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  • The Relationship Between

    Organizational Ethics and Job Satisfaction:

    A Study of Managers in Malaysia

    Kalavani A/P Daveninderak

    Bachelor of Accounting,

    Multimedia University

    Cyberjaya, Selangor

    Malaysia

    2003

    Submitted to the Graduate School of Business

    Faculty of Business and Accountancy

    University of Malaya, in partial fulfillment

    of the requirements for the

    Degree of Master of Business Administration

    May 2009

  • TABLE OF CONTENTS

    ABSTRACT...............................................................................................................................i

    ACKNOWLEDGEMENT ......................................................................................................ii

    CHAPTER 1: INTRODUCTION...........................................................................................1

    Chapter Introduction...............................................................................................................1

    1.1 Background of the Study.............................................................................................1

    1.2 Objectives of the Study................................................................................................7

    1.3 Research Questions......................................................................................................8

    1.4 Scope of the Study........................................................................................................8

    1.5 Significance of the Study .............................................................................................9

    1.6 Limitation of the Study..............................................................................................10

    1.7 Organization of the Study .........................................................................................11

    Chapter Summary .................................................................................................................13

    CHAPTER 2: LITERATURE REVIEW ............................................................................13

    Chapter Introduction.............................................................................................................13

    2.1 Top management support for ethical behavior......................................................13

    2.2 The ethical climate in the organization...................................................................18

    2.3 The association between ethical behavior and career success ..............................22

    2.4 Moral awareness .......................................................................................................25

    2.5 Job satisfaction..........................................................................................................29

    2.6 Organizational Ethics and Job Satisfaction ...........................................................29

    2.7 Prior Literatures on the Relationship between Organizational Ethics and

    Job Satisfaction ...............................................................................................................32

    Chapter Summary .................................................................................................................34

    CHAPTER 3: RESEARCH METHODOLOGY ................................................................35

    Chapter Introduction.............................................................................................................35

    3.1 Development of Hypotheses .....................................................................................35

    3.2 Research Design ........................................................................................................36

    3.3 Sampling Technique .................................................................................................37

    3.4 Data Collection Procedure .......................................................................................38

    3.5 Research Intruments ................................................................................................38

  • 3.6 Data Analysis Techniques ........................................................................................43

    Chapter Summary .................................................................................................................44

    CHAPTER 4: RESEARCH RESULTS ...............................................................................45

    Chapter Introduction.............................................................................................................45

    4.1 Summary Statistics ...................................................................................................45

    4.2 Analysis of Measures ................................................................................................45

    4.3 Testing of Hypotheses...............................................................................................51

    4.4 Summary of Research Results .................................................................................55

    Chapter Summary .................................................................................................................55

    CHAPTER 5: CONCLUSION AND RECOMMENDATIONS........................................56

    Chapter Introduction.............................................................................................................56

    5.1 Implications of Findings ............................................................................................56

    5.2 Conclusions of the Study ...........................................................................................62

    5.3 Recommendation for Future Research....................................................................65

    Chapter Summary .................................................................................................................66

    REFERENCES.......................................................................................................................67

    Appendix 1 - Questionnaire ..................................................................................................76

  • LIST OF TABLES

    Table 3.1 : Job Satisfation Dimensions and its items........................................................ 40

    Table 3.2 : Organizational Ethics Dimensions and its items.............................................41

    Table 4.1 : Demographics Characteristics of Respondents...............................................48

    Table 4.2 : Descriptive Statistics and Alpha Coefficient of Variables .............................48

    Table 4.3 : Correlation of matrix of variables....................................................................50

    Table 4.4 : Results of multiple regression analysis ............................................................54

    Table 4.5 : Hypotheses Testing Result ................................................................................55

    Table 5.1 : Summary of Research Results ..........................................................................61

    Table 5.2 : Summary of Findings of the Research Questions ...........................................65

    LIST OF FIGURES

    Figure 2.1 : Research Framework.......................................................................................34

  • ABSTRACT

    This empirical study investigates the association between four measures of

    organizational ethics (namely, top management support for ethical behavior, ethical

    climate in the organization, the association between ethical behavior and career

    success, and moral awareness) with job satisfaction. The results obtained from 123

    managers in Malaysia confirmed that two measures of organizational ethics showed

    significant relationship with job satisfaction. The link between organizational ethics

    and job satisfaction is argued from Koh and Boo’s (2001) organizational justice and

    cognitive dissonance theories. These findings imply that organizational leaders can

    favorably influence organizational outcomes by engaging in, supporting and

    rewarding ethical behavior. Another existing study by VanSandt, Shepard and Zappe

    (2006) had shown that there is connection between organization’s ethical climate and

    moral awareness. Results of the study provide evidence that ethical work climate is a

    primary predictor of individual moral awareness. In order to fill a gap in the existing

    literature and to make this study more interesting, a theoretical connection between an

    individual cognitive element of moral behavior (moral awareness) and job satisfaction

    is studied.

  • ACKNOWLEDGEMENT

    First, I would like thank my supervisor, Mr.Zulkifly Ramly, for his kind supervision,

    support, constructive criticisms and guidance that helped the completion of this

    project paper.

    Next, I would like to express my gratitude and heartfelt thanks to my sister, Sham,

    who is lecturing at Segi College, Subang Jaya, for th

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