Index

Abstract

It is proved from the literatures that, perceptual factors have a great influence on employees’ job performances in organization. The current study tried to sort out some crucial perceptual factors affecting employees’ job performance.  The study developed 28 perceptual items based on FGD and literature analysis such as decision making, learning, orientation, training, engagement, evaluation policy etc. Then a proposed perceptual model had been developed. A structured questionnaire was surveyed among the selective respondents (n=500); then tested the items’ reliability and passed (α = .789); after that, the study went for exploratory factor analysis (EFA). Total seven (7) factors (Perceived HR practice; Perceived performance appraisal; Perceived supervisor’s quality & leadership; Perceived work environment & climate; Perceived organizational support; Perceived work pressure; and Perceived compensation plan) were identified. Finally, in confirmatory factors analysis (CFA) testing, one of those factors named Perceived compensation plan (PCP) fall short to pass the validity from the model.

Keywords: Employee perception, Perceptual factors, Perceptual model, Garment workers, Factor analysis, Bangladesh.

Received: 16 October 2018 / Revised: 30 November 2018 / Accepted: 4 December 2018/ Published: 28 March 2019

Contribution/ Originality

This study is one of very few studies which have investigated a perceptual model based on any under developing & developing country whose labor markets are unstructured and chaotic. So the paper will provide a fare idea to the entrepreneurs and managers who are interested to deal with such labor markets like Bangladesh.


1. INTRODUCTION

Perception is a process of consciousness of an object of nervous system and the modern organizations integrate the knowledge from employees and convert it into goods and services (Grant, 1996). But the objective cannot be achieved unless there is a significant collaboration among individuals or employees and the organization or industries at any level. The reason behind this is employees’ perception become very important for the organization. The components of employee perception support the organization to develop both the employee effectiveness and organizational performance (Howell and Frost, 1989; Pearce and Ensley, 2004).

Bernanke and Parkinson (1991) stated that, positive employee perception is a crucial factor of existence, development and growth of any organization. On the other hand, negative employee perceptions of the company and the work environment can cause qualified employees to seek opportunities elsewhere. The employees are also concerned about themselves in return for doing a good job; such as adequate pay, good working conditions, training and development, security of job, certain amounts of appreciation, power and prestige, Stoner et al. (2002) and those issues are a part of job performance & insecurity. The job insecurity is correlated with huge amount of work-related concern and can reduce employee’s organizational commitment (Ogwueleka and Udoudoh, 2018).

Individual & organizational perceptual factors had impacts on employee behaviour (Chan et al., 2005).

Gray et al. (2012) stated that, mind perception is the substance of integrity. Moral judgements are ingrained in pair of perceived minds those are a patient and an agent. Various researches have been conducted on employees’ perceptual factors  such as  workplace safety, perceived organizational support (POS), workplace, proper HR practice, leadership empowerment, leadership behaviour, supervisor’s support, award and incentives program, financial benefits, psychological empowerment towards job performance & satisfaction; the study shows affirmative and significant relationship among those variable (Atkinson and Lucas, 2013; Mcfarlin and Coget, 2013; Piening et al., 2014). Gregory et al. (2010) however, flawed training & management system, affiliation between communication and peer relationships, create negative perception towards employees’ development and commitment (Horan and Chory, 2009; Rahman and Rahman, 2013).

Based on above discussion, the study was intended to focus on employee perception as major variable towards job performance. For that consequence the study developed a two-step process. In step-1 a perceptual model was developed based on literature support, where 28 items were picked up and sort out the most dominant factors through exploratory factor analysis (EFA). Finally in step-2 the study tried to validate the model by using confirmatory factor analysis (CFA).

2. RELATED LITERATURE

2.1. Work Pressures & Policies

Khalid and Ahmed (2016) stated that perceived organizational politics creates the organizational environment risky & uncertain and Employee’s attitudes, feelings, cognitions, behaviors and perceptions, are influenced by those types of organizational uncertainty (Van den Bos and Lind, 2002) which are shocking for employees (Van den Bos and Miedema, 2000) and they couldn’t manage the circumstances and the outcomes (Tangirala and Alge, 2006). The reasons cause reduced job performance, job attitudes (job satisfaction and commitment), increased turnover intention, job neglect etc. (Vigoda, 2000; Ferris et al., 2002). A study on truck accident revealed that job pressure has positive relationship with road accident (Belzer, 2018).

2.2. Work environment

Work environment positively affects employees attitudes and behaviors (Verquer et al., 2003; Kristof-Brown et al., 2005; Hoffman and Woehr, 2006) perception and performance (Blumberg and Pringle, 1982; Peters et al., 1985; Olson and Borman, 1989) and also both Person-organization and Person–Job fit have strong, but distinct impacts on individual attitudes and behaviors (Kristof-Brown et al., 2005) where Person–Organization fit is strongly associated with organizational commitment and turnover, and high Person–Job fit is associated with high levels of job satisfaction.

2.3. Work Climate

An ethical and sound work environment and climate guides to more trust about the organization, stronger employee attachment, lower of absenteeism and turnover rate, higher scale of productivity, and again from the employees there is a more positive attitude (Sims and Keon, 1997) & job satisfaction (Tomaževič et al., 2018) toward the job (Viswesvaran and Ones, 2002) find a positive relationship between organization’s ethical climate and employee job satisfaction. Again social reputation of corporation is indirectly evaluated the job satisfaction and lower employee turnover (Riordan et al., 1997). If employees understood that they are treated by fair process, they will react positive attitudes and behaviors to the organization (Coyle-Shapiro et al., 2004c). Otherwise extreme dissatisfaction will be perceived if the process is not fair enough (Skarlicki and Folger, 1997).

2.4. HR Practice

HR practices as critical determinants in eliciting employees’ perception as supportive of organizational goals (Ostroff and Bowen, 2000). Employee perceptions, attitudes, and behaviors are shaped by good HR practices. Employee attitudes and behaviors, HRM implementation in HR practices has a particular consequence (Den Hartog et al., 2013; Woodrow and Guest, 2014). Strategic HRM study has (try) to find the methods for bringing about employee perception and organizational outcomes (Kehoe and Wright, 2013) because by taking employee perceptions of HR practices to the foreground (Boon et al., 2011; Guest, 2011) for making attributions about HR practices there has been an increasing emphasis placed on the psychological processes (Nishii et al., 2008). Several Strategic HRM studies show that good HR practices are positively and significantly related to various types of outcomes such as performance and commitment (Huselid, 1995; Ramsay et al., 2000) but various research suggests, individuals’ perceptions of HR practices in organizations are different (Gerhart et al., 2000; Wright et al., 2001).

2.5. Perceived organizational Support (POS)

Eisenberger et al. (1986) stated that Perceived organizational support (POS) is the employees’ perception to organization’s commitment to them that reflects their beliefs how organization values their hard works, contributions and be concerned about their welfare. So POS is a major indicator of employees’ perception (Kiewitz et al., 2009; Zagenczyk et al., 2010) and employees’ knowledge enhancement (Yang et al., 2018). Wiesenfeld et al. (2001) argue that supportive organization enhances employees’ feeling of being included, central, valued and respected, which in turn directed to a stronger conviction to the organizational participation and that’s why employee will experience a responsibility to pay back the organization through positive attitudes, behavior, perception (Eisenberger et al., 1990; Coyle-Shapiro et al., 2004c).

2.6. Employee Engagement

Employee engagement is a key challenge in lean culture (Weerasooriyan and Alwis, 2017) like Bangladesh. Employee engagement defines the employee’s cognitive, emotional and behavioral status that leads to preferred organizational outcomes (Shuck and Wollard, 2010) and beneficial for management policies (Johnson et al., 2018) which is important for successful organizational effectiveness and performance (Xanthopoulou et al., 2009). Employee engagement is one of the positive organizational behaviors (Jeung, 2011) which is the employee’s state of mind of fulfilling, positive, and work-related and it is described by dedication, vigor and absorption (Schaufeli et al.,2006). A fully engaged employee will confidently accomplish high-quality attitude, behavior, perception and performance (Bechtoldt et al., 2011). That’s why employee engagement is directly related with job satisfaction, organizational commitment, and negatively related to turnover intention and burnout (Albrecht and Andreetta, 2011; Shuck et al., 2011).

2.7. Supervisor & Leadership

For developing employees’ perceptions to the organization, supervisors play an important role (DeConinck and Johnson, 2009) and also influence employees’ behaviors and attitudes (Van Vianen et al., 2011). When social relationship bind between the employee and the supervisor by obligations, socio emotional resources, trust, Dysvik and Kuvaas (2013) that enhanced employees’ work motivation, attitudes and behavior (Gerstner and Day, 1997) and give back with more favorable attitudes toward their employer (Meyer and Allen, 1991).

Many studies suggests that the employee’s attitudes and behavior directly affected by the trust of the supervisor (Perry and Mankin, 2004) and an authentic leadership directly affected employees’ perception and job satisfaction, organizational commitment (Dirks and Ferrin, 2002).  For those consequences, employees are willing to engage in the risk taking attitudes and behavior, believing in the leader’s integrity, ability, and benevolence (Mayer et al., 1995) and maximization of long-term strategic leadership will assist senior executives (Keeton, 2018) for better performance in organization.

2.8. Performance Appraisal

For analyzing, obtaining and recording information about an employee worth is also called performance appraisal (Dowling and Welch, 2009). Several literatures suggest that this procedure has important consequence on employee attitude and perception (Bowen and Ostroff, 2004) and good performance & efficiency in workplace (Cropanzano et al., 2007; Sabiu et al., 2018). The fairness of performance appraisal positively effects on employee’s perception and procedural fairness and monetary benefits are significant predictors of job satisfaction and employees performance (Tyler et al., 1985). Mullins (2007) argues that employee perception will be helpful if the employees understand that the performance appraisal system is useful for getting feedback that’s lead to improve their job performance and job satisfaction.  Another important factor for influencing the employee perception is the pay and raise (Mullins, 2007) which has significant impact on worker’s perception.

2.9. Compensation Plans

Most of the studies has focused on (i) investigating outcomes of compensation plans and programs (Stone and Ziebart, 1995) (ii) how pay (Meyer, 1975; Ost, 1990) or goal-setting relate to performance  and (iii) studies related to effective or ineffective compensation plans and those factors affecting the efficiency that employees are keen to apply to succeed in an award or incentive program (Ogwueleka and Udoudoh, 2018).

2.10. Psychological Empowerment

Psychological empowerment has mediating effects (Albrecht and Andreetta, 2011; Dewettinck and Van Ameijde, 2011) on employee and the empowered employees are more dedicated to their organization and work (Bordin et al., 2006). Through this psychological empowerment mechanism; organizational policies, practices, and structures influence employee’s attitudes and behaviors (Spreitzer, 1995) and also directly influences organizational commitment, job satisfaction (Seibert et al., 2004).

3. METHODS & ANALYSIS

Step-1: Perceptual model development

To develop a model, the study went through many related literatures and it was an extensive review of different international and national researches. 5 items have been generated from the authors’ previous research (Khan et al., 2017).  Rest of the 23 items were developed from literature. Finally, 28 items are picked up and found coherent for this particular study.

3.1. Methodology of Step-1

After having the items, the study developed a proposed model of perception based on different literature review. The proposed model is showed in Figure 1 (Please see the appendix). After furnishing in total 28 items the study prepared a structured questionnaire which contained two parts. In 1st part contained demographic information such as age, gender, education, designation, years of experience. In 2nd part, a Likert scale of seven points was established, where 1 denoted strongly disagree and 7 denoted strongly agree. Then the questionnaire surveyed to different garment employees in Bangladesh as per convenient sampling technique basis.

Figure-1. Proposed model of perceptual factors (Based on literature & authors’ observation).

Source: Authors’ observation from literatures.

3.2. Respondents & Process

The sample size was set as 500 employees from various garments in Bangladesh under non probability convenient sampling method; whereas, only 490 responses found suitable for the study (n= 490). The demographic characteristics of data consisted of different types of full time, part time, and contractual employees from various garments. The respondents consisted (n=490) where (n=366, 74.69%) were male and (n=124, 25.31%) were female, with having average age of 47.57 years. The education standard of the participants were below Secondary School Certificate level (n=260, 53.06%); SSC or equivalent (n=96, 19.59%); Higher Secondary Certificate (n=88, 17.96%); and graduate or above (n=46, 9.39%). The average year of experience of the job displayed 4.631 years. The respondents’ designation showed as General Manager (n=3),Assistant Manager (n=7),Admin Officer (n=11), Accounts (n=15),Executive officer (n=6),Store officer (n=2),Delivery officer (n=4),Booking officer (n=2),Contract Merchandiser (n=9),Supervisor (n=23),Technician (Master & Junior) (n=25),Designer (n=1),Line man (n=14), Cutting; Knitting; Finishing; Dying; Iron Operator (n=211), Quality Inspector (n=41), Helper (n=71), Security Guard (n=27),Sales & Distribution (n=37),Packaging (n=2), Checker (n=6). The data were collected completely voluntary basis from the employees. All of them were filled data at their suitable places of contracting.

3.3. Data Analysis (Step-1)

Upon collecting data, the study went for a reliability (Cronbach’s alpha) testing to observe the consistency of data set and, after passing the consistency test; the study went for an exploratory factor analysis (EFA) where the sample size was considered as (n=490).

3.3.1. Exploratory Factor Analysis (EFA)

To apply EFA the study went to investigate the data suitability through Kaiser Mayer-Olkin (KMO) test and Bartlett’s test of sphericity. The KMO value was observed as 0.884; KMO value more than 0.6 is suitable for EFA and about to 0.9 or above is excellent (Kaiser, 1974; Hutcheson and Sofroniou, 1999; Tabachnick and Fidell, 2001) and the Bartlett’s test result showed significant ( χ2 = 4424.294; p ˂ .001) as well for the EFA.

After running the factor analysis with 28 items the eigen value of all the 7 revealed factors were more than 1 where the first three factors’ eigen value were respectively 7.260, 2.184, & 1.966 and the total variance explained from the model was determined as 58.303%. The Cronbach's Alpha of 28 items was .879 which means data were goody consistent (Cortina, 1993; George and Mallery, 2003).

Table-1. Obtained factors’ named, mean, standard deviation, and factor loading from EFA (n=490).
Principal Component Analysis
Perceptual factors
Variables
Step-1
Mean
SD
Loading
Alpha (α)
Perceived HR practice
1.                 Decision Making
4.51
1.84
0.875
2.                 Learning & Growth 
4.34
1.83
0.766
3.                 Employee orientation
4.83
1.64
0.632
4.                 Selecting for training 
5.06
1.46
0.609
5.                 Career development
5.23
1.44
0.606
0.847
6.                 Confident building 
5.09
1.52
.
77
7.                 Performance based remuneration 
5.26
1.45
0.528
Perceived performance appraisal
8.                 Data documentation of performance 
4.41
1.63
0.667
0.747
9.                 Informed evaluation method
4.37
1.66
0.638
10.             Performance feedback
3.53
1.85
0.628
11.             Building individual/team behavior 
4.9
1.84
0.525
12.             Clear appraisal system
4.97
1.72
0.502
13.             Performance based appraisal system
4.69
1.58
0.409
Perceived supervisor’s quality & leadership
14.             Supervisor’s attentiveness to employee
4.98
1.48
0.733
0.742
15.             Employees’ Engagement
4.67
1.68
0.721
16.             Supervisor’s supports & suggestions
4.71
1.64
0.522
17.             Satisfaction on work environment 
5.29
1.61
0.792
Perceived work environment & climate
18.             Fair performance evaluation
4.87
1.59
0.708
0.733
19.             Being valued by organization
4.94
1.53
0.509
20.             Regular performance observation
4.81
1.57
0.709
Perceived organizational support
21.             Supportive Team  
4.62
1.41
0.641
0.745
22.             Organization’s expectation 
4.37
1.54
0.615
23.             Organization’s support for improvement
5.03
1.34
0.443
Perceived work pressure
24.             Workload
4.89
1.44
0.648
0.648
25.             Meeting goal and objective 
4.72
1.46
0.599
26.             Problem addressing 
4.97
1.45
0.467
Perceived compensation plan.
27.             Experience based promotion
3.58
2.07
-0.64
-0.968
28.             Performance based compensation 
5.11
1.93
0.538

***N.B The (α) value of Perceived compensation plan (CP) is negative because a negative average covariance among items.
Source: Authors’ calculation through SPSS (v, 22).

Table 1 obtained name and alpha (α) value of indentified seven different factors which affecting employee perception from 28 selected items. The obtained seven factors were named as Factor-1: Perceived HR practice; Factor-2 : Perceived performance appraisal ; Factor-3 : Perceived supervisor’s quality & leadership ; Factor-4 : Perceived work environment & climate ; Factor-5 : Perceived organizational support ; Factor-6 : Perceived work pressure ;  and Factor-7 : Perceived compensation plan along with the mean, standard deviation, and factor leading of each items.

3.3.2. Correlation Matrix

Table 2 contain the seven unearth perceived factors and they correlated to each other and the relationship showed all the relationship were significant at 1% ( 0.01 level of significance) level except the relationship between work pressure and HR practice & the relationship between compensation and HR practice are significant at 5% (0.05) level of significance.

Table-2. Component Correlation Matrix (Extract seven factors).

Component
HP
PA
SQL
WEC
POS
WP
CP
HR Practice (HP)
1
Performance appraisal (PA)
.383**
1
Supervisor’s quality & leadership (SQL)
318*
.223**
1
Work environment & climate (WEC)
.436**
.504**
.431**
1
Perceived Organizational Support (POS)
.385**
.402**
.270**
.414**
1
Work pressure (WP)
325*
.295**
.431**
.413**
.341**
1
Compensation Plan (CP)
.105*
.263**
.135**
.178**
.148**
.149**
1

**. Correlation is significant at the 0.01(1%) level (2-tailed).
*. Correlation is significant at the 0.05 (5%) level (2-tailed).
Source: Authors’ calculation through SPSS (v, 22).

The above table revealed factors are positively correlated to each other.

3.3.3 Step-1: Discussion to Result

In step-1the study determined 28 items for scale development based on extensive literature review and develops a proposed model of perceptual factors affecting employee’s job behaviour; where eleven factors were expected as influential factors. However, after the EFA result seven factors were indentified and the identified model is showed in Figure 2 (Please see the appendix).

Figure-2. Factors unearth from EFA result (Based on calculation).

Source: Authors’ calculation from EFA through SPSS (v, 22).

Table 3 define the unearth factors.

Table-3. Names & Definitions of obtained factors from perceptual model.

Factor names Definition
One: Perceived HR practice (PHRP) Concerned with organization’ decision making, learning & growth, orientation, training, motivation, and performance based remuneration activities.
Two : Perceived performance appraisal (PPA) Concentrate on as how well the organization designed its overall performance appraisal and focusing more on performance based clear and fare appraisal system.
Three : Perceived supervisor’s quality & leadership  (PSQL) Define as the overall supervisors’ leading & motivational quality to their subordinates.
Four: Perceived work environment & climate (PWEC) Address the employee satisfaction both the physical and psychological aspect of employees towards working environment.
Five: Perceived organizational support  (POS) How well the organization support to its employees through team building, employee development, and day by day performance observation along with constructive feedback.
Six : Perceived work pressure  (PWP) Speak about overall workload, meeting goal pressure along with problem addressing.
Seven: Perceived compensation plan (PCP) How the employees get compensated and promoted to their various career sages. 

3.4. Validate the indentified model (Step-2)

The purpose of this step was to authenticate the indentified model revealing from the EFA, a fitness test of the model was tested through a confirmatory factor analysis (CFA) by SPSS (v, 22) and Amos (v, 20).

3.4.1. Method (Step-2)

SPSS Amos (v, 20) was used to run the fitness test of the model. The study basically tried to observe the variance among the factors, which were generated from step-1. The participants of the model were same respondents (n=490) who responded in EFA.

3.4.2. Data Analysis (Step-2)

To check the fit of CFA model, the first tested CMIN/DF the rules of thumb for the test is ˂ 3 ratio should be acceptable (Wheaton et al., 1977; McIver and Carmines, 1981) some other study also recommended the level of acceptance ration can be low as 2 or as high as 5 (Marsh and Hocevar, 1985). The study also used few more additional fit test indexes such as IFI (Incremental Fit Index), Then CFI (Comparative Fit Index), GFI (Goodness-of-fit index), Adjusted Goodness-of-fit index (A)GFI, Root Mean Square of Approximation (RMSEA), and (Standardized) Root Mean Square Residual (SRMR). Indices Ideal Value Recommended by Model Fit Indices, CFI ≥ 0.95 (Hu and Bentler (1999). GFI > .80 Hair et al. (2015) ≤ 0.90; Hooper et al. (2008) ≤ 0.95 Shevlin and Miles (1998) AGFI ≥ .80 Hair et al. (2015) ≤ 0.90; Hooper et al. (2008) RMSEA ≤ 0.05 Hooper et al. (2008) ˂ 0.07 Steiger (2007) ˂ 0.08 MacCallum et al. (1996) SRMR ≤ 0.05 Hooper et al. (2008) ˂ 0.08 Hu and Bentler (1999).

3.4.3. Results (CFA) & Discussion (Step-2)

As the sample sizes were same for both the EFA & CFA so the study showed the data were internally consistent in Table 1. The following Figure 1 shows the CFA model result generated from Amos (v, 20) output. Form the EFA the study indentified seven factors for the model but perceived compensation plan was not find suitable for the CFA. So the study eliminated that factor and then run a CFA. Figure 3 shows the confirmatory factor analysis (CFA) model in appendix Figure 3.

Figure-3. The CFA model, perceptual factors’ variances & items’ parameter.

Source: Authors’ calculation through SPSS AMOS (v, 20)

The model fit summary for the CFA showed the fitness level of the model as follows X2 = 603.764; df (Degree of freedom) = 281; X2/df (CMIN/DF) = 2.141; Probable level (p) ˂ .001; IFI = .92; CFI= .919, GFI = .915; (A)GFI = .90; and RMSEA = .048 (4.8%). Kline (2005) recommended model chi square, CFI, RMSEA should be minimum requirements of fitness test of model.

4. MAJOR CONTRIBUTIONS

As per literature it was proved that the good perception towards organization can create better productivity, economic growth, employee commitment, job satisfaction and so on (Gallie and White, 1993; Mcfarlin and Coget, 2013; Piening et al., 2014). The authors pointed some major contribution of that study as follows

5. LIMITATIONS AND FURTHER RESEARCH

Some limitations should really be obtained and played a vital role of the study; otherwise the study would more obvious. The major limitations are addressed as; the convenient sampling technique may occur the response bias as many of them are working same organization. The study area was Dhaka zone there are some other garments factories located in different areas in Bangladesh where the researcher could not reach due to time and budget insufficiency. Respondents’ ignorance of perceptual issues would be another vital restraint of the study. The items development was based on literature; as the country perspective varies from country to country so the items development could be developed through FGD or observations of garments worker’s job behavior. In future study the model can be used to check the relationship between employee perception towards commitment, organizational citizenship behavior, job satisfaction, and do so. Besides the 28 items more items can be examined such as psychological empowerment, organization identity, uncertainty etc.   

6. CONCLUSION

In this manuscript, the study developed 28 perceptual items based on FGD and literature analysis such as decision making, learning, orientation, training, engagement, evaluation policy etc. Then a proposed perceptual model had been developed. A structured questionnaire were made based on proposed model and surveyed by the related respondents to verify the model for Bangladeshi garments workers. The study found seven dominant factors which could affect the employees’ perception by using EFA but to certify the model the study used a CFA and found one factor named Perceived compensation plan (PCP) fall short to pass the validity from the model and finally six factors were retained in that perceptual model.

Finally, the researchers expect that the study will have a huge impact on labor market & organizational development. Especially, for under developing & developing country (as the perceived trends are expected to be more or less same) and be helpful for the supervisors & the managers to lead and to function smoothly the organizational activities and create a peaceful industry which is related to garment  in those countries who have the same economic and labor market trend like Bangladesh. 

List of abbreviation

EFA = Exploratory Factor Analysis
CFA = Confirmatory Factor Analysis
SPSS = Statistical Package for the Social Sciences
PHRP = Perceived HR practice
PPA = Perceived performance appraisal
PSQL= Perceived supervisor’s quality & leadership
PWEC = Perceived work environment & climate
POS = Perceived organizational support
PWP = Perceived work pressure
PCP = Perceived compensation plan

Funding: This study received no specific financial support.   
Competing Interests: The authors declare that they have no competing interests. 
Contributors/Acknowledgement: We first acknowledge the creator who gave us strengths & wisdom for learning. After that we acknowledge many unknown respondents & organizations for their valuable opinions & support to unearth the manuscript.  We also show a very special acknowledgement to our beloved students of 32nd & 35th batch, BBA program, Department of Business Administration, City University for their tremendous effort for data collections.

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