Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Job Characteristics Affecting Organizational Commitment of Employees in Fujikura Electronics (Thailand) Ltd Katharida Jantawan*, Chanin Srisuwannapa** and Nuttawut Rojniruttikul *** The objectives of this research were:1) to study the level of organizational commitment of employees in Fujikura Electronics (Thailand) Ltd. and 2) to study the job characteristics affecting organizational commitment of employees in Fujikura Electronics (Thailand) Ltd. The sample was 370 employees of Fujikura Electronics (Thailand) Ltd. The research instrument was a survey questionnaire. The data were analyzed by using statistical program. Statistics for data analysis were percentage, arithmetic mean, and standard deviation. Hypotheses were tested by using Multiple Linear Regressions Analysis. The results were found as follows: 1) In overall, the level of organizational commitment of employees in Fujikura Electronics (Thailand) Ltd. was at high level. 2) Task identity, task significance, autonomy, and feedback could affect the organizational commitment of employees in Fujikura Electronics (Thailand) Ltd. All independent variables could explain the variation in organizational commitment at 36.8 percent. Field of research: Organizational Research 1. Introduction Electronics industry is considered as the essential industry for national economy system. It’s able to earn the high amount of income for the country by exportation. The electronics industry has been extended rapidly and continuously; furthermore, it also plays a significant role in employment of the industrial sector. Thailand is regarded as the country that has the efficiency in production factors, which are human resources and knowledge resources. Products and manufacturing have been developed to be more various. After analyzing about Thailand’s geography, it is founded that Thailand has an advantage over other countries in Indochina regional business and has potentiality to be the center of the region; thus, it causes the positively efficient factor for transportation. The growth rate of Thailand’s electronic industries has been expanded sharply and dramatically providing benefits to the country’s economy system in both direct and indirect ways increased scale of employment and investment. However, the big deal that every organization is going to confront with are labor shortage and higher tendency of employee resignation as a result of the employees have more alternatives to choose other organization that provide better several welfares and benefits. Each organization tries to find the way to make their employees have the organizational commitment bringing about potential working and reaching the organization’s goals. Gallup (2011-2012) surveyed 5 countries in ASEAN - Thailand, Philippines, Malaysia, Indonesia, and Singapore. It is found that the Philippines has the highest amount of employees who have the organizational commitment at 29% following with Thailand, constitute for 14% for a number of those people. In Thailand, there is 2% of employees who do not have the organizational commitment and show their ________________________________________________________________ *Ms. Katharida Jantawan, Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Thailand, E-mail : Katharida.j@hotmail.com ** Dr. Chanin Srisuwannapa, Faculty of Science, King Mongkut’s Institute of Technology Ladkrabang, Thailand, E-mail: Chanin_sri@yahoo.com *** Assistant Professor Dr. Nuttawut Rojniruttikul, Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Thailand, E-mail: krnuttaw@kmitl.ac.th Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 behaviors directly (Actively disengaged). It is the minimum rate in ASEAN group. Nevertheless, Gallup pointed the significant issue that from the statistics of all country; Thailand, Malaysia, and Singapore are classified in the group that has the highest number of employee who do not have the organizational commitment (84%, 81%, and 76% respectively). From above survey findings, if the organization wants to keep the effective employees, they should build a confidence of the employee and make them realize that their works are valuable, stable, and advanced. If the employees have the organizational commitment, they would extremely concentrate on work and devote themselves to it with all of their capability. Fujikura Electronics (Thailand) Ltd., Ayutthaya branch is an amalgamation of 7 integrated companies on April 2010, management under Fujikura Ltd.(Japan),head office to cover a wide range of inter-connected processes to produce electronics or electrical products. The integration made further optimize the effective utilization of its managerial resources comprising of human resource, equipment and manufacturing technologies in Thailand to strengthen the higher efficiency of its management foundation and improve its craftsmanship in monozukari (manufacturing), thereby reinforcing a prompt and powerful management system to carved a name and reputation in industry and live up to the quality expectations and satisfaction of customer. Fujikura Electronics (Thailand) Ltd., Ayutthaya factory, specialize in the design and manufacturing of the electronic parts as Flexible Printed Circuits or FPC,Multilayer and Surface Mount Technology or SMT for export which it used in simple consumer products to complex telecommunication and computer equipment. The company located in Rojana Industrial Park where numerous companies were affected from flood crisis in 2011, and Fujikura Electronics (Thailand) Ltd. was unavoidably directly affected. From this crisis, the company had stopped the production line for few months, some employees moved to work with others branch (factory) and some lived at home. In order to survive and to continue business in this field; Fujikura Electronics (Thailand) Ltd. had launch the austerity policy by limited unnecessary expense such as downsizing or reorganizing, controlling man-hours, controlling overtime etc. This policy had an effect to the employee’s moral spirit. They feel uncomfortable and unsatisfied .They perceived job is not challenging and decide to leave a company at last. According to this reason, the researcher realizes importance of problems and interested in finding methods to support the organizational commitment of employees in Fujikura Electronics (Thailand) Ltd. The job characteristic factor (Hackman and Oldham, 1975) is one major factor that has an impact on the organizational commitment. Consequently, to study about the job characteristics affecting to the organizational commitment of employees in Fujikura Electronics (Thailand) Ltd. is essential to presenting the research result to the executive as the employee management guideline by building motivation, organizational commitment, and understanding each other among employee and company, among manager or supervisor or leader and operators. The result will be a model to solve the higher resignation rate problem of the employee, including to build the organizational commitment between employees and the organization to work proficiently conforming to the organization’s goals, and reach to success and aim to be a company that is built to “harness harmony among employees who work full of life and energy”. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 2. Literature Review The organizational commitment of the employees is the employees feel as they belong to the organization, intend to work with full of their capability and devote themselves for the organization’s goals. The employees, who considerably has the organizational commitment, tend to work with the organization longer and work intently. Moreover, the organizational commitment can also indicate work efficiency. Mayer and Allen (1991) divided the organizational commitment into three-component model namely, affective commitment, continuance commitment, and normative commitment.First,affective commitment, it is the individual’s inner feeling, defined as the employee’s positive emotional attachment towards the organization. They strongly identifies with the goal of the organization and high desires to remain a part of the organization. They are pleased to sacrifice and devote themselves to the organization with full of their capability and proud to work with them. Second, continuance commitment, it is an individual expect which employee would like to receive from the company. The commitment will occurred under the condition of “Side bets” or investment (cf.Becker’s theory.1960). They feel they work for the organization for some financial reasons such as pension and provident fund. Last, Normative commitment, it is a form to requite the organization. They express it through the allegiance or doing great things in return to the organization such as acquiring the scholarship, having good colleagues, or getting help from the organization. It related to Kahn’s theory (1990) who defined the definition of organizational commitment that the employee expresses it through their emotion, affective, and physical. Whereas, Saks (2006) believed that the organizational commitment of the employee is composed of various attitudes and dimensions, showing a relationship of the factors which have an impact on the overall conceptual of the organizational commitment model. The factors which encourage the employee to have an organizational commitment, mostly important to the organization and couldn’t run the business without it. Furthermore, it was the factors to indicate the organization’s success in straightening the organizational commitment among employees and the organization, among employees and leaders, and among employees and co-workers were the factors of Job characteristics. A good job characteristics are compared as mind motivation for the individual to work. Also, good achievement is like rewards for themselves. Whereas, unsuccessful achievement would cause the individual avoid their unsatisfied works to reward themselves by good works. The individual’s works depends on a work plan because planning has an influence on working behavior of the organization’s employees and directly important to the operation. In case of the employees are motivated in work, they will express through a well operation and put them forward to have the organizational commitment. It relates to Hackman and Oldham (1975)’s theory that identified five core job characteristic models that drive the positive psychological states namely, skill variety, task identity, task significance, autonomy, and feedback. First, skill variety is a different job characteristic as a result of many departments in the organization that require the individual to apply their own knowledge, capability and proficiency in operation. It is necessary for the director to variegate sorts of work in order to let the employee practices and apply their own capabilities in the operation, increase skills, including raise challenge and decrease boredom in work. Second, Task identity is the degree of job which requires completion of their works and able to identify piece of works that is doing a job from beginning to end process with a visible outcome. The employees operate from the beginning to the final step in order to observe and evaluate their works immediately. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 This process would make the employees be proud, and realize the value and the important in their works which it’s motivate and make them feel valuable. Third, task significance is the degree of job which has a substantial impact on the lives or work of other people, whether in the immediate organization in the external. Forth, autonomy is the degree of job which provides employees to have a substantial freedom, independence and discretion to the individual to make a decision in scheduling their responsibilities .Top management have to give them free in working, let them choose and make a decision about the operation steps. The controlling could makes the employee feels dependent and get bored of works. Last, feedback is a degree of job which carries out the work activities required by the job results in the individual’s obtaining direct information and clear information about efficiency and effectiveness of performance. The director would let the employee perceive and comprehend their works that how much effective and capable it is. When the employee perceives feedback, the evaluation result would encourage them to have work motivation and become high productivity at last. 3. The Methodology and Model Objectives To study the level of organizational commitment of employees in Fujikura Electronics (Thailand) Ltd. 2. To study the job characteristics affecting organizational commitment of employees in Fujikura Electronics (Thailand) Ltd. 1. Research Methodology The hypothesis of this study was skill variety, task identity, task significance, autonomy and feedback, affect the organizational commitment of employees in Fujikura Electronics (Thailand) Ltd. Conceptual Framework This study aims to identify the level of “Job characteristics affecting the organizational commitment of employees in Fujikura Electronics (Thailand) Ltd”.by applied Job Characteristics Model of Hackman and Oldham (1975)’s theory who had established the five core job characteristics namely; skill variety, task identity , task significance, autonomy, and feedback. For organizational commitment model applied from Mayer and Allen (1990)’s Theory. The organizational commitment model defined three components model as a three “mine-sets” including affective commitment, continuance commitment, and cormative commitment to determine the conceptual framework as figure 1as below; Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Figure 1 Independent variable Dependent variable Job characteristics Skill Variety Task Identity Task Significance Autonomy Feedback Organizational Commitments Conceptual Framework Populations and samples The populations in this research were 4,987 employees of Ayutthaya Factory (Human Resources on September 2014) in Fujikura Electronics (Thailand) Ltd., The sample size is 370 employees (Taro Yamane.1970). Simple random sampling was conducted to collect the data. Variables 1. Independent variable was job characteristics containing 5 dimension as skill variety, task identity, task significance, autonomy, and feedback. 2. Dependent variable was Organizational commitment. Research instrument Instrument was the questionnaire for the employees of Fujikura Electronics (Thailand) Ltd. to answer the question. The questionnaires were designed to have both closed-end questions which providing answers to the respondents and openedend questions to allow them to comment and suggestion. There are four parts of the surveys listed as following details: Part 1: The questionnaire comprised closed-end, asking about personal factors of the employees of Fujikura Electronics (Thailand) Ltd. It is a checklist questionnaire including, gender, age, marital status, education, position, job experience, and monthly income. Part 2: The questionnaire comprised closed-end, asking about job characteristics which it designed into 5 section, totally 27 questions and composing of Likert’s Five Rating Scale (Rensis Likert) which is ranging from 1-5 score. Part 3: The questionnaire comprised closed-end, asking about the organizational commitment of the employees in Fujikura Electronics (Thailand) Ltd. which it designed into 3 sections, each section contains with 5 questions, totally 15 questions. It consists of Likert’s Five Rating Scale theory (Rensis Likert) which is ranging from 1-5 score. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Part 4: The questionnaire comprised opened-end questions, asking the respondent to give an opinion, comment and others suggestion in order to apply the information to improve and develop for this study. 4. The Findings Data analysis was performed with statistical tests. The results showed that: The personal factors of respondents are set out in Table 1. The sample consisted of female (286), age average during 20 years – 30 years and consisted of Single (n=211) and Marriage (n=143). Approximately 59.2% of respondents indicated that employee’s education were Bachelor’s degree, follow by High school/ Certificate and Diploma at 21.1% and 13.2%,respectively .Job experience is under or equal 3 years with monthly income less than 20,000 baht. Table 1: Personal Factors Numbers Individual Factors 1. Gender Male Female Total 2. Age Over 20 years - 30 years Over 30 years – 40 years Over 40 years Total 3. Marital Status Single Marriage Widow / Divorced /Separated Total 4. Education Secondary school or lower High school/ Certificate Diploma Bachelor’s degree Above Bachelor’s degree Total 5. Position Operation Officer Leader Supervisor Engineering Manager Level ups Total 6. Job Experience Under or equal 3 years Percentage 84 286 370 22.7 77.3 100 175 156 39 370 47.3 42.2 10.5 100 211 143 16 370 57 38.6 4.4 100 9 78 49 219 15 370 2.4 21.1 13.2 59.2 4.1 100 104 117 29 44 66 10 370 28.1 31.6 7.8 11.9 17.8 2.7 100 122 33 Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Over 3 years – 5 years Over 5 years – 10 years Over10 years Total 7. Monthly Income Under or equal 10,000 baht Over 10,000 baht – 20,000 baht Over 20,000 baht – 30,000 baht Over 30,000 baht Total 45 99 104 370 12.2 26.8 28.1 100 7 216 116 31 370 1.9 58.4 31.4 8.4 100 Table 2: Mean ( X ), Standard deviation (S.D.), Level and Rank of job characteristics Job Characteristics X S.D. Level Ranking Skill Variety 3.785 0.593 High 3 Task identity 3.895 0.598 High 2 Task Significance 3.987 0.673 High 1 Autonomy 3.682 0.696 High 4 Feedback 3.321 0.733 Moderate 5 Overall 3.734 0.504 High The result in Table 2 above reveals that the overall job characteristics are high level. To consider each dimension, indicates that task significance is the highest level, followed by task identity, skill variety and autonomy respectively. For Feedback found at moderate level. Table 3: Mean ( X ), Standard deviation (S.D.), Level and Rank of the organizational commitment of employees Organizational Commitment X S.D. Level Ranking Affective commitment 3.803 0.716 high 1 Continuance commitment 3.332 0.777 moderate 3 Normative commitment 3.607 0.752 high 2 Overall 3.581 0.689 high The result in Table 3, shows that the overall of organizational commitment is high level. To consider each component of commitment indicates that affective commitment is the highest followed by normative commitment and continuance commitment, respectively. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 Table 4: Multiple linear regression analysis of job characteristics factors affecting with organizational commitment Factors bj t p-value Constant 0.600 2.689 0.008** Skill Variety 0.074 1.164 0.245 Task Identity 0.195 2.964 0.003** Task significance 0.171 3.097 0.002** Autonomy 0.116 2.124 0.034* Feedback 0.251 5.068 0.000** 2 R = 0.606 ; R = 0.368 ; SEE = 0.552 ; F = 42.338 ; p-value = 0.000** Remark * Significant statistic level .05 ** Significant statistic level.01 The result in Table 4, it indicated that all job characteristics dimensions can explain the variation of the organizational commitment at 36.80 percent. The independently, feedback, task significance, task identity had a significant at 0.01 and autonomy had a significant at 0.05.This four dimensions were proven a positive correlation between job characteristics and organizational commitment while skill variety was demonstrated to be not significantly related with Organizational commitment. 5. Conclusion Job characteristics have a high influence on the overall organizational commitment of employees of Fujikura Electronics (Thailand) Ltd. The researcher classifies the job characteristics as the theory of Hackman and Oldham (1975) consisting of 5 dimensions: skill variety, task identity, task significance, autonomy, and feedback. The research results can be concluded as following: Feedback – From the study, it is founded that feedback affects the organizational commitment of employees of Fujikura Electronics (Thailand) Ltd. at 0.01 statistical significance. The researcher considers that the employee knowing feedback from managers and colleagues in both positive and negative sides be compared as a motivation for the employee’s operation and related with the study of Newstorm & Davis (1997) who point of view that the important point of feedback should be balancing in both positive and negative.Moreover, they should be done at that time in order to get more effective. They clearly specify their goals relating to the study of Hackman and Oldham (1975). Feedback plays the most significant role to improve and increase the operation efficiency. Moreover, Werther&Davis (1993:152) added that to give feedback was like giving the employee an advice about working. It makes them have the motivation to do their assigned work better. Task significance – From the study, it is founded that task significance has an impact on the organizational commitment of employees of Fujikura Electronics (Thailand) Ltd. at 0.01 statistical significance. The researcher considers that task significance affects the employee to realize that their assigned works are meaningful and necessary for the organization’s existence. Obligation and goal make the employee conceive that their assigned works are essential and consider that it would be an influence on people at large in both direct and indirect ways. The employee has to be much cautious and careful in work. Hackman and Oldham (1975.) specified that the amount of work affect living and the operation of the individual who work in the same organization including other people. Encouraging the employee to realize value and importance of work makes them see their value as well. Hodgetts (1999) supported that whenever employees have a good motivation at work. It is Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 dedicated to build morale happily in job and high satisfaction. Because of their perceived work assignment is one of the most important in the organization’s achievement. Task identity – From the study, it is found that task identity has an influence on the organizational commitment of employees at 0.01 statistical significance because the employee has participated in the assigned work from the beginning to the end processes. The employee works by holding to the organization’s benefits and their colleagues. The work giving them success is clearly assigned conforming to the theory of Hackman and Oldham (1975). The theory said that to assign work to the employee in every process, it is able to observe and estimate the achievement promptly furthermore, the employee will be proud in their successful works bringing about the organizational commitment eventually. Newstorm, J.W. & Davis,K. (1997) definite that task identity is the job which it combine all the working process, from beginning to end process. The employee will working till complete the job, they can specify that outputs is belong to them. They will be proud of themselves, satisfaction in job and yield to be high productivity. Autonomy – From the hypothesis result, it is found that job characteristic of autonomy has an impact on the organizational commitment of employees at 0.05 statistical significance due to the fact that the employee of Fujikura Electronics (Thailand) Ltd. has independence to plan their works and choose the solution ways by themselves. They completely have a chance to give their opinions or suggestions about the operation; besides, they have the influence to make a decision about works and assign work to their lower position employees according to the individual’s role and responsibility (Hackman and Oldham, 1975). This makes the employee satisfies with the operation and sees value in themselves that they appropriate to be trusted by the organization to make a decision in working independently (Thompson,1993). Skill variety – From this study, it is found that skill variety does not affect the organizational commitment of employees in statistical significance. Nevertheless, it influences in positive ways owing to the fact that Fujikura Electronics (Thailand) Ltd. is an electronic components manufacturer. The organization’s job characteristic is a complicated work having many processes. It requires knowledge, skills, proficiency, and varied competences to operate in daily work situations indeed. Thus, the employee will not boring but realize that their assigned works are challenging their talents which revealed by Hackman and Oldham (1975) . Recommendation From the study of job characteristic affecting the organizational commitment of employees of Fujikura Electronics (Thailand) Ltd. The research has the suggestions as following: 1.Fujikura Electronics (Thailand) Ltd. is an electronic components manufacturer. The organization’s job characteristic is a complicated work having many processes. It requires knowledge, skills, proficiency, and varied competences to operate in daily work situations. Consequently, the organization has to specify the employee’s role obviously and plan their works for the employee appropriately as a saying “put the right man into the right job”. In addition, the organization should launch policies to decrease work processes for operation quickness and reduce the complicated work processes that may support the employee to work efficiently and do not boring in work. Proceedings of Annual Tokyo Business Research Conference 15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2 2.The organization is necessary to place importance to encourage and support the employee to do activities for developing the relationship between them and their colleagues to motivate the employee’s working and their unity. The relationship between the colleagues will have an impact on reaching the organization’s purposes and goals and will support the organizational commitment of the employee. 3.To evaluate the employee’s achievement, it is necessary to be clear and checkable. If the employee has any suspicious, the organization has to answer and explain the questions. Therefor, the employee will realize that the organization care of them equally. Suggestion for Future Research 1.To study about the organizational commitment of employees of Fujikura Electronics (Thailand) Ltd., the example group is in only Ayutthaya branch. 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