In this research study, there will be consisting of eight sections. The first section will be the background of research study. In this section, it will provide a basic understanding about the differences of mechanistic structure and organic structure and the functions of both structures. In addition, the following part will be the research problem, research questions, research objective, justification of study, significant of study and scope of study. Lastly, it will be the conclusion which summarizes the whole chapter one.
1.1 Background of Research
In Malaysia, manufacturing industries are still growth rapidly and competitively such as food and beverage industries. Manufacturing industry has played a major role in pushing and growth the Malaysia Economic sector. From 1970s, more and more foreigners manufacturing industries have move in and placed their factory in Malaysia. This has caused the degree of rivalry become higher and competitive. The manufacturing industry must be able to respond and react faster in the rapidly growth and change environment and technology in order to sustain as well as compete successfully. The involvement and commitment of employees' are very important in manufacturing industries because it will enable the company to have good performance and achieve their own objective, mission and vision as well.
The organizational structures will influence the employee's job satisfaction (Sollund, 2006). Therefore, organizational structure plays an important role in creating employees' satisfaction and further enhancing the sustainability of a company, particularly in the manufacturing industry. Every company must have its own organization structure and this organization structure will determine the company future success. There are two types of structures commonly being used, they are, mechanistic and organic structure.
Both structure which are mechanistic and organic structure may have a number of different characteristics. Mechanistic structure is a structure with narrow span of control, tall hierarchy of authority, and many rigid rules, this structure is best used when the environment is stable and the employees are unwilling to change. In contrast, organic structure has wide span of control, low hierarchy of authority, and fewer rules and regulations, and it is best used when the environment is turbulent, and the employees are more adaptive.
Depending on the type of company, managers are responsible to set the organizational structure to increase the productivity, nevertheless, enhancing employees' job satisfaction. From this aspect, researchers would like to know how employees are satisfied with their job in their respective manufacturing industry through the characteristics organizational structure. In this research project, the relationship between characteristic of the organizational structure and employees' job satisfaction in manufacturing industry is being examined. Lastly, the characteristics of mechanistic and organic structure that are causing the employees job satisfaction will be determined.
1.2 Problem Definition
In the 21st century, employees' job satisfaction in organization is very important for every organization. There are a number of researchers which have done research regarding to job satisfaction such as Carlson (1969), Glisson and Durick (1988) and Rayton (2006). However, there is so far not many researchers conduct and carry out a research that related to the characteristic of organizational structure which is mechanistic and organic structure where it will increase the employees' job satisfaction in manufacturing industry. According to Sollund (2006), employees' who is immigrant women's who works in different structures which is organic structure and mechanistic structure will have different degree of job satisfaction and organization commitment. This mainly affected by the characteristic of the organization structures such as empowerment, organization hierarchy, communication patterns and degree of job specialization. There is another researcher, Knowles and Knowles (2001) showed that employees' job satisfaction was affected by characteristics of organizational structures itself. Without considering employees job satisfaction, this may lead to lowering down employees' morale, productivity, performance, commitment and increase employees turnover rate.
The problem encountered by this research study is related to the employees' job satisfaction in manufacturing industry between mechanistic structure and organic structure. According to Laschinger, Finegan & Shamian (2002), employees have high job satisfaction when empowerment is given to them by top management or by using decentralization whereas without empowerment or centralization will have low satisfaction. The existence of empowerment in organization will increase employees' commitment and increase employees' job satisfaction. According to Spreitzer, Kizilos, and Nason (1997), employees in decentralization structure will have higher job satisfaction when they are given the authority to make decision or participation in the decision making process.
In addition, Worthy (1950) showed that flat organization is generally better than a tall organization in term of work satisfaction. Flat organization hierarchy was normally used under organic organization structure. However, tall organization hierarchy was preferred to use under mechanistic organization structure. According to Leana and Fieldman (1990) and Martin (1996), there is a relationship between organizational structure and work-related stressors. On the same time, work-related stress will influence employees' job satisfaction. Employees' in tall organization hierarchy will have higher stress than flat organization hierarchy.
Beside that, communication patterns will also influence the employees' job satisfaction in an organizational. There were two general types of communication patterns which is lateral and top-down communication patterns. According to Burns and Stalker (1961), mechanistic structure tend to used top-down or vertical lines of communications pattern while lateral or horizontal lines of communication patterns was used under organic structure. Pettit, Goris and Vaught (1997) stated that those employees in manufacturing industry will have more job satisfaction when their organization using vertical lines of communication patterns. This is due to clearer and accurate information has been transmitted to the lower managers' level and employees.
Furthermore, Shepard (1969) stated that specialization is directly affecting the employees' job satisfaction. Some researchers such as Hsieh and Chao (2004) have proved that high job specialization will normally incurred job boredom, fatigue and monotony. Most of the time low job satisfaction due to high job specialization will happen in company those using mechanistic structure. Low job specialization will increase job satisfaction which appears in company practicing using organic structure.
Therefore, researchers would like to make clearer clarification about what are the characteristics of organizational structures that will increase the employees' job satisfaction in Malaysia manufacturing industry. Researchers will conduct a survey by collecting 300 respondents and to evaluate what is their most preferable in which organization structure which is mechanistic and organic structure. There are few characteristic of the both structures which are empowerment which consists of decentralization and centralization, organizational hierarchy which are flat and tall organization, the communication patterns which are downward and lateral communication styles and the degree of job specialization which are low and high job specialization. These four variables researchers have identified from this research study will help to further understanding whether organic structures will achieve higher employees' job satisfaction than mechanistic structures in manufacturing industry around the Malaysia. This will also investigate whether the job satisfaction of employees in manufacturing industry will have significant influence by the characteristics of the organizational structures.
1.3 Research Questions
In this study, researchers have created some research questions to be investigated. This research questions are generally asking about the relationship between dependent variable and the independent variables. Moreover, this will enable them to seek for the degree of job satisfaction that will affected by others independent variables in mechanistic structure and organic structure in manufacturing industry. The research questions that researchers stated below are the main focus for their research study.
Is there any significant difference between centralization in mechanistic structure and decentralization in organic structure toward employees' job satisfaction in manufacturing industry?
Is there any significant difference between tall hierarchy in mechanistic structure and flat hierarchy in organic structure toward employees' job satisfaction in manufacturing industry?
Is there any significant difference between vertical communication pattern in mechanistic structure and lateral communication pattern in organic structure toward employees' job satisfaction in manufacturing industry?
Is there any significant difference between high degree of job specialization in mechanistic structure and low degree of job specialization in organic structure toward employees' job satisfaction in manufacturing industry?
What are the characteristics in Mechanistic Structure and Organic Structure affecting employees' job satisfaction in manufacturing industry?
1.4 Research Objectives
There is few research objectives needed to be achieve by researchers. After completing this research study, researchers are able to achieve the research objectives that they have set. This research questions will enable them to answer the research questions that stated above.
To discover if there is a significant difference between centralization in mechanistic structure and decentralization in organic structure toward employees' job satisfaction in manufacturing industry.
To discover if there is a significant difference between tall hierarchy in mechanistic structure and flat hierarchy in organic structure toward employees' job satisfaction in manufacturing industry.
To discover if there is a significant difference between vertical communication pattern in mechanistic structure and lateral communication pattern in organic structure toward employees' job satisfaction in manufacturing industry.
To discover if there is a significant difference between high degree of job specialization in mechanistic structure and low degree of job specialization in organic structure toward employees' job satisfaction in manufacturing industry.
To investigate the characteristics in Mechanistic Structure and Organic Structure those are affecting employees' job satisfaction in manufacturing industry.
1.5 Justification of Study
The aim of this research study is to determined the relationship between the four independent variables which is empowerment, organizational hierarchy, communication patterns, and job specialization and job satisfaction as the dependent variable in mechanistic versus organic organization in manufacturing industry. There are many methods to improve employee's job satisfaction and it is the role of the Human Resource Department to manage and improve job satisfaction in their organization. Activities such as selecting the best employee, training and development, retention of employees and compensation and benefits are usually done to help make the organization grow wider and positively. Effectiveness and efficiency of the programs held should be timely and it is seen as part of the growing and learning process to the employees.
From the research, researchers figured out the main factors that causes the dissatisfaction of employees. From here, manufacturing industry in Malaysia can improve their Human Resource Department and also improve their employees' job satisfaction through the researchers' research study. This research will served as a guideline for them as this research will provide them with useful information to the manufacturing industry. This research will enable the manufacturing industry to find the core of the problems in their management. Thus, they will be able to find the solution to help them improve job satisfaction in their management. Thus, this will create a better work environment and most importantly is employees' job satisfaction.
1.6 Significant of Study
1.6.1 Organization Perspective
This research allows the organization to identify what causes job dissatisfaction in manufacturing industry in mechanistic and organic organization. With this, the organization knows that there are areas that needed much attention to improve their organization job satisfaction. They can improve job satisfaction by implementing effective performance appraisal programs, rewards system, compensation and benefits package, training and development and practice a better recruitment and selection process.
This research could also help the organization to improve or reformed their organization performance. Human Resource Development also includes individual career planning and development activities, organization development and performance management and appraisal. When all this are improved significantly, it will improve the organization's performance, employee's job satisfaction as well as organization growth.
Since this survey is done in a form of questionnaire, this will anonymously let the organization know the level of dissatisfaction of their employees in the organization. Therefore, the identity of the employees is not known by the organization which allows the employees to answer the questionnaire more accurately. Hence, the organization could realize the level of job dissatisfaction among the employees where they can improve the needs of their employees and then improves the job satisfaction in the organization.
Besides Empowerment, organizational hierarchy, communication patterns, and degree of job specialization, the organization can also identify more factors that are affecting the employees' job satisfaction. When the organizations have found out the factors affecting employees' job satisfaction, they can improve the work quality and employees will produce more effectively with minimal defects. In another word, the performance of the whole organization will improve.
Employees work relationship and the commitment of the employees will also increase when the employees are more satisfied towards their job. When one's needs are satisfy, they have greater sense of belonging in their organization meaning they feel more secure in their organization. Hence, the employees are more committed and the have better relationship among their co-workers.
1.6.2 Individual Perspective
Employees' job satisfactions are the main reason they stay and be committed to the organization. If job dissatisfaction occurs, they have the thoughts of leaving the organization to work with a better organization which can provide better job satisfaction. Therefore, before the organization losses their employees who are now working with them, actions have to be taken, for example a questionnaire. This is where the employees help make the organization a better work environment.
When proper communications are established, work relations among top management and lower management have the opportunity to work more harmoniously and more cooperatively. This will enhance the feedback and feed forward communication of their work to better improve work quality and relationship among the worker. When a proper communication is being used, the work instructions can be easily followed and obeyed thus making their work more complete and job satisfaction will increase.
After Human Resource Management practices such good planning, organizing, leading and controlling in their management, employees' job satisfaction will increase. The employees will feel that they have equal responsibility and chances as everyone else in the organization. Therefore, making them feel more important as part of the growing organization. When this sense is planted in all the employees, they feel more appreciated by the organization which is the reason why they will stay around in the organization longer. Thus, creating work commitment among the employees. From this, the employees will work harder towards the organization's goals, perform better and work productivity will increase.
1.7 Scope of Study
This study provides a review of employee's job satisfaction in mechanistic and organic structure in manufacturing industry. The objectives of researchers study are to examine how the independent variables in their study are affecting the dependent variable in mechanistic and organic structure in manufacturing industry.
This report attempts to present a snapshot of employee's job satisfaction and what are the affecting reasons to employee's job satisfaction in mechanistic and organic structure in manufacturing industry. The scope of this section is broad and attempts to address all issues involved in the employee's job satisfaction. Therefore, it will address issues such as empowerment, hierarchy, communication and task specialization.
In this chapter one, the researchers have clearly explained the background of the research study. After that, they also have written out the problem definition of their research study. In this problem definition, researchers have stated out the reasons why they want to carry out the research study.
After the problem definition, they have formed some research questions and from the research questions they are able to indicate their research objectives of the research study. This research questions and research objectives will drive them a correct direction for their entire research study.
Finally, researchers have further explained the justification of the research study and then follow by the significant of the research study and the scope of their research study. The purpose of this chapter is to set a guideline for them in order to complete their entire research study successfully.