co-workers Relationship. Section C seeks to measure continuity of organizational identity measured by Organizational Commitment Questionnaire, 15-items scale designed by Kreiner and Ashforth, (2004), to measure respondent’s commitment to their organizations (Kreiner and Ashforth, 2004). The items under this variable were derived from three subscales which are affective, normative and continuance commitment. Section D seeks to measure the centrality of organizational identity measured by Organizational Culture Questionnaire, 9-items scale developed by Cameroon and Quinn (2006). These items cover the following cultural aspects: Management Knowledge, Communication, Loyalty, Team Work and Job controls.

These three sections present items measuring the independent variables (distinctiveness of organizational identity, continuity of organizational identity and centrality of organizational identity). Section E of the questionnaires measures job satisfaction of artisan employees that is the dependent variable. Job Satisfaction was measured by Minnesota Job Satisfaction Questionnaire (MSQ) designed by Weiss et al (1967) in Buitendach and Johanna, (2009). MSQ respondents indicate how satisfied they are with various aspects of their present job. This study used short 5 items form of the questionnaire, which was about the degree of satisfaction with compensation, opportunity for Growth, Job security, Work Environment and Work Itself.

Table3: Layout of the Questionnaire (Hansen and Margolis, 2002).

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3.8.1 Measurement of Dependent Variable

The dependent variable for this study consists of one variable which is job Satisfaction. It was measured by 15 items using a 7-Likert scale ranging from :( “1-strongly disagree to “7-strongly agree.

Table 4: Definition of Job Satisfaction items variables

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3.8.2 Measurement of independent Variable

The independent variable for this study consists of one variable which is organizational identity with is three features defined by Albert and Whetten (1985), namely centrality, distinctiveness and continuity (Albert and Whetten, 1985).

(1) The distinctiveness of organizational identity was measured by an organizational identification scale with 15 items using 7-point Likert scale ranging from: 1-strongly disagree to 7-strongly agree.

Table 5: Definition of Distinctiveness of organizational identity using Organizational Identification item variables

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(2) The continuity of organizational identity was measured by an organizational commitment scale. This was assessed by 14 items, using a 7-likert scale ranging from: 1-strongly disagree to 7-strongly agree.

Table 6: Definition of Continuity of Organizational Identity measured by Organizational Commitment item variables

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(3) The centrality of organizational identity was measured by an organizational culture scale with 14 items rated on a 7-point Likert scale ranging from: 1-strongly disagree to 7-strongly agree.

Table 7: Definition of Centrality of organizational identity measured by Organizational Culture items variables

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3.9 Data Analysis Techniques

According to Marshall and Rossman, (1999) and Schwandt, (2007), data analysis is the process of generating the results from the data collected. It helps researchers to formulate inferences and draw conclusions from the results (Marshall and Rossman, 1999), (Schwandt, 2007). The data analysis adopted in this study is explanatory descriptive approach. Descriptive statistic was used to analyse the responses to the questionnaire. Translating the responses to each of the questions from the questionnaire into the number of times a certain answer appeared to help researchers to understand employee’s organizational identity and their level of job satisfaction. Thus, before conducting data analysis on quantitative data, the first thing to do would be to test validity and reliability of data collection instruments.

Item analysis would be done prior to factor Analysis which was used to test validity while Cronbach’s Alpha Coefficient (r) would be used to test the reliability of our data collection instruments. Secondly, presentation of respondents’ demographic information was in the form of tables and pictures. Thirdly, descriptive statistics analysis, Ramsey Reset test, Correlation analysis as well as Regression Analysis) using Eviews 9.5. This econometric software helped to provide a summary of the data analysis results in order for researchers to easily understand and interpret them.

The study employed multiple linear regression model to test which, among the three organizational identity features (independent variables) have significant positive impact on job satisfaction of artisan employees (dependent variable) at the 5% level. In order to determine the relationship dependent variable and independent variables as well as impact of independent variables on the dependent variable, a multiple linear regression analysis which is a statistical technique was employed. In this multiple regression analysis, multiple independent variables of the study were entered into the same types of regression equation together with three control variables. A separate regression of each independent variable was calculated to define its relationship with the dependent variable (Lamelas, 2011). Thus, multiple regression model used in this study is as shown below:

JSAEt = β0 + β1*ODOID +β2*OCOCM+β3*OCOCL+β4*ARTLED+ β5*ARTNLTY+ β6*ARTWRKEP + εt

Where:

β0 - Is constant term
β1 - is the Coefficient of the Distinctiveness of Organizational Identity through Organizational Identification
β2 - is the Coefficient of the Continuity of Organizational Identity through Organizational Commitment
β4 - is the Coefficient of the Centrality of Organizational Identity through Organizational Culture
β3 - is the Coefficient of Employee’s Level of Education β3 - is the Coefficient of Employee’s Nationality
β3 - is the Coefficient of Employee’s Work Experience in Lesotho Diamond Companies

Dependent variable:

JSAE - Is a Job Satisfaction of Artisan Employee

Independent Variables:

ODOID -Is the Distinctiveness of Organizational Identity measured by Organizational Identification

OCOCM -Is Continuity of Organizational Identity measured by Organizational Commitment.

OCOCL - Is Centrality of Organizational Identity measured by Organizational Culture. Control Variables:

ARTLED - Is Employee’s Level of Education ARTNLTY- Is Employee’s Nationality

ARTWRKEP- Is Employee’s Work Experience in Lesotho Diamond Companies Error Term

εt - Is error or random term

CHAPTER4. DATA ANALYSIS AND PRESENTATION OF FINDINGS

4.1 Introduction

This chapter provides data analysis and presentation of the findings obtained from 106 questionnaires completed by artisan employees in the Lesotho Diamond Mine Companies. The purpose of this study was to determine the relationship between organizational identity and employees’ job satisfaction obtained from questionnaire consists of 7-questions covering the respondents’ demographic information (Age, Nationality, Job designation, Education level and Years of work for the organization), 1-question on general information in relation to both job satisfaction and organizational identity. Lastly, 4-questions with 14 to 15 items covering the distinctiveness of organizational identity, the continuity of organizational identity, the centrality of organizational identity and employee job satisfaction.

The Econometric data analysis software (Eviews 9.5) was used to analyze the data collected from the respondents and present the findings, which came from the Lesotho Diamond Companies artisan employees. The objective of the research and importance of the questionnaire’s answers in achieving the said objective was clearly explained to the respondents. They were also informed about their anonymity when filling the questionnaire. In addition, on the first page of the questionnaire, a letter reinforced the objectives of the research, their voluntary participation, as well as confidentiality of the respondents’ information. The researcher has interpreted the questionnaire results in the form of tables and figures. The data analysis approach adopted in this research is explanatory descriptive statistics.

The findings were presented in a following order, firstly, the analysis of the qualitative data obtained from semi-structured questionnaire on the respondents’ demographic data and general questions related to job satisfaction and organizational identity. Secondly, the analysis of the qualitative data was followed by the analysis of the quantitative data which was also gathered from the semi-structured questionnaire. The reason for using both qualitative and quantitative data is that they are connected as the results from qualitative data contributed to the development of recommendations based on the quantitative results.

The findings are also presented in the form of sections whereby section 4.2 presents data analysis, which includes demographic analysis; general information related to both organizational identity and job satisfaction; pilot results, item analysis, factor analysis (validity analysis) and reliability analysis, Descriptive Analysis; Ramsey Reset Test analysis; Correlation analysis and Regression analysis. Section 4.3 presents the findings. Section 4.4 presents the discussion of the findings of the study. Finally, section 4.5 presents the summary of the findings.

After collecting data, the next step is to conduct data analysis, which requires the researcher to check the accuracy, relevance completeness and suitability of the collected data for data analysis (Sekaran and Bougie, 2010). Multiple regression analysis was conducted to determine whether there is a significant positive relationship between the dependent variable (job satisfaction) and the independent variables (Distinctive of Organizational Identity, Continuity of Organizational Identity and Centrality of Organizational Identity). All these analyses were conducted at the 0.05 level of significance (95% confidence of interval).

Permission to conduct the empirical study was requested and granted by Lesotho Diamond Companies’ management through their Chief Executive Officers (CEOs) before distributing the questionnaires to the respondents. All the proceedings were treated as confidential and also communicated to the participants before completion of the questionnaire could take place. Participation was voluntary and the purpose of the study was explained verbally to the respondents and in writing to management. The questions were all written in English.

After confirming that our measures are stable and consistent, the questionnaire was distributed to the respondents (Artisans) covering boiler-making, mechanical engineering (diesel mechanics), welding, fitting, electrical engineering and instrumentation. The researcher explained to the respondents their roles in evaluating their job satisfaction together with organizational identity to the question in the questionnaires. The respondents were given two days to answer and return the questionnaire to the researcher by hand at the location on the third day as agreed. On average, it took 30 minutes to answer the questionnaire.

These questionnaires were given to 106 artisan employees. Out of 106 copies of selfadministered questionnaires, 91 (85.85%) were all filled and returned. The analysis was done based on the data collected from the 91 respondents.

4.2 Demographic Data Analysis

This section covered the respondents’ age, nationality, job designation, educational level, qualification and length of work with the organization. Even though, this section is not important to this study, the demographic data helped in contextualizing the findings as well as in formulating appropriate recommendations to the management of the Lesotho Diamond Companies in order to overcome the problem of technical employees’ shortage.

4.2.1 Age of Respondents

Out of 106, a total of 91employees responded to the survey questions, which made up a response rate of the study at 85.85%. The majority of respondents belonged to the age group 35 years and above which represents 63.74%, followed by age group 30-34 years, which represents

24.18%, age group 25-29 years (9.89%), finally age group below 25 years representing (2.19%) of the total population respectively.

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Figure 9, Respondents Age

4.2.2 Nationality of Respondents

From the demographic data, 87 respondents (95.60%) were Basotho, 4 respondents (4.40%) were Non-Basotho.

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Figure 10. Respondents Nationality

4.2.3 Job Designation and level of education of Respondents

This company has a total of 136 artisans of which 12 of them are managers representing

13.19%, 14 of them are supervisors representing 15.38% and the remaining 65 are the operators representing 71.43%, which consists of the following categories: Mechanical Engineers (Diesel Mechanics), Boilermakers & Wilders, fitters and Electrical Engineers, representing the total population respectively.

In addition, for educational level, it was also found out that 74 employees, which represents (81.32%) have certificate level followed by 13 employees representing (14.30%) which have Diploma level, 2 employees representing (2.19%) have a bachelor’s degree level and 2 employees representing (2.19%) have a master’s degree level as their highest educational level of qualifications.

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Figure 11. Respondents Job Designation

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Figure 12. Respondents Educational Level

4.2.4 Length of work of Respondents with the organization

Analysis of results showed that 57.14% of the respondents have worked for the company for the period above 5 years, followed by (25.28%) of the respondents who worked for the company below 3 years, 17% of the respondents worked for the company for the period ranging between 3-5 years.

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Figure 13. Respondents number of years working with LDMC

4.2.5 Respondents demographic Parameters and their means, standard deviation scores

Section 4.2.1 revealed the respondents’ age distribution, nationality, job designation, educational level and number of years working with the organization. Table 8 presents the summary of the respondents’ demographic data.

Table 8: Respondent’demographic data and their means and standard deviation scores

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4.3 Analysis of General Information

4.3.1 Factors influencing Job Satisfaction of Artisan employees

Respondents were asked to list the factors that they think influence job satisfaction in the Lesotho Diamond Companies. From the results, it was revealed that 78 respondents, representing

85.71% were of the view that recognition and motivation of employees contributes to job satisfaction, while 13 of them signifying 14.29% claimed that compensation and reward for good job done is a factor that leads to employees’ job satisfaction. Also, 63 respondents representing 69.23% stated that promotion and increases in salaries contribute to employees’ job satisfaction.

Similarly, 65 of the respondents representing 71.43% revealed that good remuneration and allowances leads to job satisfaction. 26 of the respondents, signifying 28.57% stated that good working conditions for employees are factors that lead to job satisfaction, while 59 of the respondents, representing 64.84% stated that when there is a job security there is job satisfaction. 32 respondents representing 35.16% said a good working relationship between supervisors and subordinates contributes to job satisfaction. It was also revealed that 87 of the respondents, representing 95.60% were of the view that the availability of working equipment at all times could lead to job satisfaction.

The study further showed that 77 of the respondents representing 84.62% indicated that efficient dissemination of information from management to subordinates leads to job satisfaction. Results also showed 49 respondents representing 53.85% were of the view that achieving challenging task leads to job satisfaction.

4.3.2 Factors contributing to strong organizational identity

Respondents were also asked to list the factors that they think influence strong organizational identity in the Lesotho Diamond Companies. The following are the main five factors mentioned by the respondents which they think influence strong organizational identity: (1) Good leadership and communication, (2) Values and rituals, (3) Human capital development, (4) Team work and (5) Good performance.

These factors, individually and collectively, indicated how organization’s employees conduct themselves, how organizational decisions are made, and how the organizational work gets accomplished. Respondents highlighted that exploring these factors either individually or holistically, will help organizational managers to understand why employees behave in certain ways. Therefore, a good management of these factors can offer organization guidance on how to manage its identity toward its desired aspirational identity and its employees’ job satisfaction. 80 employees representing 87.91% were of the view that good leadership and communication contribute to strong organizational identity since both represent the way in which top organizational managers define, display, and communicate the organization’s aspirational purpose and brand to the employees and relevant stakeholders.

These findings are supported by the study conducted by Brooke, (2006) on the relationship between leadership style and job satisfaction whereby Brooke discovered that it is stressful for employees to work with an unsupportive and inconsiderate leader. Brooke reaffirmed that negative leader-employee interactions result in a decreased employees’ job satisfaction and pleasure of working which in turn leads to employee turnover. The findings of Brooke study indicate that the quality of the leader-employee relationship has an impact on the employee’s self-esteem. This causes both direct and indirect costs due to high worker’s stress, reduced productivity, increased absenteeism, and employees’’ turnover (Basim and Ufuk, 2015). 76 employees representing 83.52% point out that organizational values and rituals also influence strong organizational identity. They indicated that organizational values show the shared beliefs and ways of social interaction among organizational employees.

Out of 91 respondents 89 respondents representing 97.80%, reaffirmed that human capital development is the critical factor that contributes to strong organizational identity. They indicated that for an organization to achieve its desired goals it needs to invest in their employees as they are the valuable assets of the organization. They even point out that employees who foresee personal growth working in the organization become the image of the organization. 56 respondents representing 61.54% were of the view that teamwork is one of the factors that contributes to strong organizational identity. They said team work defines how organizational work is designed and executed, how individual employees and teams interact, and how decisions are made. 88 respondents representing 96.70% indicated that good organizational performance is the factor that contributes to strong organizational identity as it shows how accountability is measured within the organization, how employees are rewarded and how organizational goal setting is done throughout the organization. They further indicated that, for organizations to achieve high performance there is a need to bridge the gap between aspiration and reality.

In summary, the good management of organizational identity factors will help the organization to pave the way for creating and sustaining its purpose, image, and culture to be clearly understood, consistently executed, effectively aligned, and fully supported. When these elements come together, the organization will be in a position to create a competitive advantage in everything.

4.4 Validity and Reliability Analysis

Before analysing data, few tasks have to be performed in order to check the validity and reliability of the job satisfaction scale and organizational identity scale (distinctiveness of organizational identity, continuity of organizational identity and centrality of organizational identity). The following tasks were performed: (1) Pilot study; (2) Validity Analysis which includes Item Analysis and Factor Analysis and; (3) Reliability Analysis.

The instrument was pre-tested with 31 employees from the Ministry of Development Planning before they were sent to the field. The pilot was done in order to check if the questions are clear and easily understandable. It also helped to identify errors in the questionnaire such as the length and structure of the questionnaire that would determine the time required to complete the questionnaire. The researcher used the data collected from the pilot study to run a trial test which allowed a researcher the opportunity to correct errors and to redesign problematic elements of the questionnaire before the main study is conducted. The pilot study is an important activity in the questionnaire design as it allows the exploration of the data collation instrument in order to determine the need for more development and refinement (Albert and Whetten, 1985).

Based on the pilot study results, the Cronbach’s alpha acquired indicates that all the items are positively correlated with one another and there is an internal consistence. Therefore, it was concluded that the reliability of all measures was comfortably above 0.70, ranging from 0.79 to 0.86 which means the adapted version of OIDS, OCS, OCS and JSS used to measure each variable in this study are reliable and stable.

Table 9. Reliability Results from Pilot Study

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Table 9 above presented pilot study results. Cronbach’s Alpha’s Coefficient was used to determine the internal consistency of the instrument. It was developed by Cronbach, (1951) to meet the need of finding an objective way of measuring the internal consistency of an instrument used in a research work. Values of Cronbach’s alpha are usually expressed as a number ranging between,

0.00 to 1.00. In general, if the value of Cronbach’s alpha is greater than 0.70, researchers can assume that the internal consistency of the scales is considered to be reliable and acceptable. The acceptable range is between 0.70 and 0.90 [44, 74, 141]. Table 10 presents the measurement of Cronbach Alpha used is this study.

Table 10: Values of Cronbach’s Alpha used to test reliability

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4.4.1 Validity Analysis

The second task carried out before conducting data analysis was validity analysis, which helped to check if the researcher was measuring what he/she actually intended to measure. For the purpose of this study, the researcher used construct validity. According to Richard and Sheila, (1999), validity analysis is the extent to which a data collection instrument measures the construct it was intended to measure. The first step in the running validity analysis was to conduct item analysis then factor analysis.

4.4.1.1 Item Analysis

Item analysis is a process of examining the respondents’ responses to individual items in order to assess the quality of those items as well as the test as a whole. The researcher conducted item analysis in order to improve the items to be used in data analysis and also to eliminate misleading items within our constructs being, the distinctiveness of organizational identity, the continuity of organizational identity and the centrality of organizational identity and job satisfaction. The Cronbach’s Alpha Coefficient was used to carry out item analysis for these four scales used in the research. The Cronbach’s Alpha average values for job satisfaction, the distinctiveness of organizational identity, the continuity of organizational identity and the centrality of organizational identity are 0.921, 0.887, 0.851, and 0.939 respectively. As mentioned by Cronbach, (1951), items with Cronbach’s correlation coefficients with a value less than 0.50 need to be deleted while those in the range of 0.50 to 0.70 are deemed acceptable but those above 0.70 are considered very significant (Cronbach, 1951). The item analysis results show that Cronbach’s correlation coefficient for all the four instruments were comfortably above 0.70, ranging from 0.75 to 0.93. The results also revealed that all the items used to measure all the four constructs were significant as indicated by their Cronbach’s values greater than 0.50. Table 11 and 12 present the item analysis results for organizational identity with three variables (distinctive, continuity and centrality) and job satisfaction respectively.

Table 11. Organizational Identity Item Analysis

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Table 12. Job Satisfaction Item Analysis

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4.4.1.1 Factor Analysis

After conducting an item analysis, it is important to conduct factor Analysis. When using a questionnaire as a form of data collection, the researcher may face with a number of variables measuring aspects of same variable thus making the study complicated. In order to deal with these problems, factor analysis was developed. Factor analysis attempts to bring inter-correlated variables together under more general, underlying variables. Hence, the objective of factor analysis is to reduce the number of dimensions of limited number explaining a particular variable as mentioned by Rietveld & Van Hout, (1993).

After conducting an item analysis of our scales, exploratory factor analysis (EFA) was conducted to determine the construct validity of job satisfaction scale and organizational identity (distinctiveness of organizational identity, continuity of organizational identity and centrality of organizational identity) scales. EFA is useful for the situation whereby links between the observed and latent variables are unknown or uncertain. The main purpose for researcher in exploring the construct validity was to determine whether the inferences made about the results of the instruments are meaningful. It was used due to its concerns in efficiency of an instrument in measuring what it was intended to measure (Bryne, 2010; Messick, 1989), (Sekaran and Bougie, 2010).

The Principal Components Factor Analysis (PFA) with Varimax Rotation and Kaiser- Meyer-Olkin and Bartlett's value were conducted to assess the underlying structures for the 58 items of organizational identity and job satisfaction. The Kaiser Meyer Olkin (KMO) measured should be greater than 0.70. This technique was considered appropriate as it requires that loading less than 0.50 to be removed from the factor matrix (Barrett et al, 2011). In this study, the KMO value was found to be 0.867 which is greater than 0.70 and it is interpreted as being adequate to predict each factor. The Bartlett test was found to be significant as its value is less than 0.005. It is therefore concluded that all the items measured were highly correlated hence provided a reasonable basis for factor analysis. Table 13 presents results for Kaiser Meyer Olkin (KMO) and Bartlett's value.

Table 13. KMO and Bartlett's Test Results

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Eigenvalues and percentage of variance explained were both used to determine how many factors from the PFA should be retained. Therefore, items with the strongest factor loadings for a given factor were used to define that factor and tell what the underlying construct is for that factor. The initial eigenvalues show, for each of those 4 identified factors, how much of the variance in the

25 items was captured by that factor. The Rotation Sums of Squared Loadings accounted for factor

1 was 29.305% of the variance. While factor 2 accounted for 25.756%, factor 3 accounted for

20.352% and finally factor 4 accounted for 13.653%. Table 17, Total Variable Explained, provides the Eigenvalues for our factor analysis. Four factors were created, with a different weighted linear combination of items. A factor with an eigenvalue of 1 has captured as much variance as there is in one variable. Each of our four retained factors has captured about 3.9 times as much variance as there is in a single item. Eigenvalues results are presented in table 14 below.

Table 14. Eigenvalues

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The rotated factor matrix was used to present the analysis of the 45 items for four constructs. Factor loadings were used as an indication of how strongly individual items are associated with each factor. Items that do not load strongly on any factor indicated that these items are not good indicators of any of the underlying constructs represented by the factors created in the PFA. It has to be noted that items that have strong factor loadings on more than one factor were considered to not measuring what they were intended to measure; hence these items were removed and concluded to be weak indicators of the underlying constructs.

The retained factors were then used to check the correlation among the items falling under one factor. This was done using Oblique factor rotation. Based on a component matrix after rotation, four factors were identified. The result was determined based on the initial Eigenvalues. The assumption explained the total variance as greater than 1.0 which is common criterion for a factor to be useful (Morgan, Barrett & Leech, 2011). The result indicated that there are four constructs after running the Factors Analysis, namely: factor 1 being the centrality of organizational Identity; Factor 2 being the continuity of organizational identity; Factor 3 being the distinctiveness of organizational identity and Factor 4 being employee job satisfaction. Table 15 presents the factors with their corresponding items and their factor loadings.

Table 15. Components Matrix after rotation

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4.4.2 Reliability Analysis

In accessing the data from the five variables summed to determine the job satisfaction factor score and three organizational identity features scores in order to form a reliable scale. Thus, the reliability test using the Cronbach Alpha values was conducted after factor analysis but before main data analysis. The adopted Cronbach, (1951) measurements coefficient alpha stipulated that when items measuring a single construct have an average Cronbach’s alpha of 0.70 or greater, the scale is considered to be reliable. Reliability analysis is a test used to check the stability and consistency of the data collection instruments in measuring the concept they were intended to measure and helps to assess the “goodness” of instruments. Therefore, in this study, internal consistency reliability of the scales was assessed using the Cronbach’s alpha coefficient. According to Cronbach, (1951), the values of coefficients fall within the range 0 to 1, with value 0.6 or less indicating unsatisfactory internal reliability. The acceptable Cronbach’s values are the one equal or above 0.70. The higher the coefficients, the better the measuring instrument (Cronbach, 1951), (Sekaran and Bougie, 2010).

The alpha values for employee job satisfaction (0.889), distinctiveness of organizational identity (0.897), continuity of organizational identity (0.836) and the centrality of organizational identity (0.899) indicated that the items formed scales of reasonable internal consistencies in their reliabilities. The values of Cronbach’s alpha for 4 factors with 25 items were found to be greater than 0.70, meaning they are all sufficient. The Cronbach’s alpha coefficient values for four constructs were found to be ranging from 0.836 to 0.899. Therefore, all of the items correlate adequately in the constructs. The purpose of conducting reliability analysis was to determine how well a set of items that is observed variables go together into a single scale. This analysis also reveals how strongly each item in the scale is associated with the overall scale. This analysis helped to check the internal consistency of our four identified variables. The results of job satisfaction scale and organizational identity scale reliability analysis were presented in tables 16 and 17.

Table 16. Summary of Reliability Analysis results

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For Referencing: Mats’ela M.D, (2018), “How to Raise Job Satisfaction of Artisan Employees through Organizational Identity: The Case of Lesotho Diamond Industry”.

4.5 Descriptive Statistic Analysis

This section provides information on central tendency that is a concentration of our data values and middle data values; dispersion of our data which shows how much variation is there in our data, how our data value spread out and; symmetrical distribution of our data values which is determined by skewness and kurtosis values. The descriptive statistics analysis facilitated the process of reporting on the results of the data that was analyzed (Seward and Doane, 2009).

In order to report on the descriptive statistic, mean, median, minimum, maximum and standard deviation were used. This was done for all variables used in this study. Table 18 provides the summary of the descriptive statistics. All variables were evaluated based on a 7-point Likert Scale (1 being strongly disagree to 7 being strongly agree). The mean was the most statistical measure of central tendency used in this study. The higher the mean scores show the strength of organizational identity and degree of employees’ level of job satisfaction. Therefore, mean scores above and below 4 provide information on how employee evaluates research variables.

The mean of distinctiveness of organizational identity indicates the employee’s perceptions about the organizations’ distinctive character and how the shared values of the organization have been maintained (Mean = 5.882 with a standard deviation of 0.009). This shows that employees perceive their organization unique and different from other organizations. It also shows how employees are inspired by the way organizational goals are communicated. The mean of continuity of organizational identity indicates how employees believed about their organizations having enduring characters over-time (Mean=5.777 with a standard deviation of 0.028). This reflects employees’ commitment to organizations’ work and is willing to put more effort beyond that is normally expected in order to help the organization to achieve its goals and be successful.

The results show that the mean of the centrality of organizational identity indicates how employees internalize the core values of their organizations and also perceived their organization have central characters which are enduring (Mean=5.846 with a standard deviation of 0.091). This indicates that employees’ attachment to the organizations is primarily based on the similarity of their values and those of the organizations. It also indicates how employees consider the successes and failures of their organization as their own successes and failures. The mean score also indicates how employees feel about their belonging to the organizations and have confidence in the skills of their co-workers. Finally, the mean indicates how employees usually say when talking about their organizations to their friends or outsiders.

The results show that the mean of job satisfaction of artisan employees indicates how employees are motivated to stay with the organizations as results of their salary level and benefits offered. In addition, the mean score also indicates the level of employees’ satisfaction with their organizations’ promotion system that is based on work performance. It further shows the employee’s level of satisfaction with their salaries, which are said to be equitable with their colleagues on the same scale in the organization and those in different organization within the industry (M=5.678 with a standard deviation of 0.007. The mean values of all the variables are greater than 4 (representing neither disagree nor agree). Therefore, it is concluded that employees’ organizational identity is represented by the mean 5.835 while their level of job satisfaction is represented by 5.678. The mean for three control variables were found to be as follows: employee’s nationality (M=4.046, SD=0.206), Employee’s educational level (M=4.648, SD=0.607), and employee’s work experience in the Lesotho Diamond Companies (M=4.719, SD=0.855).

To assess normality, skewness and kurtosis were used to validate the assumption of normality of the collected data. According to Henning and Westfall, (2013), the normal distribution is acceptable when the skewness and kurtosis values are in the range of +/-3, then the results show that both dependent variable and independent variables are considered to be asymmetrical about their means. They also indicated that when the kurtosis is greater than or equals to 3, then the variables’ distributions are markedly different than a normal distribution in their tendency to produce outliers (Heugens and Kroezen, 2012). The results revealed that the skewness and kurtosis values for both dependent variable and independent variables are all approximately within the range of +/-3. This indicates that the data is normally distributed. Therefore, based on these results, it is concluded that the data is normally distributed (Henning and Westfall, 2013).

Table 18. Descriptive Statistic Analysis

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4.6 Ramsey Rest Test Analysis

This is a general test used to check whether the model is mis-specified. The Ramsey Reset test is used due to its simplicity and that it does not require the researcher to re-specify the alternative model. The null hypothesis tested is that the model is mis-specified once F-statistics is found to be greater than F-calculated, then the conclusion is that the model is mis-specified. In this case the value of the F-statistic is 4.062 and F-tabulated being 2.720, since the calculated F-statistic of 4.062 is greater than F-tabulated of 2.720; this implies that the null hypothesis is rejected at the 5% level in favour of the alternative hypothesis and we concluded that the model is not mis- specified. Therefore, our model passed the test and we concluded that is specified. Table 19 presents the summary of Ramsey Reset tests.

Table 19. Ramsey Rest Test

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4.7 Hypothesis Testing

This section helps the researcher to make inferences and draw conclusions based on the results. The main objectives of conducting hypothesis testing are (1) to estimate parameters of independent variables and (2) to test hypotheses about parameters of independent. Therefore, researchers conducted the following statistical techniques to test his hypotheses namely Pearson Correlation Coefficients (r) and Regression Analysis which includes testing of coefficients, t- statistics and p-values.

4.7.1 Correlation Analysis

Pearson Coefficient Correlation is the most commonly used measure of finding correlations between two or more variables. Pearson Correlation Coefficient analysis was used to detect interrelationship among the variables. Correlation Matrix was calculated using the factors retained after the factor analyses and reliability analysis. Therefore, the purpose of using of Pearson Correlation was to investigate the interrelations between dependent variable and three independent variables. The higher value of the correlation coefficient, the stronger the level of relationship between two variables. A positive value for the correlation coefficient indicates a positive relationship. While, a negative value of the correlation coefficient indicates a negative relationship (Triola, 2008).

Table 20 provides the summary of the Pearson Correlation Coefficient analysis results. The correlation analysis results seemed to support all the three research hypotheses. Firstly, the results indicate that the distinctiveness of organizational identity has a very strong and significant positive correlation with employees’ job satisfaction (r=0.863, n=91, p=0.000). Secondly, the results revealed that continuity of organizational identity has a very strong and significant positive correlation with employee job satisfaction (r=0.788, n=91, p= 0.000). Lastly, the results shows that the centrality of organizational identity has a very strong and significant positive correlation with employee job satisfaction (r=0.832, n=91, p=0.000). The results also provide correlation between the three control variable and employee job satisfaction. The results indicate that these control variables have moderate positive correlation with employee job satisfaction: employee nationality (r=0.436), educational level (r=0.408) and work experience (r=0.339) have low relationship with employee job satisfaction respectively together with nationality.

Table 20. Pearson’s Correlation Coefficients Results

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4.7.2 Regression Analysis

The regression analysis model was used due to the fact that the researcher was interested in predicting the value of the dependent variable based on the value of the independent variable. A multiple linear regression model was used to determine the relationship between a dependent variable (Job Satisfaction of Artisan Employees) and independent variables (Distinctiveness of organizational identity, Continuity of organizational identity and centrality of organizational identity respectively). In order to test the hypotheses of the study, regression analyses were conducted and the results are given in Table 20. A 5% level of significance was chosen, that is, α=0.05 and the hypothesis was rejected in favour of the alternative hypothesis if the probability values of our variables are greater than 0.05 levels. Otherwise, the hypothesis was accepted and concluded that the particular coefficient in our regression model was significant.

JSAEt = β0 + β1*ODOID +β2*OCOCM+β3*OCOCL+β4*ARTLED+ β5*ARTNLTY+ β6*ARTWRKEP + εt

JSAEt = 0.662+ 0.421*ODOID + 0.356*OEOCM + 0.675*OCOCL+0.218*ARTLED -

0.252*ARTNLTY+ 0.102*ARTWRKEP

The estimated model suggests the following: autonomous increase in employee job satisfaction (JSAE) is 0.662. This is the growth when the explanatory variables in the model that is ODOID, OCOCM and OCOCL are equated to zero. In other words, this shows that the increase rate that job satisfaction would encounter if left to operate on its own, that is, without influence of any hypothetical determinants. This constant term is significant as evidenced by its large t=2.866 and p- value= 0.0387. This means that we can rely on it for policy formation.

Regression analysis results show that the coefficients of all three independent variables are positive showing that one percent improvement in the distinctiveness of organizational identity, continuity of organizational identity and centrality of organizational identity will lead to about

42.1%, 35.6% and 67.5% increase in employee job satisfaction respectively during the period under study. The results further show distinctiveness of organizational identity, continuity of organizational identity and centrality of organizational identity are significantly and positively related with job satisfaction of employees at 1% level (99% confidence interval).

It is pleasing to note that the coefficients of organizational identity attributes are significantly and positively related to employee job satisfaction as it has been hypothesized that there is a positive and significant relationship organizational identity and job satisfaction (Salman et al, 2014).

The regression analysis also provided the results for three control variables. The results revealed that the employee’s educational level, employee’s nationality and employee’s work experience are all positively and significantly related to job satisfaction. The results of regression model are shown in (Table 21). Providing summary of coefficients-ratios and probability value.

Table 21. Multiple Regression Analysis

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In order to find out employee job satisfaction can be raised through organizational identity; Ordinary Least Square method was used. The results of the multiple regression analysis are shown in the Tables 20. The coefficient of determination, R2 was used to measure the overall fit of our multiple regression model. R2 statistic is a statistical term showing how significant two variables are related. If the value of R2 is approaching 1.0 then given the value of one term, it will be easy to predict the value of another term.

However, if the value of R2 is approaching 0.0, it shows that knowing one term does not help to know the other term at all. More generally, a higher value of R-Square means that you can better predict one term from another. The acceptable value of R2 is the one more than 50%.

Our regression model has three independent variables which are distinctive of organizational identity, continuity of organizational identity and centrality of organizational identity. The results reveal that R-squared = 0.889. This result shows that there is still some unexplained variation which For Referencing: Mats’ela M.D, (2018), “How to Raise Job Satisfaction of Artisan Employees through Organizational Identity: The Case of Lesotho Diamond Industry”.

covered 0.032. Adjusted R-squared = 0.867, P = 0.000 (Table 19). R-squared (R2 ) shows a good fit of our regression model as it indicates that the variations in employee job satisfaction are explained by 88.9% variation in the explanatory variables. The results also indicate that when a loss in degree of freedom (Adjusted R2 ) is accounted for, then the fit of our model becomes 86.7%, which means that the regression model explains 86.7% of the dependent variables. The Durbin Watson statistic value (1.062) shows that there is no autocorrelation between the variables (Cohen, 1988), (Seward and Doane, 2009).

The results also revealed that our model is free from multicolinearity as indicated by the variance inflation factor (VIF) values less than 5. It is recommended that, the VIF value less than 5 is acceptable for researchers to make decision from regression analysis results. The VIF helps to determine the degree of variation among the explanatory variables. The value of VIF equals to 1 indicates the absence of multicolinearity among the regressors. However, the value of VIF greater than 1 but less than 5, shows a moderate multicononearity. Therefore, VIF values between 5 and 10 indicate a high correlation that may be problematic. If the VIF goes above 5 indicate high multicilinearity and the conclusion is that, the regression coefficients are poorly estimated.

The results of regression analysis indicate that all the explanatory variables have VIF values less than 3, hence our model is free from multicolinearity. The values of VIF for the distinctiveness of organizational identity, the continuity of organizational identity, the centrality of organizational identity, artisans’ educational level, artisans’ nationality and artisans’ work experience are as follows: 2.421, 1.876, 2.758, 1.771, 1.078 and 1.867 respectively (Michael et al, 2015).

4.8 Presentation of the Findings

The statistical results seem to in support of all of three hypotheses of the study. Hypothesis one (H1) predicted that there is a positive and significant relationship between distinctiveness of organizational identity and employee job satisfaction. The Pearson Correlation Coefficient analysis results indicate that there is a very strong and significant positive relationship correlation the distinctiveness of organizational identity and employee job satisfaction (r=0.863, n=91, p=0.000). While the results of regression analysis in table 19, indicate that the distinctiveness of organizational identity and employee job satisfaction are significantly and positively related as hypothesized (β1=0.421, p=0.000). Based on this analysis, hypothesis 1 was therefore accepted in favour of the alternative hypothesis.

Hypothesis two (H2) poses that the continuity of organizational identity and employee job satisfaction are significantly and positively related. The results revealed that there is also a very strong and significant positive correlation between continuity of organizational identity and job satisfaction (r=0.788, n=91, p= 0.000), while the results of regression analysis indicate that continuity of organizational identity and employee job satisfaction are significantly and positively related (β2=0.356, p=000). It is, therefore, led to acceptance of hypothesis 2 in favour of the alternative hypothesis.

Hypothesis three (3) postulates that the centrality of organizational identity and employee job satisfaction are significantly and positively related. The results show that there is a very strong and significant positive correlation between the centrality of organizational identity and employee job satisfaction (r=0.832, n=91, p=0.000), while the results of regression analysis revealed that there is a positive and significant relationship between the centrality of organizational identity and employee job satisfaction (β3=0.675, p=000). Thus, hypothesis 3 was accepted in favour of the alternative hypothesis.

Therefore, the findings for both correlation and regression analysis provide support for all three research hypotheses hence lead to acceptance of our main research hypothesis which stated that there is a positive and significant relationship between organizational identity and employee job satisfaction.

4.9 Discussion of Findings

The purpose of this study was to examine the relationship between three organizational identity features: Centrality, Distinctiveness and Continuity with artisan employee job satisfaction. These three features were used to measure organizational identity. Albert and Whetten (1985) defined organizational identity as: (1) what is claimed to be central, that is the centrality of organizational identity. The centrality of organizational identity is representing those features that are essential to the existence of an organization. This shows those features which are core to the organization; (2) what is claimed to be distinctive, which is the distinctiveness of organizational identity. The distinctiveness of organizational identity represents those features that differentiate the organization from other organizations, so that it can be distinguished from other organizations with similar features. This shows that, these features are used to assess the difference between an organization and its competitors and; (3) what is claimed to be continuous, which is the continuity of organizational identity which represents those features that exhibit some degree of sameness or continuously over time (Albert and Whetten, 1985).

These authors, therefore, indicated that organizational identity is the boundary between the claims made by an organization’s employees and the one granted by outsiders. It was assumed that the stronger an organizational identity, the more central the organizational values are, the more distinctive the organization is from other organizations, and the longer the identity remains the same.

4.9.1 The Distinctiveness of Organizational Identity and Employee Job Satisfaction

The study revealed that the distinctiveness of organizational identity was found to have a significant and positive effect on with employee job satisfaction at the 5% level (N=91; β1=0.421; t- Statistic=4.642; P-value=0.000). These results show that one percent improvement in the distinctive features of organization will lead to 42.1% increase in the level of employee job satisfaction. The results also prove that, for employees to determine their organizations’ identity, they decide what they believe to be central characteristics about their organizations. If these characteristics are similar to employees’ characteristics, they will identify themselves with membership in the organizations which in turn enhances their level of job satisfaction. Employees, who identify themselves with the organization, apply more effort in achieving organization’s outcomes. The stronger the organizational identity, the stronger employee identification with the organization becomes and the higher the level of employee job satisfaction towards the organization becomes. Therefore, a stronger organizational identity develops a conducive working environment for employees and they easily identify with the organization and become more committed to the organizational work, thereby leading to an increased employees’ level of job satisfaction (Mdletye e t al, 2014).

This result supports the study conducted by Basim and Başar (2011) and Oktuğ, (2013), who indicated that there is a significant and positive relationship between distinctiveness of organizational identity and job satisfaction. Based on these authors, the more employees identify themselves and feel “one” with the organization the more they are satisfied with their jobs. This is also supported by social identity theory which states that employees tend to categorize and identify themselves with their social groups, such as their organizations. Our findings agree with this theory as they show that there is a significant and positive relationship between distinctiveness of organizational identity and job satisfaction which explains the role of identification in terms of job satisfaction. In other words, employees, who identify with the organization, internalize the success and failure as theirs. This forms a strong tie between employees and their organizations (Basim and Başar, 2011), (Oktuğ, 2013). The results also indicate that employee job satisfaction is influenced by a strong organizational identification with the organization. This means that as employees identify strongly with the organization, their level of job satisfaction is likely to increase. This is consistent with Ashforth and Mael, (1989), who discovered that employe level of job satisfaction is positively and significantly influenced by the strength of organizational identification.

4.9.2 The Continuity of Organizational Identity and Employee Job Satisfaction

Furthermore, the findings of the study revealed that there is a significant and positive relationship between continuity of the organizational identity and employee job satisfaction at 0.05 levels (β2= 0.356; t-Statistic=4.123; P-value=0.000). This result shows that one percent improvement in enduring features of organization will lead 35.6% increase in level of job satisfaction of employees. This result corroborates with a study undertaken by Arian and Tarigan, (2015) who indicated that the employee level of job satisfaction has a positive impact on affective commitment, continuance commitment, and normative commitment. In addition to this, they showed that these three organizational commitment’s components have a negative impact on employee turnover. Job satisfaction effects on employee turnover are mediated by multidimensional organizational commitment (Ariani and Wahyu, 2015), (Ashforth and Mael, 1992).

The result seems to agree with previous studies conducted by Moksness, (2014) and Cetin et al, (2016), who indicated that employees assess the attractiveness of their organization’s image based on the preservation of its image and continuity of their self-concept. They further indicated that the more an organization enhances its employees’ self-concepts, the stronger its employee will identify with the characteristics of the organization. Finally, they emphasized the importance of strong employees’ self-concept and organizational identity on employees’ organizational commitment (Chahal et al, 2013), (Moksness, 2014). These authors’ findings prove that increasing employees’ job satisfaction alone cannot reduce employee turnover, but in support of strong organizational identity. The findings confirm what was discovered by Aydogdu and Asikgil, (2011), job satisfaction has a significant and positive impact on affective commitment, continuance commitment, and normative commitment (Aydogdu and Asikgil, 2011).

The findings of this study support the findings of previous studies conducted by Ashforth and Mael, 1992, Aziri Brikend, 2011; Chien Lee, 2011; Salman et al, 2014; Swart, 2009, in which they discovered that, job satisfaction is a significant predictor of organizational commitment. They further indicated that, organizational commitment is a significant predictor of job satisfaction of employees. Organizational commitment is the most influencing factor of both an intrinsic and extrinsic job satisfaction. The relationship between organizational commitment and job satisfaction can occur in both directions, that is committed employees tend to be satisfied employees. Job satisfaction is negatively affected employee’s turnover intention which results from increased employees’ commitment. In other words, job satisfaction and organizational commitment influence organizational effectiveness, productivity and employees’ job performance and negatively reduces employee turnover (Ashforth and Mael, 1992), (Aziri Brikend, 2011), (Chien Lee, 2011), (Salman et al, 2014), (Swart, 2009). These results also agree with the findings of Sugreen, (2010), on the relationship between organizational identity and organizational performance whereby Sugreen showed that there is a significant relationship between organizational identity and organizational performance. High organizational performance is the results of satisfied and committed employees. In this study, Sugreen discovered that a strong, positive and enduring organization identity is a critical requirement for the growth and success of any organizations (Ackerman, 2010), (Mullins, 2010).

In summary, the above authors confirm the assumptions that a satisfied employee is said to be committed to their organization and have a strong belief in achieving their organizational objectives. Employees’ organizational commitment increases due to positive experiences at work, job satisfaction, trust in management, and an attractive remuneration and rewards. The findings of this study, therefore, indicate that improvement of organizational commitment will lead to a reduction in employee’s turnover intention since they are negatively related. This proves that, organizational commitment is a more important variable in determining employee turnover as compared to job satisfaction. The conclusion that can be made from the results is that, the more satisfied employees, the more committed hence reduced turnover intention. Employees with high affective attachment to the organization have strong motivation to contribute to the organizational goals because they see them as theirs.

4.9.3 The Centrality of organizational Identity and Employee Job Satisfaction

The study revealed that the centrality of organizational identity has a significant positive relationship with employees’ job satisfaction at 0.01 levels (β3=0.675; t-Statistic=5.281; P- value=0.000). These results show that one percent improvement in the core values of the organization will lead to 67.7% increase in the level of employee job satisfaction. These results prove that the core values of organization cultivate a sense of belonging and employees’ commitment towards the corporation and develop a sense of unity in the workplace. Therefore, there is no doubt that the results revealed the significance of the centrality of organizational identity when it comes to retaining talent employees. It is one of the most important components that leaders can employ to sustain organizational performance, build emotional connect and maintain competitive advantage. Thus, it is considered a fundamental business strategy.

These findings seem to be consistent with Belias et al, (2015) and Davoodalmousavi, (2013), who indicated that there is a positive correlation between organizational culture and job satisfaction for employees, as well as a relation between employees’ job satisfaction and employee turnover (Borges, 2012), (Davoodalmousavi, 2013). The findings also agreed with statement that employees’ beliefs about the distinctive, central, and enduring features of the organization serve as a powerful image influencing the degree to which employees identify themselves with the organization (Albert and Whetten, 1985). The findings also agreed with the findings of Mael and Ashforth (1992), which discovered that an experienced employee is likely to have a high level of organizational identification due to their perception regarding distinctive attitudes, values and practices possessed by their organization. Employee identification was also influenced by the centrality of the organizational identity.

The above discussions prove that organizational culture is integral part of organizational identity and reflects the fundamental values important to the organization. Organizational culture helps in answering the question of “how we do things as organization compare to others?” while organizational identity answers the question “who we are?” (Cheboi, 2014), (Colman, 2008), (Hatch and Schultz, 2000), (Albert and Whetten, 1985). Therefore, answering who we are is defined by how we do things that is organizational culture. The positive relationship between centrality of organizational identity and employee job satisfaction is due to the important role played by organizational culture in shaping employee’s behavior, instilling loyalty and establishing parameters for acceptable behavior (Hartnell et al, 2011), (Hatch, 2013).

Therefore, organizational culture has crucial implications for the retention of employees because it is the most important factor that determines how well employees fit with an organization. This shows that employees who fit well with their organization’s culture are less likely to stay with the organization and are generally more satisfied with the conditions of their employment. However, employees who do not fit well with their organization are more likely to leave voluntarily (Gay and Diehl, 1992), (Stinglhamber and Eisenberger, 2011). The employees who are satisfied with their work feel ownership and responsible for the progress of an organization and make their organizational culture healthy.

4.9.4 To Identify Which Organizational Identity Attributes significantly and positively affect Employee Job Satisfaction

This study found that amongst the three organizational identity attributes, the centrality of organizational identity has a significant and positive effect on employee job satisfaction. This means that 1% increase in the centrality of organizational identity will lead to 67.5% increase in employees’ job satisfaction. This increase shows the significant impact centrality of organizational identity on job satisfaction hence this organizational variable can be used for raising employee job satisfaction in order to retain artisan employees.

The findings also discovered that the distinctiveness of the organizational identity is the third attribute which has a significant and positive impact on employees’ job satisfaction. These results show that a unit change in the distinctiveness of organizational identity will lead to a 0.421 increase in employees’ job satisfaction which represents a 42.1% increase.

The findings revealed that continuity of organizational identity is the second organizational identity feature that significantly impact on employees’ job satisfaction. This indicates that a unit change in the continuity of organizational identity will lead to a 0.356 increase in employee job satisfaction. This increase is equivalent to 35.6% in employees’ job satisfaction due to 1% increase in continuity of organizational identity.

These results confirm the notion that organizational culture and employees’ organizational commitment results in the employees’ identification of the organization. The table 22 provides an order of significant and positive effects of organizational identity attribute effects on employee job satisfaction.

Table 22. Order of Significant and Positive Impact of OI attributes on JSAE

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4.9.5 To identify factors leading to strong organizational identity

The findings of the study discovered that a strong organizational identity is influenced by the following main five: (1) Good Leadership and communication, (2) values and rituals, (3) human capital development, (4) Team work and (5) good performance.

These factors, individually and collectively, respondents indicated that they shape how organization’s employees conduct themselves, how organizational decisions are made, and how the organizational work gets accomplished. Respondents highlighted that exploring these factors either individually or holistically, will help organizational managers to understand why employees behave in certain ways. Therefore, a good management of these factors can offer organization guidance on how to manage its identity toward its desired aspirational identity and its employees’ job satisfaction. They further indicated that, for the organization to achieve high performance there is a need to bridge the gap between aspiration and reality. According to Backers, (2010), open organizational communication will serve as an effective means of conveying essential information to employees which will foster more employees’ organization identification, thereby exerting a positive influence on organizational identity. Eisenberger et al (1986), support these findings by emphasizing that employee believed that their organizations value their contributions and care about their well-being when they feel they are supported by their organization and cared about the organization. They said that employees’ attachment to the organization and employees’ identification with the organization will therefore increase (Backers, 2010), (Eisenberger et al, 1986).

In summary, the good management of organizational identity factors will help the organization to pave the way for creating and sustaining its purpose, image, and culture to be clearly understood, consistently executed, effectively aligned, and fully supported. When these elements come together, the organization will be in a position to create a competitive advantage in everything.

4.9.6 To identify factors affecting employee job satisfaction

Under this study objective, the findings indicated that recognition and motivation of employees contribute to job satisfaction. The findings also indicated that both compensation and reward for good job done is a factor that leads to employees’ job satisfaction. The respondents indicated that good remuneration and allowances lead to job satisfaction and good working conditions for employees are also factors that positively affect employees’ job satisfaction.

They mentioned good working relationship between supervisors and subordinates contributes together with availability of working equipment at all times could lead to job satisfaction. The importance of good working relationship between supervisors and subordinates to the strong organizational identity was highlighted by Olu-Abiodun and Abiodun, (2017). They further indicated that for an organization to meet its desired goals and mission thereby enhancing job satisfaction. They emphasized that the managers who support for teamwork enhances group relationships and promotes positive emotions in the workplace which then results in an increased employees’ work effectiveness and job satisfaction (Olu-Abiodun and Abiodun, 2017).

The findings further showed that efficient dissemination of information from management to subordinates achieving challenging task leads to job satisfaction.

4.10 Summary of the Findings

After all statistical analyses were applied; the study results were summarized as follows: The results revealed that there are significant and positive relationship between the centrality of organizational identity and distinctiveness of organizational identity to employee job satisfaction at 0.01 levels. The continuity of organizational identity has significant and positive relationship with employee job satisfaction at 0.05 levels. The results indicated that the more employees perceive the central values to be present in their organization, the more they identify themselves with the organization and consider the successes and failures of the organization as their own. The results also indicated that the more committed employees are in their work; the more they will identify with the organization hence increased level of job satisfaction. The results also revealed that the coefficients of all our independent variables are positive showing that an increase in the strength of the organizational identity results with an increase in the level of employee job satisfaction.

In summary, the findings of this study provide the linkages between organizational culture, organizational identification and organizational commitment with a strong organizational identity which then link with employees’ job satisfaction. The results revealed that strong organizational identity is determined by employees’ internalization of values and norms of the organization; employees who identify themselves with organization and employees who are committed to the organizational work. The strong organizational identity affects the level of employees’ job satisfaction which in turn reduces employee turnover and shortage of talent employees. When organization identity is appreciated by the organization’s members, it enhances their organizational identification. Employees, who identify with the organization, internalize the successes and failures of the organization as their own. Therefore, a strong organizational identification creates stronger employees’ commitment to the organization and its goals. Employees who are committed to the organization are satisfied with their work which then results in reduced employee’s turnover intention. The researcher tried to translate all the findings in the form of recommendations that would be presented in Chapter 5.

CHAPTER5. CONCLUSION AND RECOMMENDATIONS

5.1 Conclusion

Organizational identity is defined as a set of self-referential claims made by employees about their organization with respect to its “central features, distinctiveness, and progressive continuity. It reflects, ‘who we are as the organization” and “what we do in this organization” (Albert and Whetten, 1985). For the purpose of this study, organizational identity represents what employees perceived to be central, distinctive and enduring about the organization.

After reviewing literature on organizational identity, job satisfaction and conducting data analysis, we concluded that not only the factors affecting job satisfaction (hygiene and motivation factors) are sufficient to increase employee job satisfaction. However, based on the research hypotheses, several conclusions were made. On the basis of Social Identity Theory, organizational identity theory and Locke’s value theory, it was hypothesized that employees who perceive their organization has a central, distinctive and continuity (enduring over-time) characters will identify with the organization, be more involved and more satisfied with their work. Therefore, it is crucial to recall the research sub-hypothesis before drawing the conclusion of this study. First, the distinctiveness of organizational identity has a positive and significant effect on employee job satisfaction. Secondly, the continuity of organizational identity has a positive and significant effect on employee job satisfaction. Finally, the centrality of organizational identity has a positive and significant effect on job satisfaction of artisan employees. Therefore, to test these research hypotheses, correlation and multiple regression analysis were conducted to determine whether there is a significant and positive relationship between the distinctiveness of organizational identity, the continuity of organizational identity and the centrality of organizational identity to employee job satisfaction at the 0.05 levels (95% confidence of interval).

After testing the research hypotheses, it was concluded that the strong organizational identity has a positive and significant effect on employee job satisfaction. This was supported by the research findings which indicated that the centrality of organizational identity, the continuity of organizational identity and the distinctiveness of organizational identity positively and significantly impact on employee job satisfaction. These findings suggest that the more employees perceive their organization has characteristics which are central, continuing over time and uniquely described, the higher the level of employee job satisfaction towards the organizational work. Employees, who identify themselves with the organization and highly committed to the organizational work, are likely to experience a high level of job satisfaction. Satisfied employees internalize the success and failure of the organization as their own. The downfall of the company is not only touched the owners, but also the company’s contributions on both employment and GDP. An organization with a strong organizational identity is the ones which have employees who consider its achievement as theirs. The employees, who identify themselves with the organization, are committed employees hence reduced employee turnover and increased employee retention.

Finally, it was concluded that high levels of employee job satisfaction and a strong organizational identity can be the remedy for employee turnover and a catalyst for both retention and attraction of artisan employees in Lesotho Diamond Mine Companies.

5.2 Recommendations

The findings of this study have implications for both Lesotho Diamond Companies and government of Lesotho. The importance of organizational identity (what is perceived to be central about the organization, what is perceived to be distinctive about the organization, and what is perceived to continuity about the organization) plays a major role in developing an organizational identity. According to the operational definition of organizational identity, organizations must have

(a) identity (b) have unique characteristics, and (c) have an established culture (Albert and Whetten, 1985).

5.2.1 Recommendations to Lesotho Diamond Companies’ Management

The main reason for the existence of an organization is the attainment of its objectives. In order to make employees work towards the attainment of the organizational objectives, organizational identity should be strong, that is the core values should fit with the organization. It is, therefore, recommended that management should use practices which will strengthen organizational identity. The findings have revealed that the centrality of the organizational identity, the continuity of organizational identity and distinctiveness of organizational positively and significantly influence employees’ job satisfaction. These findings, advocate that interventions designed to improve organizational identity with the aim of increasing employee job satisfaction, should focus on increasing the centrality, distinctiveness and continuity of the organizational identity. The centrality of organizational identity includes a good relationship between employees, a shared organizational mission and goals as well as an employee’s sense of belonging to the organization. The more employees perceive the central values about the organization, the greater their levels of organizational identification. These results also show that managers should use practices which focus on articulating the central values of the organization which will lead to high levels of employees’ identification hence high level of satisfaction. This will make them feel the need to identify with the organizational image and feel personally responsible for the downfall of the organization. An employee who has the sense of belonging to the organization, when introducing himself usually say “We” rather than “They”. Based on social identity theory, employees who see membership of their organization to be consistent with their own values and as part of their self- definition are likely to be more satisfied with their work which in return leads to more commitment. The more satisfied employees the more committed and lower employee turnover. These results show that organizational culture has very a strong impact on employee job satisfaction, that make employees identify themselves with the organization which in turn leads to an improvement in their job performance.

The findings of this study indicated that the distinctiveness of organizational identity is significantly and positively related to employees’ job satisfaction. These results show that satisfied employees easily identify with the organization and internalize the success and failure of the organization as their own. Organizational identification is a predictor of employee job satisfaction. They usually say ‘We’ rather than say ‘They’ when they talk to outsiders about their organization. It is, therefore, recommended managers should invest more in developing relationship amongst the employees as well as supervisor -employees’ relationship. This will make employees to be loyal and dedicated to their work. The good relationship between supervisor and employees encourages employees to contribute openly to the development of the company. If employees work honestly and in harmony with their supervisors, avoid politics and are rewarded by managers fairly, their ties with the organization will get stronger. Thereby employees will feel “one” with the organization. The findings also indicated that continuity of organizational identity is significantly and positively related to employee job satisfaction. This shows that continuity of the organizational identity leads to an increase in employee job satisfaction. Employees who identify strongly with their organization and have a high organizational commitment which leads to high job satisfaction..

This proves that the more employees work with the organization, the more they internalize its characteristics and identify with it. This was also supported Basim & Basak (2015) and Oktuz, (2013) on their studies, indicating that strong employees’ organizational identification leads to high level of employee job satisfaction. Thus, it is recommended that management should recognize the importance of strong organizational identity as it influences employee job satisfaction and discourages employee turnover intention. The identity of the company is the most sufficient and necessary condition in increasing employees’ job satisfaction which in turn leads to the attraction and retention of skilled employees. This shows that the company needs to consider the use of its organization identity as a strategy to retain and attract talent employees.

Again, it is recommended that managers should keep the organizational objectives living, and constantly communicate them to their employees. Feedback on employees’ behavior and performance and their role in the achievement of objectives can be used to influence organizational identification. Finally, managers should focus on improving the prestige of the organization, instead of decreasing the differences that may exist between the organization’s value system and the values deemed important by employees. Perceived external prestige can be improved by an external communication strategy that projects images that highlight and emphasize the desirable aspects of the organization. This could positively influence perceptions of external stakeholders. To foster organization’s identification, an internal communication strategy may be directed towards making visible the positive prestige of the organization.

Therefore, it is recommended that organizational policies regarding culture should be clear and understandable to employees. An organization with strong organizational culture’s policies, promotes good employee’s organizational behavior. It is recommended that managers should consider having a flexible organizational culture and strive to decentralize it across all levels of the organization. This will open doors for employees’ inputs in decision-making and problem-solving. An organization which values and cares for its employees’ well-being increases its employees’ organizational commitment. This affects employees’ job satisfaction level positively as well as employees’ job performance, which will ultimately increase the organization productivity. The results further suggest that for management to retain and attract artisan employees there is a need to invest on the centrality of organizational identity as it has potential for providing employees with job security and sustainable employment which in turn leads to increased level of job satisfaction hence decreased in turnover.

Furthermore, it is recommended that management of Diamond companies should increase employees’ organizational commitment by increasing job satisfaction within the following five factors: (1) job security; (2) rewards & benefits; (3) good working environment; (4) good employee- supervision relationship and possibility of employee’s growth. The results also indicated that managers should consider both job-related characteristics and organizational identity factors that are significantly affecting employee job satisfaction which will lead to organizational commitment. The managers are urged to provide the autonomy to the employees so that they can feel ownership of their work. The managers should provide good team work conditions and favorable working conditions which will help eliminate organizational politics, because findings indicate that the more employees identify themselves with their organizations the more they satisfy with their jobs. The company that creates unique family and atmosphere among its employees experience high level of job satisfaction of employees which then results in decreased employee turnover. The management should make supervisory support priority within the organization. This is because an effective supervisory support such as support with personal and family matters, fairness in personal procedures can have a considerable impact on employees’ job satisfaction. When management is fair, firm and show concern to their employees, employees’ trust and confidence in management improves thereby increasing their job satisfaction, followed by increased job performance. The management should implement management performance system which will help them to motivate their employees through fair and rewarding compensations, job security, fairness in appraisal and promotions, fairness in pay and benefits to reduce the fear and anxiety from employees. This is because motivation is a double-edge sword that prevents fear and worry from employees and wishes, drives, inspires and directs their behaviors towards specific goals. It helps to induce employees to increase their level of job performance. The management should know that the organizational goals of the company can only be achieved through employee’s commitment which is derived from job satisfaction. Therefore, they should create the aforementioned conditions to encourage the employees to get the best out of them to achieve its goals. The management should make use of in-service training, education and career development to enhance employee skills on their jobs. This will help the employees to develop a positive attitude towards their jobs. The management should also know that any organization that provides the growth of opportunities on suitable basis always enjoys satisfactory job done by employees in their jobs. This shows that investing in the development of management skills and knowledge will make mangers competently communicate organizational goals to the employees, which in turn increases employees, trusts in management decisions.

Moreover, a clear communication mechanism between the managers and employees serves as catalyst for the promotion of a strong organizational identity which in turn leads to increased levels of employees’ job satisfaction. Furthermore, managers should communicate organizational objectives, with their employees and provides a strategic direction on how those objectives will be met. Effective communication such as exchange of ideas, facts, emotions, respect builds teamwork and good relationship with co-workers. The results were also in support of the study conducted by Bartels, et al, (2010), which highlighted that, the existence of open communication lead to a strong organizational identification. It is recommended that management should give employees the liberty to share their ideas and concepts in an open forum in order to come with an innovative solution that benefits all. The management should encourage supervisors to have motivated their subordinates to think about their development and support them to attain that. Employees should be given the maximum autonomy for them to solve work-related problems independently.

5.2.2 Recommendations to Government of Lesotho

The diamond mining industry has always been a key driver of the Lesotho’s economic growth and development. The industry was also identified as the growth accelerators which deemed to have a significant impact on the economic growth and development. However, the industry’s large impact on economic growth is not sustained in the long-run. Notwithstanding the critical role played by the diamond industry within the Lesotho’s economy, shortage of technical skills in the area of artisans (welding, electrical engineering, fitting, boiler-making and mechanical engineering) has been identified as the hindrance to the growth of this industry.

On the basis of the findings of this study, we recommend that the government of Lesotho should provide a conducive business environment to enable this company to implement the proposed recommendations. This can be done by establishing an institution which will provide a bridging course to students graduated from Lerotholi Polytechnic who obtained general skills on welding, fitting, boiler-making, and mechanical and electrical engineering. This institution should be mandated to provide skills needed specifically for day to day diamond mining operations. This institution will help to reduce the employee training costs incurred by the diamond mining companies with the aim of bridging the skills gap on their employees.

Therefore, it is recommended that government should provide a conducive business climate by investing in mining related skills development, especially technical skills needed to maintain and operate the company’s machinery. This will help to improve productivity within the diamond industry and the entire economy. This is a need for Lesotho’s education and training system needs to implement reforms which address the challenges of artisan skilled employees within the Diamond industry. This will make it easy for Diamond companies to strengthen their organizational identities and levels of employee job satisfaction.

5.3 Research Limitations

This study like many researches faced several limitations that were the constraints for data collection which ultimately may have somehow affected the application of results. The targeted population for the study was Lesotho Diamond Companies, which may have different management of artisan employees compared to other mining sector companies in Lesotho. This was one of the most limitations due to time constraint.

Therefore, the timing of this study was the main limitation, given the nature of the research question, ‘what is the relationship between organizational identity and artisan employee job satisfaction? The fact that semi-structured questionnaires were used as a key data collection technique, obviously the timing of the data collection, relative to the attainment, was critical. However, the study respondents had to scarify their time to work as well as to rest in order to fill the questionnaire. This may have some negative impact on the respondents’ answers which also shifted to study results. Data collection was conducted within the period of six days’ time with two days per group of three. This was done over a period of two 2-months’ time. The time frame and nature of work did not provide enough time for respondents to internalize the research questions.

5.4 Areas for Further Research

Based on the findings of this study, it is of great importance for future researchers to try to mediate the relationship between organizational identity and job satisfaction with employee performance management. It is also important to enlarge the sample size to ensure validity of the study findings. This study had provided only a small portion of the idea regarding relationship between organizational commitment and job satisfaction in the context of higher learning education institutions. Hence, it would be beneficial for future research to consider the following suggestions:

Expand the study into other industries by investigating the relationship between organizational identity and job satisfaction both in public and private sector. This kind of investigation would help to explain the comparison among the facets of organizational identity in raising employees’ job satisfaction which in turn reduces turnover. Prospective researchers can also research into negative impact of strong organizational identity on employee job satisfaction. Another area of interest should also dwell on the impacts of organizational identity on employee turnover intention.

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Appendices

Questionnaire to Lesotho Diamond Companies

Dear Respondent,

This is a study on how to raise job satisfaction of artisan employees through the use of organizational identity. This study is required as part of the requirements for the award of International Master of Business Administration Degree at Zhejiang Normal University in China. The questionnaire has been designed for academic purpose only and your response will be treated with the strictest confidentiality and anonymity.

Thank you for your cooperation.

Yours faithfully,

APPENDIX A. Questionnaire

SECTION A: Demographics data and general information Questions

PART ONE: Demographic Data Questions

Respondent’s Profile

Abbildung in dieser Leseprobe nicht enthalten

SECTION B. The distinctiveness of organizational identity measured by Organizational Identification Questionnaire

Please rate the following statements by circling the number on the following rating scale that most closely represents your response.

1-strongly disagree 2-moderately disagree 3-slightly disagree 4-neither disagree nor agree 5- slightly agree 6-moderately agree 7-strongly agree.

Abbildung in dieser Leseprobe nicht enthalten

SECTION C. The continuity of organizational identity measured by Organizational Commitment Questionnaire

With respect to your own feelings about the organization for which you are now working, please indicate the degree of your agreement or disagreement with each statement by circling one of the seven alternatives.

1-strongly disagree 2-moderately disagree 3-slightly disagree 4-neither disagree nor agree 5- slightly agree 6-moderately agree 7-strongly agree.

Abbildung in dieser Leseprobe nicht enthalten

SECTION D. The centrality of organzational identity measured by Organizational Culture Questionnaire

With respect to your own feelings about the organizational culture for which you are now working, please indicate the degree of your agreement or disagreement with each statement by circling one of the seven alternatives.

1-strongly disagree 2-moderately disagree 3-slightly disagree 4-neither disagree nor agree 5- slightly agree 6-moderately agree 7-strongly agree.

Abbildung in dieser Leseprobe nicht enthalten

SECTION E. Employee Job Satisfaction Questionnaire

With respect to your own feelings about the organization for which you are now working, please indicate the degree of your agreement or disagreement with each statement by circling one of the seven alternatives.

1-strongly disagree 2-moderately disagree 3-slightly disagree 4-neither disagree nor agree 5- slightly agree 6-moderately agree 7-strongly agree

Excerpt out of 132 pages

Details

Title
How to Raise Job Satisfaction of Artisan Employees through Organizational Identity
Subtitle
The Case of Diamond Mine Companies in Lesotho
Course
International Master of Business Administration-International Business Management
Grade
3.6
Author
Year
2018
Pages
132
Catalog Number
V429020
ISBN (eBook)
9783668736788
ISBN (Book)
9783668736795
File size
1543 KB
Language
English
Keywords
raise, satisfaction, artisan, employees, organizational, identity, case, diamond, mine, companies, lesotho
Quote paper
Mapale Dominic Matsela (Author), 2018, How to Raise Job Satisfaction of Artisan Employees through Organizational Identity, Munich, GRIN Verlag, https://www.grin.com/document/429020

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