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*Corresponding author: Sahar Farahnak M.A. Student of management University of Guilan Campus, Iran.

E-Mail: [email protected]

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Management and Administrative Sciences Review

Volume 5, Issue 1

Pages: 48-59

January 2016

e-ISSN: 2308-1368

p-ISSN: 2310-872X

Analyzing of Organizational Factors on Work Ethic

Mahmoudreza Mostaghimi1, Dr. Mohammad Doostar2, Sahar Farahnak3*

1. Assistant Professor Of Management, University Of Guilan, Rasht, Iran

2. Associated Professor Of Management ، University Of Guilan .Rasht .Iran

3. M.A. Student of management University of Guilan Campus, Iran

Work ethic is a factor that makes people to have sense of duty and work regulation. Since ethics makes people be committed and makes them be sensitive toward their duties and job behavior in the best way without external factor controller, paying attention to the concept of work ethics is like paying attention to ethics and human relationships. The existence of work ethics increases the productivity, sustainable development, human cultural development, management stability and economic order level in an organization. There are several factors in different dimensions that affect the work ethics. The goal of this study is to examine the effects of organizational factors, organizational justice, participatory management, motivation and the role of ambiguity and training on work ethics of Melli bank staff of the Guilan province and providing a solution to increase it. This research is a descriptive correlational design. The statistical society of this research includes all Melli bank staff of the Guilan province. 225 people were selected through quota sampling. This questionnaire consists of 52 questions. The results of the questionnaire were analyzed using SPSS and Smart PLS3. The findings show that all hypotheses were confirmed and among them the organizational justice, participatory management, motivation, and education on work ethics have a positive impact and the factor of role ambiguity has a negative impact on work ethics.

Keywords: Work ethic, organizational factors, participatory management, organizational justice, training, motivation, role ambiguity

INTRODUCTION

Organizations will improve by using organizational investments and these investments are defined in two concepts of financial and human that combination of them will fulfill the improvement of human goals. Today, the dynamics of the organizations and administrative

system by itself requires new technology, restructuring and additional investments; although these factors are important, human has a main role in management and organizational excellence (Goshtasp, 2010).

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Manag. Adm. Sci. Rev. e-ISSN: 2308-1368, p-ISSN: 2310-872X Volume: 5, Issue: 1, Pages: 48-59

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Current world is the world of organizations and the administrators of organizations are the human resources that empower the spirit and body of it and moving forward more efficiency (Mirsepasi, 1997). In addition to social, economic and political environment in each country, the characteristics of people in that society is the key success in some developed countries. The people in every society are the main source and energy for development in each country (Movahhed, 1375). This objective can be achieved when the original source of this effort if the industrious people, labor-intensive, equipped with awakened consciousness are available in the society. Abundant natural resources, vast production opportunities and great scenes of action will have no result unless the awakened consciousness in society has become internalized (Alvani, 1997). Various issues has been raised regarding to work ethics and reinforcement in importance and necessity fields that each one to some extend has explained this social strategic phenomenon, in spite of importance and role of this developing basic phenomenon, people`s behavior in different organizations all over the country shows the weakness of work ethic as a cultural feature in society and is needed to be reinforced. Perhaps because of increasing unresolved problems, lack of understanding the relationships between components and intensified variables that have made these problems; in other words work ethic reinforcement and/or any other social and cultural phenomenon needs to discover the source of that phenomenon till to identify its reason and the effective factors on it (Safari et al., 2011). Considering the importance of staff work ethic and self-control in performance and results, appropriate platforms should be provided in organizations to institutionalized work ethic and self-consciousness culture in organizations. Organizations that have recognized the importance role of human resources in work improvement, value of committed and conscientious labor work, hence, the important resources use a lot of energy to create an environment where staff be involved with the innate desire to improve the performance of the system (Salehi et al., 2012). Regarding to the fact that government staff are as an important part of the executive body and service in country, is at a high position, and the success of each organization

and achievement of any goal in different dimensions is due to their hard work and effort, so this research is trying to examine the organizational factors affecting the staff`s work ethics of melli bank branches in Guilan province and the impact of organizational factors on staff`s work ethics. Cognitive achievement to this has a key role in presenting solutions and guidelines to improve the staffs` work ethics.

LITRATURE REVIEW

Work Ethic: Work ethics is an accurate definite of a good worker or staff`s characteristics that include issues such as competence, discipline, sense of duty, attempt to succeed, restraint and caution in making decision (Grosi Farshi, 1380). Indicators of the work ethic include competence, discipline, sense of duty, effort as a basis of success, restraint and caution in decision-making (Kasta and Mc. Gray).

Factors Affecting the Work Ethic: Regarding to the factors affecting the work ethic, examining the sociological and administrative resources show that these factors are noteworthy in two dimensions: first, the factors that create the culture, ethics, and work ethics from outside and before entering the person to the organization, and during the socialization and sociability which includes family, school and educational centers; the second factors are those which affect the person`s behavior, ethics and work ethics after entering to the organization (Goshtasb and et. 2010). This study investigated the organizational factors. Concerning to noticeable number of classified factors in each branch, only those factor that were applied in most previous researches has been selected. These factors include: organizational justice, participatory management, motivation and staff training. the following describes the addressed issues.

Main Hypothesis: Organizational factors affect the work ethic of Melli bank staff of the Guilan province.

Organizational Justice: Organizational justice refers to subjective perception of individuals from organization`s fairness in resource allocation, rewards and punishments and is a multi-


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dimensional structure (Amirkhani and Aghaz, 2012).

First Hypothesis: Organizational Justice affects the work ethic of Melli bank staff of the Guilan province.

Participatory Management: Participative management is a kind of management that its philosophy of it is decentralization in making decision and in fact, in this management, the power is delegated from a high level to subordinates and horizontal coordination is approved (Salehi et al., 2012).

Second Hypothesis: Participatory management affects the work ethic of Melli bank staff of the Guilan province.

The Role Ambiguity: The role ambiguity is the lack of clarity in relation to the role of individuals (Arshadi & Shekarshekan 2007).

Third Hypothesis: The role ambiguity affects the work ethic of Melli bank staff of the Guilan province.

Training: Nou (1999) stated that “Staff training refers to a planned work for an organization in order to facilitate learning competence associated with the job reference”. These competence contains knowledge, skills or behaviors that are crucial for successful careers (Abbas Pourdehghani, 2012).

Fourth Hypothesis: Staff training affects the work ethic of Melli bank staff of the Guilan province.

Motivation: The term motivation means dynamic and motivation. In organizational point of view, motivation consists of and internal factor that makes changes in behavior and movement toward prompting organizational goals (Bahadori et al., 2012).

Fifth Hypothesis: Staff training affects the work ethic of Melli bank staff of the Guilan province.

Domestic and Foreign Literature: Alirezaee et al., (2013) examined the relationship between work ethic with job performance. The results show that work ethics dimensions (reliability and success oriented) has a meaningful and positive relation

with job performance (task performance and contextual).

Fathi et al., (2013) explained the relationship between organizational socialization with work ethics of Sports and Youth workers North West of Iran. These findings show that there is a meaningful and positive relation between organizational socialization and its components (training, understanding, staff support and future point of view from organization) with work ethic.

Jozberg and Sundin (2009) have conducted a research and examined the challenges and psychological stress that affects individuals and causes their work ethic. The results show that situational factors and personal problems as two important factors, can influence an individual`s work ethic in an organization.

In another study by Jenson and Lidel (2009)s, the effects of ethic on business activities have been discussed. In this study, the ethic have been examined in three aspects including ethic as a work stimulant, deterrent and as a resource of work motivation and the results of this research have shown that individuals accepted the ethic as an important factor that leads to all three cases that has been mentioned above.

Conceptual Model: Figure 1 has demonstrated the conceptual model.

FIGURE 1 HERE

Research Objectives

This research is done in order to achieve the following objectives:

Evaluation of the impact of organizational factors on work ethic of Melli bank staff of the Guilan province. Providing a solution to improve the work ethic of Melli bank staff of the Guilan province. Research Method: The research approach of this study is descriptive and the method is survey research. The statistics include all Melli bank staff of the Guilan province that the number of staff is 1426 and by using Kokran formula, the confidence coefficient and sample size respectively was estimated 95% and 225. These numbers have been


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selected by quota sampling that has been determined based on the number of staff and sample size in each city. The collected data is a 52 item questionnaire in which Niehoff and Moorman (1996) has been used for assessment of organizational justice (9 questions), Shepherd questionnaire (2010) to evaluate participatory management (6 questions), a researcher made questionnaire to assess training (4 questions), Hackman and Oldham questionnaire (1976) for assessing motivation (4 questions), Rizzo and et. questionnaire (1970) to evaluate the role ambiguity (4 questions) and Kaska and Mac. Gray questionnaire (1992) for assessing the work ethic (25 questions). Cronbach`s alpha coefficient has been used for validation and reliability and results show that alpha for organizational justice, participatory management, training, motivation, role ambiguity and work ethic respectively are 0.947, 0.875, 0.857, 0.838, 0.856 and 0.904 which are appropriate for questionnaire reliability. In order to analyze the data, descriptive statistics such as mean and standard deviation are used to evaluate the research variables and inferential statistics using structural equation modeling, load factors and level of significance. Inferential statistics have been analyzed using partial square analysis and Smart PLS3 application.

Research Findings: Evaluating the Normality Distribution of Data: First of all in order to review and test of hypotheses, the normality of data should be examined. In this study the Kolmogorov-Smirnov test is presented to examine the normality of variables and the related results have been shown in table 1.

TABLE 1 HERE

As has been mentioned in all examined variables, a significant level of type I error rate in 0.05 is lower. Thus, assuming the normality of examined variables is not accepted. Since the data in this research do not have a normal distribution, they are using partial least squares method and Smart PLS3 application.

The Research Measuring Model Fit: Measuring model is a part of a general model including a variable along its questions (Davari and

Rezazadeh, 1392). Three criteria such as reliability index, convergent validity, and Discriminant In order to measuring model fit have been used.

Reliability Index: The reliability index is measured by three criteria such as factor loading coefficients, Cronbach's alpha, and composite reliability. Questions 1, 4, 6, 10, 11, 12, 28, 29, 30, 31, 32, 35, 43, 47, 49 were excluded from the model due to the following factor loading. Cronbach's alpha coefficient and composite reliability of are shown in Table 2.

TABLE 2 HERE

As shown in Table (1) you can see that all factors have acceptable combined reliability coefficient. The reliability coefficient is also acceptable; so it can be concluded that the questionnaire has an appropriate reliability.

Convergent Validity: The average variance extracted (AVE) is used to evaluate the convergent validity (Davari and Rezazadeh 2013). The results of convergent validity are shown in Table 3 and demonstrate the model convergent validity in all dimensions (values above 0.5).

TABLE 3 HERE

Discriminant: In this study in order to demonstrate the independence of used concepts in research, the Discriminant using Fornell and Larker has been used (Davari and Rezazadeh 2013) which its results are presented in Table 4. Regarding to these results the Discriminant of measurement model has been confirmed.

TABLE 4 HERE

The research structure model fit:

t-value Significant coefficients: The existing significant relationship between variables in order to examine the existence of relationship between the variables should be considered (Davari and Rezazadeh, 2013). There are significant results in the Table 5.

TABLE 5 HERE


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As can you see in the table above, a t significant level in all path of the model is more than 1.96 which shows the appropriate structure model fit.

R Squared (R2) Criteria : R2criteria is used for linking measurement section to structural model section (Davari and Rezazadeh, 2013). The result of criteria is presented in Table 6. According to three criteria value, the total structural model sho ws strong structural model fit.

TABLE 6 HERE

f-Squared Measure of Effect Size: Measure of effect size determines the relationship intensity between model structures (Davari and Rezazadeh, 2013). According to Table 7, the participatory management, motivation, and other structures are respectively medium, close to strong and strong, so the appropriate research structure model fit is confirmed.

TABLE 7 HERE

Redundancy Criteria: The redundancy value of the research endogenous variables (work ethic) equals 0.560 and as you can see this is a positive value, so it can be concluded that measurement model has an appropriate quality.

The Research Overall Model Fit: In this section, the overall model is determined based on GOF (Davari and Rezazadeh, 2013). The obtained value of 0.689 for GOF shows the research model strong fit.

THE RESEARCH HYPOTHESIS

The model in standard state to evaluate the main hypothesis (see Figure 2)

FIGURE 2 HERE

The model in significant state to evaluate the main hypothesis (See Figure 3)

FIGURE 3 HERE

According to the results of path coefficient and t-statistics shown in Figure 3 and Figure 4, with 95% confidence, it can be concluded that organizational factors have a positive impact on staff work ethic and the coefficient value of standard effect

between organizational factors on work ethic equals 0.988.

The standard model for evaluating the sub-hypothesis (See Figure 4)

FIGURE 4 HERE

The model in significant state for evaluating the sub-hypothesis (See Figure 5)

FIGURE 5 HERE

The results of evaluating of sub-hypothesis are shown in Table 8 and Table 9. According to obtained results from path coefficient and t statistics that are shown in Figures (4) and (5), with 95% coefficient, it is concluded that all hypothesis have been confirmed and the value of standardized coefficient effect between factor and work ethics has been shown in the table.

TABLE 8 HERE

TABLE 9 HERE

CONCLUSION AND DISCUSSION

As you can see the research main and sub-hypothesis have been confirmed. Thus, in this study achieved the following results:

1. According to the main hypotheses the organizational factor has a positive and significant impact on work ethic which means not only work ethic is dependent on non-organizational factors such as family, educational environment, school and training centers but also depends on organizational factors after entering the individuals to the organization that has been effective on behavior, morality and staff work ethic. 2. Considering to the confirmation of sub-hypothesis 1, it is determined that organizational justice has a positive and significant impact on work ethic. Regarding to Adams theory, it can be concluded that if the three dimensional justice be observed, the staff will work in organizations with higher work ethic. 3. According to the confirmation of sub-hypothesis it is determined that participatory management has a positive and significant impact


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on work ethic. Regarding to human relation theory of Marshall and Fayol it can be concluded that if the staff can fulfill their roles autonomously and be more directly involved in making decisions, then they will have a higher work ethic. 4. According to the confirmation of sub-hypothesis 3 it is determined that training has a positive and significant impact on work ethic which means if administrative, training and research exchange of information is easily done, then then they will have a higher work ethic. 5. According to the confirmation of sub-hypothesis 4 it is determined that motivation has a positive and significant impact on work ethic which means if the staff motivation is high then they will have a higher work ethic. 6. According to the confirmation of sub-hypothesis 5 it is determined that role ambiguity has a significant negative impact on work ethic, if the duties and responsibilities in individuals work area were not clear, then the staff work ethic would be lower.

Findings of this research is consistent with the researches of Rafiè (1996), Tajabadi (2002), Farhangpour (2003), Azimi (2005), Hodayi (2005), Masoudzadeh (2001), Goshtasb and et. (2010), Safari and et. (2012), Hamrahi (2004), Sarokhani and Talebian (2002), Fathi and et. (2013), and Sorilo and et. (2004).

SUGGESTIONS AND PRACTICAL SOLUTIONS

In this study, factors effecting Melli bank staff of the Guilan province has been examined. Here are some presented practical solutions.

1. Designing a proper and standard evaluation system that is not including personal problems and preferences is essential for the bank`s administrative system. 2. Performing the educational programs based on career needs and in order to staff development to create job satisfaction. 3. In order to increase the transparency of staff role, they should be aware of missions, strategies, long-term and short-term goals and direction of their organization. 4. In order to enhance the sense of participation between staff, the manager should have some discussions with staff.

5. Achieving work ethic is based on spiritual, therefore moral leaders play an important role at the top of the pyramid of the organization. 6. They make staff believe that working is praying. 7. They should reinforce the sense of responsibility of their staff.

FUTURE SUGGESTION

1. Studying proper evaluation solutions regarding to goals, bank duties and setting standards; 2. Studying the impact of organizational factors such as job performance, organizational atmosphere, and the pressure of role and etc. on staff work ethic. 3. Studying the impact of individual and innate, environmental and political factors on staff work ethic.

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APPENDIX

Table 1: Examining normality distribution of data

Variables Kolmogorov-Smirnov Sig State

Organizational justice 2.169 0.000 Abnormal

Participatory management 2.622 0.000 Abnormal

Training 2.845 0.000 Abnormal

Motivation 2.979 0.000 Abnormal

Role ambiguity 2.282 0.000 Abnormal

Work ethic 1.862 0.002 Abnormal

Table 2: The Questionnaire Reliability Coefficient

The first hidden structure Number of questions Cronbach's alpha

α>0.7

combined Reliability

CR>0.7

Justice 6 0.857 0.903

Participatory Management 3 0.842 0.894

Training 4 0.853 0.904

Motivation 4 0.844 0.884

Role ambiguity 4 0.843 0.905

Work ethic 16 0.947 0.954

Table 3: Convergence validity of model structures based on average variance extracted

The hidden structures Average variance extracted

Training 0.701

Motivation 0.678

Role ambiguity 0.707

Organizational justice 0.562

Participatory management 0.761

Work ethic 0.569

Table 4: The results of the examining of the model discriminant based on Fornell and Larker

Work ethic Participatory

management

Organizational

justice

Role

ambiguity

motivation training

0.961 training

0.948 0.837 motivation


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0.922 0.824 0.908 Role

ambiguity

0.956 0.841 0.799 0.884 Organizational

justice

0.886 0.750 0.874 0.925 0.888 Participatory

management

0.754 0.872 0.892 0.723 0.942 0.818 Work ethic

Table 5: t value in model relationships

t- statistics path

6.446 Justice----- > work ethic

4.077 Participatory management ----- > work ethic

17.963 Training ---- > Work ethic

4.482 Motivation ---- > work ethic

15.289 Role ambiguity ----- > work ethic

Table 6: R2 Value

Work ethic The endogenous hidden structures

0.993 R2

Table 7: f2 Value

Participatory

management

Organizational

justice

Role

ambiguity

Motivation Training

0.140 0.247 2.291 0.184 2.201 Work ethic

Table 8: The results of the analysis of partial least squares for testing the main hypothesis

Path Path coefficient t statistics Sig Test results

Organizational

factors --- > Work

ethic

0.988 438.579 0.000 Confirmed

Table 9: The results of the analysis of partial least squares in testing the sub-hypothesis

Path Path Coefficient(β) t statistics Sig Test results

Organizational justice

--- > work ethic

0.146 6.446 0.000 confirmed

Participatory

management --->

0.105 4.077 0.000 confirmed


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work ethic

Training ---> work

ethics

0.353 17.963 0.000 confirmed

Motivation --- > work

ethic

0.160 4.482 0.000 confirmed

Role ambiguity --- >

work ethic

-0.293 15.289 0.000 confirmed

Figure 2 the research conceptual model

Figure 3 Standard estimate of the model during evaluating the main hypotheses


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Figure 4 the evaluation of the model in significant state to evaluate the main hypothesis

Figure 5 the standard estimation of the model in evaluating sub-hypothesis


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Figure 6 the model estimation in significant state for evaluating the sub-hypothesis