JOb Satisfaction of Employees in Koperasi PErmodalan Felda Malaysia Berhad

JOB SATISFACTION OF EMPLOYEES IN KOPERASI
PERMODALAN FELDA MALAYSIA BERHAD
MUHAMMAD FAKHRUL SYA BIN SAPARUDIN

2012808962
NUR AMIERA BINTI ZULKIFLI
2012233224
BACHELOR IN BUSINESS ADMINISTRATION (HONS) INTERNATIONAL

BUSINESS
FACULTY OF BUSINESS MANAGEMENT
UiTM KAMPUS BANDARAYA MELAKA
JUNE 2015
JOB SATISFACTION OF EMPLOYEES IN KOPERASI

PERMODALAN FELDA MALAYSIA BERHAD
MUHAMMAD FAKHRUL SYA BIN SAPARUDIN

2012808962
NUR AMIERA BINTI ZULKIFLI
2012233224
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE BACHELOR IN BUSINESS ADMINISTRATION (HONS)
INTERNATIONAL BUSINESS

JUNE 2015
DECLARATION OF ORIGINAL WORK

BUSINESS
I, Muhammad Fakhrul Sya Bin Saparudin (I/C Number: 930211-05-5361)

Hereby declared that,
This work has not previously been accepted in substance for any degree, locally or
oversea and is not being concurrently submitted for this degree or any other degree.
This project paper is the results of my independent work and investigation, except
where otherwise stated.
All verbatim abstract have been distinguished by quotation marks and sources of my
information have been specifically acknowledged.
Signature: ____________________
Date: ____________________
DECLARATION OF ORIGINAL WORK

BUSINESS
I, Nur Amiera Binti Zulkifli (I/C Number: 910626-14-5838)

Hereby declared that,
This work has not previously been accepted in substance for any degree, locally or
oversea and is not being concurrently submitted for this degree or any other degree.
This project paper is the results of my independent work and investigation, except
where otherwise stated.
All verbatim abstract have been distinguished by quotation marks and sources of my
information have been specifically acknowledged
Signature: ____________________
Date: ____________________
ACKNOWLEDGEMENTS
First and foremost, Alhamdulillah, the greatest thanks to ALLAH S.W.T as finally we were
able to finish our research project. Praise is to Allah for giving us opportunity, strength and
patience in facing a lot of obstacles in order to complete this research.
Besides that, we also owe a big debt to our advisor, Pn Siti Noraziana Azis, because
without her guide our research project cannot be done properly. She always give us
supports and guide on how to do our research assignment in purpose to produce a good
outcome from research that been studied. Her opinion and knowledge has enhanced our
understandings of the Herzberg-hygiene factors towards job satisfaction among
employees.
On the other hand, we greatly appreciate to our partner for always stick together and giving
the best cooperation throughout this report as well as distributing the questionnaire to the
employees for the feedback on this research. We also would like to thanks to our course
mates for their comments and their help for this research. Without their valuable feedback
and cooperation this report would not have achieved its objectives.
Special thanks to the staffs of Koperasi Permodalan Felda Malaysia Berhad for giving us a
huge commitment and cooperation during the process of the study. Finally, we also express
our gratitude to our parents that gave us assist in terms of money and moral support in order
to complete this research. Without their helps, we are not be able to settle the amount of
photocopy and printing charges imposed besides gives a lot of advice to complete.
TABLE OF CONTENT
ACKNOLEDGEMENT
ABSTRACT
1.0
INTRODUCTION
1.1 Background of research ..................................................................................................... 2
1.2 Background of Koperasi Permodalan FELDA Malaysia Berhad ........................................ 5
1.3 Problem statement ................................................................................................................ 7
1.4 Research questions ............................................................................................................... 9
1.5 Research objective ............................................................................................................... 9
1.6 Hypothesis............................................................................................................................ 10
1.7 Scope of the study ................................................................................................................ 11
1.8 Significance of the study ...................................................................................................... 11
1.9 Limitations of study ............................................................................................................. 12
1.10Definition of terms .............................................................................................................. 13
2.0
LITERATURE REVIEW
2.1 Introduction .......................................................................................................................... 15
2.2 Job Satisfaction .................................................................................................................... 17
2.3 Hygiene Factors ................................................................................................................... 19
2.21Working Environment ................................................................................................... 19
2.22 Remuneration ............................................................................................................... 21
2.23 Supervision .................................................................................................................. 23
2.24 Interpersonal Relationship ........................................................................................... 25

2.4 Theoretical Framework ........................................................................................................ 27
2.5 Research Framework ........................................................................................................... 29
3.0
RESEARCH METHODOLOGY
3.1 Introduction ........................................................................................................................... 31
3.2 Research Design .................................................................................................................... 31
3.3 Sampling Design ................................................................................................................... 32
3.4 Data Collection Method ........................................................................................................ 33
3.5 Measurement and Instrument/Questionnaires ....................................................................... 34
3.6 Data Analysis ......................................................................................................................... 35
3.6.1 Frequency Analysis ...................................................................................................... 35
3.6.2 Descriptive Statistic ...................................................................................................... 35
3.6.3 Reliability Analysis ...................................................................................................... 36
3.6.4 Correlation Analysis ..................................................................................................... 36
3.6.5 Regression Analysis ..................................................................................................... 37
4.0
ANALYSIS AND DATA INTERPRETATION

4.1 Introduction ........................................................................................................................... 38
4.2 Frequency Analysis ............................................................................................................... 38
4.3 Descriptive Statistic ............................................................................................................... 40

4.4 Reliability Analysis ............................................................................................................... 41
4.5 Correlation Analysis .............................................................................................................. 42
4.6 Regression Analysis .............................................................................................................. 45
5.0
CONCLUSION AND RECOMMENDATION

5.1 Introduction ........................................................................................................................... 47
5.2 Conclusion ............................................................................................................................. 47
5.3 Recommendation ................................................................................................................... 48
REFERENCES
APPENDICES
Abstract
This study investigated the factors that influence the job satisfaction of employee in
Koperasi Permodalan FELDA Malaysia Berhad (KPF). This study is conducted by using
the Herzberg Two-factor theory and focus more on the extrinsic factor or hygiene factor
that includes work environment, remuneration, supervision and interpersonal relationship
and its relationship with job satisfaction.
Data for the study was collected through
questionnaires.Statistical analysis such as frequency analysis,Descriptive Statistic,

Reliability Analysis,correlation analysisand multiple regressions were used. The results
indicated that interpersonal relationship has the most influential effect on the job
satisfaction of employees in KPF Malaysia Berhad. The findings of this study may
contribute to planningand implementing human resource managements (HRM)
strategies.Several suggestions for future research are also presented in this study.
CHAPTER 1
1.0 INTRODUCTION
Since Herzberg study on job satisfaction started in 1959, job satisfaction has
frequently been held up as a medium of improving employees motivation. Job
satisfaction now becomes one of the most favourite areas of research particularly in
todays world where corporate institutions are concerned over its impact to the overall
performances of the organization. Job satisfaction increases employees morale and
productivity. It creates innovative ideas among the employees that will cause employees
may become more loyal towards the organization. Employees will be more satisfied if
they get what they expected.
Job satisfaction has been an important part in human resources management.
Identifying factors that influence job satisfaction provides administrators and managers
with necessary, meaningful information to make intelligent decisions regarding
interventions aimed at increasing employees job satisfaction (Lambert, Hogan & Barton,
2001). Todays managers, especially human resource managers want to know how to
satisfied employees, not why employees should be satisfied. Thus, this study will help in
finding the factors that affect employee job satisfaction towards their work.
In this study, researcher is curious to study about the factors that influence the job
satisfaction of employee in Koperasi Permodalan FELDA Malaysia Berhad. The factors
involve in this field of study is derived from the Herzberg Two-factor theory and the
researcher will focus on extrinsic factor or hygiene factor that includes work environment,
remuneration, supervision and interpersonal relationship and its relationship with job
satisfaction.
1.1 Background of research

Job satisfaction is an important factor of an organizations success. Much
research has been conducted into ways of improving job satisfaction of workers in
various sectors of Malaysia ranging from the academic sector (Wong & Teoh, 2009;),
the hotel sector (Abd Patah, Radzi, Abdullah, Adzmy, Adli Zain, & Derani, 2009),
the government sector (Yahaya, Yahaya, Arshad, & Ismail 2009), the non-profit
sector (Ismail and Zakaria, 2009), the naval sector (Mohd Bokti & Abu Talib, 2009),
to the automobile manufacturing sector (Santhapparaj, Srinivasan, & Koh 2005).
There has been relatively numbers of research into the determinants of job
satisfaction in the retail sector using Herzbergs two-factor theory. Therefore, this
paper endeavors to address this literature gap and is conducted in Koperasi
Permodalan Felda.
Factors that affect job satisfaction are divided into two categories. Hygiene
factors surround the doing of the job. They include supervision, interpersonal
relations, physical working conditions, salary, company policy and administration,
benefits, and job security. Motivation factors lead to positive job attitudes because
they satisfy the need for self-actualization. Motivation factors are achievement,
recognition, the work itself, responsibility, and advancement. The opposite of
satisfaction is no satisfaction. The opposite of dissatisfaction is no dissatisfaction.
The satisfaction of hygiene needs can prevent dissatisfaction and poor performance,
but only the satisfaction of the motivation factors will bring the type of productivity
improvement sought by companies (Herzberg et al., 1959).
Hygiene factors were related to feelings of dissatisfaction within the employees

and were extrinsic to the job, such as interpersonal relations, salary, supervision and
company policy (Herzberg, 1966).
10
Job satisfaction is defined as an attitude that individuals have about their jobs
which results from their perception of the jobs and the degree to which there is a
good fit between the individual and the organization (Ivancevich and Matteson,
1980).
Job satisfaction has been widely studied in the management literature (Spector,
1997) due to its relevance to the physical and mental well-being of the employees.
Job satisfaction can be an important indicator of how employees feel about their jobs
and a predictor of work behaviors such as organizational citizenship, absenteeism
and turnover. An understanding of the factors involved in job satisfaction is crucial to
enhance the happiness of workers (Okpara, Squillace & Erondu, 2005).
An intensive investigation on job satisfaction was initiated by Frederick

Herzberg in 1959, which started to study the factors affecting job satisfaction
(Knight & Westbrook, 1999). His theory was based on two dimensions of job
satisfaction, namely motivators and hygiene. This theory was referred to as
Herzberg's Two-factor Theory of Job Satisfaction, which suggests that only job
content-related aspect for example achievement, responsibility and the work itself
which lead to satisfaction. On the other hand, job context-related facets such as pay
security and working conditions in which lead to job dissatisfaction (Oshagbemi,
1997). The Herzberg's Two-factor Theory of Job Satisfaction has sparked an interest
for the researcher to conduct the study regarding the motivational and hygiene needs
of employees in KPF which have different demographical factors.
Two-Factor Theory is closely related to Maslow's hierarchy of needs but it

introduced more factors to measure how individuals are motivated in the workplace.
This theory argued that meeting the lower-level needs which is extrinsic or hygiene
factors of individuals would not motivate them to put effort, but would only prevent
them from being dissatisfied. In order to motivate employees, higher-level needs
which is intrinsic or motivation factors must be fulfilled. The implication for
organizations to use this theory is that meeting employees extrinsic or hygiene
11
factors will only prevent employees from becoming actively dissatisfied but will not
motivate them to contribute additional effort toward better performance. To motivate
employees, organizations should focus on supplying intrinsic or motivation factors
(Robbins, 2009).
This research is conduct to examine the most influential factors that will reflects
the job satisfaction level of employees in Koperasi Permodalan FELDA Malaysia
Berhad. This research will focus more on extrinsic job satisfaction which is the
hygiene factors. The variables used in this study includes the working environment
of employees, remuneration received by the employees, supervision by the superior
or top manager and also interpersonal relationship among employees that will
contribute to the job satisfaction of employees as a whole.
12
1.2 Background of Koperasi Permodalan FELDA Malaysia Berhad

Koperasi Permodalan FELDA Malaysia Berhad (also known KPF) formerly
known as Koperasi Permodalan FELDA Berhad was established on 1st July 1980
under the Cooperative Ordinance 1948 (Replaced with Co-operative Act 1993). The
idea of establishment of KPF was triggered in FELDA Board Meeting on January 15,
1980 chaired by Y.M Tan Sri Raja Muhammad Alias. The main objective of KPF
establishment is to encourage FELDA members to invest and savings. Formation of
KPF was also to give opportunity to FELDA members to have equity and investment
in FELDA subsidiaries.
KPF currently have 269,250 registered members that includes FELDA settlers
and employees with shares worth RM2.525 billion and assets worth of RM5.383
billion. As of 31st December 2013, KPF managed to earned yield through their
investment in various sector with amount of RM3, 165.33 million.
Until 31st December 2013, KPF own four direct controls in KPF Group of
Companies include FELDA Trading Sdn Bhd, KPF Holdings Sdn Bhd, FELDA
DSaji Sdn Bhd and KPF Agro Properties Sdn Bhd. Furthermore, KPF currently hold
equity in 10 companies under the FELDA Holdings Berhad Group with amount of
RM 187.02 million.
Retail Banking and Real Estate
KPF also provides retail banking services. It accepts deposits from its members
and cooperatives. They provide personal financing with Pembiayaan Peribadi-i,
Tunai-i, Umrah-I and Mikrokredit-i. They also provide Co-op financing, easy
financing and Corporate financing. KPF is registered as Syariah-compliant
companies.
KPF started their Ar-Rahn operation on 10th May 2013 with their first branch in
Jengka, Pahang. Currently, they have opened another eight branch in Terengganu (2),
Pahang (1), Kelantan (1), Perak (1) Selangor (2) and Negeri Sembilan (2).
13
KPF also involved in property and real estate sector and now owns the West
wing, The ICON at Jalan Tun Razak and Southgate Commercial Building in Sg Besi.
It is in the midst of developing a hotel, which has 300 rooms and apartments in
Bangi. The hotel will be operating expected by 2016.
No
Company
Equity (%)
FELDA Palm Industries Sdn Bhd
28.00
FELDA Agricultural Services Sdn Bhd
23.10
FELDA Vegetables Oil Product Sdn Bhd
33.00
FELDA Prodata Systems Sdn Bhd
20.00
FELDA Transport Services Sdn Bhd
49.00
FELDA Rubber Industries Sdn Bhd
28.60
FELDA Marketing Services Sdn Bhd
49.00
FELDA Kernel Products Sdn Bhd
16.70
FELDA Engineering Services Sdn Bhd
49.00
10
FELDA Security Services Sdn Bhd
49.00
Table 1.1 KPF equity in FELDA Holdings Berhad
14
1.3 Problem Statement

Job satisfaction is very vital for employee as well as the organization itself.
Previous research has proved that job satisfaction would directly relate to employee
commitment towards their task and work. According to Locke (1969) job satisfaction
has been defined as a function of the perceived relationship between one wants from
ones job and what one perceives it as offering. It explains that the employees
satisfaction depends on the employees feeling to achieve their desired target. A study
conducted by Shellenbarger (2000) stated that aggressive working environment is
significantly affect the job satisfaction of employees thus affects the employees job
performance. Job satisfaction can provide a solution in employee dilemma especially
regarding personal interest in the specific job, working condition, employee
confidence, and also to ensure the employee is compensate in such good pay.
According to a JobStreet.com survey in 2012 on Employee Job Satisfaction in
Malaysia, 78% of the respondents claimed that they were unhappy with their current
job. While it is often perceived that the main reason many young talent leave a
company is due to the low salary, only 17% out of the 1,145 respondents quoted
salary as the main reason for influencing their unhappiness at their current job.
Dissatisfaction with their scope of work was the top reason many felt unhappy at
work. Most of these unhappy employees said they felt that they have too much work
or that their work is predictable and boring. Another factor was also their poor
relationship with their immediate supervisor or boss. The remaining 22% of the
respondents who are currently happy at work revealed the top 3 factors which
influenced their happiness, 50% are enjoying their working experiences and working
challenges, 21% are happy with their bosses who appreciate and value their input, 19%
are enjoying their work because of their friendship with their colleagues.
According to a study conducted by Ranstad Workmonitor in June 2012, they
found out that more than 62% employees in Malaysia consider a good salary is more
important than job satisfaction. Most of the employees emphasized more on
remuneration offered by company rather than their job satisfaction. The other
15
problem that Ranstad Workmonitor found was due to social media usage, 70% of the
respondent said they have more contact with colleagues outside of working hours
than before. It shows that employees nowadays in lacking in interpersonal
relationship with their colleagues and their superior. This result had put question for
the researcher to conduct further more on this matter and the study is conducted in
Koperasi Permodalan FELDA Malaysia Berhad in Kuala Lumpur to test the results.
A study conducted by Tan and Amna in 2011 shows that. The results show that
hygiene factors were the dominant motivators of sales personnel job satisfaction.
Working conditions were the most significant in motivating sales personnel.
Recognition was second, followed by company policy and salary. There is a need to
delve more deeply into why sales people place such a high importance on money.
Further analysis was performed to assess how much the love of money mediates the
relationship between salary and job satisfaction. Based on the general test for
mediation, the love of money could explain the relationship between salary and job
satisfaction. This research is carried out to determine whether the hygiene factors
also affect the employees satisfaction in KPF.
Hence, this research is conducted to examine the most influential factors that
will reflect the satisfaction level of employees in Koperasi Permodalan FELDA
Malaysia Berhad. The variables used in this study includes the working environment
of employees, remuneration received by the employees, supervision by the superior
or top manage and also interpersonal relationship among employees that will
contribute to the job satisfaction of employees as a whole.
16
1.4 Research Questions

i. What are the level of hygiene factors (working environment, remuneration,
supervision and interpersonal relationship of employees) and job satisfaction
in KPF?
ii. Is there any relationship between job satisfaction and hygiene factors
(working
environment,
remuneration,
supervision
and
interpersonal
relationship of employees) in KPF?
iii. What is the most important element of hygiene factors (working environment,
remuneration, supervision and interpersonal relationship of employees)
towards job satisfaction in KPF?
1.5 Research Objective
i. To determine the level of hygiene factors (working environment,

remuneration, supervision and interpersonal relationship) towards job
satisfaction of employees in KPF.
ii.
To identify whether there are any relationship between job satisfaction of

employees in KPF. and hygiene factors (working environment, remuneration,
supervision, interpersonal relationship).
iii. To determine the most important elements of hygiene factors (working

environment, remuneration, supervision and interpersonal relationship of
employees) towards job satisfaction in KPF.
17
1.6 Hypothesis
1.6.1
Hypothesis 1: Working environment

H1:
Working environment is positively related to employees

job satisfaction in KPF.
H0:
Working environment is negatively related to employees

1.6.2
Hypothesis 2: Remuneration
H2:
Remuneration is positively related to employees job

satisfaction in KPF.
H0:
Remuneration is negatively related to employees job

1.6.3
Hypothesis 3: Supervision
H3:
Supervision is positively related to employees job

H0:
Supervision is negatively related to employees job

1.6.4
Hypothesis 4: Interpersonal relationship

H3:
Interpersonal relationship is positively related to employees

H0:
Interpersonal
relationship
is
negatively
related
to
employees job satisfaction in KPF.
18
1.7 Scope and coverage of the study.

This research is focus more on the job satisfaction of employees in KPF. The study is
carried to resolve the problem of employees needs and satisfaction towards their job.
It will include the working environment, remuneration, supervision and lastly the
interpersonal relationship among employees. This study will conclude the hygienic
factors that influence the employees satisfaction in their work.
The scope of this study will be among KPF staff. The respondents are among staff in
Koperasi Permodalan Felda Malaysia Berhad headquarter comprises of staff form
Department of Finance, Department of Investment, Department of Operation and
Administration, Department of Legal, Department of Legal and finally Department
of Internal Audit and Risk Management. The coverage will be staff that located
within Wisma Felda in Jalan Gurney. The sample will be 80 employees from the
KPF headquarters.
1.8 Significant of the study

1.8.1
Organization
To the management of KPF, the findings and results of the study will provide a more
reliable in-depth understanding of the factors that affect employee job satisfaction
and to help shape the future policy formulation for the organization, thus facilitating
immensely the achievements of the objectives of the KPF in enhancing the reliability
and efficiency of their employee that contribute to organizational performance. Data
provide will assist in monitoring the organization achievement towards the
millennium goals as well as vision 2020 objectives. The findings are expected to
provide answers to the fundamental question of why employees stay and what would
cause them to leave and to help the company formulate appropriate retention policies
and strategies to enhance employee satisfaction and company performance and
productivity in the long term.
19
1.8.2
University
The research will benefits University as it will published and for the future
reference of the student. University also can use this research to as a guideline to
evaluate job satisfaction among their staff in order for them to fulfill what are the
needs of their staff. This research will provide a guideline for job satisfaction
determinant and result of this study will help in further research to be conducted
by student in the future.
1.8.3
Researcher
For researcher, the information will be used as a guideline in choosing the right
job in the future. This research also will benefits researcher as it can be shared
with the researchers employer. This study also can help researcher in doing
further researcher larger scope of study and different organization.
1.9 Limitations
1.9.1 Time period
Since the research about evaluating job satisfaction, it is important for researcher
to identified level of satisfaction over time period. Since level of satisfaction
may different across time it is recommended for researcher to conduct a study
from time to time to gain in-depth knowledge about the job satisfaction.
1.9.2
Place of study
The research takes place at Koperasi Permodalan Felda Malaysia Berhad

Headquarters that is located Wisma Felda Jalan Gurney Kuala Lumpur. The
place of study is conducted in KPF headquarters and not spanning to its Ar-rahn
Branch in Selangor, Terengganu, Pahang, Perak, Negeri Sembilan
20
1.9.3 Respondents
The respondent is taken from staffs that work in Koperasi Permodalan Felda
Malaysia Berhad. Total of 80 staff working in KPF Headquarters in Kuala
Lumpur while other 30 staff is working at Ar-rahn KPF Branch in Selangor,
Terengganu, Pahang, Perak, Negeri Sembilan. This research only focuses on
respondent that work in KPF Headquarters in Kuala Lumpur.
1.10 Definition of Terms

1. Job satisfaction: Locke (1976) defines job satisfaction as the positive
emotional state stemming from valuation of a persons experience
associated with the job.
2. KPF: Koperasi Permodalan FELDA Malaysia Berhad. The place of the

research is conducted.
3. Job turnover: The number of employees who leave an organization of

their own free will and need to be replaced.
4. Hygiene factors: Hygiene factors are the factors that characterize the
context or environment of a person's work. They can be a cause of job
dissatisfaction unless appropriately applied by an organization.
5. Working environment: Location where a task is completed. When

pertaining to a place of employment, the work environment involves the
physical geographical location.
6. Remuneration: Reward for employment in the form of pay, salary, or

wage, including allowances, benefits (such as company car, medical
plan, pension plan), bonuses, cash incentives, and monetary value of the
21
noncash incentives.
7. Supervision: Supervision is the activity carried out by supervisors to

oversee the productivity and progress of employees who report directly
to the supervisors.
8. Interpersonal relationship: Interpersonal relationships are social

connections with others that can be brief or enduring.
9. Employees: A person in the service of another under contract of hire,

express or implied, oral or written where the employer has the right or
power to control and direct the employee in the material detail on how
the work is to be performed (Arthur, 1995).
22
CHAPTER 2
2.0 LITERATURE REVIEW
2.1 Introduction
Herzbergs motivation-hygiene theory, also known as the two-factor theory has
received widespread attention of having a practical approach toward motivating
employees. In 1959, Herzberg published his analysis of feelings of 200 engineers and
accountants from over nine companies in the United States. These professionals were
asked to describe job experiences where they felt either extremely bad or exceptionally
good about their jobs and rated their feelings on these experiences. Responses about good
feelings are generally related to job content which is motivators, and responses about bad
feelings are associated with job context which is hygiene factor. Motivators came about
with factors built into the job itself, such as achievement, recognition, responsibility and
advancement. Hygiene factors were related to feelings of dissatisfaction within the
employees and were extrinsic to the job, such as interpersonal relations, salary,
supervision and company policy (Herzberg, 1966).
The basic factors determining job satisfaction can be broadly into two categories
which are intrinsic factors and extrinsic factors (Buitendach and De Witte, 2005).
Extrinsic factors include pay, physical working condition; working hours, job security
work group, work itself, supervision, etc. Intrinsic factors include personality, values,
recognition, advancement, etc. Certain personal and demographic variables like age,
gender, tenure, etc. also influence the employees job satisfaction.
According to the principle of theory, Extrinsic Factors are less to contribute to
employees motivation need. The presences of these factors were just to prevent any
dissatisfaction to arise in their workplaces. Extrinsic Factors are also well known as job
context factors are extrinsic satisfactions granted by other people for employees (Robbins,
2009). These factors serve as guidance for employers in creating a desirable working
environment where employees feel comfortable working in the company atmosphere.
When all these external factors were achieved, employees will be free from unpleasant
23
external working conditions that will banish their feelings of dissatisfactions, but remains
themselves neutral in neither satisfied nor motivated; however, when employers fail to
fulfill employees Extrinsic Factors needs, employees job dissatisfaction will arise.
Intrinsic Factors are the actually factors that contribute to employees level of job
satisfactions. It has widely being known as job content factors which aim to provide
employees meaningful works that able to intrinsically satisfy themselves by their works
outcomes, responsibilities delegated experience learned, and achievements harvested
(Robbins, 2009).
This theory further proposed the Intrinsic and Extrinsic Factors are
interdependence to each other. Presence of Extrinsic Factors will only eliminate
employees work dissatisfaction; however, it will not provide job satisfaction. On the
other hand, sufficient supply of Intrinsic Factor will encourage employees growth and
development that will lead to a higher productivity and performance. However, absent of
this factor will only neutralize their feeling neither satisfy nor dissatisfy on their jobs.
Extrinsic Factors only permit employees willingness to work while Intrinsic Factors will
decide their quality of work.
Intrinsic Factors are very effective in creating and maintaining more durable
positive effects on employees performance towards their jobs as these factors are human
basic needs for psychological growth. Intrinsic Factors will propel employees to insert
additional interest into their job. When employees are well satisfied by motivational
needs, their productivity and efficiency will improved (Yusoff, Kian, Idris, 2013).
This research discussed more on the extrinsic factors that includes working condition,
remuneration, supervision and interpersonal relationship. The factor that is studied was
conducted before and the variable is proved to be valid by previous research. This
research will study the variables or factor that is closely associated with job satisfaction
of employees in KPF in accordance to previous research.
24
2.2 Job Satisfaction

Job satisfaction refers to the phrase that can be translated which is an individual
liking to every aspect of his work rather that what he dislikes (Mumford, 1991).
There are many empirical research conducted by previous researcher to examine ways
that organizational culture can affect the performance of employee toward
organization. In human resource, job satisfaction is the main important key regarding
decision making that requires a top management to identify what is the determinants
for work satisfaction. This is to reduce the employee retention. According to the
(Hasin & Omar, 2007), individuals who has a low job satisfaction would
approximately leave their current job position. Job satisfaction may derive from a
combination of psychological and environmental circumstances that enable employee
to say I am satisfied with my job (Hasin & Omar, 2007). Work satisfaction can be
understood as extent to which a person gets a pleasure from a job.
Previous studies found that job satisfaction is associated with salary, occupational
stress, empowerment, company and administrative policy, achievement, personal
growth, relationship with others, and the overall working condition. It has been
argued that an increase in job satisfaction results in a rise in worker productivity
(Wright & Cropanzano, 2007). As mentioned by Dunnette, Campbell and Hakel
(1967) and Robbins (2001), job satisfaction is an emotional state which a person
perceives a variety of features of his/her work or the work environment. Therefore, it
has major consequences on their lives. Locke (1976) indicated that the most common
outcome of job satisfaction is on a persons physical health, mental health and social
life. Moreover, Rain, Lane and Steiner (1991) claimed that job satisfaction is
connected to life satisfaction, whereby people who are satisfied with their jobs will
tend to be happy with their lives as well, and vice versa. Coster (1992) supported the
view that work can have on peoples lives. Furthermore, Breed and Breda (1997)
indicated that job satisfaction may impact on absenteeism, complaints and labor
unrest. Therefore, it is understood that satisfied workers will be much more
productive and be retained within the organization for a longer period in comparison
to displeased workers who will be less useful and will have a greater tendency to quit
25
the job (Crossman, 2003). More importantly, satisfied workers not only lead to better
performances, but provide a higher service experience to customers which could
result in creating customer satisfaction. According to Dawson (2005), employee
satisfaction is associated with positive employee behavior. It is undeniable that
satisfied workers generate loyal and satisfied customers to the company.
Everybody needs a good job to get a reward for satisfying desire and needs. As
for successful organization, they would include the employee performance that arisen
from satisfaction of employees in their job or work as one of the criteria to increase
their productivity (Qasim, Farooq, & Nadeem, 2012). Thus, satisfying employee
needs are such vital factors for organization. When the employees are satisfied with
their job, it will result in employee become more enthusiast, creative and could have
commit more toward their job and work. According to the previous study, the result
shows the performances of employees will increase when the employees needs and
wants is well satisfied. The important part of job satisfaction is it provides employee a
feeling of safe, relaxation and enthusiasm toward their job.
In the Herzberg theory, there were two group of factor that determined which is
work satisfaction and work dissatisfaction. For work satisfaction, Herzberg suggested
that the job content factor will lead into it which is achievement, responsibility, and
the work itself. There were job context factor that consist of pay, security, and
working condition. According to (Oshagbemi, 1997) , these two theories are related to
each other. According to him, work satisfaction can be varies according to situation,
means that the factor for example pay and supervision will result in either work
satisfaction or work dissatisfaction.
The author suggests that there will be a problem in analyzing Herzbergs theory
because the role of personal factor may affect the work satisfaction as well. According
to (Mumford, 1991) , work satisfaction will lead the attention and hence stimulate the
workers motivation toward work. The supervision is important as it will give an
impact to the behavioral of employee toward work. It also depends on what type of
leadership style that will practiced by superior. As according to a research by
26
Manchester Business School, work satisfaction may arise from the reward gain from
the organization.
2.3 Hygiene Factors
2.3.1 Working environment
company policy (Herzberg, 1966). Herzberg used the term 'hygiene' to describe
factors that cause dissatisfaction in the workplace and are extrinsic in which
independent of the work itself, and are linked to things such as compensation, job
security, organizational politics, working conditions, quality of leadership, and
relationships between supervisors, subordinates, and peers. According to Herzberg,
these factors do not motivate employees. Hygiene factors are all about making an
employee feel comfortable, secure, and happy.
According to (Qasim, Farooq, & Nadeem, 2012), work environment has given
important part in work satisfaction, as it relates to the conducive working
environment for the employee thus creates a positive level of work satisfaction. If the
working conditions are not comfortable for employee, it will bring a mental and
physical effect to the employee. According to the researcher, working environment
can be working hours, temperature, ventilation, noise, hygiene, lighting and resources.
The unfavorable working conditions includes management does not appreciate their
employee efforts on work done so employee may use poor working conditions as a
reason to get back to the management (Qasim, Farooq, & Nadeem, 2012). In relation
to the work environment, we can conclude that satisfaction can be measured using
individuals reaction that appear threatening to that person.
The conditions under which a job is performed can be different from those
completely comfortable to those very difficult and dangerous to employees life and
health. Difficult working conditions can be influenced by external factors that include
climate which include meteorological conditions, temperature, humidity, drafts,
27
lighting in the workplace, noise and interference, gases, radiation, dust, smoke and
other harmful factors. The subjective factors that influence the working condition
include gender and age of the worker, fatigue, and uncomfortable posture during
work. The factors related to the organization production such as duration of the work
shift, work schedule, working time, work pace, excessive strain etc. Jobs with
difficult working conditions may perform only those employees who meet specific
requirements in terms of age, sex, qualifications, health, physical and mental
condition and psycho-physiological and psychological capabilities. Difficult working
conditions influence employees job performances. It is therefore necessary to take
measures to eliminate uncomfortable working conditions or, if not possible, to take
appropriate safety measures. Safety at work is carried out to ensure working
conditions without danger to life or health, or, to avoid accidents, injuries,
occupational diseases and, or at least mitigate their consequences (Babic & Bakotic,
2013).
According to the recent studies, stress can be expressed as a reaction toward work
environment characteristic that appear uneasy to that individual (Hasin & Omar,
2012). Environmental condition for example work load, time and duties are in
consistent with the stress concept.
As for those who encounter stress condition can results in lower quality of job
satisfaction. The researcher also suggests that when there is pleasant working
environment, it will create greater interaction among employee. When the interaction
happens between them, it will open for discussion among employees and hence
increase work satisfaction.
Herzberg theory also defined that working environment is closely related to
where the firm operated and relates to the technology, culture and management
structure. Research conducted by Droussiotis in 2007 outlined that an employee with
higher authority will have higher job satisfaction compares to employee with lower
authority or decision making right.
28
The working environment would include having a nice work, conducive working
environment, friendly coworkers and superior, and employee are given an assignment
that are able to be done by employee. Some people may find their work satisfaction
from the working situation, where it is viewed as a source for personal achievement
and self-fulfillment (Sutherland, 2012).
2.3.2 Remuneration
employee feel comfortable, secure, and happy
The second factor will be monetary rewards and benefit that lead to job
satisfaction. Employee would definitely refer to the pay as one of the determinant for
work satisfaction.(Qasim, Farooq, & Nadeem, 2012). Unfavorable payment would
lead to the employee retention because they would seek to another job that provides
more favorable payment. The remuneration includes pay, benefits and compensation
to the employee.
Many recent studies of work satisfaction encompasses three aspects which is
those who seek to explore further certain features of determinants of work
satisfaction, for example co workers wages, performance pay, labor market or welfare
system, those who related to part time workers as well (Sutherland, 2012).The author
also say that dissatisfaction would happen when the salaries are not worthy as
compared to the market. Some of the employee would compare their pay grade with
29
other place in term of salary the output done and hence may change the job if they
were not satisfied with their job. In a case of Lebanese employees, the result shows
that female employees obtain more satisfaction in term of pay as compared to the
male employees (Abdulla, Djerbarni, & Mellahi, 2011). Research shows that
employee from non Western countries tend to have a satisfaction from extrinsic factor.
The extrinsic factor is pay and working condition as compared to the Western
countries (Abdulla, Djerbarni, & Mellahi, 2011). In the term of pay, most of
employees are depending on the effort reward bargain basis.
According to (Hasin & Omar, 2012), the research found that monthly gross
salary, job position and education achieved are most significantly influence overall
job satisfaction among audit staff. According to this research, it is prove that pay and
salary are positively related to the work satisfaction among audit staff. This result also
show that financial reward on work satisfaction reflects the fact that workers socialize
in capitalistic society would focus on money, benefits and security that offered with
the job (Hasin & Omar, 2012).
This is including the step evaluation how worth the skill they have to be match
with the pay that likely to be received. Many studies show that blue collar would plan
their financial reward as lowest part from their list of needs. However, this is does not
reflect that they do not have intention to money rewards but they prefer to choose
other critical factor that are more important to satisfy their needs. The critical factor
for work satisfaction is evaluation of fairness of pay of earnings of those groups by
comparing among them. For example, an engineer may compare their pay with
engineer from the other company or within company. The engineer also may compare
their pay with architects, or doctors (Mumford, 1991).
From the previous study, it was show that UAE workers pay high attention to the
remuneration, such as salary, benefits, allowances and financial rewards for example
bonus (Abdulla, Djerbarni, & Mellahi, 2011) . Remuneration plays a different role in
different context around the world. For example, salary in Western countries reflects
as recognition. Meanwhile, for developing and emerging countries, salary reflects
30
security. Previous study shows that in UAE, the reason for employee put a salary as
their importance because of their living standards and provides a sense of security.
Furthermore, this is due to the fact that cost of living in Dubai is high compared to the
other Middle East countries where rent rates are increased tremendously in the last
few years reaching 50 percent increased (Abdulla, Djerbarni, & Mellahi, 2011).
From the previous study, it was found that senior managers are more likely focus
on personal reward like money rather than establish long term relationship with their
subordinates. Previous research also found that when the supervisor are focusing
more on reward, the promotion that leads to more power and monetary reward are
significantly become a positive factor for improving employee work satisfaction (May
& Ramayah, 2011).
2.3.3 Supervision
Supervision is defined as an overseeing and observing the activities of
subordinates. Mainly supervisors supervise the subordinates. It is an important at all
levels of management. Supervision is an activity of observation that helps to ensure
that the work is being performed according to the requirement of the job. It can be
defined as the function of leading, coordinating, directing the work that supports to
achieve the pre determined goals.
31
Punishment, bureaucracy, and all negative management behavior may affect the
work satisfaction (Mumford, 1991). Legislation introduce by management also may
affect the employee work satisfaction. From the supervision, it is found that work
satisfaction for managers is greater when it received a support for diversity in the
work environment. Career satisfaction and organization commitment are giving an
impact when they received recognition (Droussiotis, 2007). Previous study shows
that male employees prefer to have a work satisfaction from quality of supervision
rather than female. Supervision also related to the mentoring which is a leader
promotes a healthy relationship with their subordinates. It is important for the firms
partner or management to provide a basis for the staff in developing a good
relationship between peers, supervisors, and bosses (Hasin & Omar, 2012).
Work satisfaction are achieve when the young executives having a strong
relationship without a request from the Human Resource (May & Ramayah, 2011). In
a past studies, it was found that in order to maintain workers, supervision plays
important role in achieving job satisfaction. From the past, male supervisor was
found to be more important role as compared to the female supervisor. However, the
role has change as today; female leaders are giving more important role as compared
to the male leaders. This is because; it was found that the female leaders are more
patient, caring and creative (May & Ramayah, 2011). Meanwhile, the male leaders
are found to become more direct, coercive and less understanding. Malaysian leaders
are not playing stronger tactic like showing coercive and anger towards it
subordinates. Instead, both supervisor and subordinates are playing important role in
influencing each other. This is true when the large companies especially MNEs are
having a bidirectional relationship between supervisor and employees.
From the previous result, it is believe that supervision affect intrinsic and
extrinsic work satisfaction. It is through observation, discussion, and completion of
the task whereby supervisor and subordinate work closely in establish goal and
objective to accomplish it (May & Ramayah, 2011).
Supervision can comes in many ways in approaching employees for example
32
coach, leader and mentor even though it compass different type of relationship
between supervisor and employee. Supervision can plays two types of categories
which are for career and psychological categories. In career, those aspects are related
to the learning and advancement for career in the organization. Meanwhile, for
psychological, it plays sense of competence, identification, and effectiveness.
Psychological categories play a vital role in building self-worthy for employee (May
& Ramayah, 2011). Supervisor uses his power and influences to provide training to
their employee and at the same time opportunity for advancement.
2.3.4 Interpersonal relationship

Part of satisfaction of employees is the social interaction that allows the
employees a reasonable amount of time for them to socialize with their colleague.
For example during lunch hour, break time and interaction with customers. This will
help them to develop a sense of belonging among their colleague and create a
teamwork atmosphere. Wan, Sulaiman & Omar (2012) pointed out that a good
relationship between superior and subordinate was an important determinant of
promotion decisions. The effect of supervisor relations was significant for intrinsic,
extrinsic, and general job satisfaction and was the strongest explanatory variable for
extrinsic job satisfaction (Waskiewicz, 1999). Saidon, (1998) discovered that the
relationship with co-workers which includes subordinates or peers will affect job
33
satisfaction and turnover intention among employees. It is supported by Zainudin

Awang & Junaidah Hanim Ahmad (2010) and Danish & Usman (2010) research that
found a positive important correlation between workplace relationship and job
satisfaction. Indeed, working in an environment of cooperation and mutual respect is
also important to increase the employees job satisfaction.
Positive interpersonal relationships at work have an advantageous effect on both
organizational and individual. Research conducted by Ellingwood (2001) has
demonstrated that interaction between peers at work can improve individual
employee attitudes such as job satisfaction, job commitment, engagement and
perceived organizational support. Valued work relationships can also influence
organizational outcomes by increasing institutional participation, establishing
supportive and innovative climates, increasing organizational productivity and
indirectly reducing the intent to turnover (Berman, West, Richter, & Maurice, 2002).
34
2.4 Theoretical Framework
Working Environment
Remuneration
Job satisfaction of employees
Supervision
Independent variables
Dependent variables
Sources: Adapted from Qasim, Farooq, &Nadeem (2012) Exploring Factor

Affecting Employee's Job Satisfaction
35
Affecting Employee's Job Satisfaction
This framework is adapted from research made Qasim, Farooq, & Nadeem
(2012) title Exploring Factor Affecting Employee's Job Satisfaction. This
framework focuses on the three factors of hygiene theory which includes work
environment, supervision and remuneration.
Herzberg suggested that the job content factor will lead into it which is
achievement, responsibility, and the work itself. There were job context factor that
consist of pay, security, and working condition.
According to (Qasim, Farooq, & Nadeem, 2012), work environment has given
important part in work satisfaction, as it relates to the conducive working
environment for the employee thus creates a positive level of work satisfaction.
The second factor will be remuneration that includes monetary rewards and
benefit that lead to job satisfaction. Employee would definitely refer to the pay as one
of the determinant for work satisfaction (Qasim, Farooq, & Nadeem, 2012).
Supervision is an activity of observation that helps to ensure that the work is
being performed according to the requirement of the job. It can be defined as the
function of leading, coordinating, directing the work that supports to achieve the pre
determined goals.
36
2.5 Research Framework
Working Environment
Remuneration
Job satisfaction among

employees in Koperasi
Permodalan Felda Malaysia
Berhad
Supervision
Interpersonal relationship
Independent variables
Dependent variables
The conceptual framework is derived from the theoretical framework made by Qasim,
Farooq, & Nadeem (2012) Exploring Factor Affecting Employee's Job Satisfaction. In
this study, the researcher adds one more variable which is interpersonal relationship. This
framework is to show the relationship between working environments, remuneration,
supervision, interpersonal relationship with the job satisfaction of employee.
This research will covers the factors that will influence the job satisfaction of
employees based on the hygiene factors that was invent by Frederick Herzberg in the
Motivation-Hygiene theory. This research framework is derived from the Herzberg Two
Factor theory that will shows the interrelationship between the Hygiene theory which
37
include working environment, remuneration, supervision and interpersonal relationship

and job satisfaction of employees in KPF.
Previous study had proven that working environment plays significant influence in
job satisfaction of employees. This study will try to improvise the research made by
adding one more variable that is not studied in the previous study which is interpersonal
relationship. It is important for the firms partner or management to provide a basis for
the staff in developing a good relationship between peers, supervisors, and bosses to
create a satisfaction among employees (Hasin & Omar, 2012).
38
CHAPTER 3
3.0 RESEARCH METHODOLOGY
3.1 Introduction
The purpose of the present paper is to determine the factors that influencing the
job satisfaction among employees in Koperasi Permodalan Felda. In order to solve
our problem we used descriptive study as it is undertaken ensure and be able to
describe the factors that contribute to the variables that tailored to the situation.
We also can describe the attributes of the variables by reviewing the journals. In
this research we interested to seek the factor that would influence the job
satisfaction among employees and the aim of the study is supported by the
research objective and research question. In this chapter, the researcher will
discuss in details on the research design, population, sampling design, method of
data collection used, and how the data will be analyzed.
3.2 Research Design
According to (Kerlinger, 1986), research design is the plan and structure of

investigations conceived so as to obtain answers to research questions. It
constitutes the overall plan for the collection, measurement and analysis of data.
3.2.1 Type of investigation
In order to conduct our study, we would like to choose a correlational study as
our type of investigation. Correlational study happen when we need to identify
the significant factors that contributes and associated among variables in order
to describe the situation. As the reason that we choose the correlational study as
it help us to determine the relationship between dependent variables and
independent variables.
39
3.2.2 Extent of researchers interference

As for our research, the extent of researcher interference would be minimal due
to normal flow of events as we conducted in natural environment. As to
highlight, our research would like to determine the factors that influence job
satisfaction among employees of Koperasi Permodalan Felda Malaysia Berhad.
3.2.3 Study Setting
As it can be seen, correlational study are associated with the event that been
proceed normally and this study are invariably conducted in noncontrieved
setting and it also been called as field studies. Noncontrieved setting with
minimal interference also can be described as a non control study where the
observation can be used to help us in obtaining our findings and analyze our
data. Our study is conducted to identify the relationship between the factors
that would influence job satisfaction among employees of Koperasi
Permodalan Felda Malaysia Berhad. It can be concluded that noncontrieved
setting is suitable enough that will help us to investigate the factor that
contribute toward job satisfaction.
3.3 Sampling Design
3.31
Population
Population can be defined as the entire group of people, events or things of

interest that the researchers wish to investigate (Sekaran, 2009). The population
for this study is all Koperasi PermodalanFelda Malaysia Berhad staff in
WismaFelda. The population studied consists of multicultural, mean that comes
from different culture, races and religion around the world.
40
3.32
Sample Size
Moreover, the sample size in this study is determined by Krejcie and Morgan
table which from 110 of population we extracted the sample size of Koperasi
Permodalan Felda Malaysia Berhad around 86 employees. According to Gay
& Diehl (1992), generally the number of respondents required for a study is at
least 30 respondents to establish a relationship.
3.33
Sampling Method
As to enhance our purpose of study, we take the approach of using the

non-probability sampling which the elements in the population do not have
probabilities to be chosen as a sample subject. It is convenience for us to
collect the data. As to extend our sampling methods, we choose the
convenience sampling which refers to the collection of data from the members
of population (Koperasi Permodalan Felda Malaysia Berhad) who are
conveniently available to provide it. It is the best way of getting the
information more quickly, efficiently and less expensive.
3.4 Data Collection Method
In order to determine information for a solution to the problems, data collection

method is useful to ensure the data gathered is accurate and reliable as it will be
used in data analyzing at the end of the report. In this research, the primary is used
to gather the information.
3.31
Primary Data
Primary data is refer to the data which obtained by the researcher that is from
its original source of origin which is firsthand on the crucial variables for the
purpose of the study in our research paper. As for this research, its our
41
pleasure to use questionnaire as primary data sources in order to collect the

data from particular sample of subject. As to enhance the factor that influence
the job satisfaction among employees of Koperasi PermodalanFelda Malaysia
Berhad, the questionnaires will be distributed among the sample size of the
population that we have determined.
3.5 Measurement and Instrumentation/Questionnaires
Questionnaires are the most appropriate method used to collect the data of the
study is a quantitative research. The reason for the research to adopt this method
is because of the nature of the study, which is to determine the consistency of the
study. The questionnaires provide an outline to the information required in the
survey.
Information about the important factor that contributes to job satisfaction is
gathered through questionnaire to determine the result of the studies. The
researcher assists the respondent in answering the questionnaire by explaining the
purpose of the studies and what the researcher expect from the respondents. The
questionnaires are distributed to 80 respondents. There are closed ended questions
to be answered whereby the respondent only needs to answer or tick the suitable
answers. The questions are in term of a multiple-choice of questions.
3.51
Structure of Questionnaires
The questionnaire are divided into two section that comprises of Part A and
Part B. Part A more to demographic that seek to obtain the background of the
respondents. Among significant question that were asked by the researcher is
the respondent gender, age, education, marital status and others. In Part B, the
questions are about the factors that influence job satisfaction. Likert Scale
measurement is used in Part B whereby the respondent will rate it according to
the degree of agreement. The following is the example of Likert Scale
42
measurement.
1
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
3.6 Data Analysis
Data analysis is the process of evaluating data using analytical and logical
reasoning to examine each component of data provided. This form of analysis is
just one of the many steps that must be completed when conducting a research.
Data is gathered, reviewed and then analyzed to form some sort of finding or
conclusion. There is variety of specific data analysis method such as frequency
analysis, descriptive statistic, reliability analysis, correlation analysis and
regression analysis. The data collected in this study will be analyzed by using
Statistical Packages for Social Science (SPSS) version 20.0.
3.61
Frequency analysis
Frequency analysis consists of frequency distribution which its objective is to

obtain counts of number responses that can be calculated by percentage. The
frequencies can be illustrated by frequencies table, bar charts or pie charts.
Researcher used frequency distribution to analyze the 75 number of
respondent profile information that have been collected.
3.62
Descriptive statistic
Descriptive statistic is the discipline of quantitatively describing the main

features of a collection of information, or the quantitative description itself.
Descriptive statistic contains some of the component that is number of
respondent, mean and also standard deviation. Researcher used descriptive
statistic to study the level of independent variables towards dependent
variable.
43
3.63
Reliability Analysis
Reliability testing was conducted in order to find out the consistency and
stability of the data obtained from questionnaire whether the data is reliable or
not for the research. Cronbachs Alpha is used to measure of internal
consistency that is how closely related a set of item are as a group. According
to Uma Sekaran (2013), the closer Cronbachs Alpha value to 1, the higher the
internal consistency reliability. The following is the example of Cronbachs
Alpha table.
> 0.9
excellent
0.09 >> 0.08
good
0.08 >> 0.07
moderate
0.07 >> 0.06
acceptable
0.06 >> 0.05
poor
Table 1: Rules of thumb for reliability analysis (Sekaran, 2013)
3.64
Correlation Analysis
In this study, Pearson correlation is used to identify how the variables relate to
each other, implies that the relationship is either mutual or reciprocating.
There are three types of correlation which are positive, negative and zero
correlation. The strength of relationship between two variables is determined
by the correlation coefficient (r) which falls between 0 and 1. Below is the
table of Pearson Correlation.
44
r = 0.10 to 0.29
weak relationship
r = -0.10 to -0.29
r = 0.30 to 0.49
moderate relationship
r = -0.30 to -0.49
r = 0.50 to 1.00
strong relationship
r = -0.50 to -1.00
Table 2: Rules of thumb for correlation analysis (Sekaran, 2013)
3.65
Regression Analysis
Multiple regressions is used in this study in order to identify the influence of

several (two and above) independent variables on one dependent variable.
Thus, the most influential factor can be determined by Sig value (p-value)
which is less than 0.05.
Sig value > 0.05
not significant
0.01 < Sig value 0.05
significant
Table 3: Rules of thumb for regression analysis (Sekaran, 2013)
45
CHAPTER 4
4.0 ANALYSIS AND DATA INTERPRETATION
4.1 Introduction
In this chapter, we will discuss the demography and independent variable based on
the questionnaires answered by respondent in Koperasi Permodalan Felda. The data
that was collected is based on the questionnaires that were handed to the total of 75
respondents in the company. The findings of this research are analyzed by using the
Statistical Package for the Social Sciences (SPSS) software. The results of this study
are produced in the form of frequency analysis, descriptive analysis, reliability
analysis, correlation analysis and also multiple regression analysis.
4.2 Frequency Analysis
Table 5 shows the profile of the respondents in term of gender, age, marital status,
monthly income, current position and number of years employed. Of the 75
respondents, 46 were men (61.3%) and 29 were women (38.7%).
In term of age, 17
of the respondents were between 18 and 24 years old (22.7%), 43 respondents were in
the 25 34 age range (57.3%), 9 respondents were in the 35 44 age range (12% )
and 6 respondents aged between 45 and 54 years old (8%). Most of the respondents
were married (57.3%) which were 43 respondents but 32 respondents were single
(42.7%). As for the monthly income, 30.7% of the respondents earned less than
RM1500, 38.7% of the respondents earned between RM1501 RM2500 and 14.7%
earned between RM2501 RM3500. However, 9.3% of the respondents earned
between RM3501 RM4500 and 6.7% earned more than RM5501. In term of current
position, it showed that 70.7% of the respondents were non-executive, followed by 20%
were executive and 9.3% were assistant manager and above. In this survey, most of
the respondent had 1 5 years of experiences (56%) while 8% had experience
between 16 25 years. However, 21.3% of the respondents had experience between
6-15 years and 14.7% had experience less than a year.
46
Table 5: Characteristics of the respondents

Item
Frequency
Percent (%)
Gender
Male
Female
46
29
61.3
38.7
Age
18-24
25-34
35-44
45-54
17
43
9
6
22.7
57.3
12.0
8.0
Marital Status
Single
Married
32
43
42.7
57.3
Monthly Income
Less than RM1500
RM1501 RM2500
RM2501 RM3500
RM3501 RM4500
More than RM5501
23
29
11
7
5
30.7
38.7
14.7
9.3
6.7
Current Position
Non-Executive
Executive
Assistant Manager & above
53
15
7
70.7
20.0
9.3
No. of Years Employed

Less than a year
1 5 years
6 15 years
16 25 years
11
42
16
6
14.7
56.0
21.3
8.0
Demographic Information (N = 75)
47
4.3 Descriptive Statistic

Descriptive statistic is the discipline of quantitatively describing the main feature of a
collection of information, or the quantitative descriptive itself such as means and
standard deviations as the components in descriptive statistic. In this research, mean
and standard deviation are used to determine the level of hygiene factors (working
environment, remuneration, supervision and interpersonal relationship) towards job
satisfaction of employees in KPF.
Table 6 showed that employees in KPF almost agreed with the interpersonal
relationship (M= 3.944 S.D= .61209), remuneration (M= 3.8560 S.D= .71476) and
supervision (M= 3.8427 S.D= .77060). Most of employees satisfied with
interpersonal relationship due to good relationship between them and caring for each
other. Besides that, employees in KPF agreed with the remuneration given by
company. This is because the salary and benefits given so far satisfactory. For
supervision, employees quite satisfied with the teamwork atmosphere, information
given and knowledge shared by each other. Hence, it can be concluded that job
satisfaction level of employees in KPF towards interpersonal relationship,
remuneration and supervision is quite good. However, employees in KPF least agreed
with the working environment (M= 2.0400 S.D= .64682). Employees least agree with
the working environment due to insufficient communication with one another. Thus, it
can be concluded that employees in KPF are not really satisfied with the working
environment. Overall, we can see that the level of interpersonal relationship,
remuneration and supervision towards job satisfaction of employees in KPF is quite
high and compared to working environment which results the lowest.
48
Table 6: KPF employees job satisfaction level regarding Hygiene Factors

N
Mean
Std. Deviation
Statistic
Statistic
Statistic
INTERPERSONAL_RELATIONSHIP
75
3.9440
.61209
REMUNERATION
75
3.8560
.71476
SUPERVISION
75
3.8427
.77060
WORKING_ENVIRONMENT
75
2.0400
.64682
Valid N (listwise)
75
4.4 Reliability Analysis

Reliability testing was conducted in order to find out the consistency and accuracy of
the data obtained from questionnaire whether the data is reliable or not for the
research. Cronbachs Alpha is used to measure of internal consistency that is how
closely related a set of item are as a group. According to Uma Sekaran (2013), the
closer Cronbachs Alpha value to 1, the higher the internal consistency reliability.
Table 7 showed that the results of Cronbachs Alpha were satisfactory (between
0.85-0.094), indicating questions in each construct are measuring a similar concept.
As suggested by Sekaran (2013), the reliability coefficient between 0.80-0.89 are
generally found to be good while between 0.90-0.99 are considered to be excellent.
According to the table, supervision scores the highest Cronbachs Alpha with 0.939
which shown an excellent reliability as well as job satisfaction with the scores of
0.904. However, working environment, remuneration and interpersonal relationship,
each of the variables score more than 0.800 which automatically projects a very good
reliability and consistency.
49
Table 7: Testing reliability with Cronbachs coefficient alpha

Number of Items
Cronbachs Alpha
Working Environment
0.849
Remuneration
0.868
Supervision
0.939
Interpersonal Relationship
0.854
Job satisfaction
0.904
Variables
4.5 Correlation Analysis

Correlation is a single number that describes the degree of relationship exists between
dependent variables and independent variables. This analysis was conducted to
identify whether there are any relationship between job satisfaction and hygiene
factors (working environment, remuneration, supervision, interpersonal relationship)
of employees in Koperasi Permodalan Felda.
Based on the table 8, the strength of relationship between working environment and
job satisfaction was moderate (r=0.691). There was significant correlation between
two variables at the 0.01 level. It can be concluded that when the working
environment increase, the job satisfaction will also increase as the correlation was
positive. Thus, H1 can be accepted and H0 is rejected.
H1: Work environment is positively related to employees job satisfaction in KPF.
H0: Work environment is negatively related to employees job satisfaction in KPF.
50
The Pearson correlation between remuneration and job satisfaction showed that there
was moderate relationship (r=0.659). Both variables were statistically significant at
the 0.01 level. Thus, positive correlation explained that increase in remuneration will
increase the job satisfaction among employees in KPF. Hence, H2 is accepted and H0
is rejected.
H2: Remuneration is positively related to job satisfaction of the employees in KPF.
H0: Remuneration is negatively related to job satisfaction of the employees in KPF.
Refer to the table above, supervision and job satisfaction showed the strong
relationship as the value of Pearson Correlation was 0.710. The correlation between
these two variables was significant at the 0.01 level. It can be concluded that the
higher the supervision will result higher in the job satisfaction due to positive
relationship. Therefore, H3 can be accepted and H0 is rejected.
H3: Supervision is positively related to job satisfaction of employees in KPF.
H0: Supervision is negatively related to job satisfaction of employees in KPF.
Interpersonal relationship and job satisfaction showed that there was strong
relationship as the result was 0.971. Both variables were significant at the 0.01 level.
Therefore, increase in interpersonal relationship related to increase in job satisfaction.
Thus, it can be concluded that H4 is accepted and H0 is rejected.
H4: Interpersonal relationship is positively related to job satisfaction of employees in
KPF.
H0: Interpersonal relationship is negatively related to job satisfaction of employees in
KPF.
51
Table 8: Correlations
Pearson
WORKING_
ENVIRONM
ENT
Correlation
WORKING_ENVI
REMUNERATIO
RONMENT
SUPERVISION
INTERPERSONAL
JOB_SATISFACTI
_RELATIONSHIP
ON
Sig. (2-tailed)
N
Pearson
Correlation
75
.632**
REMUNERA
TION
Sig. (2-tailed)
N
Pearson
Correlation
.000
75
75
.566**
.603**
.000
.000
75
75
75
.708**
.653**
.708**
.000
.000
.000
75
75
75
75
.691**
.659**
.710**
.791**
.000
.000
.000
.000
75
75
75
75
SUPERVISIO
N
Sig. (2-tailed)
N
Pearson
INTERPERS
ONAL_RELA
TIONSHIP
Correlation
Sig. (2-tailed)
N
Pearson
Correlation
JOB_SATISF
ACTION
Sig. (2-tailed)
N
75
**. Correlation is significant at the 0.01 level (2-tailed).
52
4.6 Regression Analysis

Regression analysis is conducted to find out the most important elements of Hygiene
Factors (environment, remuneration, supervision and interpersonal relationship)
towards job satisfaction in Koperasi Permodalan Felda.
Table 9 showed that the Beta value for interpersonal relationship was 0.401 followed
by supervision was 0.240, working environment was -0.187 and remuneration was
0.134. This revealed that the job satisfaction of employees in KPF was more
dependent on interpersonal relationship rather than other factors. Furthermore, strong
significant relationships were found between interpersonal relationship and
supervision on job satisfaction of employees in KPF. Thus, the analysis demonstrated
that the most significant hygiene factor towards job satisfaction was interpersonal
relationship. This indicated that the employees in KPF valued most interpersonal
relationship practiced by the company. Supervision was the second significant factor,
followed by remuneration and working environment. Based on the table below, 70.5%
of variance in job satisfaction in KPF can be explained by working environment,
remuneration, supervision and interpersonal relationship.
53
Table 9: Regression analysis summary

Model
Unstandardized
Coefficients
Standardize
d
Coefficients
Sig.
2.084
.041
Std. Error
(Constant)
1.276
.612
WORKING_ENVIRONMENT
-.198
.103
-.187
-1.928
.058
REMUNERATION
.128
.089
.134
1.436
.155
SUPERVISION
.212
.085
.240
2.511
.014
INTERPERSONAL_RELATIONSHIP
.448
.124
.401
3.615
.001
R2
.705
Adjusted R2
.688
Std. Error of the Estimate
Beta
.38148
54
CHAPTER 5
5.0 CONCLUSION AND RECOMMENDATION
5.1 Introduction
This part is the last chapter of these studies that summarize and concludes all the
findings from the early chapter until chapter 4. It also consists of recommendation
that researcher come out from this study toward better improvements for this
company to continue their good track record.
5.2 Conclusion
It can be concluded that the employees in Koperasi Permodalan Felda satisfied
with the Hygiene Factor which are interpersonal relationship, supervision and
remuneration while they less satisfied with working condition. Based on findings, it
can be concluded that the level of interpersonal relationship, remuneration and
supervision towards job satisfaction of employees in KPF is quite high and compared
to working environment which results the lowest. Moreover, Hygiene Factors such as
working environment and remuneration showed moderate relationship towards job
satisfaction of employees in KPF while interpersonal relationship and supervision
showed strong relationship towards job satisfaction. These meant that there are
relationships between Hygiene Factors such as working environment, supervision,
remuneration and interpersonal relationship. Furthermore, the analysis demonstrated
that the most important element of hygiene factor towards job satisfaction of
employees in KPF was interpersonal relationship. The other factors such as
remuneration, supervision and working environment also contributed to job
satisfactions of employees in KPF. However, this revealed that the job satisfaction of
employees in KPF was more dependent on interpersonal relationship rather than
other factors. In contrast, according to Qasim, Farooq, & Nadeem (2012), work
environment has given important part in work satisfaction, as it relates to the
conducive working environment for the employee thus creates a positive level of
work satisfaction.
55
5.3 Recommendation
There is some of recommendation or suggestion that can be adapted by
organization in order to improve the job satisfaction among employees as well
as increase the productivity and the performance in the future. The
organization need to improve the working environment such as provide
conducive
workplace
with
sufficient
facilities
and
enhance
good
communication between employees. Besides that, organization can promote

strong work culture. This will lower the employee turnover and increase
performances of employees. Additionally, there is need to maintain good
interpersonal relationship among employees. Organization can promote
program such as health campaign and charity event which participated by all
employees. Moreover, the employees should respect, communicate well and
care of each other in order to increase performances. Thus, the employees will
have good experience and passions in working due to job satisfaction.
Furthermore, the findings obtained from the questionnaires in this study are
limited by the perceptions and opinions of the respondents. The findings apply
only to employees in Koperasi Permodalan Felda in Kuala Lumpur. This
means that the result may not be generalized to the other branches in Malaysia.
Last but not least, there is need to undertake more research addressing the
hygiene factors towards job satisfaction. Although quantitative research was
used in this study, it is believed that qualitative research would be beneficial in
helping to enhance our understanding of how employees satisfied with their
jobs.
56
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60
JOB SATISFACTION AMONG EMPLOYEES AT KOPERASI PERMODALAN

FELDA MALAYSIA BERHAD QUESTIONNAIRE
The following questionnaire is designed to obtain information on job satisfaction among
employees at Koperasi Permodalan Felda Malaysia Berhad. The feedback obtained would
be beneficial in helping us to identify the factors that influence job satisfaction among
employees. There is no right or wrong response. Your answers will be kept confidential.
Thank you for taking time to complete the questionnaire.
PART A: PERSONAL DETAILS
Please tick (/) at the appropriate boxes that have been prepared.
1. Gender :
Male
2.
Female
Age :
18-24
25-34
35-44
45-54
55 and above
3.
Marital Status :
Single
Married
Divorce
4.
Total Income :
Less than RM1500
RM 3501- RM 4500
RM 1501- RM 2500
RM 4501- RM 5500
RM 2501- RM 3500
More than RM5501
5.
Current Position :
Non-executive
Executive
Assistant Manager and above
6.
Number of Years Employed :

Less than a year
16 - 25 years
1 - 5 years
More than 25 years
6 - 15 years
PART B: FACTORS THAT INFLUENCE JOB SATISFACTION
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Please tick (/) the answer by referring to the appropriate box above.
7. Working Environment
No
Items
7.1B I have adequate tool and resources to do my work

7.2B It is easy to get along with my colleagues
Facilities provided to the employees by the
organization are satisfactory
People in my department communicate sufficiently
7.4B
with one another
The environment in this organization supports a
7.5B
balance between work and personal life
7.3B
8. Remuneration
No
Items
8.1B
Company provides satisfactory salary according to

the work
8.2B The bonus I received so far is attractive

8.3B I understand my benefit plan
8.4B
I am satisfied with the leave entitlement provided by

company
8.5B The medical insurance provided are adequate for me
9. Supervision
No
Items
9.1B My supervisor actively listens to my suggestion

9.2B My supervisor promotes an atmosphere of teamwork
9.3B
My supervisor provides me with sufficient

information related to my work
9.4B My supervisor is knowledgeable about my work

9.5B
My supervisor has reasonable expectations of my

work
10. Interpersonal Relationship

No
10.1B
10.2B
10.3B
10.4B
Items
My co-workers care about me as a person
There are possibilities to receive assistance
from co-workers when necessary
I can communicate well with my superior or
manager
Employees in my company share experience to
help each other
10.5B
This organization respects its employees.

JOb Satisfaction of Employees in Koperasi PErmodalan Felda Malaysia Berhad

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JOB SATISFACTION OF EMPLOYEES IN KOPERASI

PERMODALAN FELDA MALAYSIA BERHAD

MUHAMMAD FAKHRUL SYA BIN SAPARUDIN

BACHELOR IN BUSINESS ADMINISTRATION (HONS) INTERNATIONAL